Dividends are regular payments companies make to their shareholders from their profits. Dividend stocks are shares in these companies that consistently pay out dividends. These stocks are often associated with mature, stable companies that have steady cash flows. Investors can receive dividends as cash or reinvest them to buy more shares. Dividend stocks are popular among income-seeking investors and those looking for stability.
Investing in dividend stocks can offer several benefits. They provide a steady income stream, which is particularly appealing during market downturns. Many dividend-paying companies have a history of increasing their payouts over time. This can lead to growing income for long-term investors. Dividend stocks can also help offset inflation’s impact on your investment portfolio. However, these stocks aren’t without risks. They may offer lower growth potential compared to non-dividend paying stocks. High dividend yields can sometimes signal financial trouble for a company.
When considering dividend stocks, look beyond just the dividend yield. Assess the company’s financial health and ability to maintain dividend payments. Consider the payout ratio, which shows how much of a company’s earnings go to dividends. Be aware that dividends are not guaranteed and can be cut or suspended. Remember that dividend investing typically requires a long-term perspective to fully benefit from compounding returns. That said, let’s check out two dividend stocks to watch in the stock market right now.
Dividend Stocks To Watch Right Now
- Chevron Corporation (NYSE: CVX)
- The Clorox Company. (NYSE: CLX)
Chevron Corp (CVX Stock)
To start, Chevron Corporation (CVX) is one of the world’s largest integrated energy companies. They focus on every aspect of the oil and gas industry, including exploration, production, refining, and marketing. Chevron operates globally, with significant presence in both upstream (exploration and production) and downstream (refining and retail) sectors. The company also invests in renewable energy and alternative fuel technologies. Currently, CVX offers shareholders an annual dividend yield of 4.42%.
In August, Chevron announced it had been awarded a greenhouse gas assessment permit offshore Western Australia. The permit covers an area of 8,467 km2 near Onslow, with water depths ranging from 50 to 1100m. Chevron plans to evaluate this area as a potential hub for storing third-party emissions, including from its LNG assets. The permit involves a joint venture with Woodside Energy Ltd., with Chevron holding a 70% interest. Chevron also agreed to farm down 5% of its equity to GS Caltex of Korea, pending approvals.
Looking at the last month of trading activity, shares of CVX stock have retreated by 7.61%. Meanwhile, during Friday’s premarket trading session, Chevron stock is trading slightly higher up 0.26% at $147.80 a share.
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Clorox (CLX Stock)
Second, Clorox Co. (CLX) is a multinational consumer goods company. The company is popular for its cleaning and household products. They manufacture and market a wide range of items including bleach, cleaning wipes, water filtration systems, and personal care products. Clorox owns several well-known brands across various categories, including Brita, Glad, and Burt’s Bees. Today, Clorox offers shareholders an annual dividend yield of 3.10%.
At the beginning of this month, Clorox announced its fourth-quarter 2024 financial results. Diving in, the company reported a beat, notching in earnings of $1.82 per share, with revenue of $1.90 billion. This is in comparison with consensus estimates which were earnings of $1.54 per share and revenue estimates of $1.98 billion.
In the last month of trading action, shares of CLX stock have surged higher by 19.38%. While, during Friday’s premarket trading session, Clorox stock looks set to open at around $157.26 a share.
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