Are These Top Dividend Stocks Worth Investing In Right Now?
Dividend stocks continue to grab the headlines in the stock market these days. This comes in wake of the Fed raising interest rates recently and the expectations for more rate hikes in the months ahead. Coupled with the limited progress on the Russia-Ukraine conflict, the outlook for the market looks less than ideal right now. If the war carries on, the risk of escalation could further destabilize the global economy. Hence, dividend stocks offer investors the opportunity to build a more defensive portfolio. These companies normally have more stable returns and could provide some relief to investors to buffer their portfolios during these times of uncertainty.
For instance, we have dividend companies like Micron Technology (NASDAQ: MU) that has just reported its earnings on Tuesday. It posted a net revenue of $7.79 billion for the quarter, increasing by 24.8% year-over-year. GAAP net income for the quarter was $2.26 billion or $2.00 per diluted share. The company also declared a quarterly dividend of $0.10 per share in this latest quarter. Food company McCormick (NYSE: MKC) also reported its earnings on Tuesday. The company expects strong cash flow and anticipates returning a significant portion to shareholders through dividends for fiscal 2022. With that in mind, here are four more dividend stocks to pay attention to in the stock market today.
Dividend Stocks To Watch In April 2022
- Johnson & Johnson (NYSE: JNJ)
- Lowe’s Companies Inc (NYSE: LOW)
- International Business Machines Corporation (NYSE: IBM)
- Target Corporation (NYSE: TGT)
Johnson & Johnson
Johnson & Johnson (JNJ) is a top health care company that has had a consistent dividend payout throughout the years. For those unaware, the company engages in the research and development, manufacture, and sale of a range of products in the health care industry. Most consumers would be aware of its range of products such as baby care, oral care, and over-the-counter medicines. However, it also operates a Pharmaceutical segment that focuses on delivering new transformational medicines for unmet medical needs worldwide. With a current dividend yield of 2.4%, the company is expected to increase its base annual payout for the 60th consecutive year next month.
JNJ will be announcing its fiscal 2022 first-quarter financial results on April 19, 2022. So, let us have a look at how the company fared over the past year. In 2021, the company reported full-year sales of $93.8 billion, reflecting an increase of 13.6% year-over-year. Meanwhile, its full-year earnings per share were $7.81, up by 41.7% year-over-year. All in all, fiscal 2021 was a strong year for the company that reflects continued strength across all segments of its business. As such, JNJ believes that it will be well-positioned for success in 2022 and beyond. With that in mind, would you consider adding JNJ stock to your watchlist ahead of its earnings report?
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Lowe’s
Another top dividend stock to note right now would be Lowe’s. Essentially, this is a home improvement company that operates home improvement and hardware stores. It offers a range of products for repair, maintenance, and decorating. With more than 1,700 stores in the U.S. and over 234 stores in Canada, Lowe’s is without a doubt one of the market leaders at what it does. Earlier this month, the board of directors of Lowe’s declared a quarterly cash dividend of $0.80 per share. Investors should note that the company has raised its dividend for 46 straight years.
On top of that, the company also announced that it will be creating new ways for customers to ‘seed spring’. This would include the return of Lowe’s SpringFest event, enhanced in-store experiences, and workshops. Additionally, it is part of a special initiative by Lowe’s to bring more plants into the world leading up to Earth Day. Well, it is evident that the company is focusing on what its customers would want on their first spring trip to Lowe’s. While it may seem relatively insignificant, such values would often go a long way in the eye of consumers. Considering these factors, is LOW stock a top dividend stock to watch now?
IBM
Following that, we will be looking at the tech conglomerate, IBM. In detail, the multinational tech company has a hand in a variety of cutting-edge tech research fields. In addition, it also serves the enterprise software industry via its hybrid cloud, artificial intelligence (AI), and quantum intelligence services. For a sense of scale, IBM operates in over 171 countries around the globe. The company boasts a healthy track record of raising its dividend for the past 26 years. It now offers a quarterly dividend of $1.64 per share, making its annual dividend yield to be about 5%.
Yesterday, IBM and HSBC (NYSE: HSBC) announced that they will work together on exploring applications for quantum computing in financial services. It will be a new three-year collaboration with the goal of bolstering HSBC’s expertise in quantum computing and ensuring its organizational readiness to take full advantage of the technology. Put simply, these applications would hopefully help in pricing and portfolio optimization, mitigate risks, and advance its net-zero goals. Given these positive developments, should IBM stock deserve more attention today?
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Target
Last but not least, we have the general merchandise retailer, Target. The company sells products through its retail stores and digital channels. Its product category includes apparel and accessories, beauty and household essentials, food and beverage, hardlines, and home furnishing and decor. Earlier in March, the company’s board of directors announced the declaration of a quarterly dividend of $0.90 per common share. Impressively, this marks the company’s 219th consecutive dividend paid since the company went public in October 1967.
With that being said, Target continues to show the drive that a successful company needs and does not easily rest on its laurels. The company plans to invest up to $5 billion to continue scaling its operations this year. For example, it will be investing in its physical stores, digital experiences, fulfillment capabilities, and supply chain capacity that would further differentiate its retail offering. Target believes that there are substantial opportunities by building on its core capabilities to drive deeper customer engagement which would ultimately lead to long-term growth. All things considered, should investors be keeping tabs on TGT stock?
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