5 Magnificent Dividend Stocks to Buy in September (1 Yields 5.3%)

Between artificial intelligence (AI) momentum, a strong U.S. consumer, high inflation, and an on-and-off war with Iran, there are plenty of ways the market could go. For now, it's still in growth mode and up 13% year-to-date. However, the threat of a market pullback remains in the background, and it could happen in any form, whether dip, correction, or crash, at any time.

Investors should be prepared for all situations with a well-diversified portfolio that includes top dividend stocks. Coca-Cola (NYSE: KO), Realty Income (NYSE: O), Target (NYSE: TGT), Procter & Gamble (NYSE: PG), and Home Depot (NYSE: HD) are my top picks for September.

Image source: Target.

1. Coca-Cola

Coca-Cola is the quintessential Dividend King (a stock that has raised its dividend payout for at least 50 years running). The iconic beverage maker has raised its dividend for 64 years consecutively, under all kinds of conditions, and the stock yields 2.4% at the current price.

It's considered a safe stock, and it doesn't always beat the market. However, it's been having a banner year, up 27% year to date, trouncing the market.

Investors are loving its resilience in the face of tough inflation and other challenges. Last year, when new tariffs were announced, it had an edge over the competition due to its localized production model. In today's high-inflation environment, loyal fans continue to buy its beloved brands, underscoring why it's been a top stock for decades.

In the second quarter, for example, revenue increased 5% year over year, while non-generally accepted accounting principles (GAAP) comparable operating Margin (Non-GAAP) increased from 30.7% to 31.9%.

2. Realty Income

Realty Income is one of the few dividend stocks that pay monthly, an attractive perk on top of its already top-notch dividend. It's the one stock on this list that yields 5.3% at the current price.

It's a real estate investment trust (REIT) and owns nearly 16,000 properties globally, making it one of the largest REITs in the world. It specializes in retail, specifically essential retail such as grocery and convenience stores, and its top tenants include 7-Eleven and Walgreens. Retail makes up almost 80% of its portfolio, but it's increasingly diversifying into other categories that expand its addressable market, including data centers.

Realty Income has paid a dividend monthly without skipping a beat for more than 56 years, and it has raised it for the past 115 quarters.

3. Target

Target's been going through some tough times, but it seems to be on the brink of a turnaround. The market was enthusiastic about its 2026 fiscal second quarter (ended Aug. 1) results, and the stock is up 68% this year. However, it still trades at only 17 times trailing 12-month earnings, implying there's more room to run.

The indications of a proper recovery on the way include a 3.8% year-over-year increase in comparable sales (comps), and more specifically, a 2.7% increase in store comps. Digital comps were up 8.7%, and they've carried the company for a while. More people coming back to stores is what the market is looking for.

Profitability is also back on the rise, and even adjusted for a tariff benefit, earnings per share (EPS) increased 20% over last year in the quarter. Even better, management raised its full-year guidance for sales growth, operating margin, and EPS.

Target is a Dividend King and has raised its dividend for the past 54 years, and it yields 2.8% at the current price.

4. Procter & Gamble

Procter & Gamble owns many of the brands you know and love in categories that include beauty, home care, and healthcare, including Crest toothpaste, Pantene shampoo, and Tide laundry detergent. It's consistently reliable for high sales, and it's constantly upgrading its products and marketing to stay dominant.

It's not a fast-growing company, but it usually manages low-single-digit increases, such as its 3% year-over-year sales increase in the 2026 fiscal fourth quarter (ended June 30) and a 2% EPS increase.

It's also a Dividend King, having raised its dividend for the past 70 years, and there is only one other company on the stock market that has a longer track record. At the current price, Procter & Gamble's dividend yields 3%.

5. Home Depot

Home Depot is the largest home improvement chain in the world, with 2,300 stores in North America. It's facing a prolonged period of challenge as the real estate market remains under pressure, but it's demonstrating strength under adversity.

Image source: Home Depot.

In the 2026 fiscal second quarter (ended Aug. 2), sales were up 5.7% year over year, and comps were up 1.7%. It maintained its full-year guidance of a 3.5% sales increase at the midpoint, with comps up 1% at the midpoint. It's planning to open 15 stores this year, a show of resilience, but increasing comps is a positive sign that not all the growth is coming from new stores, even in the tough growth climate.

Home Depot has been paying a dividend since 1987, and although it went through periods without raising it, it has done so for the past 16 years despite several bouts of difficulty, including today. At the current price, the dividend yields 2.9%, and with the stock down 23% over the past year, Home Depot is a great buy on the dip.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot, Realty Income, and Target. The Motley Fool has a disclosure policy.