Some investors may find it tempting to keep all of their portfolio in high-growth tech stocks so early in their development that they're putting all their cash back into the business. But ignoring the value of stocks that pay a dividend is a rookie mistake. Here are three dividend stocks worth a look.

ExxonMobil

The world might be moving toward a greener future, but fossil fuels are not going away tomorrow. Because of that, I think ExxonMobil (NYSE: XOM) -- with a yield of about 3.2% at its current share price, and shares trading at 14 times earnings -- makes a compelling income investment play.

While its sales and earnings can be volatile in correlation with the price of oil, the company has consistently been making tens of billions of dollars annually (with the exception of 2020). With over $26 billion in cash and equivalents at the end of the second quarter, ExxonMobil has plenty of capital to keep paying its dividend. Moreover, oil prices have remained in the $70 range or above for the past couple of years, providing strong cash flow for the company.

Among the 30 analysts following ExxonMobil and tracked by MarketWatch, the average price target is $130 as of this writing, pointing to a potential 8% upside over the next 12 months. Investors will also benefit from the dividend, which has been increased annually for decades and I expect to remain strong. For me, even with the negative rhetoric we see every day about fossil-fuel-based businesses, companies like ExxonMobil remain important to our lives. In that context, I see it as a solid dividend play that will be around for quite some time.

Kenvue

Last year, Johnson & Johnson spun off its consumer products division as Kenvue (NYSE: KVUE).

Not much has happened with the new company since then, but it does sport a dividend that at the current share price yields about 3.7%. Kenvue's brand portfolio includes leading names including Listerine, Tylenol, Motrin, Neutrogena, and Band-Aid.

In the company's most recent quarter, sales were stagnant, and an asset impairment charge caused earnings per diluted share to look bad compared to 2023. Excluding that impairment, the company had adjusted earnings of $0.32 per share compared to $0.31 in the prior-year period.

Overall, I think there's value here that's getting ignored. Kenvue's brand lineup was built up by Johnson & Johnson, which knows a thing or two about building value, and if it plays its cards right, it could be a solid stock to own into the future. As the company points out on its investor relations page, it has created over 100 new "product innovations" every year since 2020. I think that level of innovation, coupled with the company's position within everyday consumer health products, mean it can buck the trend of slow sales growth that we've seen over the last year. This is a long-term play, and I think the company needs time to find itself after its split from Johnson & Johnson.

Ford

Automakers tend to trade around 10 or 12 times earnings (unless, of course, we're talking about Tesla). Ford (NYSE: F) stock falls right in that range at 11 times earnings. The low valuations relative to earnings mean that companies like Ford have to create some pretty meaningful earnings growth in order to jolt shares upward. While Ford might not have much potential to rocket upward, the upside is that it is a great dividend stock, offering a 5.4% yield at the current share price.

Over the past five years, the stock's yield has averaged 4.46%. I think the health of the balance sheet, and the company's historic track record of paying a good dividend, paint an optimistic picture for the dividend in the future. Ford has over $34 billion in cash on its books, and free cash flow of nearly $3.41 billion in its most recent quarter. I think the automaker is more than capable of continuing to cover its dividend.

And don't forget, for over 40 years, Ford's F-150 pickup has remained the most in-demand truck model, and pickups are the bread-and-butter business for most U.S. automakers. This puts Ford in a prime position to drive revenue. While it might not be the most exciting stock in the world, I think the automaker's dividend is very safe.

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David Butler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue. The Motley Fool recommends the following options: long January 2026 $13 calls on Kenvue. The Motley Fool has a disclosure policy.

3 Dividend Stocks to Double Up on Right Now was originally published by The Motley Fool