Dividends are a portion of a company’s earnings directly distributed to its shareholders, usually in the form of cash or additional shares. They’re essentially a way for companies to distribute a piece of their profitability back to those who own their stock, allowing shareholders to benefit from the company’s success beyond just the potential appreciation of the stock price. Many mature and stable companies, particularly in sectors like utilities, consumer staples, and telecommunications, tend to offer regular dividends, providing a steady stream of income to their shareholders.
Investing in dividend stocks can be a highly effective strategy for multiple types of investors. For income-focused investors, such as retirees, dividends provide a predictable income stream, often more reliable than potentially volatile market price movements. Meanwhile, growth-oriented investors may also favor dividend stocks, as reinvesting these dividends can significantly enhance long-term returns through the power of compounding.
In essence, dividend stocks can offer a balance of growth and income, making them a valuable component of a diversified investment portfolio. However, as with any investment, dividend stocks come with their own set of risks and must be chosen and managed judiciously. Keeping this in mind, here are three high-yield dividend stocks to watch in the stock market now.
High Yield Dividend Stocks To Watch Right Now
- AbbVie Inc. (NYSE: ABBV)
- Chevron Corporation (NYSE: CVX)
- Exxon Mobil Corporation (NYSE: XOM)
AbbVie (ABBV Stock)
AbbVie Inc. (ABBV) is a biopharmaceutical company. The company is research-oriented and targets four main therapeutic fields: neuroscience, virology, oncology, and immunology. Today, ABBV offers shareholders an annual dividend yield of 3.97%.
At the end of July, AbbVie reported a beat for its second quarter of 2023 financial results. In detail, the company posted earnings of $2.91 per share and revenue of $13.87 billion for Q2 2023. This is versus estimates of an EPS of $2.79 on revenue estimates of $13.50 billion.
Over the last month of trading, shares of ABBV stock have rebounded by 8.31%. Meanwhile, on Friday morning, ABBV stock is trading at $150.15 a share.
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Chevron (CVX Stock)
Next, Chevron Corporation (CVX) is one of the largest integrated energy companies. The corporation’s operations span the full breadth of the energy sector, including oil production, refining, marketing, and distribution. Currently, CVX has an annual dividend yield of 3.78%.
In late July, Chevron announced its second quarter 2023 financial results. Diving in, the company reported earnings of $3.08 per share with revenue of $48.90 billion. This is compared to Wall Street’s consensus estimates for the quarter which were earnings of $2.95 per share and revenue of $48.98 billion.
Moreover, looking at the last month of trading action, the shares of Chevron stock have advanced by 3.08%. While, during Friday morning’s trading session, CVX stock is trading at $161.12 a share.
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Exxon Mobil (XOM Stock)
Lastly, ExxonMobil (XOM) is an integrated oil and gas company that explores, produces, and refines oil globally. As of today, XOM has an annual dividend yield of 3.40%.
Also, late last month, ExxonMobil announced its Q2 2023 financial results. Getting straight into it, the company posted earnings of $1.94 per share, with revenue of $82.91 billion for the second quarter of 2023. This is versus analysts’ consensus estimates for the quarter of $2.00 per share, with revenue of $81.10 billion.
Over the last month of trading, shares of XOM stock are up by 1.14%. While during Friday morning’s trading session, ExxonMobil is trading at $108.06 per share.
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