2 No-Brainer Dividend Stocks to Buy Right Now

Dividend stocks are great tools to help you achieve financial freedom. Quality companies with a long record of making dividend payments will automatically deposit cash in your account, usually on a monthly or quarterly schedule. And it's a great time to go dividend hunting, because there are elite dividend payers offering high yields.

Here are two top dividend stocks to buy right now.

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1. Realty Income

For dividend investors, there's a lot to like about Realty Income (NYSE: O). Since 1969, it has paid a dividend every month, and it's currently on a 30-year streak of annual increases. This is a real estate investment trust (REIT), which means the company must pay out at least 90% of taxable income to shareholders. Realty Income's most recent monthly dividend of $0.27 per share yields 4.92% annually.

This long history of dividend payments reflects a well-diversified property portfolio. Realty Income owns properties that serve over 1,600 clients. Some of its top clients include Dollar General, Wynn Resorts, and FedEx. These businesses can withstand economic rough patches, helping Realty Income maintain consistent dividends for shareholders.

To drive growth, Realty Income is expanding in Europe, where it is finding lower borrowing costs and more attractive investment yields than in the U.S. market. Over 70% of its investments last quarter were made in Europe, yielding a weighted-average cash yield of 8%. The company uses a proprietary tool powered by artificial intelligence (AI) for underwriting and managing its operations, which should also lead to steady cash flows and dividends.

Overall, Realty Income boasts high occupancy rates and has prioritized maintaining a strong balance sheet without using excess leverage. The prospect of lower interest rates, following the Federal Reserve's two rate cuts last year, is a near-term catalyst for the stock. Its consistent dividend history and high yield make it an attractive income investment.

2. PepsiCo

PepsiCo (NASDAQ: PEP) has a strong portfolio of brands across beverages and snacks. This has supported growing sales and dividend payments for decades. PepsiCo has increased its dividend for 54 consecutive years, and just announced a planned 4% increase to its annual dividend (paid quarterly) starting in June. This will bring its full-year dividend to $5.92 per share, or a forward yield of 3.46%.

Consumer goods companies have wrestled with high inflation and choppy consumer spending over the past few years. But this may make PepsiCo a stronger business and dividend payer in the long run. PepsiCo is focused on achieving productivity gains and improving the affordability of its products. The company is also looking to expand shelf space in stores within its Frito-Lay business. All these efforts are expected to drive strong sales and higher earnings in 2026.

Sales growth accelerated in the fourth quarter, up 2% year over year on an adjusted (non-GAAP) basis. It also reported double-digit growth in adjusted earnings per share. Analysts expect earnings to come in at $8.62 in 2026, indicating a payout ratio of 69% -- more than enough coverage to support the dividend.

The recent improvements in business performance suggest a safe entry point for dividend investors to initiate a position in the stock. PepsiCo's strong brands and improving financials should make the stock a solid income investment for years to come.

John Ballard has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.