2 Top Dividend Stocks to Buy in February

Given the recent sharp sell-off in many software companies' stocks as investors debate the impact AI (artificial intelligence) will have on them, it's a good time to revisit the idea of dividend-paying stocks. One of the great things about a dividend is that each payment to shareholders essentially takes some risk off the table, as it puts cash directly in shareholders' hands.

In other words, without dividend payments, investors have to trust that management will make good capital allocation decisions with every penny. But a dividend payment means that investors get to decide what to do with at least a portion of a company's earnings. During times of uncertainty, therefore, it would make sense for investors to place more value on these dividend payments.

So, for any investors looking for good dividend stock ideas to bolster their portfolios with during a period of AI-related uncertainty, here are two top ideas: rural retailer Tractor Supply (NASDAQ: TSCO) and social media company Meta Platforms (NASDAQ: META). Though these are two very different companies, they are both durable, dividend-paying companies with attractive long-term prospects.

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Source Fool.com