8 Dividend Stocks Every Investor Should Consider

High-yield stocks receive all the attention, but the best dividend portfolios strike a balance between current income and long-term compounding. These eight stocks span multiple sectors and investment styles, from low-yield growth machines to high-yield income generators.

Each stock offers a different reason to own it -- and together, they form the foundation of a diversified dividend strategy. Read on to find out more about these eight incredible dividend stocks.

Image source: Getty Images.

1. The premium payments network

American Express (NYSE: AXP) operates a closed-loop payments network, connecting cardholders directly to merchants without the involvement of third-party processors. The stock yields just 0.87% with a 16% payout ratio, leaving enormous room for dividend growth. The company's affluent customer base and premium brand create pricing power that few financial services companies can match.

2. America's largest bank

JPMorgan Chase (NYSE: JPM) is the largest U.S. bank by assets, offering a range of services that include investment banking, commercial banking, asset management, and consumer financial services. With a 2% yield and 28% payout ratio, JPMorgan balances current income with capital appreciation. The bank's scale and diversification make it a cornerstone holding for dividend investors seeking exposure to the financial sector.

3. The membership moat

Costco (NASDAQ: COST) operates warehouse clubs that generate most of their profit from membership fees rather than product markups. The 0.5% yield may seem tiny, but the 27% payout ratio and history of massive special dividends -- $15 per share in 2023 and $10 in 2020 -- make this low-yield stock a major shareholder return play. Costco's fanatically loyal membership base has funded 20-plus consecutive years of regular dividend increases.

4. The data monopoly

S&P Global (NYSE: SPGI) provides credit ratings, benchmarks, and analytics that financial markets can't function without. The stock yields 0.8% with a 28% payout ratio -- and has raised its dividend for 52 consecutive years. That track record reflects a business model built on recurring revenue and near-monopolistic market share alongside Moody's.

5. The biotech income machine

AbbVie (NYSE: ABBV) develops and markets biopharmaceuticals, including immunology blockbusters Humira, Skyrizi, and Rinvoq. The 3% yield and 53 consecutive years of dividend increases -- a streak inherited from parent company Abbott Laboratories -- make it a rare half-century streak in the healthcare sector. AbbVie's pipeline depth and Botox acquisition provide multiple growth drivers beyond its legacy immunology franchise.

6. The high-yield pharma giant

Pfizer (NYSE: PFE) is one of the world's largest pharmaceutical companies, selling vaccines, oncology treatments, and cardiovascular drugs globally. The 6.7% yield is among the highest of any blue chip stock, though the payout ratio is currently near 98% -- meaning the dividend is fully exposed to earnings volatility. For income-focused investors willing to accept that risk in exchange for substantial current yield at a depressed valuation, Pfizer fits the bill.

7. The smoke-free pivot

Philip Morris International (NYSE: PM) sells cigarettes and smoke-free products like IQOS heated tobacco and ZYN nicotine pouches outside the United States. The 3.8% yield comes with a payout ratio of nearly 78%, which is typical for tobacco companies that usually return most of their earnings to shareholders. Philip Morris's aggressive push into smoke-free products differentiates it from domestic peers and provides a growth angle that pure tobacco lacks.

5. The dividend growth machine

Nvidia (NASDAQ: NVDA) designs GPUs and artificial intelligence (AI) accelerators that power data centers, gaming, and autonomous vehicles worldwide. The 0.02% yield may seem laughable, but the 1% payout ratio and substantial free cash flow -- with quarterly revenue now exceeding $35 billion -- suggest the dividend can grow substantially for decades. This makes Nvidia a stealth dividend compounder, hidden within a growth stock, with essentially unlimited capacity for future hikes.

American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. George Budwell, PhD has positions in AbbVie, Abbott Laboratories, Costco Wholesale, JPMorgan Chase, Nvidia, Pfizer, and Philip Morris International. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, Costco Wholesale, JPMorgan Chase, Moody's, Nvidia, Pfizer, and S&P Global. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.