Dividend stocks are shares of companies that pay regular dividends to their shareholders as a way to provide them with a return on their investment. These dividends are a portion of the company’s profits that are distributed to investors. Dividend stocks are generally seen as a stable and reliable source of income, especially for investors seeking passive income or those nearing retirement.
The performance of dividend stocks is closely linked to the overall health of the economy. This comes as companies that can generate consistent profits are typically in a better situation to pay regular dividends. Additionally, during market corrections or economic slowdowns, dividend stocks may become even more attractive to investors as they offer a reliable income stream and a safer investment option.
Investing in dividend stocks requires an in-depth understanding of the company’s financials, dividend history, and potential for future growth. You should evaluate factors such as earnings, cash flow, and payout ratios before investing. Moreover, diversification is critical as investing solely in dividend stocks can be risky due to potential market volatility and changes in economic conditions. With that in mind, let’s dive into three dividend stocks to check out in the stock market this week.
Dividend Stocks To Watch Today
- AbbVie Inc. (NYSE: ABBV)
- Altria Group Inc. (NYSE: MO)
- International Business Machines Corporation (NYSE: IBM)
AbbVie (ABBV Stock)
To start, AbbVie Inc. (ABBV) is a biopharmaceutical company that specializes in research and development of drugs for the treatment of various diseases. The company is known for its leading position in the global market for Humira, a drug used to treat autoimmune diseases. AbbVie also has a diversified portfolio of other drugs in its pipeline, with a focus on oncology, immunology, and neuroscience. Currently, ABBV offers its shareholders an annual dividend yield of 3.73%.
Just last week, AbbVie announced its topline results from a Phase 2 study of upadacitinib (RINVOQ®), a drug used to treat autoimmune diseases, in combination with elsubrutinib, a Bruton’s Tyrosine Kinase inhibitor, for patients with systemic lupus erythematosus (SLE). The study met the primary endpoint of SLE Responder Index (SRI-4) and showed a steroid dose reduction in patients taking upadacitinib alone. Based on these results, AbbVie is planning to move forward with a Phase 3 clinical trial for upadacitinib in SLE.
Year-to-date, shares of ABBV stock have fallen by 2.41%. Though, during Tuesday morning’s trading session, ABBV stock is trading slightly higher off the open by 0.60% at $158.43 a share.
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Altria Group (MO Stock)
Next, Altria Group Inc. (MO) is a tobacco company that produces and sells cigarettes, cigars, and other tobacco products. The company’s brands include Marlboro, Black & Mild, and Skoal. Altria Group is known for its strong market position. Today, MO has an annual dividend yield of 8.42%.
Also last week, Altria Group hosted its investor day conference in New York City. During the conference, Altria CEO Billy Gifford and other senior management members presented their 2028 Enterprise Goals, which include corporate financial metrics, specific US smoke-free volume and revenue targets, and aspirations to compete beyond the US nicotine space. The company also provided updates on internal product development efforts for smoke-free products. Additionally, the company reaffirmed its guidance to deliver 2023 full-year adjusted diluted EPS in a range of $4.98 to $5.13 and set a goal to deliver mid-single digits adjusted diluted EPS growth on a compounded annual basis through 2028.
So far in 2023, shares of MO stock have fallen by 2.04% year-to-date. Meanwhile, during Tuesday’s mid-morning trading action, MO stock opened higher by 0.61% at $44.58 a share.
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International Business Machines (IBM Stock)
Lastly, International Business Machines Corporation (IBM) is a multinational technology company that provides hardware, software, and services to clients in various industries. The company has extensive expertise in cloud computing, artificial intelligence, and cybersecurity. Moreover, currently, IBM offers its stockholders an annual dividend yield of 5.09%.
Back in January, IBM reported its Q4 2022 financial results. In detail, the company showed earnings of $3.60 per share with revenue of $16.7 billion. This is in comparison to analysts’ consensus estimates for the quarter which was an EPS of $3.61, on revenue of $16.4 billion.
In 2023 thus far, IBM stock has fallen by 8.54% YTD. Though, on Tuesday morning, shares of IBM stock are trading modestly higher off the open by 0.10% at $129.44 a share.
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