3 Top Dividend Stocks to Buy Before Their Next Payout
Your portfolio could be paying you quarterly income right now from three companies that have raised their dividends for decades straight, but the next ex-dates are approaching fast and missing them means waiting another quarter to collect.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Paychecks arrive on someone else’s schedule. Dividends arrive on yours. For investors watching a labor market where employers trim headcount faster than they hand out raises, a portfolio that pays you on its own timetable is financial insulation a W-2 cannot provide.
High-yield dividend stocks solve a problem rental real estate cannot: you can sell a share in ten seconds. That liquidity, layered on top of quarterly cash flow, makes a small basket of blue-chip payers a durable core for income-focused portfolios, especially as the 2026 macro backdrop tilts back toward income and diversification themes after a tech-heavy 2025.
The three names below are two consumer staples anchors and one biopharma cash machine, each with decades-long dividend records and yields meaningfully exceeding the S&P 500 average. Combined, they can generate over $1,500 a year in passive annual income on a $15,000 investment in each stock.
AbbVie
- Yield: 2.76%
- Shares for $15,000: 59.78
- Annual Passive Income: $413
AbbVie (NYSE:ABBV | ABBV Price Prediction) is a global biopharmaceutical company built around immunology blockbusters Skyrizi and Rinvoq, neuroscience anchored by Vraylar and Botox Therapeutic, plus oncology and aesthetics including Venclexta, Elahere, and Botox Cosmetic.
Q2 2026 revenue came in at $16.99 billion, up 10.2% year over year, with Skyrizi alone contributing $5.51 billion, a 24.4% gain. Adjusted EPS of $3.65 beat the $3.08 consensus.
AbbVie inherited Abbott’s aristocrat legacy and treats the payout as sacrosanct. Management pushed the quarterly dividend to $1.73 in late 2025, up from $1.64, funded by 4% free cash flow yield and a widening operating margin of 32.85%.
Ex-date on the next payment was July 15, 2026, with payment on August 14, 2026. Shares are up 36.88% over the past year, so the yield reflects capital appreciation rather than dividend weakness.
Procter & Gamble
- Yield: 3.01%
- Shares for $15,000: 103.81
- Annual Passive Income: $452
Procter & Gamble (NYSE:PG) is the household products giant behind Tide, Pampers, Gillette, Crest, Charmin, Bounty, Dawn, Olay, Oral-B, and Pantene, organized across Beauty, Grooming, Health Care, Fabric & Home Care, and Baby/Feminine/Family Care.
Q4 FY2026 revenue reached $21.20 billion, up 1.5% year over year, with core EPS of $1.43. Full-year FY2026 free cash flow of $15.84 billion comfortably covers the payout.
The dividend track record is the pitch: 70 consecutive years of increases and 136 consecutive years of dividend payments. The current quarterly dividend of $1.0885 was paid August 17, 2026, and management has earmarked roughly $10 billion for dividends and $5 billion for buybacks in FY2027.
Consumer staples lagged in 2025’s AI-driven market, but the setup produces yields compressed for most of the last decade. YTD 2026 the stock is up 3.03%.
PepsiCo
- Yield: 4.24%
- Shares for $15,000: 107.48
- Annual Passive Income: $636
PepsiCo (NASDAQ:PEP) pairs a global beverage franchise (Pepsi, Gatorade, Mountain Dew, Aquafina, Rockstar) with a snack empire (Lay’s, Doritos, Cheetos, Tostitos, Quaker, Fritos). Q2 2026 revenue hit $24.18 billion, up 6.4% year over year, with core EPS of $2.20.
International segments, led by Latin America Foods at +15% and EMEA at +10%, are carrying growth while North America Foods works through a soft patch.
The dividend is powered by 42.86% return on equity and a 4.02% free cash flow yield. Management raised the payout 4% starting with the June 2026 payment, the 54th straight annual increase, and plans to return $8.9 billion to shareholders in 2026 ($7.9 billion in dividends plus $1.0 billion in buybacks). Latest quarterly dividend: $1.48, paid June 30, 2026.
The Combined Income Picture
Combined, these three positions generate roughly $1,501 in annual passive income on a $45,000 investment, a blended yield of about 3.34%. PepsiCo contributes $636, Procter & Gamble adds $452, and AbbVie rounds out the portfolio with $413.
| Ticker | Investment | Yield | Annual Income | Share of Total |
|---|---|---|---|---|
| PEP | $15,000 | 4.24% | $636 | 42.4% |
| PG | $15,000 | 3.01% | $452 | 30.1% |
| ABBV | $15,000 | 2.76% | $413 | 27.5% |
| Total | $45,000 | 3.34% | $1,501 | 100% |
Reinvest that $1,501 back into the same three names and the effective yield-on-cost climbs every year the underlying companies raise their payouts, which all three have done without interruption for decades. The check gets bigger while you sleep, and none of it requires timing an entry, monitoring a tenant, or answering a phone call.
Contact [email protected] for any questions or corrections.
Vandita Jadeja is a financial publisher with over a decade of experience writing about financial topics, including investment, savings, retirement, insurance and banking. Vandita is a Chartered Accountant who loves to debunk financial concepts for readers.
Her work has appeared on sites that include The Motley Fool, InvestorPlace, and Benzinga. She covers investing and focuses on stock picks and price prediction for 24/7 Wall St.
When not looking for the next stock investment opportunity, she can be found traveling, reading, chasing sunsets and enjoying her iced latte.
