Disclaimer - Nothing in this post is financial advise
3 Dividend stocks to buy now
After a terrible start in 2022, many experts expect a slowing economy in the coming years. This outlook attracts investors to value stocks and companies with a solid dividend track record.
In this article, we will go through 3 dividend kings and why you should consider buying them now.
3M - The industrial manufacturing giant
The large diversified global manufacturer has about 60,000 products in its portfolio which are sold in over 200 countries around the world. 3M dominates the industrial manufacturing industry through a sharp focus on the most attractive market segments.
Not only is 3M(Ticker: MMM) a Dividend Aristocrat, but it is also a Dividend King. It has managed to raise its dividend for 60years in a row and paid out dividends for over a 100years.
The stock fell 36% from its 52-week high in May last year and currently offers a 4.61% dividend yield.
3M could face problems during a recession due to its company's structure, but management has proven itself to be resilient during difficult times in the economy. Also, a big reason for its success is innovation, a major advantage when looking at its competitors.
The Procter & Gamble Company(Ticker: PG) - paying dividends for over 131 years
P&G has paid dividends for 131 years and has increased its dividend for an amazing 65 consecutive years. Which, like 3M, earns P&G the title of Dividend Aristocrat and Dividend King.
P&G is one of the largest consumer staple companies in the world which focuses on 65 key brands. Key brands are the likes of Bounty, Oral-B, Gillette, Luvs and Pampers, among others.
The stock is down 11.70% from its 52-week high in December last year and offers a 2.50% dividend yield.
Watching the past we can see that P&G managed to navigate nearly unscratched through the first part of the Great Recession as earnings grew by double digits in both 2007 and 2008.
This could foreshadow that P&G will also manage to live through an upcoming recession while also keep growing its business.
AbbVie - The pharma giant
AbbVie(Ticker: ABBV) spin-off its parent company Abbott Laboratories in late 2012. Since then, AbbVie managed to overtake Abbott Laboratories In Market cap. by 28%. Thanks to its past with Abbott Laboratories, the stock is also considered a dividend aristocrat and dividend king.
The stock reached its all-time high on April 08, 2022, with a closing price of $175.91. Currently, shares are down 13.59% sitting at $152 while offering a dividend yield of 3.71%.
AbbVie mainly focuses on 16 drugs, including Imbruvica, Lupron, and Humira, which account for roughly 37% of its revenues. AbbVie also has many drugs in its pipeline which is highly needed since the company faces expiring patents in the coming years.
Its management also acquired Allergan in 2020, the manufacturer of Botox, which could be a money-saver when facing expiring patents.
3 Dividend stocks to buy now
When seeking long-term growth in your portfolio, dividend stocks can add great value with a sweet cash flow that can live through stormy market environments.
With the 3 companies mentioned above, you can add great companies and diversification to your portfolio.
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