3 Unstoppable Dividend Stocks to Buy Now (1 Yields 5.5%)

With the S&P 500 (SNPINDEX: ^GSPC) currently yielding around 1%, investors can find far better income opportunities in individual stocks. Three unstoppable businesses with durable competitive moats yielding 1.6% to 5.5% are Kimberly Clark (NASDAQ: KMB), FedEx (NYSE: FDX), and Realty Income (NYSE: O). These companies provide products and services people rely on every day, which can support dividends for years to come.

Missed AI's "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

Kimberly-Clark: Paying dividends from everyday brands

Consumer staples companies that sell everyday essentials can make excellent dividend stocks. Kimberly-Clark owns Cottonelle, Kleenex, and Huggies, along with other recognizable personal care brands. People buy these products in good times and bad, helping the company deliver steady financial results that can fund a growing dividend.

The company's current quarterly dividend stands at $1.28 per share, or $5.12 annualized. That puts the forward yield at about 5.2%. That's attractive for a business that has increased its dividend for 54 years, making Kimberly-Clark one of the elite Dividend Kings that have increased their dividends for at least 50 years.

The dividend has grown at a 3.3% compound annual rate over the past five years. While the payout is elevated -- about 86% of earnings and 92% of free cash flow -- analysts expect earnings to grow at roughly 2% annually in the coming years, which should support the company's dividend-growth streak.

Kimberly-Clark has held up well in a challenging consumer spending environment. It reported a slight increase in sales last quarter despite headwinds in China. The company is also investing in its alternative fiber program, designed to improve product performance, drive long-term growth, and reduce sensitivity to commodity cost swings, thereby strengthening margins and supporting the dividend.

With the stock recently dipping, investors have a chance to buy a high-quality consumer staple at an unusually high yield.

FedEx: Scale and free cash flow fund growing dividends

FedEx is one of the leading carriers, with a massive scale that helps generate strong cash flow. It produced $5.1 billion in trailing free cash flow on $95 billion of revenue. FedEx pays a quarterly dividend of $1.22, or $4.88 annualized, for an above-average forward yield of about 1.6%. Over the past five years, it has grown the dividend at a 17% annual rate, and given its relatively low payout ratio of 27% relative to free cash flow, it has plenty of room to grow it.