3 Dividend Stocks For Your Mid-May 2022 Watch List
As U.S. equities continue to experience volatility, investors would be thinking about what stocks to buy today. Amidst all the uncertainty, dividend stocks could be worth looking at in the stock market now. By and large, this would be the case as investors seek to diversify or fortify their portfolios with more defensive firms. With the factor of regular dividends being put into the mix, dividend stocks would appeal to such investors today. Not to mention, most companies with good dividend-paying track records are arguably well-established in their industries.
For instance, we could look at the likes of Target (NYSE: TGT) and Home Depot (NYSE: HD). Both of these retail giants would be in focus now after reporting their most recent quarterly earnings. With their share prices declining from industry headwinds, investors could be keen to jump on the quarterly dividends they offer. In detail, Target and Home Depot currently offer quarterly dividends of $0.90 and $1.90 respectively. This adds up to annual yields of about 2.22% and 2.61% respectively. With all this in mind, investors that are keen to bet on these leading retail firms could be watching closely.
At the same time, even semiconductor companies like Analog Devices (NASDAQ: ADI) offer dividend payouts as well. In its earnings call from earlier this week, the company declared a $0.76 per outstanding share dividend. Furthermore, Analog Devices also reported record revenue for the quarter, according to the press release. These are but a few examples of major firms offering dividend payouts. With all this variety amongst the top dividend stocks in the stock market today, investors are spoilt for choices. On that note, here are three more dividend stocks to potentially add to your watchlist now.
Dividend Stocks To Buy [Or Sell] This Week
TJX Companies Inc.
To begin with, we have TJX Companies, or TJX, for short. For the most part, most would know it as the parent company of T.J. Maxx, a discount department store chain. Throughout its portfolio, the company operates out of a total of 4,689 stores across nine countries. This includes the U.S., Canada, the U.K., and Australia among others. Thanks to the overall focus on the retail scene this week, TJX stock seems to be gaining momentum following its earnings release.
In brief, investors are likely focusing on TJX’s latest quarterly earnings per share. According to the company’s earnings report, TJX’s earnings per share is $0.68. For reference, the consensus on Wall Street is $0.60. Moreover, the company’s total revenue of $11.41 billion for the quarter marks a commendable 13.1% year-over-year increase.
Also, for investors looking at dividends, TJX is raising its dividend by 13% to $0.295 per share. According to its earnings release, the dividend is “payable June 2, 2022, to shareholders of record on May 12, 2022.” To point out, CEO Ernie Herrman states that this is the company’s 25th dividend increase in the past 26 years. He also adds that it marks a 21% compound annual growth rate for TJX’s dividend. In his words, all of this highlights the company’s confidence in its “ability to continue delivering profitable sales and strong cash flow.” All in all, would you consider TJX stock a top buy in the stock market today?
Lowe’s Companies Inc.
Lowe’s is a dividend company that focuses on home improvement. In fact, the company is a strong consumer brand that is operating in the $900 billion home improvement sector. Additionally, Lowe’s Total Home Strategy provides a full complement of products and services for its consumers. Simply put, it enables a Total Home solution for every need. The company also notes that it has 5 focus areas to drive market share acceleration. Notably, this would include its Drive Pro penetration and also accelerating its online business.
On May 18, 2022, the company reported its first-quarter financials for 2022. Diving in, net sales for the quarter were $23.7 billion. Lowe’s also reported a net earnings of $2.3 billion. “Our sales this quarter were in line with our expectations, excluding our outdoor seasonal categories that were impacted by unseasonably cold temperatures in April. Because 75% of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures. Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May,” said Marvin R. Ellison, Lowe’s chairman, president, and CEO.
It also reported a cash dividend of $0.80 per share and continues to aim for long-term sustainable shareholder value through a disciplined capital allocation strategy. During the quarter, Lowe’s repurchased approximately 19 million shares for $4.1 billion and paid $537 million in dividends. Given this piece of news, is LOW stock worth investing in right now?
The 3M Company
Following that, we have the 3M Company, a multinational conglomerate that operates in the field of health care, consumer goods, and worker safety. Accordingly, it uses science to improve lives and solve the world’s toughest challenges. Last week, the company announced a quarterly dividend of $1.49 per share for the second quarter of 2022. The dividend is payable on June 12, 2022, to shareholders of record at the close of business on May 20, 2022.
Impressively, the company has been paying dividends to its shareholders without interruption for more than 100 years. It also had its shareholder’s annual meeting last week. In it, 3M highlighted its strong 2021 performance and also ongoing focus on customers in a “dynamic environment”, with continued progress on sustainability goals and delivering continuous growth. The company also notes that it is still managing supply chain disruptions, inflation, and geopolitical pressures.
Last month, the company also reported its first-quarter financials. Sales for the quarter were $8.8 billion while it also reported a GAAP earnings per share of $2.26. The company also noted that it returned $1.6 billion to shareholders via dividends and gross share repurchases, an increase of 49% year-over-year. Besides, 3M reported that it continues to invest in capital expenditures and R&D to support its long-term growth. For its full-year 2022 outlook, the company expects its full-year 2022 GAAP earnings per share to be in the range of $9.89 to $10.39. Full-year 2022 adjusted earnings on the other hand is expected to be in the range of $10.75 to $11.25 per share. All things considered, is MMM stock a dividend stock to add to your portfolio?