Investing in dividend stocks can provide a stable source of income and an important part of an investment portfolio. However, when selecting dividend-paying stocks, it is important to consider not only the amount of the dividend, but also the long-term prospects of the company.

For example, Intel recently suspended dividend payments, an example of a situation where profitability issues and investment in new projects can affect a company's ability to pay dividends. Fortunately, there are other dividend stocks that can offer stable and secure income.

Abbott Laboratories $ABT-0.6%

Abbott Laboratories

ABT

$114.15 -$0.73 -0.64%

Capital Structure

Market Cap

199.9B

Enterpr. Val.

207.6B

Valuation

P/E

36.2

P/S

4.9

Open $117.50

Day range $114.52 - $117.50

52 week range $89.67 - $121.64

One of the safest dividend stocks is undoubtedly Abbott Laboratories. This healthcare giant has announced a dividend increase for the 52nd consecutive year, and its dividend-paying history spans an incredible 100 years. Abbott, which generates revenue from various segments such as nutrition, diagnostics, pharmaceuticals, and medical devices, is a well-diversified and stable company.

In the most recent period ended June 30, Abbott posted solid 4% revenue growth, with the medical device segment growing 10%. The company received approvals for new products, including two new continuous glucose monitoring devices, suggesting further room for growth in the future. While the dividend yield of 2% may look low, it still beats the S&P 500 average of 1.4%. This makes Abbott an ideal choice for investors looking for stable and growing income.

ExxonMobil $XOM+1.2%

Exxon Mobil

XOM

$116.00 $1.42 +1.24%

Capital Structure

Market Cap

509.1B

Enterpr. Val.

525.2B

Valuation

P/E

13.7

P/S

1.5

Open $114.11

Day range $113.81 - $115.62

52 week range $95.77 - $123.75

Another attractive option for dividend investors is oil and gas company ExxonMobil. With a yield of 3.2%, it offers more than double the S&P 500 average. While ExxonMobil doesn't have as long a history of dividend increases as Abbott, it has raised dividends for 41 consecutive years. With a payout ratio of just 45%, the company still has plenty of room to continue this trend.

Despite the volatility in oil prices and its impact on the business, Exxon continues to increase its dividend. The recent $60 billion acquisition of Pioneer Natural Resources has strengthened Exxon and allowed it to achieve lower production costs in the coming years. Goldman Sachs analysts expect oil demand to continue to grow through 2034, suggesting that investing in this oil and gas company may still be interesting.

AT&T $T-1.7%

AT&T

T

$21.36 -$0.37 -1.70%

Capital Structure

Market Cap

155.8B

Enterpr. Val.

300.2B

Valuation

P/E

12.5

P/S

1.3

Open $21.84

Day range $21.64 - $22.00

52 week range $14.12 - $22.34

AT&T stock offers the highest return on this list, at 5.7%. This yield has decreased in recent months due to the rising stock price, but it is still higher than average. AT&T is gradually recovering from past problems and its financial situation is improving. In the most recent quarter, which ended in June, the company achieved free cash flow of $4.6 billion, up from $4.2 billion the previous year.

AT&T is currently focusing its efforts on providing quality telecom services instead of making expensive investments in streaming services, making the company a more stable option for investors looking for solid dividend income. Although AT&T stock is down 34% since 2020, its improved financials suggest it could be an attractive investment in the future.

Disclaimer: You'll find plenty of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

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