3 Rock-Solid Dividend Stocks to Build Your Portfolio Around
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3 Rock-Solid Dividend Stocks to Build Your Portfolio Around
09 mins
New investors who are just starting out and building up their portfolios might feel overwhelmed with what to invest in these days. Many stocks are soaring due to artificial intelligence and other tech-related opportunities. Meanwhile, valuations are high across the stock market as a whole, and some stocks may not be appealing despite their strong performances.
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Three dividend stocks, however, that can be excellent options that offer an appealing mix of value, stability, and high yields are ExxonMobil (NYSE:XOM), UnitedHealth Group (NYSE:UNH), and Verizon Communications (NYSE:VZ). Here’s why these can be ideal investments for new investors.
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ExxonMobil
Investing in a top oil and gas giant such as ExxonMobil is a great move for investors for a few reasons. First and foremost, it’s a fairly stable investment, as the company’s dominant position in the industry ensures that it may not only succeed under adverse market conditions but also thrive when oil prices are high, as they are now. The company’s vast portfolio of assets and financial strength make it a fantastic long-term investment.
Another great reason is its dividend, which currently yields 2.6%. That’s above the S&P 500 average of 1%, but it’s admittedly a bit lower than usual for Exxon. The main reason it isn’t higher, however, is because the stock has been doing so well — it’s up 34% since the start of the year. The company has also been raising its dividend payments for decades, giving investors ample reason to simply buy and hold.
Lastly, there’s the inflation angle. For investors worried about inflation and seeking a potential hedge, investing in Exxon can be a good move, as it’ll benefit from rising oil prices. That’s why, overall, this can be a no-brainer option for new investors beginning to build their portfolios and seeking a top dividend stock, as Exxon checks many boxes.
UnitedHealth Group
Another quality dividend stock for new investors to consider is UnitedHealth Group. This is a top health insurance company in the country, and thus, demand for its services is likely to remain high for the foreseeable future. Healthcare is a necessity consumers can’t do without, and UnitedHealth can grow due to population growth and rising rates.
It’s a behemoth in the industry, raking in $450 billion in revenue over the past year. While its profits may not seem significant relative to that, totaling $14 billion, this is still a highly profitable company overall. And those strong profits enable UnitedHealth to offer a great, growing dividend. Currently, the stock pays 2.4%. Over the past five years, the company has also increased its dividend by 60%.
As with Exxon, UnitedHealth’s yield would be even higher if not for its solid gains this year, as it’s up around 20% thus far in 2026. For long-term investors, however, now can be as good a time as any to buy the stock, as it can be an excellent pillar for any portfolio.
Verizon Communications
The final stock on this list is Verizon Communications. It’s in a third sector, which will give investors a balanced mix of stocks. And the sector that Verizon dominates in, telecom, is a fairly attractive one for dividend investors due to its stability. While it may not be healthcare, these days, mobile phones and internet access are necessities for customers, so it will also generate a fairly consistent stream of income.
Verizon generates just modest single-digit growth, but its business is rock-solid and fairly stable. With a payout ratio of around 70%, it also has plenty of room to continue raising its dividend, as it has in the past. Verizon has boosted its payout for an impressive 20 consecutive years. At 5.9%, it’s easily the highest yield on this list, and with more dividend increases likely to come in the future, this makes for another terrific stock to buy right now.
Shares of Verizon are up 18% this year, but they still look fairly undervalued, trading at less than 10 times the company’s expected future earnings (based on analyst estimates). This is a good dividend investment and an excellent value buy.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group and Verizon Communications. The Motley Fool has a disclosure policy.
