Even as the big banks post impressive figures, dividend stocks appear to be gaining traction in the stock market today. Notably, this would likely be due to the latest update from the Federal Reserve on its tapering plans. Earlier this week, a summary of the central bank’s September meeting was released. According to the notes, the Fed is looking to roll back its generous monetary support by mid-November at the earliest. Naturally, this is an understandable response given the current uptrend in the U.S. economy. Participants at the meeting note that the current economic recovery remains “broadly on track”.
Now, how would all this relate to dividend stocks might you ask? Well, for one thing, the Fed will gradually reduce its bond-buying initiatives throughout the taper. In turn, this could see investors looking for more defensive stocks in the stock market. With the dividend payout from dividend stocks, they would, in theory, be getting access to more consistent returns. Whether it is consumer companies like Procter & Gamble (NYSE: PG) or tech giants like IBM (NYSE: IBM), investors are spoilt for choices in the current market. With all that said, could one of these dividend stocks be prime picks right now?Top Dividend Stocks To Consider Buying [Or Selling] In October 2021
- Nike Inc. (NYSE: NKE)
- The Coca-Cola Company (NYSE: KO)
- The 3M Company (NYSE: MMM)
- Nucor Corporation (NYSE: NUE)
- Walgreens Boots Alliance Inc. (NASDAQ: WBA)
Nike is a multinational corporation that designs athletic apparel and footwear. With groundbreaking sports innovation and immensely high brand loyalty, the company is one of the biggest sportswear retailers in the world. Its portfolio of brands includes Nike, Converse, and Jordan. With a revenue over $37.4 billion in its fiscal year 2020, the company is certainly a titan in the retail industry. NKE stock currently trades at $158.01 as of Friday’s closing bell. On August 30, 2021, the company declared a dividend of $0.275 per common stock.
On Tuesday, Goldman Sachs (NYSE: GS) analyst Kate McShane initiated coverage on Nike at a Buy rating and a price target of $172. McShane in her bullish call said that Nike is in a healthy industry backdrop with a company-specific continued focus on innovation to drive growth.
She also said that it has room to expand on its direct-to-consumer initiative, which could drive higher gross margins over time. The company also has a high cash balance which could encourage additional investment and capital return to shareholders. All things considered, should investors be paying attention to NKE stock today?
Read MoreThe Coca Cola Company
Following that, we have Coca-Cola, a beverage corporation with headquarters in Georgia. It sells its products in more than 200 countries and territories. In essence, the company operates via multiple billion-dollar brands across several beverage categories worldwide.
This would include Coca-Cola, Sprite, and Fanta. It also has hydration, sports, and coffee brands. KO stock currently trades at $54.48 a piece going into Monday’s trading session. The company’s latest dividend was declared in September at $0.42 a share.
In late September, the company unveiled a new global brand platform for the Coca-Cola trademark. The new global brand philosophy and platform is called Real Magic. “Coca-Cola is a brand defined by dichotomies: humble but iconic, authentic yet secret, real yet magical,” said Manolo Arroyo, Chief Marketing Officer for The Coca-Cola Company. Given this piece of news, will you consider adding KO stock to your portfolio?The 3M Company
3M is a dividend company that operates in many key industries. Namely, this would include health care, safety & industrial, transportation, electronics, and consumer markets among others.
Notably, its safety & industrial products are used by millions all around the globe. From respiratory, hearing, and eye protection solutions to industrial abrasives and tapes, the company certainly has a diversified income stream. MMM stock currently trades at $181.94 as of Friday’s close.
In August, the company declared a dividend on the company’s common stock of $1.48 per share for the third quarter of 2021. 3M has paid dividends to its shareholders without interruption for more than 100 years. In late August, the company announced that its 3M Aberdeen plan has made its 1 billionth respirator since the beginning of the pandemic, a feat that would have otherwise taken about four years. For this reason, is MMM stock a buy right now?Nucor Corporation
Another name to consider among dividend stocks now would be the Nucor Corporation. For the most part, the steel production firm could be a viable play in the current market. Before going into the details, Nucor is one of the largest steel producers in the U.S. With the ongoing plans to bolster national infrastructure among other initiatives, demand for Nucor’s offerings continues to grow. To the extent that even as steel prices drop, the likes of CNBC’s Jim Cramer remain bullish on NUE stock.
Now, the company’s shares currently trade at $101.78 a share going into this week’s trading session. After gains of over 105% in the past year, could NUE stock have more room to run? By and large, Nucor continues to perform on the financial front. Namely, the company posted green across the board in its latest fiscal quarter report back in July. In it, Nucor more than doubled its total revenue year-over-year.
Over the same period, the company also saw surges of over 1,200% in both its net income and earnings per share. Nucor now offers a dividend payout of $0.40 per share. With all that said, will you be keeping an eye on NUE stock ahead of Nucor’s third-quarter earnings call next week?Walgreens Boots Alliance Inc.
Last but not least, we have the Walgreens Boots Alliance, a retail pharmacy chain. It also has several pharmaceutical manufacturing, wholesale, and distribution companies. With operations in the U.S. through Walgreens and Boots in Europe and Asia, the company continues to meet user needs through its convenient retail locations, digital platforms, and health products. Back in July, Walgreens raised its quarterly dividend to 47.75 cents per share.
To highlight, WBA stock is up by over 3% in the last 5 trading days set to open Monday’s trading session at $48.92 a share. This could be on account of its latest quarterly earnings report. Diving right into it, Walgreens reported an earnings per share of $1.17 on revenue of $34.26 billion. This exceeds Wall Street estimates of $1.02 and $33.30 billion respectively.
Overall, the company cited solid growth in its online and brick-and-mortar sales in the U.S. as a dominant growth driver for the quarter. Given the overall relevance of Walgreens’ services and day-to-day health care offerings, could WBA stock be worth investing in now?