Check Out These Top Dividend Stocks In The Stock Market Today
Amidst the volatility seen in the stock market recently, more investors could be turning towards dividend stocks. You see, it’s easy to forget about dividend stocks in a bullish market. After all, what’s the deal with a 10% annual dividend yield when some of the top growth stocks could achieve that in a matter of days. However, investors who want to hold less volatile assets that could survive a stock market downturn may find dividend stocks appealing.
For investors who want a passive income every month, you might want to take a look at some of the best monthly dividend stocks to buy. For instance, Realty Income (NYSE: O) probably tops the list as it has made 611 monthly dividends consecutively. This steady performance makes it a great staple for an income investor’s portfolio. While a high yield is certainly attractive, the reality is that it could be short-lived. Having said that, if you are still keen on finding the best high yield dividend stocks to buy, there are several other key factors to consider when it comes to dividend investing.
For starters, companies that focus their resources towards dividends could be lagging in terms of growth projects. This would account for slower stock appreciation over time but provide more predictable income overall. Next, the company’s dividend-paying history would also be another aspect to consider. In this case, consistency and steady increments in a company’s dividends would be important to look out for. To put it simply, income investors want the highest yield possible with the least risk. With all that in mind, here is a list of some of the best dividend stocks that might do just that in the stock market today.
Top Dividend Stocks To Buy [Or Avoid] Right Now
- Annaly Capital Management Inc. (NYSE: NLY)
- Clorox Co. (NYSE: CLX)
- AbbVie Inc. (NYSE: ABBV)
- Chevron Corp. (NYSE: CVX)
Annaly Capital Management
First up the list is mortgage real estate investment trust (mREIT) Annaly Capital Management. It’s no secret that REITs in general have high dividend yields, but NLY stock is one top dividend stock that not only produces high yield, but is also quite safe and manageable. Why is that? Well, an mREIT doesn’t invest in real property. Instead, it invests in real estate debt, and the mortgages from Analy are guaranteed by the federal government. Essentially, this means that the company takes limited credit risk and is less likely to default, which makes it a sound investment.
Annaly currently has a dividend yield of nearly 10%. For most other industries, any dividend yield near this level is a red flag. But in Annaly’s case, it is a high yield that is not short-lived. In fact, it has averaged out about 10% yield for more than two decades. Sure, NLY stock suffered a massive drop at the height of the pandemic, and that’s to be expected. Now, with its business improving significantly in the latest quarter, investors can safely rely on Annaly Capital to keep producing great returns while maintaining a decent payout.
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Clorox
Clorox has certainly benefited from the pandemic hoarding. The consumer staple stock which usually sounds rather dull in a growth-oriented market finds itself in a sweet spot in the stock market. Many consumers rushed to stock up on its disinfecting wipes. After all, the public was cautious about contracting the virus and therefore wanted to be squeaky clean. If anything, the pandemic helped propel Clorox’s sales to record highs.
The company’s dividend yield stands at 5% as of late. Clorox is also one of those companies that have been boosting its payout annually for the past four decades. As impressive as it may seem, investors have left Clorox stock on worries that there might be a pullback as the COVID-19 threat fades. Without sounding too pessimistic on the pandemic situation, with new variants emerging from time to time, the demand for cleaning and disinfecting supplies is likely to stay for some time. Considering all these, would you agree that CLX stock is a top dividend stock to buy right now?
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AbbVie
AbbVie is a biotech company focusing on the discovery and development of innovative medicines. The likes of which aim to impact a wide array of therapeutic areas across AbbVie’s portfolio. These include but are not limited to the fields of immunology, oncology, virology, neuroscience, and eye care. Across its current portfolio, AbbVie currently markets and distributes over 32 drugs in the U.S. Given the scale and variety of AbbVie’s work, ABBV stock could be a go-to for biotech investors today.
AbbVie currently has a dividend yield of 4.5%. The company has been gathering a lot of investor’s attention recently as the company continues to make tremendous breakthroughs. For the uninitiated, AbbVie recently revealed that its treatment for ulcerative colitis, upadacitinib, met all of its primary and secondary endpoints set in a one-year-long Phase 3 study. According to AbbVie vice-chairman Michael Severino, the results demonstrate the drug’s potential as a treatment option for patients with moderate to severe ulcerative colitis. As AbbVie continues to expand its offerings, would you consider adding ABBV stock to your watchlist?
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Chevron
With oil prices briefly hitting a six-year high after OPEC fails to get a deal, things may be looking up for energy stocks like Chevron Corporation. Many investors, including Warren Buffett, love CVX stock because it has a strong balance sheet and good growth prospects. Although the energy sector isn’t in its heyday anymore, Chevron has got a few tricks up its sleeves. The company is also keeping up with the times through its initiatives in hydrogen to support the green economy.
The oil giant currently has an attractive dividend yield of 5.17% and its most recent hike was announced earlier this month. The company’s credibility as a top dividend stock lies in the track record of its payout. It has increased its payout for the past 34 consecutive years. Chevron is one option to consider if you are looking for a relatively low-risk investment in the energy sector. With one of the strongest balance sheets among its industry peers, investors may feel safer investing in it. After all, the oil and gas sector isn’t the shiniest investment you can get in the stock market today. Considering its diversified businesses and a reasonable valuation, would you invest in CVX stock?
