4 Dividend Stocks To Check Out Right Now
With the outcome of the Russia-Ukraine war looking uncertain, volatility remains in the stock market today. Not only that, the Fed is also expected to raise interest rates this month. Because of this, some investors could be re-evaluating their strategies toward building a more defensive portfolio. Hence, dividend stocks could be worth considering. This is because dividend stocks tend to have more stable returns and can provide some buffer during periods of market instability. On top of that, these dividend-paying companies are often well-established companies that have stood the test of time.
As such, investors could be on the lookout for the best dividend stocks in the stock market today. A solid choice for dividend stocks could be Procter & Gamble (NYSE: PG). The behemoth in consumer goods has been around since 1837 and has provided investors with 65 years of consecutive dividend growth. As it stands, PG stock offers a 2.2% dividend yield. Besides that, investors could take a look at PepsiCo (NASDAQ: PEP). The company recently raised its quarterly dividend by 5% to $1.075 per share, hence marking its 49th consecutive annual dividend increase. With that being said, here are four more dividend stocks to watch in the stock market today.
Dividend Stocks To Watch Today
- Johnson & Johnson (NYSE: JNJ)
- Diamondback Energy Inc. (NASDAQ: FANG)
- The Coca-Cola Company (NYSE: KO)
- The Home Depot Inc. (NYSE: HD)
Johnson & Johnson
Johnson & Johnson, or JNJ for short, is a legacy healthcare company that develops medical devices, pharmaceuticals, and consumer packaged goods. It has been around for more than a century and is one of the largest and most broadly-based health companies in the world. In fact, it is one of the two U.S.-based companies that have a prime credit rating of AAA. With over 130 years of history, the company strives to improve access and affordability for the millions of people that depend on the company’s products.
Earlier this week, it was reported that the healthcare giant is in talks with two Chinese biotech companies. Evidently, JNJ is looking to tap into the biotech industry boom in China driven by private investment and government support. The two companies, which JNJ declined to name, come after the company’s successful collaboration with Legend Biotech (NASDAQ: LEGN). The two worked together on a breakthrough cell-based cancer therapy that was approved by US regulators last week.
According to Peter Lebowitz, head of JNJ’s global oncology division, Chinese biotech companies mainly focused on formulating improved versions of existing drugs before 2015. However, now, there is more innovation from China. Given the potential of additional partnerships, would you buy JNJ stock?
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Another dividend stock to consider is Diamondback. In brief, it is an independent oil and natural gas company that focuses on the acquisition, development, and exploration of oil and natural gas reserves. For the most part, it operates primarily in the Permian Basin in West Texas. About two weeks ago, the company reported its fourth-quarter and full-year financials. For starters, total revenues for the quarter came in at $2.02 billion compared to $769 million a year ago.
A large chunk of this revenue derives from its oil, natural gas, and natural gas liquid sales. As for its profits, the company raked in adjusted earnings per share of $3.63 in the past quarter, beating consensus estimates of $3.38. Additionally, the energy company also increased its annual dividend by 20% to $2.40 a share and returned a total capital of $515 million from stock purchases.
For its full-year 2022 guidance, it expects oil production to be around 218-222 MBO/d. Besides that, Diamondback also expects to generate about $5.8 billion of net cash provided by operating activities this year. Considering the company’s performance, is FANG stock worth investing in?
Following that is Coca-Cola. In essence, the company owns and markets non-alcoholic beverage brands. This includes sparkling soft drinks, water, sports drinks, juice, and even plant-based beverages. Notably, these brands include popular brands such as Fanta and Sprite. Besides that, the company recently just approved its 60th consecutive annual dividend increase. Notably, it is raising its quarterly dividend by about 5% to $0.44 per common share.
In February, the company unveiled its new global innovation platform named Coca-Cola Creations. Basically, the platform opens up the Coca-Cola trademark and lends it to new expressions, driven by collaboration, creativity, and cultural connections. Through limited-edition releases, Coca-Cola Creations will introduce new products and experiences through physical and digital channels.
Accordingly, the first product under this platform is Coca-Cola Starlight, a new drink flavor. Besides being a new flavor, it is also supported by a digital-first marketing campaign, including a partnership with global pop star Ava Max. With more Coca-Cola Creations to come later this year, do you think KO stock is worth checking out?
The Home Depot
Wrapping up our list of dividend stocks today is The Home Depot, one of the largest home improvement companies in the U.S. The company offers its customers an assortment of building materials, home improvement products, and construction tools. Additionally, it provides services such as home improvement installation and equipment rental. For the most part, it serves two primary customer groups, namely do-it-yourself (DIY) customers who purchase and install the products on their own, and professional customers who are primarily contractors and renovators.
Last month, The Home Depot reported results for its most recent quarter. Jumping in, sales for the quarter was $35.7 billion, an increase of $3.5 billion from the same quarter a year ago. Besides that, overall comparable sales increased by 8.1%, and in the U.S. specifically, it increased by 7.6%. Moving on, net earnings for the quarter were $3.4 billion, a respectable increase from $2.9 billion a year ago.
Accordingly, earnings per diluted share were $3.21, compared to $2.65 from the same period the year before. Aside from this, the company also bumped up its dividend from $1.65 to $1.90, an increase of 15.2%. All in all, with a strong quarter from the home retailer, would you consider adding HD stock to your portfolio?