The stock market is where investors trade shares of publicly traded companies. Among various investment options, dividend stocks are popular for their potential to provide income through regular dividend payments. These stocks are often shares of well-established companies with a consistent record of distributing earnings back to shareholders.
Investing in dividend stocks has several advantages. They offer investors a steady income stream, which can be particularly appealing during times of market volatility or low interest rates. Additionally, dividend-paying companies are typically well-established and financially stable, which may provide a sense of security for risk-averse investors. However, these stocks might not have as high growth potential as newer companies might offer, as they invest a significant portion of their profits back into paying dividends.
On the downside, dividend stocks can be less appealing during a strong growth market, where non-dividend-paying stocks might offer higher capital gains. Investors also need to consider the tax implications of dividend income, which can affect overall returns. Furthermore, companies can cut dividends in economic downturns, potentially reducing expected income for shareholders. With that, let’s explore two blue-chip dividend stocks to watch in the stock market right now.
Dividend Stocks To Invest In [Or Avoid] Now
- AbbVie Inc. (NYSE: ABBV)
- Philip Morris International Inc. (NYSE: PM)
AbbVie (ABBV Stock)
First off, AbbVie Inc. (ABBV) is a global biopharmaceutical company. It focuses on developing and marketing advanced therapies that address complex and serious diseases. AbbVie’s portfolio includes treatments for conditions such as rheumatoid arthritis, psoriasis, Crohn’s disease, and forms of cancer, with its drug Humira being one of the best-selling pharmaceutical products worldwide. Today, AbbVie offers its shareholders an annual dividend yield of 3.88%.
Just last week, AbbVie reported its first quarter 2024 financial results. In the report, the company posted earnings of $2.31 per share, with revenue of $12.31 billion. This is versus Wall Street’s estimates for the quarter, which were earnings estimates of $2.26 per share, on revenue of $11.95 billion.
In the last six months of trading action, shares of ABBV stock have jumped by 13.28%. While, during Tuesday morning’s trading session, AbbVie stock opened red, down 1.06% off the open, trading at $159.86 a share.
[Read More] 2 AI Stocks To Watch Ahead Of May 2024
Philip Morris International (PM Stock)
Next up, Philip Morris International Inc. is a leading international tobacco company. The company engages in the manufacture and sale of cigarettes, smoke-free products, and associated electronic devices and accessories. Currently, Philip Morris has an annual dividend yield of 5.47%.
Last week, Philip Morris also reported its first quarter 2024 financial and operating results. Diving in, the company notched in better-than-expected Q1 2024 results, posting earnings of $1.50 per share, with revenue of $8.79 billion. This is versus consensus estimates for the quarter which were an EPS estimate of $1.41 per share and revenue estimates of $8.47 billion.
Looking at the last six months of trading, shares of PM stock have increased by 6.56%. Moreover, off of Tuesday morning’s opening bell, Philip Morris stock is trading lower by 0.61% at $95.02 a share.
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