Is Now The Time To Add Stocks These High Paying Dividends Stocks To Your Portfolio?
Amidst the volatility seen in the stock market recently, many investors are considering safer investments like dividend stocks. As a result, the highest-paying dividend stocks in 2021 could have more room to grow right now. While that may seem like a decent strategy to focus on, there are several other key factors to consider when it comes to dividend investing.
For starters, companies that focus their resources towards dividends could be lagging in terms of growth projects. This would account for slower stock appreciation over time but provide more predictable income overall. Next, the company’s dividend-paying history would also be another aspect to consider. In this case, consistency and steady increments in a company’s dividends would be important to look out for.
While it is important to look for stocks with the highest dividends for your portfolio, funds, and companies that offer monthly payouts are even better. Monthly dividend stocks are a popular investment in the stock market right now. After all, if your bills are monthly, why aren’t your payouts? Of course, that’s not to say dividend stocks are a sure-win strategy when it comes to investing. With all that being said, here are some of the best dividend stocks to watch in the stock market today.
Best Dividend Stocks To Watch Right Now
- SoFi Weekly Income ETF (NYSEARCA: TGIF)
- Realty Income (NYSE: O)
- AbbVie Inc. (NYSE: ABBV)
- Chevron Corporation (NYSE: CVX)
- AGNC Investment Corp (NASDAQ: AGNC)
SoFi Weekly Income ETF
While you may have been looking for stocks with highest dividends and monthly dividend stocks, do you know that there’s also a fund that pays out dividends on a weekly basis? Yes, you read that right. If you’re looking for weekly dividend stocks to buy, SoFi Weekly Income ETF does just that. The ETF invests in a combination of investment grade and high yield bonds. It is the first ever ETF that seeks to distribute income on a weekly basis.
The TGIF ETF is actively managed and aims to deliver distributions every Friday, which helps explain the ‘TGIF” ticker. TGIF holds more than 100 different stocks, but the fund’s top holdings include familiar names such as Ford (NYSE: F) and Delta Air Lines (NYSE: DAL). With a fair dividend yield of around 2.5% and a weekly payout schedule, it is undoubtedly an attractive fund for those looking for a steady paycheck. Whether TGIF stock is worth investing in is another question to answer. It certainly doesn’t come cheap, so you’ll have to decide if you are willing to pay up.
It’s nearly impossible to put up a list of best dividend stocks to buy without Realty Income. That’s because there aren’t a lot of companies that can pay consistently and raise their dividends regularly. It is also one of those rare companies that payout monthly dividends and are actually trademarked “The Monthly Dividend Company.” It has made 611 monthly dividends consecutively. This steady performance makes it a great staple for an income investor’s portfolio.
What’s making Realty Income a compelling investment is its portfolio of strong clientele. As of March 31, Realty Income owned 6,592 properties with over 114 million square feet of space. With tenants like Walmart (NYSE: WMT) and Dollar General (NYSE: DG) under its belt, it should continue to do well and maintain a stable revenue stream. With the COVID-19 restrictions ending and a high vaccination rate, Realty Income’s most affected tenants such as cinema operators and gyms should enjoy a nice recovery. Therefore, if you are expecting an improvement in its business, would you add O stock to your portfolio right now?
AbbVie is a major player in the biopharmaceutical industry and one of the best dividend stocks in the stock market right now. ABBV stock investors are benefiting from a dividend yield of 4.5%. Originating as a spin-off from Abbott Laboratories (NYSE: ABT), AbbVie strives to research and deliver innovative medicines. Now, the company’s developmental pipeline consists of potential treatments across numerous key therapeutic areas. These include but are not limited to immunology, oncology, virology, and eye care. For a sense of scale, AbbVie is currently evaluating over 20 investigational cancer medicines in over 300 clinical trials globally.
AbbVie is also gathering a lot of investors’ attention recently as the company continues to make tremendous breakthroughs. Just this month, AbbVie continues to see significant results in its cancer and arthritis portfolios. For starters, the company’s Chronic Lymphocytic Leukemia (CLL) treatment, VENCLEXTA, continues to show progress. With a market capitalization of $200 billion, the company has the balance sheet to make strategic acquisitions to further bolster its offerings. Considering the company’s high growth prospects, would you place your bet on ABBV stock right now?
With oil prices above the $70 price level, things are looking up for energy stocks like Chevron Corporation. The oil giant has an attractive dividend yield of more than 5% and its most recent hike was announced in late April. Many investors, including Warren Buffett, love CVX stock because it has a strong balance sheet and good growth prospects. Although the energy sector isn’t in its heyday anymore, Chevron has got a few tricks up its sleeves. The company is also keeping up with the times through its initiatives in hydrogen to support the green economy.
Essentially, Chevron is one option to consider if you are looking for a relatively low-risk investment in the energy sector. With one of the strongest balance sheets among its industry peers, investors may feel safer investing in it. After all, the oil and gas sector isn’t the shiniest investment you can get in the stock market today. However, considering its highly diversified businesses and a reasonable valuation, would you agree that CVX stock is a good dividend stock to buy now?
AGNC Investment Corp is the largest mortgage REIT by market cap. The mREIT has made a strong comeback after an underwhelming 2020. For those unfamiliar, the company uses its in-house subsidiaries to help package, buy, and sell government-backed mortgages secured by residential real estate. While mortgage REITs may not be a favorite on Wall Street, there’s no question about AGNC’s consistent dividend yield. The REIT has an annualized dividend yield of more than 8%.
In 2020 alone, the company completed $1.4 billion of accretive capital transactions, having a total portfolio of $96.6 billion in agency mortgage-backed securities (MBS) and to-be-announced (TBA) securities. If you’re an investor in the stock market today, you probably know a thing or two about the rising inflation rate. And rising interest rates are among the reasons why stocks were down. While these are bad for stocks in general, rising interest rates actually benefit AGNC. For this reason, some may see AGNC stock as a defensive play in the highly volatile stock market we are having today. With that in mind, would you add AGNC to your watchlist?