The best dividend stocks to buy now? 4 Trend now
Top dividend-paying stocks to consider adding to your long-term portfolio
Amid the recent volatility in the stock market, more investors may turn to dividend-paying stocks. As a result, the highest paying dividend stocks in 2021 might have more room to grow now. While this may seem like the likely strategy, there are several other key factors to consider when it comes to investing in dividends. For starters, companies that focus their resources on dividends could be lagging behind in terms of growth plans. This would explain a slower appreciation of stocks over time, but provide an overall more predictable income. Then, the dividend payment history of the company would also be another aspect to consider. In this case, it would be important to ensure consistency and regular increases in a company’s dividends.
Overall, investing in industry leaders would benefit investors, as these companies would have more excess funds. For example, we might look at consumer staples giant PepsiCo (NYSE: PEP). The company has paid dividends since 1965, with 2021 marking its 49e consecutive annual increase in dividend. The PEP share would now be an unavoidable choice for more conservative dividend investors. Meanwhile, investors looking to reap both capital gains and dividends would likely turn to the tech sector. Of course, high-tech stocks are currently experiencing declines and not offering the most profitable dividends, but they remain long-term growth players nonetheless. Take for example companies like Microsoft (NASDAQ: MSFT). Microsoft has steadily increased its dividends over the past decade while also investing in its fast growing technology divisions.
After reading all of this, you might want to invest in some dividend paying stocks yourself. After all, some would argue that it offers a chance to diversify your portfolio while ensuring more consistent income. Either way, here are four that are making waves in the stock market today.
Main dividend-paying stocks to buy [Or Avoid] Now
Procter & Gamble Company
Procter & Gamble (PG) is a multinational consumer goods company. Essentially, it specializes in a wide range of personal / consumer health and hygiene products. Its consumer goods are sold in more than 180 countries and territories. From its Gillette shaving products to beauty products like Pantene, there’s a good chance you’ve got something in your home that’s made by PG. The company’s shares are currently trading at $ 138.27 at 10:41 a.m. ET. In April, the company announced its third quarter financial statements for fiscal 2021.
Source: TD Ameritrade TOS
In it, the company said net sales for the quarter were $ 18.1 billion, a 5% year-over-year increase. Additionally, PG reported diluted net earnings per share of $ 1.26, an increase of 13% from a year earlier. Operating cash flow was $ 4.1 billion for the quarter and the company also returned $ 5 billion in cash to shareholders via $ 2 billion in dividend payments and $ 3 billion in purchases of ‘ordinary actions.
Earlier in April, the company also announced a 10% increase in quarterly dividends, marking the 65e consecutive year that the company increased its dividend. Considering all of this, will you consider buying PG shares?
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AT&T is one of the world’s largest telecommunications companies and mobile phone service providers. The company operates primarily through its Communication and WarnerMedia segments. First, its Communications segment provides customers with wireless and wireline telecommunications, video and broadband services. Second, its WarnerMedia segment develops, produces and distributes feature film, television and game content. The T share is currently trading at $ 29.94 at 10:41 a.m. ET.
Source: TD Ameritrade TOS
On Monday, the company announced a definitive agreement to combine the entertainment and news assets of WarnerMedia with content from Discovery to create a high-end global entertainment company. Through this merger, the company will form one of the largest global streaming players in the world. Discovery CEO David Zaslav will lead this new company with executives from both companies in key leadership positions.
Impressively, the new company will also have significant scale and investment resources with expected 2023 revenue of around $ 52 billion. It will also bring engaging content to direct subscribers to consumers in its portfolio, including the recently launched HBO Max and Discovery +. Considering everything going on in the business, will you consider adding T shares to your portfolio?
Brookfield Renewable Partners LP
Brookfield is a dividend-paying stock that is also one of the largest publicly traded renewable energy platforms in the world. The company’s portfolio is approximately 21,000 MW of capacity. It also has nearly 6,000 production facilities in North America, South America, Europe and Asia. The company’s objective is to provide long-term annualized total returns of 12% to 15%. The company is a world leader in hydroelectric power, which represents approximately 62% of its portfolio.
Source: TD Ameritrade TOS
In early May, the company reported strong first quarter results. Revenue for the quarter was $ 1.02 billion. Impressively, long-term average electricity generation was 14099 GWh for the quarter. The company has also increased its portfolio by approximately 6,000 MW through construction and the advanced phase of permits. It also added nearly 4,500 MW to its development pipeline.
Brookfield has also signed 29 agreements covering approximately 2,300 GWh of renewable energy production with acquiring companies in all major industries. In addition, the company has invested or has agreed to invest $ 1.6 billion of equity in a range of transactions. This includes onshore and offshore wind, large-scale solar power, and distributed generation. Given all of this, is BEP stock one of the most important dividend-paying stocks to buy?
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AbbVie Inc. is another of the biggest dividend paying companies around today. In short, AbbVie is today a leader in biotechnology. The research-based pharmaceutical company has a broad healthcare portfolio, tackling the world’s most important diseases. The company mainly conducts research in the fields of immunology, neuroscience, virology and oncology. According to AbbVie, more than 52 million patients in more than 175 countries depend on its treatments each year. Still, should investors rely on ABBV stock for gains now?
Source: TD Ameritrade TOS
Well, we could take a look at its recent fiscal quarter to get a clearer idea on that. Last month, AbbVie got off to a strong start to 2021, posting strong numbers in its first quarter fiscal year. In it, the company saw total revenue for the quarter increase 50.95% year-over-year, totaling more than $ 13 billion. This was followed by a massive 18% increase in net profit over the same period. On top of that, AbbVie also ended the quarter with over $ 9.7 billion in cash.
According to CEO Richard Gonzalez, this growth is due to the good performance of new AbbVie products. Looking to the future, Gonzalez also mentioned that the company has more than a dozen products awaiting commercial approval over the next two years. With AbbVie seemingly firing on all cylinders, would you consider ABBV stock to be worth investing in now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.