Dividends4Life: The 7 Best Dividend Stocks to Buy to Beat the Market

In any market condition, it’s important to hold dividend stocks in one’s portfolio. These stocks provide regular cash inflow and, if valuations are attractive, meaningful capital gains. With market conditions remaining relatively bearish, some of the best dividend stocks trade at attractive valuations. These stocks can potentially deliver robust total returns. It therefore makes sense to hold low-beta dividend stocks in the portfolio. This is particularly true at a time when macroeconomic headwinds are significant. I also believe that the discussed dividend stocks are likely to outperform the index returns in 2023.

These are the best dividend stocks to buy to beat the market that also look undervalued. Newmont Corporation (NEM): An investment-grade balance sheet and likely EBITDA margin expansion are key factors. Lockheed Martin (LMT): A swelling order backlog that currently stands at $140 billion helps LMT stock look appealing. AT&T (T): Deleveraging is a positive, and subscriber growth metrics have been encouraging. Pfizer (PFE): A deep drug pipeline for sustained revenue growth is a plus. Rio Tinto (RIO): Big investments in 2023 and 2024 will translate into revenue growth and higher cash flows. Chevron Corporation (CVX): Low breakeven assets will ensure annual operating cash flow in excess of $40 billion. Costco Wholesale (COST): This is the best pick among retail stocks for dividend growth and capital gains.

Source: InvestorPlace

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