Dividends are regular payments made by companies to their shareholders from their profits. They represent a way for companies to share their success with investors. Dividend stocks are shares of companies that consistently pay dividends. These stocks are often associated with mature, stable companies with reliable cash flows. Investors can receive dividends as cash or reinvest them to buy more shares.
Investing in dividend stocks can offer several advantages. They provide a steady income stream, which is particularly appealing to retirees. Dividend payments can help offset market volatility by providing returns even when stock prices fall. Many dividend-paying companies have a history of increasing their payouts over time. This can lead to growing income for long-term investors. However, dividend stocks also have potential drawbacks. They may offer lower growth potential compared to non-dividend paying stocks. High dividend yields can sometimes signal financial trouble for a company.
When considering dividend stocks, investors should look beyond just the dividend yield. Assess the company’s financial health and ability to maintain dividend payments. Consider the dividend payout ratio and the company’s history of dividend increases. Be aware that dividends are not guaranteed and can be cut or suspended. Remember that dividend investing requires a long-term perspective to fully benefit from compounding returns. That said, here are two dividend stocks to check out in the stock market today.
Dividend Stocks To Invest In [Or Sell] Now
- Exxon Mobil Corporation (NYSE: XOM)
- Pfizer Inc. (NYSE: PFE)
Exxon Mobil Corporation (XOM Stock)
First, Exxon Mobil Corporation (XOM) is one of the world’s largest integrated oil and gas companies. They engage in the exploration, production, and distribution of crude oil and natural gas. Exxon Mobil also manufactures and markets petroleum products and petrochemicals. The company operates globally, with interests in various energy-related technologies and alternative energy sources. Currently, Exxon Mobil offers shareholders an annual dividend yield of 3.20%.
Today, Exxon Mobil announced better-than-expected Q2 2024 financial results. In detail, the company posted earnings of $2.14 per share, with revenue of $93.06 billion. This is compared to Wall Street’s estimates for the quarter which were earnings of $2.04 per share, and revenue estimates of $90.38 billion. In addition, revenue increased by 12.24% compared to the same period, the prior year.
So far in 2024, shares of XOM stock have jumped higher by 15.91% YTD. While, on Friday morning, Exxon Mobil stock is trading green off the open by 1.53%, at $118.74 a share.
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Pfizer (PFE Stock)
Second, Pfizer Inc. (PFE) is a multinational pharmaceutical corporation. They research, develop, and produce a wide range of medicines and vaccines for various medical fields. Pfizer’s portfolio includes treatments for cardiovascular diseases, oncology, immunology, and rare diseases. Today, PFE offers its shareholders an annual dividend yield of 5.44%.
Earlier this week, Pfizer also announced its second quarter 2024 financial and operating results. Diving in, the company announced Q2 2024 earnings of $0.60 per share, along with revenue of $13.28 billion. This is versus analysts’ estimates which were an EPS of $0.45 and revenue estimates of $13.22 billion. Additionally, revenue increased by 4.31% on a year-over-year basis.
Year-to-date, shares of Pfizer stock have advanced by 4.17% thus far. Meanwhile, during Friday morning’s trading session, PFE stock is trading up by 0.88%, at $30.92 a share.
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