A dividend stock is a stock that pays a periodic cash dividend to shareholders. Dividends are typically paid out quarterly, but some companies pay monthly or annual dividends. Companies that pay dividends are usually large, established businesses with a history of profitability. A few examples of this would be companies like McDonald’s Corporation (NYSE: MCD), The Coca-Cola Company (NYSE: KO), and The Procter & Gamble Company (NYSE: PG) among others. They tend to be in mature industries with slow growth prospects. In contrast, growth stocks are usually younger companies in rapidly growing industries.
They reinvest their profits back into the business to finance expansion, rather than paying them out to shareholders. While dividend stocks can provide stability and income, they may not offer the same potential for capital gains as growth stocks. For this reason, dividend stocks are often most appropriate for investors who are seeking income or who have a low tolerance for risk. If this sounds like you, check out these two top dividend stocks to watch in the stock market today.
Dividend Stocks To Buy [Or Avoid] Today
1. General Dynamics Corporation (GD Stock)
First on the list is General Dynamics Corporation (GD). For starters, General Dynamics Corporation is an American aerospace and defense company. In detail, the company operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies.
GD Recent Stock News
Back in July, General Dynamics reported second quarter 2022 earnings of $2.75 per share, along with revenue of $9.2 billion. Wall Street’s consensus estimates for the second quarter were earnings of $2.72 per share and revenue of $9.5 billion. In addition, during the 2nd quarter, the company paid $349 million in dividends and used $800 million to repurchase shares. This resulted in them closing out the quarter with $2.2 billion in cash and cash equivalents on hand.
Phebe N. Novakovic, chairman, and CEO commented, “Demand in the quarter was very strong in Aerospace, with margins showing steady improvement year over year. Our defense segments demonstrated solid operating performance and had several important wins.“
Last month, the General Dynamics board of directors of General Dynamics declared a regular quarterly dividend of $1.26 per share on the company’s common stock, payable November 10, 2022, to shareholders of record on October 7, 2022. Meanwhile, GD shareholders enjoy an annual dividend yield of 2.29%.
GD Stock Chart
In 2022 so far, shares of GD stock have increased by over 6% outperforming the broader market year-to-date. As of Monday’s closing bell, General Dynamics stock is trading at $220.43 per share. Considering this, will you be keeping GD stock on your watchlist right now?
2. The Clorox Company (CLX Stock)
Next up, we have The Clorox Company (CLX). The Clorox Company is a manufacturer and marketer of consumer and professional products. Most notably, some of the company’s most popular brands are names like Brita®, Burt’s Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, Pine-Sol®, and Rainbow Light®.
CLX Recent Stock News
Last week, the company announced that its Board of Directors has declared a quarterly dividend of $1.18 per share on the company’s common stock. In detail, the company’s dividend is payable on Nov. 10, 2022, to stockholders of record as of the close of business on Oct. 26, 2022. Clorox has increased its dividend for 20 straight years. Today, the company has an annual dividend yield of 3.37%.
Last month, Clorox reported fourth quarter 2022 and full-year 2022 financial results. In the report, the company posted earnings of $0.93 per share, along with revenue of $1.8 billion. What’s more, Color said it projects 2023 earnings of $3.85 to $4.22 per share, along with revenue of $6.82 billion to $7.25 billion.
Additionally, Linda Rendle, had this to say about the quarter’s performance, “Over this quarter and the fiscal year, we navigated through challenging operating conditions by taking pro-active steps to rebuild margin and invest in the areas of the business that would best position Clorox for long-term success. This has allowed us to report results in line with our expectations and deliver another quarter of sequential margin improvement.“
CLX Stock Chart
After Monday’s closing bell shares of CLX stock are trading at $140.03 per share. With CLX trading off 25.06% it’s a 52-week high, do you think CLX is a good dividend stock to invest in right now?