Top Dividend Stocks Watch This Week
While growth stocks may be making headlines with flashy gains, investors remain keen on dividend stocks now as well. For the most part, I can understand why. When it comes to dividend stocks, stability is the name of the game. Sure, you could argue that they might not provide quick results, but they bring in constant returns for long-term investors. For more conservative investors, this would be a likely strategy given the current state of the stock market. While growth investors brave the volatility in the latest trends such as cryptocurrency, income investors build their wealth on dividends. With all that said, should you be investing in dividend stocks?
Well, for starters, legendary investor Warren Buffett is big on dividends. Evidently, Buffett’s Berkshire Hathaway (NYSE: BRK.A) portfolio boasts over 30 dividend-paying securities. The likes of which include Coca-Cola (NYSE: KO), Apple (NASDAQ: AAPL), and American Express (NYSE: AXP). Notably, these three holdings are currently estimated to bring in over $1.7 billion in dividends for Buffett this year. Of course, regular investors are not trading at the same volumes as Berkshire Hathaway. But, investing in the top dividend stocks now could appeal to investors looking to bolster their portfolios with defensive plays. With all that in mind, would you be watching these four dividend stocks in the stock market today?
Best Dividend Stocks To Buy [Or Sell] Now
- Bank of America Corporation (NYSE: BAC)
- International Business Machines Corporation (NYSE: IBM)
- Brookfield Renewable Partners (NYSE: BEP)
- Broadcom Inc. (NASDAQ: AVGO)
Bank of America Corporation
Bank of America or BAC is a multinational investment bank and financial services holding company. It is the second-largest banking institution in the U.S. and services approximately 10.73% of all American bank deposits. Impressively, it serves approximately 66 million consumer and small business clients. It also boasts approximately 4,300 retail financial centers. BAC stock currently trades at $38.11 as of 11:20 a.m. ET and has been up by over 25% year-to-date. The company has just released its first-quarter financials today.
In detail, the company also posted a total revenue of $22.8 billion for the quarter. Total net income was $8.1 billion, more than double what it was a year ago. The majority of this income came from its consumer banking segment at $2.7 billion and global markets segment at $2.1 billion. Deposits were up by 25% to a staggering $924 billion.
Impressively, BAC also reported record consumer investment assets which were up by 53% to $324 billion. This was primarily driven by market valuations during the quarter. BAC also paid $0.18 per common share in dividends. With such an impressive quarter, will you consider adding BAC stock to your watchlist?
International Business Machines Corporation
International Business Machines or IBM is a leading tech company that is headquartered in Armonk, New York. The company has operations in over 170 countries. In essence, the company produces and sells hardware and software. It also provides hosting and consulting services in areas ranging from nanotechnology to mainframe computers. IBM stock currently trades at $132.70 as of 11:20 a.m. ET. The company’s last dividend was paid in March at $1.63 per share. Today, the company announced that it will acquire myInvenio to help organizations use AI-powered automation.
myInvenio is a process mining software company based in Italy. The acquisition will provide organizations with data-driven software to help them identify the most impactful business processes to automate using AI. These include processes in sales, procurement, production, and accounting. The acquisition would also further advance IBM’s hybrid cloud and AI strategy, providing customers with a comprehensive suite of AI-powered automation capabilities for business automation.
“Digital transformation is accelerating across industries as companies face increasing challenges with managing critical IT systems and complex business applications that span the hybrid cloud landscape,” said Dinesh Nirmal, General Manager, IBM Automation. “With IBM’s planned acquisition of myInvenio, we are continuing to invest in building the industry’s most comprehensive suite of AI-powered automation capabilities for business automation so that our customers can help employees reclaim their time to focus on more strategic work.” Given all of this, will you consider watching IBM stock?
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Brookfield Renewable Partners
Brookfield Renewable or BEP is a renewable energy company that owns and operates renewable power assets. It also operates one of the world’s largest publicly traded renewable power platforms. In detail, its portfolio consists of approximately 20,000 MW of capacity and over 5,300 generating facilities. Its operations are spread across North America, South America, Europe, and Asia. BEP stock has increased by over 70% in the last year.
In the company’s fourth-quarter financials, it reported record financial results. Despite the economic challenges around the world, the company enjoyed significant growth and continued to broaden its operations. For the quarter, the company declared a dividend in the amount of $0.303 per share. This would represent a 5% increase in its distribution.
It also advanced key commercial priorities, including delivering on almost $40 million in cost-saving initiatives. It also agreed to invest approximately $4.6 billion of equity across ten transactions, deploying capital in all of its major markets. With such exciting developments surrounding the company, will you put BEP stock on your watchlist?
Another top dividend stock in the spotlight now would be Broadcom Inc. For the uninitiated, the company designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. To highlight, Broadcom’s key end markets include the data center, networking, enterprise software, broadband, and industrial sectors. On the software front, the company offers data center networking and storage along with mainframe and cybersecurity services. As it stands, the company offers a quarterly stock dividend of $3.60 per share. Meanwhile, AVGO stock is currently trading at $480.46 a share as of 11:21 a.m. ET.
Nevertheless, Broadcom remains a prominent player in the semiconductor industry now. Thanks to its latest play, investors could continue flocking to AVGO stock. In detail, Broadcom is now working with Google (NASDAQ: GOOGL) Cloud to strengthen Google’s cloud services. Through the current collaboration, Broadcom will provide a suite of security and enterprise operations software on Google Cloud.
By doing so, Broadcom receives massive exposure to Google’s sizable client list while accelerating cloud innovations as well. Time will tell if Broadcom can leverage this partnership to boost long-term profitability. Ideally, this could lead to increased dividend yields for shareholders as well. Should this be the case, would you consider AVGO stock a buy right now?