Dividend stocks are a great way to invest in companies in the stock market that have a history of paying out dividends to their shareholders. Traditionally, dividend stocks tend to be less volatile than other types of stocks, and they can provide a steadier stream of income. Dividend stocks are also a good way to diversify your portfolio and reduce your overall risk. The dividend yield is the percentage of the stock price that is paid out in dividends, and it is one of the most important factors to consider when selecting dividend stocks. Dividend yields vary widely, so it is important to do your research before investing. Some dividend stocks may also offer special features, such as dividend reinvestment plans (DRIPs), which can help you grow your investment over time.
There are many different dividend stocks to choose from, and it can be difficult to decide which ones are the best to invest in. Notably, some of the more popular dividend stocks among investors are Coca-Cola (NYSE: KO), and Procter & Gamble (NYSE: PG). Both companies have all been paying dividends for decades, and they boast high yields and low payout ratios.
However, by doing your research and carefully considering your options, you can find the best dividend stocks to invest in 2022 for your portfolio. When selecting dividend stocks, it is important to consider the company’s financial stability, dividend history, and future prospects. It is also important to compare dividend yields before making any decisions. By carefully evaluating all of these factors, you can find the best dividend stocks for your portfolio and maximize your potential returns. With that, here are three top dividend stocks to watch in the stock market today.
Best Dividend Stocks To Invest In [Or Avoid] In 2022
Johnson & Johnson (JNJ Stock)
Johnson & Johnson (JNJ) is a diversified healthcare company that offers a variety of dividend stock options for investors. The company has a long history of paying dividends and has increased its dividend payments for 54 consecutive years. Investors can expect to receive a dividend yield of 2.7% from Johnson & Johnson in August 2022. In July, Johnson & Johnson reported their Q2 2022 results.
Diving in, Johnson & Johnson (JNJ) reported second quarter earnings of $2.59 per share on revenue of $24.0 billion. In additiona, the company commented it now estimates full year 2022 earnings of $10.00 to $10.10 per share on revenue of $93.30 billion to $94.30 billion. The company’s previous forecast was earnings of $10.15 to $10.35 per share on revenue of $94.80 billion to $95.80 billion. “Our solid second quarter results across Johnson & Johnson reflect the strength and resilience of our Company’s market leadership in the midst of macroeconomic challenges,” stated Joaquin Duato, Chief Executive Officer. As of Friday, shares of JNJ stock are trading at $169.96 per share.
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JPMorgan Chase & Co. (JPM Stock)
Following that, JPMorgan Chase & Co is a multinational investment bank and financial services holding company. Actually, JPM is a leading financial services firm with operations across the globe. For a sense of scale, the company has over $4 trillion in assets and $285.9 billion in stockholders’ equity as of March 31, 2022. Additionally, JPMorgan Chase provides investment banking and financial services for a broad range of customers. In July, JPM reported its second-quarter financial results.
In the report, the company reported a revenue of $30.7 billion for the quarter. Credit costs were $1.1 billion, which includes a $428 million net reserve build and $657 million of net charge-offs. It also had $1.6 trillion of liquidity sources. What’s more, in the second quarter, JPM distributed a common dividend of $3 billion or $1 per share. It also repurchased $224 million of common stock in the quarter. JPM currently has an annual dividend yield of 3.37%.
“JPMorgan Chase performed well in the second quarter as we earned $8.6 billion in net income on revenue of $30.7 billion and an ROTCE of 17%, with growth across the lines of business, while maintaining credit discipline and a fortress balance sheet,” commented CEO Jamie Dimon. “In Consumer & Community Banking, combined debit and credit card spend was up 15% with travel and dining spend remaining robust. Card loans were up 16% with continued strong new account originations. In the Corporate & Investment Bank, we generated strong Markets revenue, up 15% as we helped clients navigate volatile market conditions.”
Home Depot (HD Stock)
The Home Depot is the world’s largest home improvement specialty retailer. At the end of the most recent quarter, the company operated a total of 2,316 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. Just this week, Home Depot reported better-than-expected results for its second quarter 2022 financials.
In the report, the retail giant posted earnings per share of $5.05 on revenue of $43.8 billion. Versus, consensus estimates for the second quarter were earnings of $4.95 per share on revenue of $43.4 billion. Moreover, the company reported a 6.5% increase in revenue on a year-over-year basis. Also, in the report, Home Depot reaffirmed its fiscal 2022 outlook. Specifically, they continue to estimate fiscal 2023 earnings of approximately $16.31 per share on revenue of $155.69 billion.
What’s more, on Thursday this week, HD announced that its board of directors declared a second quarter cash dividend of $1.90 per share. This is the 142nd consecutive quarter the company has paid a cash dividend. In the same announcement, the company reported a $15 billion share repurchase program, which will replace its previous authorization. Considering all this, will you keep HD stock on your radar right now?