No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, October 2, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

The 4 Best Dividend Stocks to Buy Right Now

by TheAdviserMagazine
6 months ago
in Business
Reading Time: 5 mins read
A A
The 4 Best Dividend Stocks to Buy Right Now
Share on FacebookShare on TwitterShare on LInkedIn


With the market being whipsawed, now is a good time to look at some stocks with attractive dividends that could be a ballast in the rough seas. Tariffs remain front and center, and are likely to be the main near-term and medium-term driver of stocks.

Let’s look at four stocks with attractive yields to buy right now.

Two of the largest midstream master limited partnerships (MLPs) in the U.S., Energy Transfer (NYSE: ET) and Enterprise Products Partners, (NYSE: EPD) both pay robust distributions that are well covered by their distributable cash flow, which is operating cash flow minus maintenance capital expenditures (capex). Energy Transfer carries an 8.3% forward yield, while Enterprise’s yield is 7.4%.

Both companies are benefiting from increasing natural gas demand and have a largely fee-based business (over 80%), often with minimum volume commitments or take-or-pay provisions (the company who wants to ship its product has to pay for their reserved space in a pipeline even if it doesn’t use it). This helps protect their cash flow during periods of energy or economic weakness. Both also have solid balance sheets, and their distributions are well covered by their distributable cash flow. Enterprise, meanwhile, has a long history of navigating various energy and economic environments, increasing its distribution 26 straight years.

That said, tariffs will impact the companies. Both have moved into growth mode, given the opportunities in front of them. Tariffs on products like steel will increase project costs. This could hurt project returns if they are unable to pass through the costs to customers. Both companies also export natural gas liquids (NGLs), which could be impacted by any retaliatory tariffs.

These are two solid companies trading at attractive valuations that are poised to benefit from the continued demand for natural gas stemming from the rise of artificial intelligence (AI). They also trade at attractive valuations. Energy Transfer trades at an enterprise value (EV)-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) multiple of 8.1 times, while Enterprise trades at 9.8, using the same financial metric. This is well below the average 13.7 times EV/EBITDA multiple that midstream MLPs traded at between 2011 to 2016 when they had worse balance sheets and narrower distribution coverage ratios.

Image source: Getty Images,

Philip Morris International (NYSE: PM) is a growth stock in a defensive industry with an attractive dividend. The stock currently has a 3.6% yield.

The company has very minimal exposure to tariffs. Its traditional cigarettes and IQOS heated tobacco units (HTUs) are sold and manufactured outside of the U.S., while its Zyn nicotine pouches are sold and manufactured within the U.S. It also has minimal exposure to China where it licenses its Marlboro brand to the China National Tobacco Company (CNTC), which manufactures it along with its own Chinese domestic brands.

Its growth is being driven by its smokeless portfolio led by Zyn and IQOS. Zyn has been red hot, with nicotine pouch volumes climbing 46% last quarter to 183.8 million cans, while Philip Morris forecasts Zyn volumes to increase 34% to 41% this year, or 780 million to 820 million cans. IQOS volumes, excluding distributor and wholesaler inventory movements, rose 13% last quarter. The company is looking to bring IQOS to the U.S. after buying back the rights from Altria, so this could be a nice future growth driver.

The cherry on top, though, is that both Zyn and IQOS have much better unit economics than the company’s combustible cigarettes. According to Philip Morris, Zyn has six times the “product contribution level” as cigarettes, while IQOS has between 2 to 2.5 times.

At the same time, the stock is attractively valued, trading at a forward price-to-earnings (P/E) ratio of just over 21 times this year’s analyst consensus, with a price/earnings-to-growth (PEG) ratio of under 0.4. Stocks with PEGs below 1 are typically considered undervalued.

If there is one thing people are unlikely to give up if a recession hits, it’s their cellphone service and broadband connections. This is why Verizon Communications (NYSE: VZ) and its 6.4% yield are attractive in this current market.

The telecom company has seen modest overall revenue growth due to churn from its legacy consumer and business wireline businesses, as well as the end of the Affordable Connectivity Program, which helped subsidize wireless internet services for lower-income households. However, it has seen strong subscriber growth for both its wireless and broadband businesses.

Verizon is also looking to leverage its nework to serve the artificial intelligence (AI) market with its AI Connect solution, where it will use its existing fiber and 5G assets to help deliver AI workloads. The company notes that Alphabet and Meta Platforms are using Verizon’s AI Connect solution to add capacity to support their AI workloads. The company is also in the process of buying Frontier Communications, which will expand its fiber network and support its “intelligent edge network” strategy for AI and the Internet of Things (IOT). In addition, Verizon recently said that using AI assists from Alphabet was reducing customer service call times, giving representatives more time to sell additional products, which is leading to more sales.

More than anything, though, Verizon is a cash-flow machine. It generated $19.8 billion in free cash flow last year, well above the $11.2 billion in dividends it paid out. This gives the company the opportunity to continue to raise its dividend, buy back stock, pay down debt, or invest in its business. At a forward P/E of 9 times, the stock is trading well below rival AT&T’s valuation with similar revenue growth, making it a strong stock to own in this market.

Before you buy stock in Energy Transfer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 5, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Alphabet, Energy Transfer, Enterprise Products Partners, and Philip Morris International. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool recommends Enterprise Products Partners, Philip Morris International, and Verizon Communications. The Motley Fool has a disclosure policy.

Stock Market Crash: The 4 Best Dividend Stocks to Buy Right Now was originally published by The Motley Fool



Source link

Tags: Buydividendstocks
ShareTweetShare
Previous Post

9 Hidden National Park Week Perks to Supercharge Your Savings Now

Next Post

Is It Financial Infidelity If You Hide Your Shopping Haul From Your Partner?

Related Posts

edit post
Expert breaks down the 2025 tax changes retirees should know

Expert breaks down the 2025 tax changes retirees should know

by TheAdviserMagazine
October 2, 2025
0

Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. Retirees face a...

edit post
Biden’s Florida legacy: An economic boom, a magnet for immigrants and a solidly conservative red state

Biden’s Florida legacy: An economic boom, a magnet for immigrants and a solidly conservative red state

by TheAdviserMagazine
October 2, 2025
0

After Paola Freites was allowed into the U.S. in 2024, she and her husband settled in Florida, drawn by warm...

edit post
Market trading guide: Buy Hindustan Zinc, Fortis Health and 2 more stocks for up to 9% gains – Stock Ideas

Market trading guide: Buy Hindustan Zinc, Fortis Health and 2 more stocks for up to 9% gains – Stock Ideas

by TheAdviserMagazine
October 2, 2025
0

India’s benchmark indices, the Nifty and Sensex, ended their eight-day losing streak, led by private banks, auto, and IT stocks....

edit post
PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

PepsiCo’s new challenge: Making its chips and sodas colorful without artificial dyes

by TheAdviserMagazine
October 2, 2025
0

Pepsi has a new challenge: keeping products like Gatorade and Cheetos vivid and colorful without the artificial dyes that U.S....

edit post
What CEOs are saying about the government shutdown

What CEOs are saying about the government shutdown

by TheAdviserMagazine
October 2, 2025
0

Good morning. I was talking to a CEO over the phone yesterday about the potential business impact of a government...

edit post
Sign of the times as Swiss buy euros, not dollars

Sign of the times as Swiss buy euros, not dollars

by TheAdviserMagazine
October 2, 2025
0

The Swiss National Bank may be a special case, but if you were looking for a switch in the behavior...

Next Post
edit post
Is It Financial Infidelity If You Hide Your Shopping Haul From Your Partner?

Is It Financial Infidelity If You Hide Your Shopping Haul From Your Partner?

edit post
Look up, Cash in: 5 Money Insights Inspired by the Lyrid Meteor Shower

Look up, Cash in: 5 Money Insights Inspired by the Lyrid Meteor Shower

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Expert breaks down the 2025 tax changes retirees should know

Expert breaks down the 2025 tax changes retirees should know

0
edit post
Letting Markets Work: Urban Planning

Letting Markets Work: Urban Planning

0
edit post
Can BNB, Solana, and Dogecoin Prices Continue Climbing in October?

Can BNB, Solana, and Dogecoin Prices Continue Climbing in October?

0
edit post
Hot stocks: Canada’s top performers in Q3 2025

Hot stocks: Canada’s top performers in Q3 2025

0
edit post
Stay Out of the Doghouse: 9 Lessons for Smarter Finances

Stay Out of the Doghouse: 9 Lessons for Smarter Finances

0
edit post
Maximizing Your Savings Account Interest Rate: Top Strategies

Maximizing Your Savings Account Interest Rate: Top Strategies

0
edit post
Expert breaks down the 2025 tax changes retirees should know

Expert breaks down the 2025 tax changes retirees should know

October 2, 2025
edit post
Stay Out of the Doghouse: 9 Lessons for Smarter Finances

Stay Out of the Doghouse: 9 Lessons for Smarter Finances

October 2, 2025
edit post
Can BNB, Solana, and Dogecoin Prices Continue Climbing in October?

Can BNB, Solana, and Dogecoin Prices Continue Climbing in October?

October 2, 2025
edit post
Maximizing Your Savings Account Interest Rate: Top Strategies

Maximizing Your Savings Account Interest Rate: Top Strategies

October 2, 2025
edit post
Letting Markets Work: Urban Planning

Letting Markets Work: Urban Planning

October 2, 2025
edit post
Biden’s Florida legacy: An economic boom, a magnet for immigrants and a solidly conservative red state

Biden’s Florida legacy: An economic boom, a magnet for immigrants and a solidly conservative red state

October 2, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Expert breaks down the 2025 tax changes retirees should know
  • Stay Out of the Doghouse: 9 Lessons for Smarter Finances
  • Can BNB, Solana, and Dogecoin Prices Continue Climbing in October?
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.