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Tom Handy

The 7 Best Dividend Stocks For June

2021-06-06

Dividend stocks that no one is talking about today.

These are the seven best dividend aristocrat stocks you should consider for your portfolio. These dividend stocks have a positive outlook for the next several years as a long-term buy.

To be a dividend aristocrat stock, the stock has to be in the S & P 500 index and 25 + years of consecutive raises with their dividend. Currently, there are 65 dividend aristocrats. They must also meet a minimum size and liquidity requirement.

The dividend stocks have the ability to pay their shareholders year after year.

During recessions, dividend stocks see smaller downturns during these periods compared to the S &P 500. In 2008, the Dividend Aristocrats index declined 22% as compared to the S&P 500 declining 38% that year.

“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”
Warren Buffett

The seven best dividend stocks to consider are:

The price for the stocks was recorded on June 4, 2021, at the close of the market.

Cardinal Health (CAH)

https://img.particlenews.com/image.php?url=0GCtef_0aLpy9oX00
Cardinal HealthScreenshot from Yahoo Finance

Company Profile.

Cardinal Health is a top drug distribution company that serves over 24,000 pharmacies in the United States and over 85% of the country’s hospitals. Cardinal Health operates in two segments, Medical and Pharmaceutical. Pharmaceutical makes up about 90% of the revenue.

Analysis.

3rd quarter revenue increased to $39.3 billion from $39.2 billion.

Dividend Yield.

3.5%

5 Year expected annual return.

7.5%

Atmos Energy (ATO)

https://img.particlenews.com/image.php?url=3kGFTK_0aLpy9oX00
Atmos EnergyScreenshot from Yahoo Finance

Company Profile.

Atmos Energy serves gas to eight states and serves over 3 million customers. 62% of the distribution is in Texas.

Analysis.

Revenue increased 35% year over year to $1.35 billion. Growth was favorable based on rate outcomes and customer growth.

Dividend Yield.

2.5%

5 Year expected annual return.

7.8%

Archer Daniels Midland (ADM)

https://img.particlenews.com/image.php?url=0DyHB6_0aLpy9oX00
Archer Daniel MidlandScreenshot from Yahoo Finance

Company Profile.

Archer Daniels Midland is an agriculture products giant. The business includes cereal grains and oilseeds. ADM benefited as it was classified as an essential business during the pandemic. The company has 321 food and feed processing locations and 449 crop procurement locations.

Analysis.

Adjusted earnings growth almost doubled 26% from the same quarter a year ago to $18.89 billion.

Dividend Yield.

2.2%

5 Year expected annual return.

8%

AbbVie Inc. (ABBV)

https://img.particlenews.com/image.php?url=0Bx2DI_0aLpy9oX00
AbbvieScreenshot from Yahoo Finance

Company Profile.

AbbVie is a giant player in the healthcare sector with a large and diversified portfolio.

Analysis.

First-quarter revenue increased 51% from the year on year and generated revenue of $13 billion. Annual earnings growth is expected at 3.0%.

Dividend Yield.

4.6%

5 Year expected annual return.

9.1%

Lowe’s Companies (LOW)

https://img.particlenews.com/image.php?url=3svVMs_0aLpy9oX00
Lowe'sScreenshot from Yahoo Finance

Company Profile.

Lowe’s is the second-largest home development retailer after Home Depot. The company has more than 2,200 home improvement and hardware stores in the US and Canada. Neither Home Depot and Lowe’s are interested in a price war as both companies are performing well.

Analysis.

First-quarter revenue increased 24% from the same quarter a year ago. Comparable sales increased 26% a year ago.

Dividend Yield.

1.69%

5 Year expected annual return.

10.9%

Becton, Dickinson, & Company (BDX)

https://img.particlenews.com/image.php?url=2ga7HU_0aLpy9oX00
Becton, Dickson & CompanyScreenshot from Yahoo Finance

Company Profile.

Becton, Dickson, is a leader in the medical supply industry. The company operates in 190 + companies and has over 70,000 employees. BDX’s medical division provides needles for the drug delivery system and surgical blades. Their life science division provides products for the collection and transportation of diagnostic specimens.

Analysis.

The company is diverse as about 47 billion in revenue 43% comes from overseas. Revenue increased 15% over the previous quarter. The US and international markets increased 1.9% and 25.7%.

Dividend Yield.

1.4%

5 Year expected annual return.

10.9%

AT&T Inc. (T)

https://img.particlenews.com/image.php?url=0yXgFi_0aLpy9oX00
AT&TScreenshot from Yahoo Finance

Company Profile.

AT&T is the largest communications company in the world and operates in three segments, AT&T Communications (provides mobile, broadband, and video to 100 million U.S. consumers and 3 million businesses); WarnerMedia (includes HBO, Turner, Warner Bros., and the Xandr advertising platform); and AT&T Latin America (provides 11 countries pay-TV and wireless service).

Analysis.

The company saw a 2.7% increase from a year ago generating $43.9 billion in revenue. AT&T is a giant business but a steady grower. AT&T plans to spin off several assets creating New DirecTV. AT&T also plans to merge with Discovery (DISCA) where Time Warner will fall under. As part of the deal, AT&T will receive $42 billion ins a combination of cash, securities, and debt.

This will allow AT&T to focus on its core business, telecommunications services.

Dividend Yield.

7%

5 Year expected annual return.

11.9%

Note.

The writer does not own any stocks mentioned in this article.

References.

Sure Dividend

Yahoo Finance

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.

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