2 No-Dividend Stocks to Buy Right Now

Dividend stocks are great tools to help you achieve financial freedom. Quality companies with a long history of paying dividends will automatically deposit cash into your account, usually on a monthly or quarterly schedule. And it’s a great time to go dividend hunting because there are elite dividend payers that offer high yields.

Here are two top dividend stocks to buy right now.

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For dividend investors, there’s a lot to like Real estate income (NYSE:O). It has paid a dividend every month since 1969 and is currently on a 30-year annual growth streak. This is a real estate investment trust (REIT), which means the company must pay out at least 90% of taxable income to shareholders. Realty Income’s most recent monthly dividend of $0.27 per share yields 4.92% annually.

This long history of dividend payments reflects a well-diversified property portfolio. Realty Income owns properties serving more than 1,600 clients. Some of its top clients include general dollar, Wynn Resortsand FedEx. These businesses can weather difficult economic downturns, helping Realty Income maintain consistent dividends for shareholders.

To fuel growth, Realty Income is expanding into Europe, where it is finding lower debt costs and more attractive investment returns than in the US market. More than 70% of its investments in the last quarter were made in Europe, earning a cash-weighted average return of 8%. The company uses a proprietary tool powered by artificial intelligence (AI) for underwriting and managing its operations, which should also lead to steady cash flows and dividends.

Overall, Realty Income boasts high occupancy rates and has prioritized maintaining a strong balance sheet without using excess leverage. The prospect of a lower interest rate, following the Federal Reserve’s two rate cuts last year, is a near-term catalyst for stocks. Its consistent dividend history and high yield make it an attractive income investment.

PepsiCo (NASDAQ: PEP) has a strong portfolio of brands in beverages and snacks. This has sustained sales growth and dividend payments for decades. PepsiCo has raised its dividend for 54 consecutive years and just announced a planned 4% increase in its annual dividend (paid quarterly) starting in June. This will bring the full-year dividend to $5.92 per share, or a forward yield of 3.46%.

Consumer goods companies have faced high inflation and choppy consumer spending in recent years. But this may make PepsiCo a stronger business and a long-term dividend payer. PepsiCo is focused on achieving productivity gains and improving the affordability of its products. The company is also looking to expand store shelf space within its Frito-Lay business. All these efforts are expected to generate strong sales and higher earnings in 2026.

Sales growth accelerated in the fourth quarter, up 2% year over year on an adjusted (non-GAAP) basis. It also reported double-digit growth in adjusted earnings per share. Analysts expect earnings to reach $8.62 in 2026, indicating a payout ratio of 69% — more than enough coverage to support the dividend.

Recent improvements in business performance suggest a safe entry point for dividend investors to initiate a position in the stock. PepsiCo’s strong brands and improving financials should make the stock a solid income investment for years to come.

Before buying shares in Real Estate Income, consider the following:

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John Ballard has positions in Realty Income. The Motley Fool has positions and recommends Realty Income. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.

2 No-Dividend Stocks to Buy Right Now was originally published by The Motley Fool

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