Meet the Best Dividend Stock Among the "Magnificent Seven"

The "Magnificent Seven" stocks aren't particularly known for being dividend payers. This group of companies includes the following tech leaders: Apple, Alphabet, Amazon, Meta Platforms, Microsoft (NASDAQ: MSFT), Nvidia, and Tesla. These corporations have generally produced excellent stock market returns. However, several of them don't even pay dividends. Of those that do, one stands out as the best income stock of the group. That company is Microsoft. Let's find out why.

It's hard for a company to be a great dividend stock when it doesn't pay any. So, we can start by putting aside those members of the Magnificent Seven that haven't initiated payouts. That gets rid of Alphabet, Amazon, and Tesla. Next, we can put Meta Platforms out of the running, too. Though the Facebook parent company pays a dividend, it just started doing so this year. Only time will tell whether Meta Platforms will become an outstanding dividend stock. But for now, it hasn't proven itself in this arena yet.

That leaves us with three companies in the running. One of them, Nvidia, is the inferior dividend stock of the trio. Nvidia hasn't increased its payouts in more than five years. The company's forward yield of 0.02% could hardly be lower. Nvidia has plenty of qualities that make it an attractive stock, but its dividend program isn't impressive, at least not compared to our two finalists.

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Source Fool.com