Dividend stocks are a popular way for investors to earn passive income. By investing in dividend stocks, investors can receive regular payments as part of their investment portfolio. However, it is important to understand what dividend stocks are and how they work before jumping into the market. Let’s explore the basics of investing in dividend stocks.
What Are Dividend Stocks?
In a nutshell, dividend stocks are shares of publicly traded companies that pay out regular cash dividends to their shareholders. Companies often use the money they make from their businesses to buy back their own stock or issue dividends. These dividends can range from very small amounts (less than 1%) to larger amounts (up to 10% or more). The amount of the dividend is typically based on the company’s profitability and overall financial situation. With this in mind, let’s look at three dividend-paying stocks to watch in the stock market today.
Dividend Stocks To Watch Right Now
- McDonald’s Corporation (NYSE: MCD)
- Church & Dwight Company Inc. (NYSE: CHD)
- Brown & Brown Inc. (NYSE: BRO)
McDonald’s Corporation (MCD Stock)
Starting off, we have McDonald’s Corporation (MCD). For starters, McDonald’s Corporation is one of the world’s largest fast-food restaurant chains. For a sense of scale, the company has approximately 40,000 stores and more than 100 markets. As of today, MCD offers its shareholders an annual dividend yield of 2.22%.
MCD Recent Stock News
At the end of October, McDonald’s reported a beat for its Q3 2022 financial results. Diving in, MCD reported third-quarter 2022 earnings of $2.68 per share, along with revenue of $5.9 billion. For context, Wall Street’s consensus estimates for the quarter were earnings of $2.57 per share, with revenue estimates of $5.7 billion.
What’s more, McDonald’s President and CEO, Chris Kempczinski commented, “As the macroeconomic landscape continues to evolve and uncertainties persist, we are operating from a position of competitive strength. I also want to thank our franchisees, who have done a tremendous job navigating this environment, while providing great value to our customers.“
MCD Stock Chart
Aside from that, so far in 2022, shares of MCD are up 0.94%, outperforming the broader markets. Meanwhile, on Monday morning, MCD stock is trading down 0.94% at $270.83 a share.
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Church & Dwight (CHD Stock)
Next, Church and Dwight (CHD) is a major American manufacturer of household products, with a particular focus on baking soda, laundry detergent, and sexual health products. Notably, Church & Dwight has grown to become a global leader in the category with iconic brands such as Arm & Hammer, OxiClean, and Trojan. Today, the company has an annual dividend yield of 1.26% for shareholders.
CHD Recent Stock News
At the end of October, CHD reported its Q3 2022 financial results. In the report, Church & Dwight announced third-quarter 2022 earnings of $0.76 per share and revenue of $1.3 billion. While the street’s consensus estimate for the quarter was $0.65 per share and revenue estimates of $1.3 billion. Additionally, CHD said it estimates Q4 2022 earnings of $0.58 to $0.62 per share.
Furthermore, Matthew Farrell, Chief Executive Officer, said, “The U.S. portfolio grew consumption in 11 of 17 categories. The trade down to value laundry detergent continued as ARM & HAMMER Liquid detergent achieved an all-time high market share. ARM & HAMMER Clumping litter, BATISTE dry shampoo, and THERABREATH mouthwash also achieved all-time market share highs.“
CHD Stock Chart
In the last month of trading, shares of CHD stock have recovered 11.72%. Meanwhile, during Monday morning’s trading session, CHD stock opened lower by 2.01%, currently trading at $81.40 a share.
Brown & Brown (BRO Stock)
Finishing off the list, let’s look at Brown & Brown (BRO). In brief, Brown & Brown is an insurance brokerage firm. The company provides a wide range of insurance and risk management products and services to clients around the world. Currently, BRO offers its shareholders an annual dividend yield of 0.77%.
BRO Recent Stock News
In late October, Brown & Brown reported its 3rd quarter 2022 financial results. In them, the company posted earnings of $0.50 per share and revenue of $927.6 million for Q3 2022. What’s more, revenue increased by 20.4% versus the same period, a year prior.
Moreover, J. Powell Brown, president, and CEO of BRO said, “We are pleased with our overall performance for the quarter as we welcomed over 2,500 new teammates from GRP & BdB to Brown & Brown in the United Kingdom, Ireland, Belgium and Italy. We now have approximately 12% of our total revenues delivered from international operations.”
BRO Stock Chart
Over the last month of trading action, shares of BRO stock have rebounded by 5.08%. While, on Monday morning, shares of BRO stock are trading lower off the open by 1.21% at $58.80 a share.