Dividends are a portion of a company’s earnings paid out to shareholders, typically regularly. They are one-way companies reward investors for holding their stock. Dividend stocks are shares in companies that regularly distribute dividends. These stocks are often from well-established, profitable companies with a history of stable earnings.
Investing in dividend stocks offers several advantages. They provide a steady income stream, which can be particularly appealing for long-term investors and those seeking income, like retirees. Dividend stocks are often less volatile than non-dividend-paying stocks. This can make them a safer investment during market downturns. However, there are also disadvantages. High dividend payouts can sometimes indicate a lack of opportunities for a company to reinvest in its growth. This could mean slower capital appreciation of the stock.
Moreover, tax implications of dividend income can vary depending on the investor’s tax situation. It’s essential to consider this when investing in dividend stocks. Also, investors should not overlook a company’s overall financial health just for attractive dividend yields. A well-rounded approach, considering both dividend yield and company fundamentals, is crucial. Considering this, here are two dividend stocks to watch in the stock market today.
Dividend Stocks To Invest In [Or Avoid] Now
Chevron Corporation (CVX Stock)
Leading off, Chevron Corporation (CVX) is one of the world’s leading integrated energy companies, engaged in every aspect of the oil and natural gas industry. Chevron’s operations range from exploration and production to refining, marketing, and transportation. The company is also involved in chemical manufacturing and power generation. Today, Chevron has an annual dividend yield of 4.21%.
In late October, Chevron announced its Q3 2023 financial results. Diving in, the company posted Q3 2023 earnings of $3.05 per share, with revenue of $54.08 billion. This was compared to analysts’ consensus estimates for the quarter which were an EPS of $3.68 and revenue estimates of $50.24 billion.
Over the last five trading days, shares of CVX stock have started to recover by 1.09%. Meanwhile, during Tuesday’s mid-morning trading session, Chevron stock is trading red on the day by 0.64% so far, trading at $143.47 a share.
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The Procter & Gamble Company (PG Stock)
Next, The Procter & Gamble Company (PG) is a multinational consumer goods corporation known for its wide range of personal care, hygiene, and household products. Procter & Gamble, commonly known as P&G, offers brands that have become household names across the globe. Currently, PG shareholders get an annual dividend yield of 2.59%.
Back in October, Procter & Gamble Co. reported its Q1 2024 financial results. In detail, the company reported Q1 2024 earnings of $1.83 per share, on revenue of $21.87 billion. This was versus Wall Street’s estimates for the quarter which were an EPS of $1.71 per share, with revenue estimates of $21.56 billion. Additionally, revenue increased by 6.11% compared to the same period, the previous year.
In the past five trading days, shares of PG stock are trading down modestly by 0.97%. Moreover, during Tuesday’s mid-morning trading session, Procter & Gamble stock is red on the day by 0.19% so far, trading at $145.56 a share.
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