During the previous long bull market, dividends were an afterthought for many investors. Their focus was solely on growth.

It’s a different environment today. More investors now realize just how important dividends can be. Dividends boost total returns. They also pay you while you wait for stocks to rebound.

There are lots of great dividend stocks out there. Some really stand out, though. Here are three no-brainer dividend stocks to buy in 2023.

1. Chevron
Chevron (CVX) has long been a favorite for dividend investors. And for good reason. The oil and gas giant has increased its dividend for 35 years and is likely to soon extend that streak. Chevron’s dividend yields over 3.2%.

Investors have enjoyed strong growth in addition to this attractive dividend over the last couple of years. The momentum that began in late 2020 is still going. Chevron stock has soared nearly 40% over the last 12 months.

These good times could continue to roll. Although oil prices have declined in recent months, several top analysts think that a bull market is coming for oil in 2023. If they’re right, it will almost certainly provide a solid catalyst for Chevron stock.

Even if this oil bull market doesn’t materialize, Chevron still looks like a smart pick. The demand for fossil fuels is likely to continue growing despite the transition to renewable energy sources. Chevron is also investing heavily in carbon capture, a market that could present a multi-trillion-dollar opportunity over the next few decades.

2. Easterly Government Properties
Some dividend investors might not be familiar with Easterly Government Properties (DEA). However, this stock should be on your radar. Easterly is a real estate investment trust (REIT) that offers a juicy dividend yield of 6.9%.

Rising interest rates have hurt most REIT stocks. Easterly is no exception. Its share price is down 30% over the last year, primarily due to the Federal Reserve cranking up interest rates to fight inflation.

However, the latest report from the U.S. Bureau of Labor Statistics showed that inflation continued to slow down in December. Consumer prices even fell the most on a month-to-month basis since the early days of the COVID-19 pandemic. This gives investors a reason to be optimistic that the Fed won’t need to increase interest rates much more. That would be great news for Easterly.

Regardless of what happens with interest rates, though, Easterly’s dividend should be solid. The company leases nearly all of its 95 properties to U.S. government agencies. As a result, 98% of Easterly’s cash flow that supports its dividend is funded by Uncle Sam.

3. Medical Properties Trust
Medical Properties Trust (MPW) (MPT) is another REIT that looks like a no-brainer for 2023. The company focuses on leasing facilities to hospital operators. MPT owns 435 facilities with 44,000 licensed beds in the U.S., Australia, Colombia, and seven European countries.

For investors seeking an ultra-high dividend yield, MPT should be especially appealing. The healthcare REIT’s dividend yield currently tops 8.9%. MPT has increased its dividend for eight consecutive years. This track record is even more impressive considering that many of its peers have slashed their dividends during the period.

Interest rate increases have weighed on MPT just as they have most other REITs. Some of MPT’s tenants have also faced financial challenges, with one filing for bankruptcy protection last year. But the outlook is improving for hospital operators with greater reimbursement from Medicare and private payers.

The demand for healthcare services will almost certainly increase in the future with aging populations. Hospitals will be needed more, not less. As the world’s second-largest non-government owner of hospitals, Medical Properties Trust’s long-term prospects should be bright.

— Keith Speights

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Source: The Motley Fool