You might not think that the average user of the Robin Hood trading platform would be excited about dividend stocks. Some might view the stereotypical Robinhood investor as a younger person who is more interested in explosive growth stocks.
Of course, many of the 100 most popular stocks on Robinhood don’t pay dividends. However, there are several notable exceptions. Here are three popular Robinhood dividend stocks to buy in October.
1. Bank of America
Warren Buffett and his longtime business partner Charlie Munger aren’t exactly Robinhood fans. However, they are big fans of Bank of America (NYSE: BAC), which is undoubtedly Buffett’s favorite banking stock.
Bank of America is also the preferred banking stock for Robinhood investors. It ranks # 27 on the trading platform’s top 100 list. None of BofA’s peers even crack the list.
The dividend yield of the financial services company is currently close to 2%. This return would be even higher without the formidable stock market performance of Bank of America. Its shares have climbed more than 40% since the start of the year.
This stock could go even higher in the not-so-distant future. Philadelphia Federal Reserve Chairman Patrick Harker recently told Reuters that interest rate hikes were likely underway. Bank of America should benefit from an increase in revenues if and when these increases occur.
It might be easy to forget that Microsoft (NASDAQ: MSFT) is a dividend-paying share. However, the tech giant has been paying a dividend since 2003. However, most investors won’t buy the stock for its dividend: its dividend yield is only 0.86%.
There are certainly other reasons to buy Microsoft that explain why it is the eighth most owned stock among Robinhood investors. On the one hand, the company is ready to reward shareholders in another important way. Microsoft plans to buy back $ 60 billion of its stock over the next two years.
In some ways, Microsoft today recalls what IBM (NYSE: IBM) was in business in the 1960s. Information technology personnel know they can count on Microsoft products to keep their businesses running.
Of course, business IT pros aren’t Microsoft’s only customers. Its productivity applications and operating systems are used by millions of individual consumers. And the company has had huge success with its Xbox gaming platform. Microsoft is a solid technological choice for the future that also offers a growing dividend.
Pfizer (NYSE: PFE) ranks just two places below Microsoft on Robinhood’s Top 100 list. The big drugmaker has long been a favorite with income investors. Its dividend is currently yielding more than 3.6%.
For several years, Pfizer’s dividend was pretty much the only thing the company had going for it. It’s a much different story now, however, in large part thanks to the phenomenal success of Pfizer Comirnaty’s COVID-19 vaccine.
While Comirnaty is Pfizer’s main growth engine, it is not the only one. The company’s lineup includes several high-impact blockbusters, including the cancer drugs Inlyta and Xtandi, the anticoagulant Eliquis, and the rare heart disease drug Vyndaqel / Vyndamax.
Pfizer is also a rising star with its new pneumococcal conjugate vaccine Prevnar 20. In addition, Pfizer’s pipeline includes more than 20 programs in advanced testing, with its respiratory syncytial virus vaccine PF-06928316 and the COVID pill. -19 PF-07321332 especially standing outside.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.Source link