3 Excellent Income Stocks to Buy Now


While many investors focus on growth securities that are rapidly increasing their earnings or revenue, or those that have value metrics like low PEs or modest valuations, most forget about dividend investing. Buying stocks with yields in mind is seen as an ultra boring way to develop wealth and it rarely gets respect from investors.

But with markets trending near all-time highs and volatility returning, it may be time to look at dividend securities again now. Stocks here are a bit less volatile than the overall market, and the regular cash distributions pay you to wait.

But even if you aren’t concerned about the state of the market right now, dividend investing can be great for different reasons too. The idea of dividend reinvestment—where investors use dividend payments to simply buy more shares—can be a great long term strategy too. This can really add up over time thanks to compounding and it is something that is often overlooked by investors.

Where to Look Right Now for Great Dividend Stocks

The main problem with dividend stocks is finding the right ones. Plenty of stocks pay dividends and you definitely do not want to just focus on the highest yielding ones. A great way to find the best is to look at securities paying more than the market in terms of yield, but have been seeing rising earnings estimates too.

These securities could be the perfect combo of dividend payment and well-positioned stock for price outperformance, so definitely consider any of the names highlighted below if you are looking for excellent income stocks in this environment:

Simon Property (SPG)

This REIT is one of the biggest property managers and developers in the country with a market cap approaching $60 billion. SPG also pays out investors a nice 3.35% yield while its REIT-retail segment is currently ranked in the top 10% for Zacks Industry Ranks, making it a solid choice.

SPG is also a great choice based on earnings estimate revisions as analysts have been moving their expectations higher for Simon Property as of late. Plus, the company hasn’t missed in the past four quarters including an average beat of 4.35%, helping to give this security a Zacks Rank #2 (Buy) as well.

AT&T (T)

For a large cap dividend play, investors may want to consider AT&T as a pick right now. This stock has a market cap over $200 billion while it pays a robust dividend yield of 5.6% as well. The security also has a Zacks Industry Rank in the top 20%, suggesting a strong trend for the sector too.

Recent changes to analyst expectations also suggest that good things are ahead for AT&T as 10 estimates have gone higher for T’s EPS in the past sixty days compared to zero lower, while the current year EPS is expected to grow by close to 8% which is pretty solid for such a massive company. AT&T has also shown a great ability to beat earnings estimates and with a Zacks Rank #2 (Buy) rating, this is definitely a mega cap to keep on your short list.