What Are Dividends In Stocks?
Dividends are the regular payments made by companies to their shareholders. They represent a way for successful companies to share their profits. Dividend stocks are shares in these companies that pay out dividends. Investors can receive dividends as cash or reinvest them to buy more shares.
Investing in dividend stocks can offer several benefits. Dividend payments provide a steady income stream, especially for retirees and conservative investors. Dividends can also help offset market volatility when stock prices fluctuate. Many dividend-paying companies have a history of increasing their payouts over time, which can lead to growing income for long-term investors. However, dividend stocks may have lower growth potential compared to non-dividend-paying stocks. High dividend yields can sometimes signal financial troubles for a company.
When considering dividend stocks, it’s important to look beyond just the dividend yield. Evaluate the company’s financial health, ability to maintain dividend payments, and history of dividend increases. Be aware that dividends are not guaranteed and can be reduced or suspended. Diversifying across different dividend-paying sectors can help manage risk. Investing in dividend stocks requires a long-term perspective to fully benefit from the power of compounding returns. Considering this, here are two dividend stocks to watch in the stock market today.
Dividend Stocks To Watch Right Now
- Target Corporation (NYSE: TGT)
- General Mills Inc. (NYSE: GIS)
Target (TGT Stock)
First off, Target Corporation (TGT) is a large retail company that operates a chain of discount department stores. They offer a wide variety of merchandise, including apparel, home goods, electronics, and grocery items. Target is known for its focus on providing customers with a pleasant shopping experience and affordable prices. Today, Target offers its shareholders a quarterly dividend of $1.12 and an annual dividend yield of 2.79%.
Today, Target announced its second quarter of 2024 financial results. In detail, the company reported earnings of $2.57 per share, along with revenue of $25.45 billion. This is compared to analysts’ consensus estimates for the quarter which were earnings of $2.16 per share, and revenue estimates of $25.25 billion. Additionally, the company said it estimates Q3 earnings between $2.10 to $2.40 per share.
Looking at the last month of trading, shares of TGT stock are up 6.43%. Meanwhile, during Wednesday’s trading session, Target stock is trading higher by 12.26% at $160.70 a share.
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General Mills (GIS Stock)
Second, General Mills Inc. (GIS) is a multinational food company that manufactures and markets branded consumer foods. Their product portfolio includes well-known brands such as Cheerios, Pillsbury, Betty Crocker, and Haagen-Dazs. General Mills operates in the packaged food industry, supplying grocery stores and other retailers with a diverse range of food and beverage products. Currently, General Mills has a quarterly dividend in the amount of $0.60, and an annual dividend yield of 3.39%.
Last month, General Mills announced that Asheesh Saksena has been appointed as their new Chief Strategy & Growth Officer. In this role, Saksena will oversee General Mills’ strategic planning process and lead efforts to accelerate the company’s growth. Harmening expressed excitement about Saksena’s track record of driving growth across various industries. Prior to this, Saksena held roles at companies like Gap, Best Buy, and Time Warner Cable.
In the last month of trading, General Mills stock is trading higher by 9.38%. Moreover, on Wednesday, shares of GIS stock are trading higher by 0.99%, at $70.64 a share.
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