Dividends are payments made by publicly traded companies to their shareholders. This is typically in the form of cash or additional shares of stock. These payments are a way for corporations to share their profits with investors, often on a quarterly basis. Meaning this can be an attractive source of passive income for many.
Moreover, dividend stocks refer to shares of companies that consistently distribute dividends to their shareholders. These stocks can be found across various sectors and industries. This offers investors a range of options based on their risk tolerance and investment objectives. Some of the most popular dividend stocks belong to established, large-cap companies. These companies generally have stable earnings and a strong track record of dividend payments.
Investing in dividend stocks can be a strategic move for retail investors seeking to balance their portfolios and create a steady income stream. By holding these stocks over a long period, investors have the opportunity to benefit from compounding returns. This comes as investors reinvest their dividends, leading to potentially significant growth in their investments. Additionally, dividend-paying stocks tend to be less volatile than their non-dividend-paying counterparts. As a result, this makes them a more stable and attractive option for conservative investors. However, it is essential to carefully research each company’s financial health, payout ratio, and dividend history before investing, as not all dividend stocks are created equal. Knowing this, let’s look at three top dividend stocks to watch in the stock market this upcoming week.
Dividend Stocks To Buy [Or Avoid] Now
- Devon Energy Corporation (NYSE: DVN)
- International Business Machines Corporation (NYSE: IBM)
- Vail Resorts Inc. (NYSE: MTN)
Devon Energy (DVN Stock)
Devon Energy Corporation (DVN) is an independent energy company specializing in the exploration, development, and production of oil and natural gas resources. Currently, Devon Energy offers its shareholders a quarterly dividend in the amount of $1.26 per share. This results in an annual dividend yield of 10.96%.
In February, Devon Energy announced its Q4 2022 earnings results. In the report, the company reported earnings of $1.66 per share, with revenue of $4.3 billion. This did come in slightly under analysts’ consensus expectations which were earnings of $1.75 per share, on revenue of $4.3 billion.
As of this past Friday’s closing bell, shares of DVN stock are trading at $46.15 a share.
International Business Machines Corp (IBM Stock)
Second, International Business Machines Corporation (IBM) is a multinational technology and consulting company with a wide range of services, including cloud computing, artificial intelligence, and IT infrastructure. Today, IBM has a quarterly dividend in the amount of $1.65 per share. This results in an annual dividend yield of 5.34%.
Meanwhile, at the end of January, IBM reported its fourth quarter 2022 earnings results. Specifically, the company posted earnings of $3.60 per share and revenue of $16.7 billion for the quarter. This is in comparison with Wall Street’s consensus estimates which were an EPS of $3.61 per share, and revenue estimates of $16.4 billion.
Additionally, as of Friday’s closing bell, shares of IBM ended the trading day modestly lower by 0.81% at $123.69 a share.
Vail Resorts (MTN Stock)
Last but not least, Vail Resorts Inc. (MTN) operates a collection of world-class mountain resorts and urban ski areas across the United States, Canada, and Australia. Catering to outdoor enthusiasts and vacationers alike. Next, MTN currently offers its shareholders a quarterly dividend of $2.06, which is an annual dividend yield of 3.75%.
In March, Vail Resorts announced its second quarter 2023 financial results. In detail, the company reported Q2 2023 earnings of $5.16 per share, along with revenue of $1.1 billion for the quarter. This came in under the consensus estimates which were an EPS of $6.19 per share, and revenue estimates of $1.1 billion. In addition, the company also notched in a 21.5% increase in revenue versus the same period, the previous year.
Continuing on, to close out Friday’s trading action, shares of MTN stock finished the day down slightly by 0.26% at 219.84 a share.
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