Are these the best dividend stocks to buy right now?
Dividend stocks could be a safe haven for investors in the stock market today. For those unfamiliar, dividend stocks are a type of investment that pays regular dividend payments, usually on a quarterly basis. Dividend stocks tend to be large, well-established companies that have a history of paying dividends and have strong earning power. For investors, dividend-paying stocks offer a source of regular income, as well as the potential for capital appreciation if the stock price rises.
Additionally, dividend-paying stocks can be a valuable addition to any portfolio, but it’s important to remember that they are not without risk. As with any stock, it is possible that dividend payments may be reduced or suspended entirely if the company’s financial situation deteriorates. Investors should also be aware that dividend payments are not guaranteed and may fluctuate from year to year. Nonetheless, dividend-paying stocks can offer a unique combination of income and growth potential that make them an attractive option for many investors.
Additionally, investing in dividend-paying stocks could reduce the overall risk and volatility of your portfolio. Take Lowe’s (NYSE: LOW) as an example. Since its IPO in 1961, the company has increased its dividend every year since. Another example to consider would be the Target (NYSE: TGT). The company has increased its dividend for over 50 years and counting. If you want to invest in dividend-paying stocks, here are three to watch in August 2022.
Dividend stocks to watch in August 2022
Real Estate Income Company (O Shares)
Starting from the list, let’s check Real estate income. The company is the gold standard for triple-net lease REITs. For starters, a triple net lease is a form of real estate rental agreement where the tenant or lessee is responsible for all ongoing expenses of the property. The REIT is an indicator in one of the most resilient niches in the commercial real estate industry.
Additionally, Realty Income owns more than 6,700 properties, most of which are occupied by commercial tenants. This represents nearly 80% of the portfolio. In addition, the company’s balance sheet is rated investment grade. This means that the business has the opportunity to access cheaper debt financing, which in turn will provide the business with a lower cost of debt capital.
Continuing, Realty Income also offers its investors a monthly dividend. In detail, its current annual dividend yield is 4.01%. Last month, the company declared its 625th consecutive monthly common stock dividend. In detail, the amount of the dividend will be $0.2475 per share, or an annualized amount of $2.97 per share. Overall, is O stock one of the top dividend stocks to watch now?
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United Parcel Services (UPS Stock)
Next, let’s take a look at United Parcel Services (UPS). United Parcel Service (UPS) is a parcel delivery company and provider of global supply chain management solutions. Its segments include US Domestic Package and International Package. As its name suggests, the United States Domestic Parcel segment offers small parcel delivery services within the United States and offers a range of guaranteed air and ground parcel services within the United States. Meanwhile, its International Parcels segment includes its small parcels operations in Europe, Asia-Pacific, Canada, Latin America and the Indian Subcontinent, Middle East and Africa (ISMEA). In July, UPS released its Q2 2022 results.
In detail, UPS reported earnings of $3.29 per share on revenue of $24.8 billion for the quarter. Wall Street‘s earnings estimate was $3.14 a share on revenue of $24.6 billion. Additionally, revenue grew 5.7% year over year. Next, the company said it continued to estimate 2022 revenue at nearly $102.0 billion.
In August, UPS announced its regular dividend of $1.52 per share. As one of its fundamental principles and hallmark of the company’s financial strength, UPS has maintained or increased its dividend every year since its inception in the stock market in 1999. For investors, this is important for any investment long-term, dividend-oriented. Does that make UPS one of the top dividend stocks to keep on your radar right now?
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Philip Morris International (PM shares)
Last but not least, we have Philip Morris International (PM). Philip Morris International is a multinational cigarette and tobacco manufacturing company. For a sesne o scale, the company’s products are sold in more than 180 countries around the world. It is the most outstanding and best-selling product is Marlboro. Although known for its cigarettes, Philip Morris is currently transforming the tobacco industry with the goal of creating a smoke-free future and eventually replacing cigarettes with smoke-free products for the benefit of adults. With multidisciplinary product development capabilities and state-of-the-art facilities, Philip Morris is committed to meeting consumer preferences and stringent regulatory requirements. The company currently has a dividend yield of 5.1%.
In July, Philip Morris International (PM) announced a beat for its second quarter 2022 results. In the report, the company posted earnings of $1.48 per share on revenue of $20.4 billion. The consensus earnings estimate was $1.24 per share on revenue of $6.7 billion. PM said he estimates earnings for 2022 of $5.90 to $6.05 per share. For context, the company’s previous guidance was for earnings of $5.45 to $5.56 per share.
Jacek Olczak, Chief Executive Officer, said: ““We are raising our full-year outlook and now expect pro forma adjusted net revenue growth of 6% to 8%, organically, and diluted EPS of 10% to 12%, excluding currency, supported by forma a shipment volume of heated tobacco units of 90 to 92 billion units. As of Friday’s close, shares of PM are trading at $99.24 per share. Given that, will you be watching PM stocks this week?
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