5 Top Dividend Stocks Worth Watching In The Stock Market Today
Even with the fourth-quarter earnings season set to begin, investors may be looking out for the top dividend stocks. By and large, this could be due to the volatility seen in the stock market this week. Accordingly, this reaction is not all that surprising given the uncertainty around the current direction of markets. On one hand, you have the Federal Reserve’s fast-approaching plans to raise interest rates. According to big banks like JPMorgan (NYSE: JPM) and Goldman Sachs (NYSE: GS), we could see upwards of four hikes in 2022. On the other hand, rising coronavirus concerns continue to weigh in on the overall reopening trade. In theory, all this could deter investors from riskier high-growth names in the stock market today. This is where dividend stocks come into play.
After all, dividend stocks offer a more consistent means of generating gains in the form of, well, dividends. The likes of which would appeal to investors looking to take a more defensive approach to build their portfolios right now. Take Ford (NYSE: F) for instance, it just declared a $0.10 dividend yesterday, bringing its annual dividend yield to 1.68%. At the same time, investors could also be looking at ExxonMobil (NYSE: XOM) given its annual dividend yield of 5.14%. If anything, the company continues to make bold plays, buying a 49.9% stake in Norwegian biofuels producer Biojet earlier today. All in all, there are plenty of dividend-paying firms to consider in the stock market now. Here are five to watch right now.
Best Dividend Stocks To Watch In January 2022
- Bank of America Corporation (NYSE: BAC)
- Intel Corporation (NASDAQ: INTC)
- Apple Inc. (NASDAQ: AAPL)
- Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)
- CVS Health Corporation (NYSE: CVS)
Bank of America Corporation
Starting us off, we have Bank of America, a multinational investment bank and financial services holding company. The company is regarded as one of the world’s leading financial institutions and serves a wide range of customers. This ranges from individual consumers to small and middle-market businesses, and also large corporations. Also, it currently offers a $0.21 quarterly dividend per share, resulting in a 1.72% annual yield. BAC stock is up by over 45% in the past year alone.
The company will report its fourth-quarter financials on January 19, 2022, before the market opens. Today, the company announced significant changes to its overdraft services, including plans to eliminate non-sufficient funds fees beginning in February. It will also reduce overdraft fees from $35 to $10 beginning in May. This could play well for the company in the long term as these steps will further support its client base and empower them to create long-term financial wellness. It could also be a sign of the times as the company ups its game to compete with the various fintech companies that are in the market today. Given this piece of news, is BAC stock worth investing in right now?
Intel is an industry-leading semiconductor company that continues to create life-changing technologies. In essence, it advances the design and manufacturing of semiconductors to help address its customers’ greatest challenges. Furthermore, the company embeds intelligence in the cloud, network, and edge to unleash the potential of data to transform businesses and society for the better. The company’s latest dividend was announced in November 2021, at $0.35 per share.
On Monday, the company announced that David Zinsner has been appointed as the company’s executive vice president and chief financial officer (CFO), effective January 17, 2022. Zinsner has more than 20 years of financial and operational experience in semiconductors and manufacturing, including most recently as executive vice president and CFO at Micron Technology (NASDAQ: MU). He will report directly to Intel CEO Pat Gelsinger and will oversee Intel’s global finance organization. With that being said, is INTC stock a dividend stock to add to your portfolio?
Next, we have Apple, a tech company that designs and manufactures a wide variety of products and services. From innovative apps to premium products and transformative experiences, the company’s world-class portfolio of services proved essential in 2021. This comes as more people all over the world are seeking new ways to stay connected, informed, and entertained. With over 745 million paid subscriptions, Apple continues to connect the world’s developers, artists, and storytellers with more than 1 billion devices.
Last week, the company announced that its Apple Fitness+ is introducing new ways to motivate people toward their goals with Collections, Time to Run, and more. “At the beginning of a new year, we know many people are looking for new ways to go after their goals. With these new additions, Fitness+ makes it easy to get motivated and stay active anywhere, with the most complete library of high-quality and diverse content to train your mind and body, no matter where you are on your fitness journey,” said Jay Blahnik, Apple’s vice president of Fitness Technologies. “We can’t wait for people to get motivated to reach their goals with Collections, and inspired by Time to Run’s exploration of iconic cities with rich running history.” All things considered, is AAPL stock a top stock to watch?
Taiwan Semiconductor Manufacturing Company Ltd.
Another major name to consider among dividend stocks now would be the Taiwan Semiconductor Manufacturing Company. Overall, TSM is one of, if not the largest manufacturer of semiconductor chips worldwide. The company offers a $0.47 quarterly dividend that adds up to an annual yield of about 1.5%. Not to mention, the company is actively planning to invest $100 billion towards growing its manufacturing capacity through 2024. After pairing all this with the ongoing chip shortages, I could understand the appeal of TSM stock.
As it stands, TSM stock currently trades at $129.17 as of Tuesday’s close. This would be after gains of over 8% in the past month alone. Despite its current momentum, TSM does not appear to be slowing down anytime soon. Notably, the company continues to see persistent strength in demand for its offerings. This is evident from its record quarterly sales figures posted yesterday. For reference, TSM raked in a total revenue of about $5.6 billion in December, marking a new high for monthly revenue. As strong chip demands worldwide persist, would you consider TSM stock a top watch now?
CVS Health Corporation
Next up, we will be taking a look at CVS Health. The company is a goliath in the health care industry today. Evidently, it operates via a massive portfolio of health care services. This includes but is not limited to its retail pharmacy chain CVS Pharmacy, pharmacy benefits manager CVS Caremark, and Aetna health insurance provider, among others. In terms of dividends, CVS offers a $0.55 quarterly dividend, making for a 2.09% annual yield.
Now, CVS stock currently trades at $106.04 as of Tuesday’s closing bell. Today, the company could be turning heads in the stock market thanks to its latest announcement. Namely, CVS is raising its guidance for its current fiscal year ahead of its investor conference later today. Firstly, the company is increasing its earnings per share outlook for the year to a range of $5.87 to $5.92. This is versus previous estimates of $5.50 to $5.61. As such, will you be keeping an eye on CVS stock today?
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