Dividends represent a share of profits that companies distribute to their shareholders, typically on a quarterly basis. They’re a way for investors to earn a return on their investment without selling the stock, offering a steady stream of income in addition to any capital gains they might achieve from an increase in the stock’s price. Companies that have a long history of not only paying but also consistently increasing their dividends are particularly attractive to many investors, as they often indicate financial stability and a commitment to returning value to shareholders.
Among the elite group of dividend-paying stocks are the “Dividend Aristocrats.” These are companies within the S&P 500 Index that have not only paid but also increased their dividends for a minimum of 25 consecutive years. This impressive track record showcases their ability to generate and grow profits across economic cycles, demonstrating resilience and strong corporate governance. Being labeled a Dividend Aristocrat often elevates a company’s status in the investing world, signifying trustworthiness and reliability.
For investors, especially those seeking regular income, such as retirees, investing in Dividend Aristocrat stocks can be a wise strategy. These stocks offer a dual advantage: the potential for capital appreciation and a consistent dividend income. Furthermore, their long history of dividend growth can act as a hedge against inflation. However, like all investment strategies, it’s essential to conduct thorough research and ensure that any stock aligns with one’s overall financial goals and risk tolerance. That said, here are two dividend aristocrat stocks to watch in the stock market today.
Dividend Aristocrats To Buy [Or Avoid] Right Now
The Coca-Cola Company (KO Stock)
Recognized worldwide, The Coca-Cola Company (KO) is a global leader in the beverage sector. It boasts an expansive portfolio of over 500 brands, with its flagship product, Coca-Cola, distributed in more than 200 countries. Today, the company offers an annual dividend yield of 3.01%.
In late July, The Coca-Cola Company reported a beat for its second quarter of 2023 financial results. In the quarter, KO notched in earnings of $0.78 per share on revenue of $11.97 billion. This is versus Wall Street estimates for Q2 2023 which were earnings per share of $0.82 and revenue estimates of $11.72 billion.
Over the last six months of trading, shares of KO stock are up 2.65%. Meanwhile, going into Monday morning’s pre-market trading session, Coca-Cola stock looks to set to open at around $61.19 a share.
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Procter & Gamble Co. (PG Stock)
Next, Procter & Gamble (PG), a multinational conglomerate, has been a leading name in the consumer goods sector for over a century. The company has a diverse portfolio that includes household brands such as Tide, Gillette, and Pampers. Currently, PG has an annual dividend yield of 2.40%.
Also last month, PG announced its 4th quarter FY 2023 financial results. Diving right in, the company posted a beat reporting an EPS of $1.37 with revenue of $20.55 billion. This is compared with analysts’ consensus estimates which were earnings of $1.32 per share along with revenue of $19.94 billion. Moreover, revenue increased by 5.32% versus the same period, the previous year.
In the last six months of trading, shares of PG stock are up 12.74%. Looking ahead to Monday’s pre-market trading session, Procter & Gamble stock is trading at around $156.98 a share.