Are These The Top Dividend Stocks To Buy Right Now?
Dividend stocks are shares of a company’s stock that are distributed to shareholders on a regular basis. The amount of the dividend is typically determined by the company’s board of directors and is usually based on the profitability of the company. In addition, dividend stocks are usually considered to be a more stable investment than other types of stocks, and they often provide a higher return on investment. For these reasons, dividend stocks are often favored by investors who are looking for a reliable source of income. Notably, some of the more popular dividend stocks in the stock market today are names like Realty Income Corporation (NYSE: O), and UnitedHealth Group Incorporated (NYSE: UNH) to name a few.
While dividend stocks can provide many benefits, there are also some risks associated with them. Dividends are not guaranteed, and they can be reduced or eliminated if the company’s profits decline. Dividend stocks also tend to be more volatile than other types of stocks, which means that their prices can fluctuate more dramatically. As with any investment, it is important to research a company before investing in its stock. This will help you to understand the risks and potential rewards associated with the investment. With that, here are three top dividend stocks to watch in the second half of 2022.
Dividend Stocks To Watch Now
- The Kroger Company (NYSE: KR)
- Lockheed Martin Corporation (NYSE: LMT)
- International Business Machines Corporation (NYSE: IBM)
Kroger Co (KR Stock)
First up, Kroger Co (KR) Kroger is a retailer that operates supermarkets and multi-department stores throughout the U.S. Across its portfolio. In fact, the company has almost half a million associates that serve over 11 million customers daily. For a sense of scale, Kroger is one of the largest supermarket chains in the U.S. by revenue. Currently KR stock has an annual dividend yield of 2.15%. Just this past Friday, the company announced it will host its Q2 2022 earnings conference call on Friday, September 9, 2022. While we wait to hear the company’s most recent quarterly results, let’s dive into their previous quarter.
Back in June, Kroger reported better-than-expected Q1 2022 financial results. In detail, the company posted earnings of $1.45 per share on revenue of $44.6 billion. Additionally, the company was able to post a revenue increase of 8% during the same time period, a year prior. Furthermore, they also announced they expect fiscal 2023 earnings of $3.85 to $3.95 per share. Additionally, KR stock has outperformed the broader markets so far in 2022. Shares of KR stock are up over 7% year-to-date. The company is set to open Monday’s trading action at $48.38 a share. All in all, is KR stock a good buy right now?
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Lockheed Martin (LMT Stock)
Next, Lockheed Martin Corp is a defense and aerospace company. LMT is engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. Currently, LMT stock has an annual dividend yield of 2.60%. Moving along, earlier this month the company reported a miss for its second quarter 2022 financial results.
In the report, the company notched in earnings of $6.32 per share, with revenue of $15.4 billion. This is in comparison with analysts’ estimates of earnings per share of $6.29 and revenue of $16 billion. What’s more, Lockheed Martin announced it now estimates 2022 earnings of approximately $26.71 a share, not including $5.16 per share in charges, with revenue of an projected $62.25 billion.
Lockheed Martin President & CEO James Taiclet commented in his letter to shareholders, “Lockheed Martin continued to deliver strong and consistent cash generation, returning over $1 billion in cash to shareholders in the second quarter through our industry-leading dividend and our ongoing share repurchase program. Although revenue in the period was affected by supply chain impacts and the timing of customer contract negotiations, our cost management initiatives resulted in margin expansion.” Shares of LMT stock have outperformed the broader market so far this year. In detail, LMT stock is up over 22% year to date and will open Monday’s trading session at $431.13 per share. Given all of this, is LMT stock a top dividend stock in 2022?
International Business Machines (IBM Stock)
Last but not least, International Business Machines Corporation (IBM) is a multinational technology company that manufactures and sells computer hardware, software, and services. For a sense of scale, the company is one of the world’s largest information technology companies. Additionally, IBM offers products and services in artificial intelligence, cloud computing, data analytics, and security. As of today, IBM has an annual dividend yield of 4.92%.
Continuing on, in July the company announced its Q2 2022 financial results. In the report, IBM posted earnings of $2.31 per share on revenue of $15.5 billion. Compared with, analysts’ estimates of earnings per share of $2.29 and revenue of $15.3 billion. Aside from that, IBM’s forecast for free cash flow came in under expectations. The management team from IBM commented it now expects a free cash flow of $10 billion. This is lower than its previously announced range of $10 billion to $10.5 billion in April of this year. Shares of IBM stock will open Monday’s trading day at $130.38 per share. Given this, will you be watching IBM stock this week?