You don’t have to buy real estate to generate cash flow from your assets. Not only is it easier to buy the best dividend stocks with any amount of capital, but it also takes less work to stay on top of these investments.

Dividend-paying corporations often distribute dividends each quarter and raise their dividends each year. Some companies have kept their dividend programs intact for decades, while others have only been paying dividends for a few years. Most dividend investors reinvest their dividends unless they use cash flow to cover living expenses. Reinvestments increase the total number of shares an investor owns, which, in turn, increases the total dividend payouts.

There’s some concern that dividend stocks underperform the stock market, especially the companies with high yields. However, it’s possible to find the best dividend stocks that can outperform the stock market while distributing some of their retained earnings to investors. Wondering which dividends may be worth a closer look? These are some of the best dividend stocks to consider.

Walmart (WMT)

Walmart (NYSE:WMT) has been offering affordable prices for a wide range of products for more than 60 years. The company has also raised its dividend for 51 consecutive years, and that includes a 9% dividend hike this year. The stock isn’t only good for its 1.2% yield. Shares are up by 29% year-to-date and have rallied by 91% over the past five years, outperforming the S&P 500 in the process.

Q1 FY25 earnings results suggest that more gains may be on the way for long-term investors. Consolidated revenue was up by 6% from a year ago and reached $161.5 billion. Meanwhile, adjusted earnings per share increased by 22%.

Walmart has a vast competitive moat that makes it difficult for new entrants to take any meaningful amount of market share. The retailer is the world’s leading grocer. Many people go to Walmart to buy food, and chances are they’ll pick up a few other items on their way out of their local store. Walmart currently owns more than 10,500 stores in 19 countries.

American Express (AXP)

American Express (NYSE:AXP) is an undervalued credit and debit card firm that has outperformed the S&P 500. Shares are up by 23% year-to-date and soared by 83% over the past five years. The stock trades at a reasonable price-to-earnings ratio of 17x while offering a 1.2% yield. American Express has developed a good habit of maintaining a double-digit dividend growth rate for many years.

The company’s second-quarter earnings results suggest that double-digit dividend hikes will remain the norm. American Express reported 9% revenue growth from a year ago and 39% net income growth, resulting in a 20% net profit margin. The rising net income makes the P/E ratio particularly attractive. It’s difficult to find companies with AXP’s valuation and financial growth numbers. 

American Express had 3.3 million new card acquisitions in the quarter.

Cintas (CTAS)

Cintas (NASDAQ:CTAS) serves more than 1 million businesses in North America. The firm offers business supplies and safety equipment that translate into steady revenue. The stock has only a 0.8% yield but has delivered an annual double-digit dividend growth rate for several years. Furthermore, the stock has regularly outperformed the market. Shares are up by 27% year-to-date and have rallied 185% over the past five years.

The company ended fiscal 2024 on a high note with 8.2% revenue growth. Cintas also delivered $414.3 million in net income, a 19.7% improvement from last year. Cintas delivered 8.9% revenue growth through fiscal 2024. Revenue in fiscal 2025 should range from $10.16 billion to $10.31 billion. The high end of guidance implies 7.4% revenue growth, but it’s important to note that fiscal 2025 has two fewer workdays than fiscal 2024.

Wall Street analysts are bullish on the stock. Cintas is rated as a “moderate buy” with a projected 4% upside from current levels.

Procter & Gamble (PG)

Procter & Gamble (NYSE:PG) is a consumer staples stock that offers stability during volatile markets. Shares have outperformed the market with a 14% year-to-date gain but lag the market with a five-year gain of 45%. The company’s strength is its wide range of essential products and services. Procter & Gamble is the parent company of numerous brands in home care, baby care, fabric care, and other verticals.

The stock has a 2.4% yield and has raised its dividend for 68 consecutive years. It has also distributed dividends to investors for 134 consecutive years. Procter & Gamble raised its dividend by 7% earlier this year.

The company wrapped up fiscal 2024 with flat sales growth in the fiscal fourth quarter, which ended in June. Diluted earnings per share were slightly down but ended higher in full-year fiscal 2024. Procter & Gamble is a recession-resistant dividend stock with a respectable yield and low volatility. The stock currently has a 0.5x beta compared to the stock market’s 1x beta.

Iron Mountain (IRM)

Iron Mountain (NYSE:IRM) is a real estate investment trust specializing in storing physical and digital assets for more than 240,000 businesses. The firm also has roughly 90% of Fortune 1,000 corporations as its customers. Iron Mountain has regularly outperformed the stock market while having a 2.7% yield. Shares are up by 55% year-to-date and have rallied by 249% over the past five years.

The REIT continues to gain market share. Total revenue increased by 13% in the second quarter of 2024, reaching $1.5 billion in the process. Iron Mountain’s year-to-date revenue is also up by 13% from a year ago, demonstrating consistency. Net income reached $35 million.

Iron Mountain’s well-diversified customer base makes it more resistant to economic downturns. Furthermore, the company offers a vital service for businesses with significant switching costs. Finding another company that will store thousands of physical documents is cumbersome. Not only does a corporation need to find a suitable replacement but those documents must then get transported to their new location.

Iron Mountain has good relations with many companies, and it puts the firm in a position to generate higher returns for shareholders.

Garmin (GRMN)

Garmin (NYSE:GRMN) recorded a 31% year-to-date gain and is up by 109% over the past five years. Shares trade at a P/E ratio of 23x and come with a 1.8% yield. 

Garmin has several business segments that have pushed revenue and net income higher. However, fitness presents the largest opportunity. Second-quarter fitness sales increased by 28% from a year ago to $428 million. The resounding success of Garmin’s fitness products resulted in 14% revenue growth from a year ago. Net income increased by 4% yearly, resulting in a 20% net profit margin. 

The company felt good enough about Q2 results to raise full-year guidance. Garmin anticipates revenue to reach $5.95 billion in the quarter. It’s also expecting a pro forma EPS of $6.00 per share. Garmin is currently rated as a Hold among five Wall Street analysts with a projected 5% upside from current levels. The highest price target of $210 per share suggests the stock can gain an additional 27%.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) is the newest member on this last, having only issued dividends since Q4 2023. However, it’s not a newcomer to beating the stock market. Shares are up by 45% year-to-date and have rallied by 167% over the past five years. The stock trades at a P/E ratio of 26x and offers a 0.4% yield.

Facebook’s parent company can support an annualized double-digit dividend growth rate for many years. Meta Platforms closed out the quarter with $58.08 billion in cash. Furthermore, net income jumped by 73% from a year ago. As profit margins continue to expand, it’s evident that the social media giant isn’t slowing down. Revenue increased by 22% to reach $39.1 billion in the quarter. 

Investments in artificial intelligence can help the company diversify beyond ad revenue. However, the underlying business model is still growing. Meta Platforms announced that 3.27 billion people use its social networks every day. That’s a 7% yearly improvement.

On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.