The stock market is a complex ecosystem where shares of public companies are bought, sold, and traded. It serves as a critical component of the global economy. For example, facilitating capital raising for companies and investment opportunities for individuals and institutions. Investors can earn returns through capital appreciation when stock prices rise and through dividends. These are distributions of a company’s earnings to its shareholders.
Dividends provide a source of regular income, which can be particularly appealing to investors seeking steady returns, such as retirees. Investing in dividend stocks can also be seen as a sign of a company’s financial health and stability. This comes as regular dividends can suggest consistent earnings and confidence from management. However, not all companies pay dividends, often choosing to reinvest profits into growth opportunities.
While dividend stocks offer the advantage of potential income in addition to price appreciation, they also come with disadvantages. High dividend yields can sometimes indicate a company in distress. Where the stock price has fallen but the dividend has not been adjusted accordingly. Additionally, dividends are taxed, which can reduce the net income received by investors. As with any investment, research is key to navigating the risks and opportunities in dividend stocks and the broader stock market. With that, here are two long-term dividend stocks to watch in the stock market today.
Dividend Stocks To Buy [Or Sell] Now
The Coca-Cola Company (KO Stock)
To start, The Coca-Cola Company (KO) is a global leader in the beverage industry. The company offers a broad array of soft drinks, water, and juice products. Known for its flagship Coca-Cola soda, the company has a significant global footprint and a strong brand portfolio.
Earlier this month, The Coca-Cola Company announced its most recent annual dividend increase. In detail, the company’s Board of Directors has approved Coca-Cola’s 62nd straight annual dividend increase. Specifically, the company will raise its quarterly dividend by nearly 5.4% from $0.46 to $0.485 per common share. This change means the yearly payment for each share is now $1.94, up from $1.84 last year. The first payment with the new amount will be on April 1 to people who own Coca-Cola shares by March 15. Last year, Coca-Cola gave $8 billion in dividends to its shareholders, making the total given since 2010 reach $84.7 billion.
Year-to-date, shares of KO stock are trading modestly higher by 1.49%. While, on Tuesday’s pre-market trading session, Coca-Cola’s stock is trading slightly down ahead of the open by 0.23% at $60.57 a share.
[Read More] 2 S&P 500 Stocks To Watch In The Stock Market Today
3M Company (MMM Stock)
Next up, 3M Company (MMM) is a diversified technology company. The company offers a wide array of products, including consumer goods, healthcare products, and industrial materials.
This month, 3M announced a new dividend payment of $1.51 per share for the first part of 2024. This money will be given to people who own 3M shares by February 16, and they’ll receive it on March 12. This results in an annual dividend yield of 6.58% for MMM shareholders. Additionally, 3M has been able to give money back to its shareholders like this for over 100 years.
In 2024 so far, shares of 3M stock have fallen by 16.53% YTD. However, on Tuesday’s pre-market trading session, MMM stock is trading modestly higher by 0.20% at $92.00 a share.
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