Three No-Brainer Dividend Stocks to Buy Right Now

Have you ever been put off from investing by the prospect of risk? Many people have. The thought of losing your initial investment is scary. Fortunately, you don't have to take on much risk to generate a solid return.

All investments carry some risk, but dividend paying stocks, particularly those that raise their dividends regularly year after year, are one of the safest ways to grow your wealth in a low-stress way.

With these stocks, you simply buy some shares, set up a dividend reinvestment plan, and let your money go to work for you. The stocks that focus on growing their dividends are often the bluest of the blue chips.

These are stocks you hold expressly for the dividend; it's not just a nice bonus. And the three I want to talk about here are no-brainers for adding to your own dividend portfolio.

Image source: Getty Images.

Boring, important, profitable

Boring but important companies are greatly underappreciated. These are businesses you wouldn't spare a second thought on, and they don't generate headlines. But they all provide an absolutely essential product or service.

American States Water (NYSE: AWR) is the epitome of a boring but important company. For about 90 years, it has provided water and wastewater services along with power utilities to California and a handful of other states, including a dozen military bases across the country.

Most importantly for our purposes, it has paid a dividend since 1931 and has raised it every year for 70 years running.

This means that not only is American States Water a Dividend King -- a company that has raised its dividend annually for 50 years in a row -- it's also at the top of the list with the longest streak, a Dividend King of Kings if you will.

At the current share price, that dividend yields 2.7%, and the company's payout ratio sits at a comfortable 56.2%, which means it's not straining itself to continue paying its dividend.

Because even with its healthy dividend payment, American States Water is still running an operating margin of 30.9% and a net margin of 20.4%. It also grew its earnings per share (EPS) in its latest reported quarter (the 2025 third quarter) by 11.6% year over year.

It will take another 30 years, so it's not happening anytime soon, but this could be the first company to reach 100 consecutive years of dividend increases. What do we call it then? Dividend Emperor perhaps? Regardless, give it a look if you want a low-stress investment.

The charging ram

American States Water is a great dividend grower, but its yield is a little low for a company totally focused on generating shareholder returns through its dividend.

That's why you might consider adding a higher-yielding dividend payer to your portfolio to compliment the safety of a Dividend King. And for that, a good partner to American States Water is T. Rowe Price Group (NASDAQ: TROW).

T. Rowe Price was founded in 1937 and has provided financial services ever since. Today it holds $1.78 trillion in assets under management (AUM), making it one of the top 25 asset management companies in the world.

At current prices, T. Rowe Price pays a dividend that yields 5.3%, and since 2022 it has lowered its payout ratio from 71.6% to 55% which means it has become an even safer prospect.

The company is a steady growth stock that pays a dividend, and its balance sheet reflects that. For 2025, net revenue grew 3% to $7.31 billion. Operating income fell slightly for the year, but the company maintains an operating margin of 31% and a net margin of 28%.

The company's logo is a ram, but there's every reason to be bullish about T. Rowe Price. Give it a look if you want a higher-yielding dividend.

The other cola

Whether your preference when it comes to soda is either Coke or Pepsi, PepsiCo (NASDAQ: PEP) is a company you should consider adding to your portfolio. Its yield sits at 3.38% at current prices, so it slots in between American States Water and T. Rowe Price.

PepsiCo is also likely the riskiest of these three companies; in 2025, it paid out $7.92 billion in dividends while its operating cash flow as of the end of the fourth quarter of 2025 was $6.62 billion. That gives it a payout ratio of 105%.

But note that PepsiCo did spend $1.65 billion (net) to acquire the prebiotic-soda brand Poppi in May 2025, so that likely skewed its cash flow numbers for the year. And it did see its revenue grow 5.6% in the fourth quarter and 2.3% for the full year.

Its EPS declined 14% over the whole of 2025, but did surge 68% in the fourth quarter, hinting at some promising momentum if PepsiCo can carry over that growth into 2026.

So the company is a mixed bag in terms of its balance sheet, but it has raised its dividend for 53 years running, and I don't see that stopping anytime soon. And without a $1.65 billion acquisition on its balance sheet, I anticipate its payout ratio will be looking better come the end of 2026, as historically it has been in the low to mid 70% range since 2019.

James Hires has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends T. Rowe Price Group. The Motley Fool has a disclosure policy.