The 7 Best Dividend Stocks to Buy for Your Grandkids (2024)

If you’re looking for some of the best dividend stocks for grandkids, now is the time to buy. After all, 2022 was an absolute disaster.

Whatever could have gone wrong went wrong. For many of us, 2022 became the year to forget.All thanks to sky-high inflation, rising interest rates, lingering pandemic challenges, war in Ukraine, slowing growth, higher chances for recession, and fed-up consumers.

Over the long term, if you’re looking for the bestdividend stocks for grandkids, with a long enough timeline and reinvestment of dividends, even a small investment can pay off big. In fact, here are seven you may want to consider.

AbbVie (ABBV)

AbbVie (NYSE:ABBV)had a strong 2022. I expect 2023 to be just as strong, even with nearing patent expirations on its Humira drug.

Helping ABBV just increased its quarterly dividend to $1.48 a share from $1.41, or $5.92 annualized. The stock has a current yield of 3.62%.

Sure, its $200 billion Humira drug lost protection in Europe and will face increased competition from biosimilars in 2023, but don’t write the stock off just yet. In fact, we have to remember that the company’sSkyrizi and Rinvoq drugs could bring in about $15 billion in sales over the next three years. That alone should take away the sting of Humira.

Enbridge (ENB)

With a dividend yield of 6.68%, Enbridge (NYSE:ENB) is a lower risk, high yield opportunity that should keep your portfolio safe from chaos.

The company has a wide moat portfolio, including the second longest natural gas pipeline in the U.S., North America’s longest crude oil pipeline, and a high-growth renewable power generation business.

Even better, the company just boosted its quarterly dividend to $0.8875 per share. It’s payable on March 1 to shareholders of record as of Feb. 15, 2023. Moving forward, Enbridge reiterated its 2022 full-year revenue guidance for adjusted EBITDA of $15 billion to $15.6 billion.

It also announced 2023 EBITDA guidance of $15.9 billion to $16.5 billion. In short, Enbridge should have quite a year in 2023.

W.P. Carey (WPC)

When inflation is running hot, take a look at WP Carey (NYSE:WPC), a net lease real estate investment trust that buys properties directly from companies, and then leases them back to an oftentimes reliable tenant. It’s also called a lease-back.

Or, where “a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control,” as noted by the company.

What’s interesting about WP Carey is nearly all of its rental agreements include contractual rent increases for inflation, according to BNK Invest. In fact, about 60% of the agreements are tied to the consumer price index. Well diversified with industrial, warehouse, office, retail, and self-storage, the REIT also pays a dividend yield of 5.45%.

Agree Realty (ADC)

With a yield of 4.17%,Agree Realty(NYSE:ADC) is another interesting real estate company I’ve been focusing on. Much of this has to do with the company’s business model, which is aimed at acquiring and developing properties that are net leased to industry-leading omnichannel retail tenants.

At the moment, this company has just under 36 million square feet of space it leases to those reliable investment-grade tenants. Better, as of Sept., the company acquired another 303 properties across 42 states for about $1.19 billion.

This company’s growing property portfolio has allowed it to recently increase its monthly dividend to 24 cents per share, which amounts to $2.88 per share annualized. Even more impressive are its recent earnings. In its second quarter, the company posted revenue of $104.9 million, as compared to expectations of $102.3 million. Agree also increased its full-year acquisition guidance to a new range of $1.5 billion to $1.7 billion.

Coca-Cola (KO)

With strong demand, dependable dividends, and incredible earnings growth,Coca-Cola(NYSE:KO) may be one of the best dividend stocks to consider as a long-term investment.

Coca-Cola is also a dividend king, raising its dividend for the last 60+ years. This stock currently carries a yield of 2.83% and continues to be one of the safest stocks on the market. In addition, in its most recent quarter, the company posted earnings per share of 69 cents on sales of $11.1 billion.

That’s up from the 65 cents on sales of $10 billion during the same quarter last year. Analysts were looking for 64 cents on sales of $10.5 billion.

For the year, the company expects revenue growth to fall in the range of 14% and 15%, which is higher than its initial forecast of 12% to 13%. Coca-Cola also raised its growth estimates on adjusted earnings per share to a new range of 6% to 7%, from 5% to 6%.

Also company director Herb Allen just bought 33,200 shares for $2 million. That’s reason enough for me to recommend it as one of the best dividend stocks for grandkids.

Arbor Realty Trust (ABR)

Arbor Realty Trust(NYSE:ABR) carries a dividend yield of 11.71%, and is also a REIT I’d put in the oversold camp.

The company also raised its cash dividend to 40 cents, its 10th consecutive quarterly increase. That was payable back in November. However, we do expect to see another increase to be announced in the near term.

Company earnings have also been solid. Distributable earnings for the quarter was$105.1 million, or$0.56per diluted common share, compared to$75.7 million, or$0.47per diluted common share year over year, making it one of the best dividend stocks for grandkids.

Digital Realty (DLR)

With a yield of 4.98%,Digital Realty (NYSE:DLR) is a real estate stock worth considering.

This REIT owns, acquires, develops, and operates data centers, which is a major catalyst for the stock. That’s a smart bet once you consider 80% of the worldwill be online, by 2024, says the firm. We could see about$10.5 trillionof online consumer spending, which could result in explosive new digital services markets.

And, by 2027, 41% of enterprise revenue will come from digital services.

On the date of publication, Ian Cooperdid not have (either directly or indirectly) any positions in the securities mentioned.The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.