With the rate on a 6-month Treasury bill sitting at around 4.75%, it’s a great time to be invested in cash. After all, as the saying goes, why fight the Fed? That can be an ideal option if preserving wealth is your primary objective. But if you’re still in the growth phase, you’ll still want to be in equities. Right now, that means finding stocks that pay dividends. And there are some compelling dividend stocks to buy. 

There are many reasons why companies pay dividends, but dividends always help boost total shareholder return. In fact, in “the lost decade” for U.S. stocks, dividends were a way for investors to get at least some positive return for their investment. If the market is in or headed for, another stagnant period for growth, then now is a good time to look for dividend stocks to buy.  

When looking for these must-have dividend stocks, you’ll want to pay attention to the dividend yield. While sometimes a high dividend yield can be a trap for investors, it’s important at this time to look for stocks that pay a risk-free rate of return of about 4.75.  

ET	Energy Transfer	$12.51
EPD	Enterprise Products	$26.38
FTAI	FTAI Aviation	$26.81
VICI	VICI Properties	$32.32
AAP	Advance Auto Parts	$120.69
SBLK	Star Bulk Carriers	$20.66
BTG	B2Gold	$4.17

Energy Transfer (ET) 

Energy stocks are generally good choices when you’re looking for dividend stocks to buy. The case for oil stocks is even stronger following OPEC’s announcement that they are cutting supply by one million barrels a day starting in May 2023. And among the names in the oil patch, Energy Transfer (NYSE:ET) looks particularly attractive right now. 

The company has a massive network of pipelines that spans approximately 120,000 miles and spans 41 states. An attractive part of the company’s pipeline network for the rest of this year is its Nederland Terminal. This is the largest singularly-owned above-ground crude oil storage facility in the United States. And it connects to the Department of Energy (DOE) pipelines that will be used to refill the U.S Strategic Petroleum Reserve (SPR). 

On March 24, ET stock was trading flat for the year. Some of that was due to the company’s earnings per share which the company projects at $1.24 for the year. That’s more than 10% lower than the $1.40 it booked last year.  

However, that was before the OPEC announcement. Investors will have to wait until the company reports earnings on May 3 to see if it offers a bump in guidance. In the meantime, investors can cash in on a dividend that has a juicy yield of 9.71%.  

Enterprise Product Partners (EPD) 

The second oil and gas stock that makes this list of dividend stocks to buy is Enterprise Product Partners (NYSE:EPD). The company’s structure as a master limited partnership (MLP) is significant to dividend investors. That’s because it’s required to pay out a substantial amount of profit as a dividend. That is one reason for the company’s attractive dividend yield which currently sits at 7.41%.  

Enterprise Product Partners has a pipeline network that transports natural gas over 50,000 miles. The company has a reliable revenue stream through a series of lengthy commodity-price-resistant contracts. The company is also projecting future growth to come from U.S. onshoring efforts as it operates in the Texas and Louisiana “sweet spot.” 

EPD stock is up approximately 9% in 2023 as of April 6. Analysts suggest the stock has another 16.75% upside. But they will likely begin to reconsider the EPD stock price based on the OPEC announcement as well as the company’s earnings report which will take place at the beginning of May.  

FTAI Aviation (FTAI) 

In its own words, FTAI Aviation (NASDAQ:FTAI) “owns and maintains commercial jet engines with a focus on the CFM56 engine type.” That type accounts for approximately 37% of the engines in service today. And the company says that there have been 22,000 engines manufactured with 21,000 still in service today.  

As you might expect, the company has contracts with many Fortune 500 companies. One name that stands out at this time is Lockheed Martin (NYSE:LMT). Due to mounting geopolitical concerns on many fronts, analysts are suggesting that this is a good time to buy defense stocks. And LMT stock is frequently cited as one to buy.  

Since Lockheed will be coming to FTAI Aviation to service these engines, it stands to reason that the company may benefit from any halo effect that exists. The company has some minor concerns about profitability. But with EPS forecast to average 41% growth over the next five years, there seems to be a lot of fuel for FTAI stock to move higher. In the meantime, investors get a dividend that has a current yield of 4.46%. 

VICI Properties (VICI) 

VICI Properties (NYSE:VICI) operates as a real estate investment trust (REIT). Like master limited partnerships, REITs have an operating structure that requires them to pay out at least 90% of profits to shareholders in the form of a dividend. This makes them attractive choices as dividend stocks to buy.  

However, in an economy like this, it’s important to invest with REITs that are invested in growing properties. Vici Properties develops gaming properties (e.g. casinos), and hospitality and entertainment properties such as golf courses.  

The company’s high-quality portfolio includes 50 properties spread out over the United States and Canada. Part of that portfolio includes ownership of tens of thousands of hotel rooms in Las Vegas which accounts for approximately 43% of the company’s total revenue.  That’s a bet that’s worth taking, particularly as the company pays a dividend that it’s been growing for the last four years and currently has a yield of 4.85% 

Advance Auto Parts (AAP) 

If the reports are accurate, used car prices are moving higher. And when you combine that with the ongoing banking crisis, car loans will be tougher to come by. This creates a bullish recipe for keeping existing cars in working order. Combine that with an attractive dividend and you have the case for Advance Auto Parts (NYSE:AAP).  

AAP stock is down 43% over the last 12 months. However, in the two weeks ending April 6, the stock is up nearly 10%. That corresponds to the last reading on the Consumer Price Index (CPI).  Even with that bump, the stock is still trading near the bottom of its 52-week range. And at 14x earnings, it seems oversold. Plus, investors get a dividend that is just under 5% (4.97%).  

Advance Auto Parts benefited from the pandemic. And investors have likely overcorrected with the idea that electric vehicle sales would increase. That hasn’t materialized at scale, yet. And it will likely be several years until it does. In the meantime, this is a good time to keep your existing ride running well … and maybe to buy AAP stock.  

Star Bulk Carriers (SBLK) 

Many growth investors may be reluctant buyers of dividend stocks. But cyclical stocks can be an attractive source of capital growth to go along with those compelling dividends. The trade-off is that these are stocks that are subject to macroeconomic pressures. That’s the case with Star Bulk Carriers (NASDAQ:SBLK).  

SBLK stock plummeted at the onset of the Covid-19 pandemic and stayed near penny stock levels until the economy began to reopen. Investors may have bid the stock up too high in 2021 and the stock is down over 21% in the last year.  But there’s reason to believe that the next 12-18 months may be bullish for the dry bulk carrier. The International Monetary Fund (IMF) projects a dry bulk carrier fleet to grow by up to 2.7% this year for a variety of reasons having to do with longer routes and increasing demand for commodities like iron ore and coal.  

Analysts give SBLK stock a price target of $30.33 per share which is 46% higher than its closing price on April 6. That growth goes along with a dividend that currently has a dividend yield of 11.62%.  

B2Gold (BTG) 

The last stock on this list of dividend stocks to buy is the Canadian gold mining stock, B2Gold (NYSEAMERICAN:BTG). In 2022, the price of gold must have still believed inflation was transitory. While other commodity prices soared, gold prices stayed muted. That’s changed in 2023 with the spot price of gold being over $2,000 per ounce as of this writing. 

I would direct you to page 7 of the mining company’s corporate presentation in March 2023. There the company shows that it has $652 million in cash and cash equivalents with no debt. That kind of cash flow allowed the company to pay $171 million in dividends in 2022. And the company plans to maintain that dividend in 2023. The yield has dropped below 4% at 3.83%, but that is due to the rise in the BTG stock price which has climbed over 18% in the last 30 days.  

On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.