3 top dividend stocks that can boost your pay next month
The stock market remains a turbulent environment.
After a scorching 2021, the S&P 500 is down more than 5% to begin the new year.
It may be tempting to sell all of your stocks, but the truth is that no one knows what the market will do next.
What’s the good news? To make money in stocks, you don’t need to time the market. There are companies that provide investors cash returns in the form of dependable dividends.
Some of them have even demonstrated the capacity to grow their payout year after year. It’s like getting a pay rise for dividend investors, which is much-needed with inflation near 40-year highs.
So let’s take a look at three firms that could increase their dividends next month.
Walmart, which is known for its “Everyday Low Prices,” is now the world’s largest retailer by revenue. The corporation has roughly 10,500 stores in 24 countries under 48 different banners.
Approximately 220 million people visit Walmart’s stores and websites each week.
And, thanks to its tremendous economies of scale, the company has been able to weather multiple economic downturns.
Walmart’s financial soundness is reflected in the quantity of cash company returns to shareholders.
Consider the following: In 1974, Walmart issued its first dividend. Every year since then, it has increased its dividend.
While the burgeoning e-commerce business is frequently seen as a threat to brick-and-mortar stores, Walmart has turned it into an opportunity.
E-commerce sales at Walmart U.S. were 87 percent greater in the most recent fiscal quarter than they were two years ago.
Walmart’s stock has been generally trading sideways over the past year, with a current annual dividend yield of 1.7 percent.
In February, the corporation normally announces its dividends for the year. Given the strength of its business, shareholders can expect another dividend hike from the retail behemoth next month.
You don’t have to be an expert investor to see why Coca-Cola is a good choice for dividend investors.
The global beverage business is dominated by the behemoth. It boasts a number of well-known brands, and its products are sold in over 200 countries and territories. Even in a downturn, most folks can still buy a simple can of Coke.
Coca-Cola has provided significant profits to long-term investors over the course of a century. The company’s strong track record of dividend increase is one of the main reasons for this.
Coca-board Cola’s of directors approved a 2.4 percent dividend increase early last year, bringing the quarterly distribution from 41 cents per common share to 42 cents per common share. This was the company’s 59th annual dividend increase in a row.
If history is any indication, Coca-Cola will announce its 60th consecutive annual payment hike next month.
The stock has risen about 30% in the last year and currently pays a 2.8 percent annual dividend yield.
Coca-company Cola’s is still increasing, despite the fact that it has established a strong market position. The company’s revenue increased 16 percent year over year to $10 billion in the third quarter of 2021. Adjusted earnings per share increased 18% year over year.
Genuine Parts Company (GPC)
As good as Coca-track Cola’s record is, there are firms that have outperformed the beverage giant in terms of dividend growth.
One of them is Genuine Parts Company. GPC stockholders received increasing dividends for the 65th year in a row in 2021.
GPC is a distributor of automotive and industrial replacement components. It operates in 14 countries and has a global network of over 10,000 locations.
The current yield on the stock is 2.4 percent.
The auto business is well-known for being cyclical. CPC’s business as a replacement parts distributor, on the other hand, has flourished through several economic cycles.
In fact, over the course of GPC’s 93-year history, sales have increased in 87 of those years.
The company’s sales climbed at a compound annual growth rate of 6% from 2010 to 2020.
Through thick and thin, a constantly growing firm can give a rising stream of financial returns.
Given that GPC’s previous dividend increase was in February 2021, the next one is expected to arrive in the next weeks.