Dividends are payments made by a corporation to its shareholders, usually derived from the company’s profits. Dividend stocks are those issued by companies that regularly distribute a portion of their earnings to shareholders. Investing in dividend stocks can be a strategy for generating regular income, in addition to potential stock price appreciation. These stocks are often associated with well-established, financially stable companies with a consistent track record of profitability.
The advantages of investing in dividend stocks include the receipt of regular income, which can be particularly appealing to income-focused investors or those seeking cash flow in retirement. Dividend-paying companies are typically less volatile than non-dividend-paying stocks, providing a measure of stability to a portfolio. However, there are disadvantages as well. High dividend payouts can sometimes indicate that the company has limited opportunities for growth or reinvestment. Additionally, dividends are subject to taxation, which can affect the overall return on investment.
For investors, dividend stocks offer a way to participate in the potential upside of stock ownership while also enjoying a stream of income. It’s important to consider the company’s dividend payout ratio, yield, and the sustainability of its dividend payments. Investors should conduct thorough research and consider their long-term financial goals when investing in dividend stocks. Given these points, here are two dividend stocks to watch in the stock market today.
Dividend Stocks To Invest In [Or Avoid] Now
Johnson & Johnson (JNJ Stock)
To begin, Johnson & Johnson (JNJ) is a globally recognized healthcare company that engages in the research and development, manufacture, and sale of a broad range of products in the healthcare field. Its operations are divided into three main segments: Pharmaceutical, Medical Devices, and Consumer Health. Additionally, the company’s portfolio includes well-known brands such as Band-Aid, Tylenol, and Johnson’s Baby products. Today, Johnson & Johnson pays a quarterly dividend of $1.19 per common share, which results in an annual dividend yield of 2.97%.
Last month, Johnson & Johnson reported its fourth quarter 2023 financial results. In the quarter, the company notched in earnings of $2.29 per share, with revenue of $21.40 billion. This is versus Wall Street’s estimates for the quarter which were an EPS of $2.27 per share, and revenue estimates of $20.99 billion.
In the last month of trading, shares of JNJ stock have increased modestly by 0.33%. Meanwhile, on Friday morning, Johnson & Johnson stock is trading flat off the open at $160.46 a share.
[Read More] 2 S&P 500 Stocks To Watch In The Stock Market Today
UnitedHealth Group (UNH Stock)
Next, UnitedHealth Group Incorporated (UNH) is a diversified healthcare company that offers a wide spectrum of healthcare products and insurance services. Through its two distinct platforms, UnitedHealthcare for health benefits and Optum for health services. The company aims to improve the access, affordability, and outcomes of healthcare. Currently, UNH pays its shareholders a quarterly dividend of $1.88 per common share. This equates to an annual dividend yield of 1.43%.
Just this morning, UnitedHealth Group announced the authorization of a quarterly cash dividend payment of $1.88 per share by its board of directors. This dividend is set to be paid on March 19, 2024, to all shareholders of record as of March 11, 2024.
In the last month of trading action, shares of UNH stock have moved higher by 2.06%. While, during Friday morning’s trading session, UnitedHealth Group stock opened slightly lower by 0.076% at $526.15 a share.
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