I Just Invested $4,600 Across 3 Top Dividend Stocks. Here’s What I’m Loading Up on Right Now.

There are lots of warning signs flashing in the stock market these days. That's causing me to shift my portfolio to a more defensive posture. I sold off several lower-conviction holdings. I'm redeploying some of the proceeds into high-quality dividend stocks.

I just invested over $4,600 across Abbott (NYSE:ABT), Procter & Gamble (NYSE:PG), and Paychex (NASDAQ:PAYX). Here's why I'm loading up on these top dividend stocks right now.

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Why I'm getting defensive and investing in dividend growers

While the stock market has continued to move higher this year (the S&P 500 is up more than 13% year-to-date), there are some signs that we could be approaching a near-term top. The CAPE ratio is at its second-highest level in history, while margin debt is soaring. Meanwhile, inflation remains high, which recently led the Fed to hike rates for the first time in three years. All these signs seem to point to potential for more volatility ahead.

That's leading me to shift my portfolio to a more defensive posture by adding more ballast. One of the best sources of portfolio stability without giving up long-term return potential is companies that routinely increase their dividends. According to data from Ned Davis Research and Hartford Funds, dividend growers have delivered an average annual total return of 10.2% over the last 50 years. That compares to a 4.2% annual return for dividend non-payers. Meanwhile, dividend growers have an average beta of 0.89, while dividend non-payers have an average beta of 1.18. A beta below 1.0 means a stock is less volatile than the S&P 500, while a beta above that level implies higher volatility.

A healthcare dividend stalwart

Abbott has been a stellar dividend growth stock over the years. The healthcare giant has increased its payment for 54 consecutive years, qualifying it as a Dividend King, a company with 50 or more consecutive years of annual dividend increases. Abbott hasn't just been nudging up its payment to keep its streak alive. It hiked its payout by 6.8% last year and has grown its dividend by 70% since 2020.

The diagnostics, medical devices, nutritionals, and branded-generic medicines company generates highly resilient cash flows to support its 2.4% dividend yield (more than double the S&P 500's current level of around 1%). Abbott has historically grown its earnings per share at a nearly 10% compound annual rate over the last decade, driven by organic growth and value-enhancing acquisitions. Even if Abbott grows more slowly over the next decade, it could still double an investor's money given its currently attractive valuation. The company's durable cash flows and growing dividend are just what I'm seeking these days, which is why I just bought $1,000 of Abbott stock.

A supreme dividend stock

Procter & Gamble shares many of the same durable features as Abbott. Its portfolio of durable consumer brands (from Febreze to Pampers to Tide) produces resilient, steadily rising cash flows. That has supported P&G's rising dividend (70 straight years, including a 4% raise in early 2026).

The consumer household products giant currently trades at its lowest valuation in years and offers a nearly 2.8% dividend yield. I expect the payout to continue rising as the company grows its revenue and earnings (a mid-to-high single-digit core earnings-per-share growth target over the long term). Even at the low end, P&G could generate total annual returns approaching 10% when adding in its high-yielding dividend, which is why I recently bought more than $2,000 of P&G stock.

Collecting a steady dividend paycheck

Paychex is a leading provider of HR solutions, including payroll. The business services company generates very durable cash flow, which supports its high-yielding dividend (4.3% current yield). The company hiked its payout by 10% earlier this year, its fifth consecutive double-digit dividend increase. That strong combination of yield and growth led me to invest nearly $1,600 in Paychex stock.

The company has delivered double-digit compound annual growth in revenue and adjusted earnings per share over the last five years (10% and 13%, respectively). While Paychex expects its growth to slow a bit this year (mid-single-digit revenue growth and high-single-digit adjusted earnings-per-share growth), it has a very long growth runway ahead (an underserved market of over $100 billion). It's also leveraging AI to drive better outcomes for clients.

Loading up on high-quality dividend growth stocks

Abbott, P&G, and Paychex provide strong defense, with durable earnings backing their high-yielding, steadily rising dividends. That makes them ideal stocks to buy as the market may be entering a more volatile period. That's why I'm loading up on their shares, which should help make my portfolio less volatile while still delivering attractive total returns over the long term.

Matt DiLallo has positions in Abbott Laboratories, Paychex, and Procter & Gamble. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.