Are These The Top Dividend Paying Stocks To Buy Right Now?
Dividend-paying stocks have long been a popular investment, offering both income and the potential for capital gains. While most stocks do not pay dividends, there are a number of companies that have chosen to distribute a portion of their profits to shareholders. Dividends can be paid out quarterly or annually, and they are typically determined by the board of directors. When deciding whether to invest in a dividend-paying stock, it is important to consider the company’s financial stability and its history of dividend payments.
What Is A Dividend?
A dividend is a distribution of a company’s earnings to shareholders. The distribution is usually made in the form of cash, but it can also be in the form of stock or other assets. Dividends are typically paid out on a quarterly basis, but they can also be paid out monthly, semi-annually, or annually. Companies are not required to pay dividends, and many choose not to because they want to reinvest their earnings back into the business.
However, paying dividends can be a good way to reward shareholders for their investment. It can also help to attract new investors and Signal that the company is doing well financially. While dividends are not the only factor that investors consider when making investment decisions, they can be an important factor in deciding whether or not to invest in a particular company.
Dividend payments can fluctuate year to year, and some companies may choose to suspend or reduce their dividend payout in times of financial distress. As a result, dividend stocks may not be suitable for all investors. However, for those seeking income and long-term growth potential, dividend-paying stocks can be an attractive option. If you’re keen on dividend-paying stocks, here are three for your watchlist in the stock market this week.
Dividend Paying Stocks To Buy [Or Avoid] Now
- AbbVie Inc. (NYSE: ABBV)
- Exxon Mobil Corporation (NYSE: XOM)
- International Business Machines Corporation (NYSE: IBM)
AbbVie (NYSE: ABBV)
AbbVie Inc is a pharmaceutical company that manufactures and markets branded pharmaceuticals, generic drugs, and over-the-counter products. AbbVie’s products include treatments for cancer, immune disorders, and viral infections. The company has operations in over 75 countries and markets its products in more than 170 countries. Moreover, ABBV has an annual dividend yield of 4.08%.
Late last month, AbbVie reported second-quarter 2022 financial results. In them, the company posted earnings per share of $3.51, on revenue of $14.6 billion. In addition, the company saw a 4.5% increase in revenue growth year-over-year. AbbVie also reaffirmed its previously estimated 2022 earnings of $13.78 to $13.98 a share. During the last year of trading activity, ABBV stock is up 15.75% as of Wednesday morning. Shares of ABBV stock are currently trading at $138.53 per share.
Exxon Mobil (NYSE: XOM)
Next, Exxon Mobil is one of the world’s largest international oil and gas companies. The company is known for its upstream oil and gas exploration and production, as well as downstream refining and marketing of petroleum products. XOM has operations in more than 200 countries and territories around the world. Exxon Mobil’s products include crude oil, natural gas, gasoline, diesel fuel, heating oil, aviation fuel, lubes, and other petroleum-based products. Exxon Mobil also has a significant chemical business. ExxonMobil Chemical is one of the world’s largest chemical companies. Currently, XOM’s annual dividend yield is 3.57%.
Last month, the company posted better-than-expected Q2 2022 financial results. In detail, Exxon Mobil reported earnings per share of $4.14, on revenue of $115.7 billion. Wall Street consensus estimates were earnings per share of $3.80, on revenue of $120.2 billion. Moreover, XOM notched a 70.8% increase in revenue during the same period, a year prior.
International Business Machines (NYSE: IBM)
International Business Machines (IBM) is a multinational technology company that manufactures and sells computer hardware, software, and services. Founded in 1911, IBM has operations in more than 170 countries and employs over 350,000 people. IBM is one of the world’s largest information technology companies. The company’s products and services include cloud computing, cognitive computing, artificial intelligence, data analytics, and security. IBM has a long history of innovation, including the development of the personal computer, the floppy disk, the relational database, and the UPC barcode. In recent years, IBM has been focused on artificial intelligence, cloud computing, and quantum computing. Today, the company has an annual dividend yield of 4.92%.
Also, just last month IBM reported its second-quarter financial results. Diving in, the company beat Wall Street’s revenue and earnings estimates of $15.54B vs $15.18B and $2.31 per share, vs $2.27 per share. Though, the company came in under expectations for its forecast for cash flow. The management team from IBM commented it now estimates $10 billion in free cash flow, which is lower than its previous range of $10 billion to $10.5 billion they announced back in April. In the last 6 months, IBM stock has rallied back over 10%. On Wednesday, IBM stock is currently trading at $134.35 per share.