Dividend investing focuses on buying stocks in companies that regularly distribute a portion of their profits to shareholders. These companies are typically well-established, with stable cash flows and strong market positions. Dividend stocks can offer both regular income and potential capital appreciation. This investment strategy has gained popularity among investors seeking steady income streams.
Investing in dividend stocks offers several potential benefits for long-term investors. Regular dividend payments can provide reliable income, particularly valuable during retirement. Many dividend-paying companies increase their payouts over time, helping combat inflation. Dividend stocks often show less volatility than growth stocks. However, dividend investing also has drawbacks. Companies can cut or suspend dividends during tough times. High dividend yields might signal underlying business problems. Dividend stocks may offer lower growth potential compared to other investments.
When selecting dividend stocks, look beyond just the dividend yield. Examine the company’s dividend payment history and payout ratio. Consider the company’s ability to maintain and grow dividend payments. Evaluate the business model and competitive position in their industry. Be aware of how interest rate changes might affect dividend stocks. That being said, let’s look at two dividend stocks that reported earnings in the stock market today.
Dividend Stocks To Watch Today
- United Parcel Service Inc. (NYSE: UPS)
- Honeywell International Inc. (NASDAQ: HON)
United Parcel Service (UPS Stock)
First off, United Parcel Service Inc. (UPS) is one of the world’s largest package delivery and supply chain solutions companies. They operate a vast network of ground and air transportation services across more than 220 countries and territories. UPS provides a range of logistics services, including freight forwarding, customs brokerage, and specialized transportation solutions. As it currently, stands, the company offers its shareholders an annual dividend yield of 4.74%.
Today, Thursday, United Parcel Service announced its most recent third-quarter 2024 financial results. In detail, the company posted Q3 2024 earnings of $1.76 per share, along with revenue of $22.25 billion. This came in better than consensus estimates for the quarter which were earnings of $1.65 per share, and revenue estimates of $22.23 billion.
Year-to-date, shares of UPS stock have pulled back by 13.16% so far. Meanwhile, on Thursday morning, UPS stock opened higher up 4.56% on the day, currently trading at $137.48 a share.
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Honeywell International (HON Stock)
Following that, Honeywell International Inc. (HON) is a global technology and manufacturing company operating across multiple sectors. They produce a wide range of products including aerospace systems, building technologies, performance materials, and industrial automation solutions. Honeywell serves customers ranging from large corporations and governments to individual consumers. Today, HON offers its shareholders an annual dividend yield of 2.15%.
Moving along, today, Thursday, Honeywell International also reported its third quarter 2024 financial results. Getting right to it, the company notched in Q3 2024 earnings of $2.58 per share, with revenue of $9.73 billion. This is versus Wall Street’s consensus estimates for the quarter, which were earnings per share of $2.50, on revenue estimates of $9.90 billion.
In 2024 thus far, shares of HON stock are up modestly by 0.74% YTD. Moreover, during Thursday morning’s trading session, Honeywell International stock is trading red on the day so far by 4.58%, at $210.24 a share.
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