Securing a consistent income stream while guaranteeing long-term growth potential is a top priority in today’s volatile investing environment. Dividend stocks appeal to our search since they provide a stable and profitable mix. Three dividend stocks to buy now stand out with their strong business models, calculated efforts, and optimistic financial outlooks.

These businesses, representing the breadth of dividend investment, range from consumer staples to healthcare. The first one’s unwavering emphasis on strategic acquisitions and innovation highlights its dedication to promoting long-term success. Moreover, the second one has diversification into other product categories. Its expanding customer base points to a bright future for non-traditional tobacco goods.

Finally, the third company has made a sharp move toward smokeless substitutes. This shows how flexible they are and how dedicated they are to accommodating changing customer demands. These companies have prospective dividend rates that range from 3.4% to 10.2%.

Discover the main elements influencing the growth of these dividend stocks. Understanding the possibilities these stocks provide might help you ensure a lifetime of income.

Johnson & Johnson (JNJ)

The forward dividend yield for Johnson & Johnson (NYSE:JNJ) is now 3.4%. The company’s substantial research and development (R&D) expenditure demonstrates its strategic focus on advancements. Across its Innovative Medicine and MedTech businesses, the company maintained a robust R&D pipeline with an investment of $3.5 billion, or 16.6% of revenues, in Q1 2024.  

Moreover, strategic acquisitions by Johnson & Johnson strengthen the company’s market position and prospects for growth. With the completion of the acquisition of Ambrx (NASDAQ:AMAM) and Shockwave Medical, the company’s portfolio in cancer and cardiovascular intervention has expanded.

Furthermore, the company’s goal of becoming the best-in-class MedTech business and bolstering its cancer portfolio with precision biologics aligns with these acquisitions. Enhancing its product portfolio, reaching a broader market, and fostering sustainable growth are all achieved by Johnson & Johnson through the strategic integration of acquired firms and technology.

Lastly, with a strong adjusted diluted EPS of $2.71, Johnson & Johnson demonstrated a solid gain of 12.4%. Overall, these numbers demonstrate the company’s capacity to turn a profit and show off its outstanding financial performance and profitability. You can see why this made our list of dividend stocks to buy now.

British American Tobacco (BTI)

The forward dividend yield for British American Tobacco (NYSE:BTI) is near 10.2%. The company’s emphasis on new markets has resulted in a notable increase in sales, substantially broadening its range of products and top-line. New category revenue increased by about 18%, while organic growth reached 21%. This illustrates how British American Tobacco has effectively branched into cutting-edge product categories outside tobacco goods.

Additionally, including Vuse and Velo as significant factors in this rise suggests that British American Tobacco’s effort in creating and promoting these novel products was successful. 

Indeed, one of the core factors influencing British American Tobacco’s development potential is the company’s expanding customer base. With 1.1 million new customers recruited in Q4 alone, the corporation has increased its customer base by over 3 million year over year. In short, this shows that British American Tobacco can draw in and keep consumers.  

Finally, in addition to boosting income, an expanding customer base lays the groundwork for long-term success through repeat business and brand loyalty. To sum up, the 23.9 million consumer base further underscores the substantial extent of British American Tobacco’s market position and growth potential.

Philip Morris (PM)

Philip Morris’s (NYSE:PM) forward dividend yield is 5.6%. In 2023, the company’s adjusted operating income grew organically by 3.7%. The company significantly increased operating income in H2 2023 despite obstacles, including supply chain interruptions and variables relating to ILUMA. In short, this shows that total profitability derives from sharp cost management, optimization initiatives, and smoke-free product contributions.

Additionally, in 2023, the organic growth of smoke-free gross profit was 19%, resulting in a 3.4% boost in gross margins. Philip Morris’s emphasis on smokeless offerings has resulted in a notable profit increase within this market. The 19% organic rise in smoke-free gross profit illustrates how profitable these items are becoming and helps to push up gross margins. Hence, this shows that the company’s investment in smoke-free alternatives is paying off handsomely.  

Finally, Philip Morris hopes to reach a net debt-to-adjusted EBITDA ratio of around two times by the end of 2026, with a deleverage of 0.3 to 0.5 times in 2024. To conclude, the company’s emphasis on deleveraging signifies a cautious approach to capital structure optimization. This is easily one of the top dividend stocks to buy now.

As of this writing, Yiannis Zourmpanos held long positions in JNJ, BTI and PM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.