3 Dividend Stocks To Watch In The Stock Market This Week
Like it or not, investors are likely looking out for the best dividend stocks in the stock market today. By and large, this would make sense following yesterday’s turbulent trading activity. Across the board, major indexes dove at the opening bell only to pull off record turnarounds to end the day in the green. Because of the apparent volatility in stocks, investors could be considering more defensive plays in the stock market. This would be where dividend stocks come into play.
Overall, most would argue that dividend stocks offer a more consistent form of generating gains from equity investments. Whether it is through quarterly or monthly dividends, this is apparent. For one thing, some of the top dividend-paying firms around have massive portfolios and are well-established in their respective industries. Take Pfizer (NYSE: PFE) for example, the pharmaceutical titan is a massive name in the global health care scene now. As it stands, the firm offers an annual dividend yield of 3.1%. Not to mention, it remains hard at work on the fight against the coronavirus pandemic. Namely, Pfizer and BioNTech (NASDAQ: BNTX) are now initiating clinical trials on vaccine efficacy targeting the Omicron variant.
At the same time, even semiconductor chip giants like Nvidia (NASDAQ: NVDA) also offer dividends. Sure, the company may be looking to exit its $40 billion Arm acquisition. However, this could leave it with much-needed funds to keep up with ongoing chip orders while maintaining dividend payouts. For investors who want to maintain holdings in growth names amidst the current lows, NVDA stock could be a go-to. After considering all this, could one of these top dividend stocks be a buy for you now?
Dividend Stocks For Your February 2022 Watchlist
Johnson & Johnson Inc.
Right off the bat, we have Johnson & Johnson (JNJ), a defensive company that develops pharmaceuticals, medical devices, and consumer packaged goods. The company is one of the most valuable companies in the world and is one of the only two U.S.-based companies that have a prime credit rating of AAA. With over 130 years of experience, the company strives to improve access and affordability for the millions of people that depend on the company. Earlier in the month, it announced a cash dividend of $1.06 per share.
This past week, the company reported its fourth-quarter financials, beating earnings but missed on revenue. Diving in, profits for the quarter surged to $4.74 billion, almost triple from a year ago. Revenue for the quarter was $24.8 billion, increasing by 10.8% year-over-year. A huge chunk of this revenue was from its coronavirus vaccine sales, at $1.82 billion. The company says its performance in 2021 reflects continued strength across all segments of its business.
JNJ also expects its vaccine to generate from $3 billion to $3.5 billion in sales this year. Its medical device worldwide adjusted operational sales grew by 16.8%, driven primarily by the market recovery from the pandemic and the associated deferral of medical procedures in the prior year across its Surgery, Vision, and Interventional Solutions among others. Notably, about half of its sales for the quarter came from the U.S. Last month, the company also announced the interim recommendation by the World Health Organization, supporting the use of its vaccine as a booster shot for persons aged 18 years and above. Given all of this, is JNJ stock worth investing in today?
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3M Company
3M is a dividend company that operates in the fields of health care, consumer goods industry, and worker safety. In fact, it has over 60,000 products under several brands that range from abrasives and adhesives to personal protective equipment, window films, and medical products. In November, the company declared a dividend of $1.48 per share.
The company also reported its fourth-quarter financials this past week. Firstly, sales for the quarter were $8.6 billion. Its Safety and Industrial segment posted $3.1 billion in sales, with increased volume in closure and masking systems, abrasives, and industrial adhesives. 3M also reported an earnings per share of $2.31, 30 cents a share above estimates. The company’s revenue also topped estimates, and it says that business has improved during December as supply chain issues have abated.
It also returned $5.6 billion to shareholders via dividends and share repurchases. The company says that it will continue to prioritize investments in fast-growing end markets to drive long-term growth. Accordingly, 3M will also host a virtual strategic update and 2022 outlook meeting on February 14, 2022. With that being said, is MMM stock worth adding to your portfolio?
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Verizon Communications
Over the past few decades, telecom services such as wireless connectivity and high-speed internet have and continue to become vital. With that in mind, investors could also be looking at companies like Verizon when considering dividend stocks now. This past week, Verizon is mostly focusing on growing its extensive 5G network across the U.S. The likes of which serve a wide array of markets, ranging from companies working on cutting-edge tech to average consumers.
In detail, Verizon currently offers a quarterly dividend payout of $0.64 per share. This adds up to an annual dividend yield of about 4.83%. Even so, the company continues to perform on the financial end. This is evident from its latest quarterly earnings report this past week. In it, Verizon posted earnings of $1.31 per share on revenue of $34.1 billion. For comparison, this is versus consensus estimates of $1.28 and $33.89 billion respectively. Moreover, the company also saw its wireless service revenue for the quarter increase 6.5% year-over-year to a whopping $17.8 billion. Verizon cites higher average revenue per account, volume growth, and its acquisition of TracFone Wireless back in November as key growth drivers.
Following this earnings beat, CEO Hans Vestburg notes that 2021 was a “transformational year” for Verizon. Looking forward, Vestburg says, “As we move into 2022, we have the necessary assets to realize our strategy that we laid out in 2019. We are laser-focused on executing our 5G strategy and providing value to our customers, shareholders, employees, and society, as 2022 will be the most exciting year yet for Verizon.” As such, would you consider VZ stock a top buy now?
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