While the SpaceX initial public offering (IPO) is firing up the market, I’ll be sitting this one out. I like a top growth stock with a great story as much as anyone else, but the math here doesn’t add up for me. The stock is astronomically expensive, the financials aren’t compelling, and IPO stocks as a class aren’t usually a great investment.
If I were looking for a great stock to buy right now, I’d be looking at sturdy dividend stocks that offer safety in an increasingly expensive market rather than hype.
Three I’d start with are Realty Income (O +1.59%), Home Depot (HD 0.75%), and American Express (AXP 1.45%).
Image source: Home Depot.
1. Realty Income
Realty Income is a real estate investment trust (REIT). It owns about 15,500 properties globally, and it’s one of the largest in the world.
It has a solid growth strategy that involves buying new properties or acquiring smaller REITs, and it has access to plenty of funds to keep the model going. It also has a long pipeline of new properties to consider, with $31 billion in sourced volume in the first quarter and a 9% selectivity rate.
It’s reliable for strong performance because it predominantly leases its properties to large essentials companies like Walmart, Home Depot, and 7-Eleven. These are companies that consistently have high demand and generally perform well under pressure. Almost 80% of its properties are in retail, but it has also expanded into other industries to expand its reach and reduce risk.
Today’s Change
(1.59%) $0.97
Current Price
$62.23
Key Data Points
Market Cap
$58B
Day’s Range
$61.37 – $62.41
52wk Range
$55.86 – $67.94
Volume
335.6K
Avg Vol
5.8M
Gross Margin
50.46%
Dividend Yield
5.21%
Realty Income has a 98.9% occupancy rate and rarely dips below that, even during times of economic pressure. It’s a model that works.
As a REIT, it pays out 90% of its earnings as dividends, and its dividend is very attractive for a number of reasons. One is the yield. At the current price, Realty Income’s dividend yields 5.3%. The growth and reliability are just as compelling. It’s one of the few companies that pays a monthly dividend, and it has paid it for more than 55 years without fail, an unmatched track record. It has raised the dividend for the past 115 quarters, or close to 30 years.
Realty is a top dividend stock that can provide security and passive income to any investor.
2. Home Depot
Home Depot stock continues to struggle amid the high mortgage rate environment, which has been putting home sales on hold. But considering the pressured operating climate, it’s reporting sales and comparable sales (comps) increases, which is an impressive feat.
In the fiscal 2026 first quarter (ended May 3), sales increased 4.8% year over year, with comps up 0.6%. Earnings per share (EPS) were down from $3.45 to $3.30.
Today’s Change
(-0.75%) $-2.41
Current Price
$318.92
Key Data Points
Market Cap
$318B
Day’s Range
$318.80 – $324.00
52wk Range
$289.10 – $426.75
Volume
1.8K
Avg Vol
4.5M
Gross Margin
31.14%
Dividend Yield
2.90%
Everything was in line with management’s expectations, and the company continues to expand and lay the groundwork for more success when the macroeconomy is more favorable. It plans to open 15 new stores this year, and recently completed the acquisition of Mingledorff’s, a heating, ventilation, and air conditioning equipment distributor in five Southeast U.S. states. This gives it greater access specifically to HVAC parts, and embedding this business in its enterprise leverages its powerful distribution system to create more value for its professional customers.
It’s already doing that with SRS Distribution, a pro supplies company it acquired in 2024. SRS has 1,300 branches, and together with Home Depot’s core 2,360 stores and 325 warehouses, it has 16,000 delivery assets.
While the stock is down, Home Depot continues to raise the dividend, and the yield is at 2.9% today.
3. American Express
American Express continues to demonstrate resilience and momentum despite stubbornly high inflation. It has a carefully crafted and maintained model that targets an affluent clientele through a fee-based rewards program, and this clientele has more spending power in any type of economy.
The fee-based model also creates loyalty and a recurring revenue stream, as well as high profitability. In the 2026 first quarter, revenue increased 11% year over year to $18.9 billion, while EPS increased 18% to $4.28. Spend growth is accelerating, up six percentage points from last year, while retention rates remain close to 100%.
Today’s Change
(-1.45%) $-4.62
Current Price
$313.76
Key Data Points
Market Cap
$214B
Day’s Range
$313.66 – $320.26
52wk Range
$286.15 – $387.49
Volume
155.5K
Avg Vol
3.2M
Gross Margin
60.19%
Dividend Yield
1.09%
The company’s emphasis on travel and entertainment is a key part of its success. While U.S. consumer services spending increased 5% over last year in the first quarter, fine hotels and resorts spending increased 50%. The focus on younger consumers is also a major growth driver, with 66% of global consumer new accounts coming from millennial and Gen-Z age groups, and 73% of global new accounts on fee-based products.
With growing net income, it has ample funds to pay and raise its dividend, which yields 1.1% at the current price.
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