4 Top Dividend Stocks To Watch In The Stock Market Today
Dividend stocks are a type of stock that pays regular cash dividends to shareholders. Dividend stocks are popular with stock market investors because they provide a consistent source of income. Many dividend stocks also have the potential to generate high returns over the long term. For example, dividend stocks tend to outperform other types of stocks during periods of high inflation. Given the current economic conditions, dividend stocks could be an attractive investment throughout the remainder of 2022 and beyond.
Why Dividend Stocks?
Dividend stocks are an attractive investment for a number of reasons. First, they offer the potential for income. Dividends are payments that companies make to shareholders, and dividend stocks typically have a higher dividend yield than other stocks. This can provide investors with a steady stream of income, which can be particularly advantageous in retirement. Second, dividend stocks tend to be less volatile than other stocks.
This means that they are less likely to experience sharp declines in value, making them a more stable investment. Finally, dividend stocks tend to outperform other stocks over the long term. This is due to the fact that dividends reinvested in the stock help to compound returns, resulting in higher total returns for shareholders. For these reasons, dividend stocks are an appealing investment option for many investors. With this in mind, here are four dividend stocks to watch in the stock market today.
Dividend Stocks To Invest In [Or Avoid] Right Now
- Walgreens Boots Alliance Inc. (NASDAQ: WBA)
- Amgen Inc. (NASDAQ: AMGN)
- Cisco Systems, Inc. (NASDAQ: CSCO)
- JPMorgan Chase & Co. (NYSE: JPM)
Walgreens Boots Alliance (WBA Stock)
First, Walgreens Boots Alliance (WBA) is a global leader in retail and wholesale pharmacy. In fact, Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing enterprise. For a sense of scale, the company has approximately 13,000 locations throughout the United States, Europe, and Latin America. Additionally, Walgreens Boots Alliance has more than 315,000 employees throughout nine countries worldwide. Currently, WBA stock has an annual dividend yield of 5.44%.
In late June, Walgreens Boots Alliance (WBA) reported its third quarter 2022 financial results. Diving in, the company reported earnings of $0.96 per share. Meanwhile, revenue for the quarter was $32.6 billion. This is in comparison with Wall Street’s consensus estimates of $0.95 earnings per share, on revenue of $32.0 billion. Moving along, Walgreens recently announced it has completed the majority share purchase of CareCentrix. For starters, CareCentrix, Inc. is an independent home-centered platform that coordinates care to the home for health plans, providers & patients.
Specifically, Walgreens invested approximately $330 million for 55% of CareCentrix. As of today, CareCentrix manages care for 19 million members through an estimated 7,400 provider locations. Going into this week’s trading action, shares of WBA are set to open on Tuesday morning at $35.27 per share. With this in mind, will you be adding WBA stock to your dividend stock watchlist?
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Amgen (AMGN Stock)
Next, Amgen Inc. (AMGN) is a global biotechnology company that discovers, develops, manufactures, and delivers innovative human therapeutics. For the uninitiated, Amgen products treat serious illnesses and address important medical needs in areas such as oncology, nephrology, bone health, and cardiovascular disease. Also, Amgen focuses on areas of high unmet medical needs and leverages its expertise to strive for solutions to improve health outcomes and people’s lives. For a sense of scale, the company’s treatments have also reached millions of patients worldwide. As of today, AMGN stock has an annual dividend yield of 3.20%.
Just last month, the biotech company reported better-than-expected second-quarter 2022 financial results. In detail, Amgen (AMGN) reported second-quarter earnings per share of $4.65 per share. This goes along with revenue for the quarter of $6.6 billion. Compared with, the consensus earnings estimate of $4.40 per share, and revenue of $6.5 billion. In addition, Amgen announced it continues to estimate 2022 earnings of $17 to $18 per share. Meanwhile, the company now estimates revenue in the range of $25.50 billion to $26.40 billion.
Moreover, Chairman & CEO of Amgen Robert Bradway commented in his letter to shareholders, “We are focused on delivering our long-term objectives by serving an ever-increasing number of patients around the world with our medicines. We are advancing our pipeline and look forward to important readouts over the next few months.” Shares of AMGN stock have outperformed the broader market so far this year up over 6%. AMGN stock is set to open this week’s trading at $242.37 per share. Considering all of this, do you think AMGN is a good dividend stock to buy now?
Cisco Systems (CSCO Stock)
Cisco Systems Inc. (CSCO) is an American multinational technology company that develops, manufactures, and sells networking hardware, telecommunications equipment, and other high-technology services and products. Today, the company has an annual dividend yield of 3.19%. What’s more, in August Cisco reported a miss for its fourth quarter and fiscal year 2022 earnings.
Diving in, Cisco Systems reported earnings per share of $0.83 per share. Meanwhile, the company posted revenue of $13.1 billion for Q4. This is compared with analysts’ consensus estimates of earnings per share of $0.82, and revenue of $12.7 billion. Though, for full-year 2022 total revenue was $51.6 billion, representing a 3% increase.
Cisco Systems Chief Financial Officer commented in his note to shareholders, “Total revenue exceeded our expectations in Q4, as a result of our strong execution and the numerous initiatives we have taken to reduce the impact of the global supply situation,” he continued. “Our operational discipline is reflected in our healthy operating margin and strong cash flow generation, enabling us to return nearly $4 billion to our shareholders in Q4.” Separate from that, shares of CSCO stock are looking to open this trading week at $44.64 per share. With that, is CSCO stock a good buy for your long-term portfolio?
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JPMorgan Chase & Co (JPM Stock)
Topping off the list, JPMorgan Chase & Co (JPM) is a multinational investment bank and financial services holding company. Actually, JPM is a leading financial services firm with operations worldwide. For a sense of scale, JMP has greater than $4 trillion in assets and $285.9 billion in stockholders’ equity as of March 31, 2022. Aside from that, JPMorgan Chase provides investment banking and financial services for a wide range of customers. JPM currently has an annual dividend yield of 3.52%.
Just back in July, the company announced its Q2 2022 financial results. In detail, JPM posted revenue of $30.7 billion for this most recent quarter. Furthermore, credit costs were $1.1 billion. This includes a $428 million net reserve build and $657 million of net charge-offs. It also had $1.6 trillion of liquidity sources. In addition, JPM distributed a common dividend of $3 billion or $1 per share in Q2. Next, the company repurchased $224 million of common stock in the quarter. JPM currently has an annual dividend yield of 3.52%.
JPM CEO Jamie Dimon had this to say in his letter to shareholders, “JPMorgan Chase performed well in the second quarter as we earned $8.6 billion in net income on revenue of $30.7 billion and an ROTCE of 17%, with growth across the lines of business, while maintaining credit discipline and a fortress balance sheet. In Consumer & Community Banking, combined debit and credit card spend was up 15% with travel and dining spend remaining robust. Card loans were up 16% with continued strong new account originations. In the Corporate & Investment Bank, we generated strong Markets revenue, up 15% as we helped clients navigate volatile market conditions.” Continuing on, shares of JPM stock are set to open this shortened trading week at $113.71 per share. Given this, will you be adding JPM stock to your radar this week?
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