Do You Have These Top Dividend Stocks On Your Radar For September 2021?
While September is fast approaching, investors may want to consider looking at some of the top dividend stocks. For the most part, this part of the stock market today would be in focus now. This would be the case as the Federal Reserve could be looking to taper by the end of 2021. Just last week, Fed Chairman Jerome Powell mentioned that the central bank could start to ease its policies by the year-end. However, Powell also noted that interest hikes remain distant because “we have much ground to cover to reach maximum employment”.
Now, how does all this relate to dividend stocks? Well, as the Fed slows down its asset repurchase program, investors would be more inclined to play on the defense. In theory, this could see the general trajectory of the market begin to reverse by the year-end. Amidst such volatility, dividend stocks come into play. Simply put, dividend-paying stocks offer investors another source of income on top of capital gains.
Moreover, most notable players in the sector have, arguably, vital businesses with consistent demand, regardless of the current economic cycle. This ranges from consumer staples stocks like Bunge Limited (NYSE: BG) to service names such as United Postal Service (NYSE: UPS). Elsewhere, dividend stocks in the health care space like Johnson & Johnson (NYSE: JNJ) would also be relevant plays amidst the current pandemic. By and large, I can understand if investors may be looking at dividend stocks now. Could one of these companies be top picks in the stock market this week?
Best Dividend Stocks To Buy [Or Sell] Right Now
- Lockheed Martin Corporation (NYSE: LMT)
- Taiwan Semiconductor Manufacturing Company (NYSE: TSM)
- 3M Inc. (NYSE: MMM)
Lockheed Martin Corporation
To begin with, we will be taking a look at the Lockheed Martin Corporation. In brief, the Maryland-based company is a leading name in the global aerospace and defense industry today. Through its operations, Lockheed Martin researches, designs, and manufactures advanced tech used in a wide array of industries. This ranges from artificial intelligence (AI) to defense aircraft and long-range communications tech. Despite the current state of the world, Lockheed Martin’s services remain relevant to both its domestic and international customers.
Now, Lockheed Martin is set to pay out a quarterly dividend of $2.60 per share later this month. Additionally, the company posted positive figures in its recent quarter fiscal last month. In it, Lockheed Martin raked in a total revenue of $17.03 billion with a net income of $1.82 billion. CEO James Taiclet believes that the company’s solid delivery on “key platform programs” is a key growth driver for the company now. Because of all this, Lockheed Martin also raised its guidance for full-year earnings per share.
While all this is great, the company continues to make bold plays on the operational front as well. Just last week, Lockheed Martin reportedly developed a “high-performance, low-cost hybrid antenna, the “Wide Angle ESA Fed Reflector” (WAEFR). According to Lockheed Martin, the WAEFR antenna serves to bolster current 5G, radar, and sensing tech. So much so that it currently boasts a coverage area that is 190% greater than traditional array antennas at a lower cost. Given all of this, would you consider LMT stock worth buying now?
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Taiwan Semiconductor Manufacturing Company
Another name to consider among dividend stocks now would be the Taiwan Semiconductor Manufacturing Company (TSM). As the name suggests, the company is a developer and manufacturer of semiconductor chips. In fact, TSM is the world’s largest semiconductor foundry in play now. With semiconductors being one of, if not the most crucial tech components in the world today, TSM’s offerings would be in demand. Even now, the ongoing chip shortage would serve to drive the company’s operations towards further growth.
On top of all that, the current pandemic would see an uptick in consumer tech sales. As more people turn to electronics for entertainment at home, I could see this happening. Accordingly, TSM stock is now looking at gains of over 160% since its pandemic era low. If all that wasn’t enough, the company continues to gain momentum on the financial front as well. In its recent quarter fiscal posted last month, the company saw a total revenue of $13.37 billion for the quarter. This would mark a sizable year-over-year increase of 19%.
Not to mention, the company also seems to be kicking into high gear on the operational front as well. Namely, the Taiwan-USA Industrial Cooperation Promotion Office signed an agreement with an Arizona economic development group last week. Through this deal, the Greater Phoenix Economic Council is now working to co-locate TSM suppliers closer to the company’s proposed plant in the state. Safe to say, this move would significantly bolster the long-term production capabilities of TSM’s $12 billion plant in development now. All things considered, would TSM stock be a top buy for you now?
Last but not least, we have 3M. In essence, the company is a titan in the materials sector today. This would be thanks to its flagship wares, ultra-strong abrasives, and cutting-edge materials. The likes of which maintain process integrity even in the most challenging applications and environments. Notably, 3M’s wares cater to numerous end markets across the globe. This includes but is not limited to the worker safety, consumer goods, and health care industries. With all this in mind, could MMM stock be worth investing in at its current price point?
If anything, 3M does not seem to be slowing down anytime soon. For one thing, the company posted solid figures in its second-quarter fiscal just last month. In it, 3M raked in total revenue of $8.9 billion for the quarter, an impressive 24.7% year-over-year increase. At the same time, 3M also posted year-over-year jumps of 16% in net income and 15% in earnings per share. All in all, CEO Mike Roman had this to say, “Looking forward, we remain focused on investing in growth opportunities coming out of the pandemic, improving productivity, advancing sustainability, and delivering differentiated value for our customers and shareholders.“
For investors, the company declared a dividend of $1.48 per share earlier this month. To put things into perspective, this would mark the 63rd consecutive year the company has increased its dividends. Given 3M’s current momentum, will you be adding MMM stock to your watchlist?