Dividends represent the slice of the financial pie that corporations distribute to their shareholders, essentially sharing a part of their profits. These payouts are a crucial component of investment returns, often providing a steady income stream, particularly attractive to income-focused investors. In addition to supplementing investor income, dividends can also be a sign of a company’s financial health, as businesses that regularly distribute dividends are typically in a stable financial position.
Dividend stocks, or the shares of companies that regularly pay dividends, are often the centerpiece of a conservative investment strategy. These stocks are generally associated with mature, established companies that generate ample free cash flow, have strong balance sheets, and operate in sectors less prone to cyclical swings. Thus, investors often turn to dividend stocks as a source of passive income and as a measure of protection during market downturns, given their potential for lower volatility.
However, as alluring as dividend stocks might be, they require careful evaluation just like any other investment. Key factors to consider include the dividend yield, payout ratio, and the company’s history of dividend payments. Furthermore, it’s essential to understand that while dividends can provide a steady stream of income, they’re not guaranteed – a company can decide to cut or eliminate its dividend if it faces financial hardships. Given this, let’s look at three high-dividend stocks to watch in the stock market today.
High Dividend Stocks To Watch Right Now
AT&T (T Stock)
To start, AT&T Inc. (T) is a renowned multinational conglomerate that provides a wide array of telecom, media, and technology services. Their massive customer base ranges from individual consumers to large businesses, reflecting the scope and versatility of their offerings.
Back in April, AT&T reported its first quarter of 2023 financial and operating results. Specifically, the company announced Q1 2023 earnings of $0.60 per share with revenue of $30.1 billion. This was versus Wall Street’s consensus estimates which were an EPS of $0.58 and revenue of $30.3 billion.
In the past month of trading, shares of T stock have dropped by 6.17%. Though, off the opening bell on Wednesday morning, AT&T stock is trading slightly higher by 0.54% at $15.90 a share.
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Procter & Gamble Co. (PG Stock)
Next, Procter & Gamble Co. (PG) is a household name in the consumer goods industry, boasting a remarkable portfolio of renowned brands that cater to everyday needs. Their product range is expansive, covering everything from beauty and grooming to health and hygiene.
In April, Procter and Gamble announced a beat for its Q1 2023 financial results. In the report, the company posted earnings of $1.37 per share, with revenue of $20.1 billion. This is in comparison to analysts’ consensus estimates that were earnings per share of $1.32 and revenue of $19.3 billion. As a result, revenue increased by 3.5% on a year-over-year basis.
Looking at the past month of trading action, PG stock has dipped by 6.70%. Meanwhile, during Wednesday’s morning trading session, shares of PG stock are trading up by 0.31% at $145.51 per share.
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Coca-Cola Company (KO Stock)
Last but not least, The Coca-Cola Company (KO) is a global beverage titan, famous for its namesake cola drink and a variety of other beverages. Their expansive portfolio includes over 500 sparkling and still brands enjoyed by consumers worldwide.
Also in April, Coca-Cola announced its first quarter 2023 financial results. In detail, Coca-Cola announced earnings that exceeded market expectations. The company earned $0.68 per share, with revenues reaching $11.0 billion, surpassing the predicted earnings of $0.65 per share and the estimated revenue of $10.8 billion.
In the past month of trading, shares of KO stock are trading modestly lower by 4.85%. Though, on Wednesday morning Coca-Cola stock is trading up off the open by 0.71% at $60.87 a share.