7 Dividend Stocks to Buy for a Rich Retirement

Dividend stocks offer investors a way to earn a steady income from their investments without selling their shares. Investors may also use them as long-term investments for retirement. There are many different types of dividend stocks, but some popular ones include utilities, real estate investment trusts (REITs), healthcare providers and consumer staples companies.

Here’s a list of companies you can invest in. They’ve got an excellent track record and a strong brand, which is why we think they’ll do well.

MCD McDonald’s Corporation $247.87
WMT Walmart Inc. $122.22
CAT Caterpillar Inc. $225.50
JNJ Johnson & Johnson $177.29
GPC Genuine Parts Company $139.70
ADP Automatic Data Processing, Inc. $220.55
KO The Coca-Cola Company $62.87

Dividend Stocks to Buy: McDonald’s (MCD)

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McDonald’s (NYSE:MCD) is a fast-food restaurant chain specializing in hamburgers, chicken, French fries, breakfast items, soft drinks and desserts.

It primarily sells cheeseburgers and fries, along with a separate breakfast menu. However, I’m sure most if us have been to McDonald’s at least once in our lives and have our own preferences — maybe you like the McChicken deal. However, McDonald’s has introduced many new products to attract customers looking for something different from their usual burger-and-fries orders in recent years.

McDonald’s is turning its attention towards healthier meals by introducing new menu items.

McDonald’s has been criticized for its unhealthy food offerings in the past. They have now introduced a new menu item: a salad with kale and other vegetables. This is opening up a host of new revenue streams for the company.

Meanwhile, McDonald’s, a Dividend Aristocrat from the S&P 500 with 25+ consecutive years of dividend increases, is in no danger of cutting its dividend anytime soon. Considering the qualities of McDonald’s Corporation, it is clear why it falls into the category of a Dividend Aristocrat. Having paid its first dividend in 1976 and raising it since, this company now presents four decades’ worth of consecutive dividends.

Walmart (WMT)

Image of Walmart (WMT) logo on Walmart store with clear blue sky in the background

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Walmart (NYSE:WMT) is one of the better-known Dividend Aristocrats, they have a strong brand that provides industry leadership and they have a history of raising dividends.

Walmart’s first-ever dividend was $0.05 per share in 1974. The following year, the rate jumped and has kept climbing steadily since then, currently paying out more than $2 per share. Today Walmart still boasts an impressive quarterly dividend of $0.56 per share for investors. The retailer has been issuing a dividend for 49 consecutive years, which is unique under any circumstances, especially when you consider its growth rates over the past few years.

Retailers have been struggling recently due to both Amazon’s (NASDAQ:AMZN) success and the coronavirus. Each of these things has hurt retailers, but it’s not all bad. Walmart’s one of the companies with a moat deep enough that can change their strategy and employ an aggressive online model. It has kept up with the times and uses a physical and online model.

Walmart has thrived in recent years due to its willingness to change and stay on top of the trend. Walmart invested heavily in creating its e-commerce platform, which offers high returns for shareholders. Many retailers are in danger of losing their business to Amazon — but not Walmart. Given their experience in this field, they have many potential ways to be more competitive and stand out from the competition.

Dividend Stocks to Buy: Caterpillar (CAT)

A Caterpillar backhoe at the top of a hill

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Caterpillar (NYSE:CAT) is a world-leading industrial company. For decades, Caterpillar has remained one of the most prominent Fortune 500 companies in the United States and the world. Caterpillar’s expertise ranges from construction and mining to diesel engines and material handling equipment, while they also produce gas turbines and industrial robots.

It is considered one of the most important companies in machinery manufacturing history. Today it is the largest manufacturer of construction and mining equipment globally. It is also one of the most valuable companies in America, with a market cap of around $120 billion.

Apart from its scale and history, there is another major reason to invest in Caterpillar. And that is President Joe Biden’s $1 trillion bipartisan infrastructure bill. Six months after the start of the Biden administration’s infrastructure plan, there are already 4,300+ different projects beginning. So, many more projects will start under this plan, and they will require Caterpillar machines to move forward.

It was announced that Caterpillar successfully made it on the Dividend Aristocrats list in 2019. It’s astounding the company accomplished this task despite its cyclical nature. The company has shown a level of endurance that is rare within the industry, surviving changes in business cycles.

Caterpillar management has always proven committed to returning cash to shareholders. Its competitive advantages help it raise its dividend year after year, even during rough global times.

Johnson & Johnson (JNJ)

Negative Press Presents a Buying Opportunity with JNJ Stock

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Johnson & Johnson (NYSE:JNJ) is a leading global health care company that has been in operation for over 130 years.

The company’s products include consumer health care products and medical devices, pharmaceuticals, medical diagnostic equipment and over-the-counter drugs. In addition to its pharmaceuticals business, the company also has many other lines of business spanning the consumer health care market, including baby products and adult diapers.

Johnson & Johnson is one of the world’s largest producers of medical devices and one of the largest manufacturers of prescription pharmaceuticals. The company is known for its innovations in medical devices and drugs, including the development of Tylenol. The company has operations worldwide and provides a range of medical products for treating disease and promoting wellness.

Johnson & Johnson is one of the most well-known companies in the world, so it’s no surprise that they offer a generous dividend. They are a health and personal care company that has been around for over 100 years. They have strong brands such as Band-Aid, Polysporin, Listerine, etc. The company’s 2.56% dividend yield is one of the best in the industry and sets them up nicely among other dividend-paying stocks.

Dividend Stocks to Buy: Genuine Parts Company (GPC)

A stack of auto parts

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Genuine Parts Company (NYSE:GPC) is a global manufacturer of auto parts and other related products. They have been in business for over a century and have been recognized as one of the top automotive companies in the world.

Genuine Parts Company has been able to maintain its position because they make quality parts that are affordable and reliable. They also offer discounts on their products to customers when they purchase more than they need.

The company is known for its innovative approach to manufacturing by using 3D printing, which has allowed them to produce high-quality parts with less time and effort.

Genuine Parts announced their latest earnings on Feb. 17th, 2022. It was yet another great quarter for the company. The company’s revenue is up nearly 13% year-over-year. Net income was $256 million, up from $171.2 million in the year-prior period.

Genuine Parts has a tough year in 2020 as the coronavirus hurt the economy. Despite the crisis, management has been doing a good job. Genuine Parts failed to meet key profit levels, but it managed to eke out a decent profit, which means the company is still able to raise its dividend in a healthy manner.

Automatic Data Processing (ADP)

In this photo illustration the stock market information of Automatic Data Processing, Inc. displays on a smartphone with the logo of Automatic Data Processing, Inc. ADP stock.

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Automatic Data Processing (NASDAQ:ADP) software is a common tool for HR managers. They help streamline workflow and provide better efficiency in data management.

The popularity of Automatic Data Processing software is rising steadily due to its many benefits. It helps streamline the workflow and provides better efficiency in data management.

The software has become a standard tool for HR managers, who use it to manage their workforce effectively and efficiently.

With the increasing use of AI and automation in the workplace, there has been a shift in how companies manage their human resources. Human resource management software has become a must-have for businesses as they help companies streamline their HR processes and make sure they are compliant with certain laws.

A recent study from Gartner (NYSE:IT) predicts that by 2020, 80% of all business will be managed by automation. This includes HR processes such as hiring, performance management and compensation. The company has so many uses that it’s hard to imagine its dividend being unsafe.

Dividend Stocks to Buy: Coca-Cola (KO)

hand holding a bottle of Coca-Cola (KO) against a red background

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The Coca-Cola Company (NYSE:KO) is the world’s largest beverage company. It is also the world’s largest soft-drink maker and the second-largest food and beverage company in revenue.

The only downside to Coca-Cola is the declining consumer preference for soda. Soda is no longer as popular with consumers in the U.S. and, as a result, Coca-Cola’s earnings growth has slowed down. Over the years, Coca-Cola has been trying to diversify its brand with sparkling beverages and they have seen success. So, although the company has slowed down, it’s still thriving.

Coca-Cola is not only a Dividend Aristocrat (which has increased dividends consecutively for 25+ years), but it’s also a Dividend King. These companies have raised their payouts to shareholders for 50+ consecutive years.

The only reason Coca-Cola is able to sustain itself through all this time is innovation. It is a great defensive play in the current environment.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.