These great dividend stocks merit more attention from income investors.
Sometimes, things are going great for a stock with potentially more good news on the way. In other cases, things are going so badly for a stock that it almost has nowhere to go but up. Stocks can also be muddling along but in a great position to benefit from changing market dynamics. Each of these scenarios can present terrific buying opportunities for investors.
Can you find examples of all of these scenarios in the market today that could appeal to income investors? Absolutely. Here are four dividend stocks to double down on right now.
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1. Enbridge
Enbridge (ENB -0.67%) could be a fantastic stock to own if a stock market correction is on the way. With valuations near record highs and festering macroeconomic uncertainty, an overall market downturn might be in the cards.
However, I think Enbridge would hold up quite well in a highly volatile environment. The company’s pipelines transport around 30% of the crude oil produced in North America and 20% of the natural gas consumed in the U.S. But Enbridge has minimal exposure to commodity prices and is largely insulated from inflation.
The company is also the biggest natural gas utility in North America based on volume. This business makes Enbridge even more resilient to economic and market turbulence.
Income investors should like that Enbridge has increased its dividend for 30 consecutive years. They’ll also probably love the energy leader’s forward dividend yield of 5.7%.
2. Pfizer
It’s easy to find things to worry about with Pfizer (PFE -1.72%). However, I also think it’s easy to make too much of those concerns.
Image source: Getty Images.
Take the Trump administration’s tariffs on pharmaceutical imports to the U.S. Pfizer will be exempt from those tariffs for the next three years thanks to its investments in U.S. expansion.
What about the patent cliff the big drugmaker faces over the next few years? It’s a legitimate concern. However, Pfizer has multiple newer products on the market with fast-growing sales that should largely offset any revenue decline resulting from its key patent expirations.
Meanwhile, Pfizer offers one of the best dividends in the entire healthcare sector (and the entire market, for that matter). Its forward dividend yield tops 6.8%. Management remains committed to maintaining and growing the dividend, too.
3. United Parcel Service
Nearly everything that could go wrong has gone wrong for United Parcel Service (UPS -2.72%). This shows up in the package delivery giant’s share price, which has plunged more than 30% year to date and nearly 50% over the last three years. But I believe that UPS’ troubles are temporary.
Tariffs are putting tremendous pressure on the company’s China-to-U.S. shipment volume. However, as UPS CEO Carol Tomé noted in the second-quarter earnings call, “[I]t’s important to remember that with policy changes, trade doesn’t stop, it moves.” I suspect UPS’ business will adjust to the Trump administration’s trade policies.
Some might think UPS shot itself in the foot with the decision to slash its Amazon (AMZN -4.97%) volume. My view, though, is that this move will ultimately boost the company’s profitability as it sheds lower-margin business and streamlines its cost structure.
UPS pays a juicy dividend that currently yields 7.7%. Could the board opt to cut that dividend? Maybe. However, Tomé insisted in the Q2 call, “We know how important the dividend is to our investors, and you have our commitment to a stable and growing dividend.” That’s reassuring to me.
4. Verizon Communications
Musical chairs at the top can be a warning sign for investors. I don’t think that’s the case with Verizon Communications (VZ -0.71%), though. The big telecommunications company recently named former PayPal (PYPL -7.75%) CEO Dan Schulman as CEO. Schulman replaced Hans Vestberg, who led Verizon for six years. Vestberg will remain a member of the board of directors into next year and will be a special advisor to assist with the transition.
This isn’t a situation where Verizon is struggling and needs new leadership, though. The company reported industry-best wireless service revenue in Q2. Its free cash flow continues to grow steadily. Verizon’s wireless network received two prestigious awards in recent months.
Verizon’s growth could pick up in 2026. The telecom giant expects to close its acquisition of Frontier Communications (FYBR -0.13%) early next year.
Now for the best part about Verizon. Its dividend yields roughly 7.8%. The company has also increased its dividend for 19 consecutive years. I think there are enough positives about this stock for it to be a great double-down candidate right now.
Keith Speights has positions in Amazon, Enbridge, Pfizer, United Parcel Service, and Verizon Communications. The Motley Fool has positions in and recommends Amazon, Enbridge, PayPal, Pfizer, and United Parcel Service. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 calls on PayPal. The Motley Fool has a disclosure policy.
