Are These The Best Dividend Stocks To Buy Right Now?
Dividend stocks could be a safe haven for investors in the stock market today. For the unfamiliar, dividend stocks are a type of investment that pays out regular dividend payments, typically on a quarterly basis. Dividend stocks tend to be large, well-established companies that have a history of paying dividends and have strong earning power. For investors, dividend stocks provide a source of regular income, as well as the potential for capital appreciation if the stock price rises.
Additionally, dividend stocks can be a valuable addition to any portfolio, but it is important to remember that they are not without risk. As with any stock, there is the potential for dividend payments to be cut or suspended entirely if the company’s financial condition deteriorates. Investors should also be aware that dividend payments are not guaranteed and can fluctuate from year to year. Nevertheless, dividend stocks can offer a unique combination of income and growth potential that make them an attractive option for many investors.
Also, investing in dividend stocks could reduce the overall risk and volatility of your portfolio. Take Lowe’s (NYSE: LOW) as an example. Since going public in 1961, the company has increased its dividend payout every year since then. Another example to look at would be the Target (NYSE: TGT). The company has increased its dividend for more than 50 years and counting. If you’re keen on investing in dividend stocks, here are three to watch in August 2022.
Dividend Stocks To Watch In August 2022
- Realty Income Corporation (NYSE: O)
- United Parcel Services Inc. (NYSE: UPS)
- Philip Morris International Inc. (NYSE: PM)
Realty Income Corporation (O Stock)
Starting off the list, let’s check out Realty Income. The company is the gold standard of triple net lease REITs. For starters, a triple net lease is a form of real estate lease agreement where the tenant or lessee is responsible for all the ongoing expenses of the property. The REIT is a bellwether in one of the most resilient niches of the commercial real estate industry.
Additionally, Realty Income owns more than 6,700 properties, most of which are occupied by retail tenants. That totals to nearly 80% of the portfolio holding. Furthermore, the company’s balance sheet is investment-grade rated. This means, the company has the ability to access cheaper debt financing, that in turn will provide the company with a lower cost of debt capital.
Moving along, Realty Income also offers its investors a monthly dividend. In detail, its current annual dividend yield is 4.01%. Just last month, the company declared its 625th consecutive common stock monthly dividend. In detail, the dividend amount will be $0.2475 per share, representing an annualized amount of $2.97 per share. All in all, is O stock a top dividend stock to watch now?
United Parcel Services (UPS Stock)
Following that, let’s take a look at United Parcel Services (UPS). United Parcel Service (UPS) is a package delivery company and a provider of global supply chain management solutions. Its segments include U.S. Domestic Package and International Package. As the name suggests, the U.S. Domestic Package segment offers small package delivery services in the United States and offers a spectrum of United States domestic guaranteed air and ground package transportation services. Meanwhile, its International Package segment consists of its small package operations in Europe, Asia Pacific, Canada, Latin America and Indian sub-continent, Middle East and Africa (ISMEA). In July, UPS reported its 2Q 2022 earnings results.
In detail, UPS reported earnings of $3.29 per share on revenue of $24.8 billion for the quarter. Wall street earnings estimate was $3.14 per share on revenue of $24.6 billion. Additionally, revenue increased 5.7% on a year-over-year basis. Next, the company said it continues to estimate 2022 revenue of nearly $102.0 billion.
In August, UPS announced its regular dividend of $1.52 per share. As one of its core principles and hallmark of the company’s financial strength, UPS has either maintained or increased its dividend each year since its inception into the stock market in 1999. For investors, this is important for any long-term dividend-driven investment. Does this make UPS a top dividend stock to keep on your radar right now?
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Philip Morris International (PM Stock)
Last but not least, we have Philip Morris International (PM). Philip Morris International is a multinational cigarette and tobacco manufacturing company. For a sesne o scale, the company’s products are sold in more than 180 countries worldwide. It’s most notable, and best selling product is Marlboro. Despite being known for its cigarette products, Philip Morris is currently in the middle of transforming the tobacco industry with the goal to create a smoke-free future and ultimately replacing cigarettes with smoke-free products to the benefit of adults. Through its multidisciplinary capabilities in product development and state-of-the-art facilities, Philip Morris focuses on meeting its consumer preferences and rigorous regulatory requirements. The company current has a dividend yield of 5.1%.
In July, Philip Morris International (PM) reported a beat for its second quarter 2022 earnings. In the report, the company posted an earnings of $1.48 per share on revenue of $20.4 billion. The consensus earnings estimate was $1.24 per share on revenue of $6.7 billion. PM reported it estimates 2022 earnings of $5.90 to $6.05 a share. For context, the company’s previous guidance was earnings of $5.45 to $5.56 per share.
Jacek Olczak, Chief Executive Officer, commented, ““We are raising our outlook for the full year and now expect to deliver pro forma adjusted growth in net revenues of 6% to 8%, on an organic basis, and diluted EPS of 10% to 12%, excluding currency, underpinned by pro forma heated tobacco unit shipment volume of 90 to 92 billion units.” As of Friday’s close, shares of PM stock are trading at $99.24 per share. Considering this, will you be watching PM stock this week?