Investors often underestimate the value of dividend-paying stocks, viewing them primarily as sources of income for retirees. However, these stocks can also provide significant benefits to pre-retirees and younger investors. By reinvesting dividend income, investors can accumulate more shares over time, enhancing their long-term wealth. Here, we explore a selection of dividend stocks with yields between 2.9% and 5.5%, suitable for various investment budgets.
Realty Income stands out as a notable real estate investment trust (REIT) with a robust 5.5% dividend yield. This REIT is obliged to distribute a minimum of 90% of its taxable earnings as dividends, making it an attractive option for those seeking reliable income. Realty Income distinguishes itself by disbursing dividends monthly, a rarity in the stock market. With an impressive track record, it has maintained dividend payments for 667 consecutive months. The company capitalizes on a unique triple-net lease structure, wherein tenants pay property taxes, insurance, and operating expenses. This strategy allows for moderate annual rent increases, generally around 1%. As of November 2025, Realty Income’s expansive portfolio comprises approximately 15,500 properties across all U.S. states and several countries in Europe, boasting a remarkable occupancy rate of 98.7%. Its diverse tenant base includes well-known firms such as Wynn Resorts and Lowe’s.
AbbVie, a pharmaceutical company spun off from Abbott Laboratories in 2013, offers a solid 3.1% dividend yield, complemented by a history of increasing its payout by an average of 7% annually over the past five years. With a payout ratio of less than 50%, AbbVie boasts ample room for future increases. Combined with its long-standing history of more than 50 consecutive years of dividend hikes, the company shows promise for long-term investors. AbbVie is currently focused on a robust pipeline of around 90 products in various developmental stages, backed by a substantial $11 billion investment in research and development for 2024. The company’s third-quarter report revealed a 9% year-over-year increase in revenue, alongside significant gains in immunology and neuroscience sectors. With its stock trading at a forward-looking price-to-earnings (P/E) ratio of 15.7—somewhat higher than its five-year average—investors may consider a gradual buy-in approach to mitigate potential overvaluation concerns.
Coca-Cola, a blue-chip stock with a dividend yield of 2.9%, boasts an impressive history of increasing dividends for 64 consecutive years. Founded in 1886, Coca-Cola remains a globally recognized icon with a portfolio that includes beverages like Sprite, Fanta, and Dasani. While its third-quarter results indicated modest growth—1% increase in global unit case volume and a 5% rise in revenue—the company’s resilience offers an appealing refuge for investors concerned about economic downturns. The stock is regarded as relatively attractively priced with a forward P/E ratio of 22, slightly below its five-year average of 23.
Investors seeking dividend income should consider adding these stocks to their long-term portfolios, as they provide a blend of reliable income and growth potential. Whether starting with a few hundred or several thousand dollars, these dividend stocks can enhance financial stability and encourage wealth accumulation over time.
