3 Most Important Dividend Stocks For Your Watchlist This Week
As the stock market as a whole continues to extend its streak of volatility, dividend-paying stocks continue to gain traction among investors. If anything, it would be due to a wide variety of factors weighing on the market now. These range from the less than ideal economic environment to active debates about the debt ceiling. Therefore, it could cause investors to seek more consistent returns in the form of dividends. For the uninitiated, dividends are essentially payments from companies to shareholders. With the promise of quarterly or monthly returns on top of the potential gains in stocks, I can see the current appeal.
Plus, some of the best dividend-paying stocks are now owned by companies whose services are constantly in demand. This would include basic consumer goods, infrastructure, materials and healthcare businesses. With the uncertainty surrounding the current state of the economy, this could also spur investors now. For example, we could take a look at 3M (NYSE: MMM). The company announced its last dividend payment of $ 1.48 per share in August. Notably, 3M has been paying dividends consecutively for over 100 years now according to company estimates.
Elsewhere, companies like ExxonMobil (NYSE: XOM) are working hard to refine their operations as well. As of this week, the company is now working with Rosneft, one of Russia’s leading oil refinery companies. The duo are developing low-carbon technologies to reduce greenhouse gas emissions from their global operations. In addition, they are also considering projects focusing on alternative fuels such as hydrogen and ammonia. This would indicate that even the dividend giants are looking to grow over time. Overall, dividend stock trading is good and active now. Could that make any of those three dividend-paying stocks the top picks on the stock market this week?
Best dividend-paying stocks to watch in the stock market right now
To begin with, we’ll take a look at the Wholesale company Costco. In short, Costco is a big box retail store. It is today one of the largest retailers in the world. For the most part, Costco offers consumers a wide variety of products ranging from daily necessities to household supplies and consumables. All of this is only available to Costco members who pay an annual membership fee. However, one of the main differences between the company and other retailers is the volume of items that customers can purchase.
Thanks to its big box offerings, many have turned and continue to turn to Costco for stocking up on supplies. From the current pandemic to hurricane season, the company’s services would be relevant in today’s market. Likewise, it might see COST stock grabbing investor attention now. With significant gains of over 18% since the start of the year, is it worth investing?
Well, on the one hand, Costco seems to be performing well financially. In its latest fiscal quarter report, the company saw an increase in total revenue of 17% year-over-year. Considering that compares to a quarter where consumers were sourcing heavily, that’s admirable. All of this adds up to a whopping $ 195.93 billion in revenue for the quarter. On top of that, Costco also posted gains of over 24% in its net income and earnings per share. After taking all of this into account, would the COST share be a great buy for you?
Source: TD Ameritrade CGU
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Leggett & Platt
Another name to know among dividend stocks now would be Leggett & Platt (LEG). Essentially, it is a diverse manufacturer that designs a wide variety of technical components. These range from seating components in automobiles, to carpet cushions and hard surface flooring for homes, to textiles. Considering the importance of LEG merchandise to many industries, the LEG inventory might be worth watching now.
Overall, the company’s shares have nearly doubled in value from its lowest pandemic level. On top of that, LEG released some bumper figures in its last fiscal quarter report in August. In it, the company posted record quarterly revenue of $ 1.27 billion, marking a solid 50% year-over-year increase. In addition, LEG also reported massive increases of 1,939% in net income and 1,740% in earnings per share. Even under the current pandemic conditions, LEG continues to demonstrate resilience. Overall, CEO Karl Glassman cited strong consumer demand for LEG’s products and the continued strength of the company as key growth factors for the quarter.
At the same time, the company also increased its quarterly dividend by 5% quarter over quarter. This is in addition to an annual dividend yield of 3.5%, marking LEG’s 50th anniversarye consecutive year of annual dividend increase. Following this strong quarter, the company has also raised its forecast for sales and earnings per share for the year 2021. Given the current momentum of LEG, could LEG shares be worth it? invest for you?
Source: TD Ameritrade CGU
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Then we have the Albemarle Company. It is a North Carolina-based chemicals manufacturing company. The company operates primarily through three divisions, lithium, bromine specialties and catalysts. According to the company’s estimates, it is currently one of the largest suppliers of lithium batteries for electric vehicles (EVs) in the world. With the global shift in focus towards clean energy vehicles globally, investors might now be keeping an eye on ALB shares.
On the contrary, the company’s shares are now forecasting gains of over 150% over the past year. Even so, Albemarle doesn’t seem to be slowing down anytime soon. Through one of its UK subsidiaries, the company is seeking to acquire Guangxi Tianyuan New Energy Materials (Tianyuan). For a certain perspective, the Chinese firm mainly acts as a lithium converter. With this acquisition, Albemarle will have access to the Tianyuan lithium processing plant. Whose likes have an annual conversion capacity of up to 25,000 metric tons of battery grade lithium. With the plant set to begin commercial production by the first half of 2022, Albemarle could face busy days.
In conclusion, CEO Kent Masters said: “The acquisition of Tianyuan, which owns and operates a newly constructed lithium processing plant, aligns with our strategy to pursue profitable growth in line with customer demand.“Along with the global growth of the electric vehicle market, Albemarle appears to be aggressively expanding its international operations. All things considered, will you soon be adding ALB stocks to your portfolio?
Source: TD Ameritrade CGU
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.