Volatile markets often prompt investors to seek reliable investment opportunities. What’s more reliable than a dividend stock, especially one that consistently pays dividends regardless of market cycles? This consistency reveals a business’s stability and commitment to rewarding shareholders over the long term.
Let’s take a look at three such dividend stocks that investors can confidently add to their portfolios in March.
Verizon Communications (VZ) is a telecommunications giant with a valuation of approximately $206.2 billion. It is one of the largest wireless carriers in the United States, providing mobile services, broadband connectivity and enterprise network solutions. Its massive scale ensures stable earnings and cash flow, making it a reliable dividend payer. This reliability is reflected in its 20-year record of consistently paying and increasing dividends. In fact, it’s closer to joining the ranks of the “Dividend Aristocrats,” companies that have raised their dividends for 25 consecutive years. Management touted the company’s “ironclad” commitment to shareholder returns. Recently increased annual dividend by 2.5%
Additionally, it yields a hefty 5.5%, which is higher than the S&P 500 Index ($SPX) average. But more importantly, its payout ratio is a measure of how much earnings a company decides to distribute to shareholders. The ratio sits comfortably at 57%, which is neither very high nor very low, giving Verizon enough breathing room to pay down debt, reinvest in the business, and potentially continue to modestly increase its annual dividend.
Management projects annual free cash flow of $21.5 billion in 2026, which would also mark the highest free cash flow Verizon has generated since 2020. That’s enough to comfortably cover the dividend while maintaining operational flexibility. While Verizon may not be a high-growth story, it’s still a reliable and high-yielding source of passive income.
Overall, VZ stock earns a “Moderate Buy” recommendation from Wall Street. Of the 29 analysts covering the stock, 8 rate it a “Strong Buy,” 3 recommend a “Moderate Buy,” and 18 recommend a “Hold.” The stock is currently trading almost exactly in line with its average price target of $49.72. But its Wall Street-high valuation of $71 means VZ shares could rise as much as 42% over the next 12 months.
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Florida-based NextEra Energy (NEE) is one of North America’s largest electricity providers, serving millions of customers through regulated utilities and a growing clean energy business. Its forward dividend yield is 2.7%, which is lower than the Utilities industry’s average dividend yield of 3.7%. But NextEra Energy has a long history of rewarding shareholders with regular dividends. It has earned the title of Dividend Aristocrat by paying and growing its dividend over the past three decades.
Its forward dividend payout ratio of 61% is supported by continued cash flow. It’s also sustainable, as the company has committed to increasing its dividend by about 10% annually through 2026, and then 6% annually through 2028. NextEra Energy’s diversified businesses provide the stability of regulated power distribution and the potential for growth in the renewable energy sector. This dynamic allows the company to generate consistent cash flow to maintain its dividend.
Overall, Wall Street rates NEE stock a Moderate Buy. Of the 22 analysts covering the stock, 15 rate it a “Strong Buy,” 6 recommend a “Hold,” and 1 recommend a “Strong Sell.” The stock is currently trading close to its average price target of $92.24. But its market-high valuation of $106 further means NEE shares could rise as much as 14% over the next 12 months.
Rexford Industrial (REXR) is a Los Angeles-based real estate investment trust (REIT) specializing in owning and managing industrial properties in high-demand infill markets in Southern California. Rexford pays a slightly higher yield of 4.6%, compared with the real estate industry average of 4.4%. For REITs, funds from operations (FFO) play a similar role to net income for non-REITs and can be used to determine the amount of FFO that can be paid out as dividends. REITs are legally obligated to distribute 90% of their taxable income to shareholders.
As long as Rexford continues to grow its FFO, it should be able to maintain an FFO payout ratio of 73%, which is slightly higher. In 2025, FFO grew 9.2% to $558.6 million, and $103 million in dividends was paid. Rexford also increased its 2026 quarterly dividend by 1.2% to $0.435 per share. The company has increased its dividend for 12 consecutive years.
Rexford’s business is concentrated in Southern California, one of the most supply-constrained industrial regions in the country, giving it pricing power. This has helped Rexford maintain consistent occupancy and rental growth trends, which are critical to long-term cash flow and dividend payments.
On Wall Street, REXR stock is rated a “Moderate Buy” overall. Of the 18 analysts covering REXR stock, 4 rate it a Strong Buy, 1 rate it a Moderate Buy, 11 rate it a Hold, and 2 recommend a Strong Sell rating. Its average price target of $41.88 suggests the stock could rise 11% from current levels. However, its high price target of $52 implies upside potential of 38% over the next 12 months.
On the date of publication, Sushree Mohanty did not hold (either directly or indirectly) any securities mentioned in this article. All information and data in this article are for reference only. This article was originally published on Barchart.com
