Dividend investing in the stock market is a strategy that focuses on buying stocks that pay dividends. Dividends are portions of a company’s earnings given to shareholders, usually quarterly. These stocks appeal to investors seeking a steady income stream from their portfolios. Dividend-paying companies are typically well-established and financially stable, which can attract conservative investors looking for lower-risk investments in the stock market.
One of the main advantages of dividend stocks is the potential for regular income in addition to any profits from stock price increases. This can provide a cushion during market downturns, as dividends can help offset losses from falling stock prices. However, dividends are never guaranteed. In fact, companies can reduce or eliminate payouts depending on their financial health.
On the downside, dividend stocks may not offer the same growth potential as non-dividend stocks, which can reinvest all their profits back into the business. Also, dividend income is taxable, which can affect the overall return on investment. As a result, investors should consider their need for immediate income against the potential for higher long-term gains from other investments in the stock market. Given this, here are two dividend stocks to check out in the stock market right now.
Dividend Stocks To Buy [Or Avoid] Now
- Chevron Corporation (NYSE: CVX)
- T. Rowe Price Group Inc. (NASDAQ: TROW)
Chevron Corp. (CVX Stock)
To begin, Chevron Corporation (CVX) is a multinational energy corporation, one of the world’s leading integrated energy companies. Chevron engages in every aspect of the oil, natural gas, and geothermal energy industries, including hydrocarbon exploration and production, refining, marketing and transport, chemicals manufacturing and sales, and power generation. Today, Chevron offers its shareholders a quarterly dividend of $1.63, which equals an annual dividend yield of 4.23%.
At the end of last month, Chevron announced updates to its stockholders during its 2024 Annual Meeting. Chairman and CEO Michael Wirth highlighted the company’s record oil production and financial stability. He emphasized Chevron’s focus on both traditional and new energy sources, underlined by significant capital projects and strategic acquisitions.
Year-to-date, shares of Chevron stock have jumped higher by 3.17%. Moreover, on Thursday morning, CVX stock is trading lower by 0.54% at $153.38 a share.
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T. Rowe Price Group (TROW Stock)
Next up, T. Rowe Price Group Inc. (TROW) is a global investment management firm. The company offers a broad array of mutual funds, advisory services, and account management for individuals, institutions, retirement plans, and financial intermediaries. Currently, T. Rowe Price Group offers its shareholders a quarterly dividend of $1.24, which is an annual dividend yield of 4.19%.
Just this week, T. Rowe Price Group announced its preliminary assets under management for May 2024, totaling $1.54 trillion. The firm reported net inflows of $6.7 billion for the month, including a substantial inflow from an institutional fixed-income source. These assets are distributed across various classes. This includes equity, fixed income, multi-asset, and alternatives.
This year so far, shares of TROW stock are up 9.11% YTD. While, on Thursday morning, T. Rowe Price Group stock is trading slightly lower off the open by 0.54% at $117.74 a share.
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