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Best Dividend Stocks September 2021

The hallmark way I go about finding the best dividend stocks…the outliers, is by looking for quiet Big Money trading activity. Oftentimes, that can be institutional activity. I’ll go over why following the Big Money is so important in a bit. But, the 5 stocks I see as long-term dividend growth candidates are LOW, MSFT, RMD, EXR, & ABBV.

Over decades, I’ve learned that the true tell on great stocks is that big money consistently finds its way into the best companies out there… especially dividend paying stocks. Some of the biggest returns ever have come from holding stocks for many years and reinvesting dividends.

I want the odds on my side when looking for the highest quality dividend stocks…and I own many of them.

So, let’s get into it.

Up first is Lowe’s Companies Inc. (LOW), which is a large home improvements retailer. They’ve been raising their dividend for years.

Let’s first start with the technical picture.

When deciding on a strong candidate for long-term dividend growth, I look for stocks leading in price:

  • 1 month performance (+2.6%)
  • Historical Big Money buy signals

Below are the Big Money signals Lowe’s has made since 2015. Blue bars are showing that LOW was seeing big buy activity according to MAPsignals. Typically, the more Big Money signals, the stronger the stock:

ChartDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Lowe’s has a strong dividend history:

  • 3-year dividend growth rate (+13.3%)
  • Current dividend per share = .80
  • Forward yield = 1.57%
  • 3-year earnings growth rate (+34.66%)

Next up is Microsoft Corp. (MSFT), which is a leader in software, cloud computing, and gaming. They’ve also been a dividend grower for years.

When deciding on a strong candidate for long-term dividend growth, it’s a good idea to look for many years of dividend increases.

Now let’s look at recent performance:

  • 1-month performance (+5.37%)
  • Historical big money signals

Below are the big money signals that Microsoft has made since 2015. I expect more buy signals in the years to come.

Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Microsoft has a nice dividend history. Their earnings growth has been stellar as well:

  • 3-year dividend growth rate (+9.9%)
  • Current dividend per share = .56
  • Forward yield = .74%
  • 3-year earnings growth rate (+63.68%)

Next, I’m looking at ResMed, Inc. (RMD), which is a medical device company. They have a solid dividend history.

When deciding on a strong candidate for long-term dividend growth, I look for strong recent performance:

  • 1 month performance (+10.18%)
  • Historical Big Money signals

Below are the big money signals that ResMed has made since 2015. It’s been quiet recently:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. ResMed has been slow to raise their dividend, but they did recently:

  • 3-year dividend growth rate (+4.3%)
  • Current dividend per share = .42
  • Forward yield = .59%
  • 3-year earnings growth rate (+18.68%)

Next, I’m looking at Extra Space Storage, Inc. (EXR), which is a leading storage real estate firm. They recently raised their dividend.

When deciding on a strong candidate for long-term dividend growth, recent outperformance is great:

  • 1 month performance (+3.49%)
  • Historical Big Money signals

Below are the Big Money signals that Extra Space Storage has made since 2015.

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, Extra Space Storage has a solid dividend picture.

  • 3-year dividend growth rate (+13.2%)
  • Current dividend per share = 1.25
  • Forward yield = 2.83%
  • 3-year earnings growth rate (+0%)

Lastly, I’m looking at AbbVie, Inc. (ABBV), which is a leading pharmaceutical drug company. They’ve been growing their dividend for years.

When deciding on a strong candidate for long-term dividend growth, I like to look for recent leaders:

  • 1 month performance (+.99%)
  • Historical Big Money signals

Below are the Big Money signals that ABBV has made since 2015.

Source: MAPsignals.com

The last signal they made was a sell signal, but I don’t put much stock into that since it’s the only one.

On top of technicals, when deciding on the best dividend stock, you gotta see if the fundamental picture supports a long-term investment. AbbVie has been a steady grower:

  • 3-year dividend growth rate (+22.6%)
  • Current dividend per share = 1.30
  • Forward yield = 4.35%
  • 3-year earnings growth rate (+2.25%)

The Bottom Line

LOW, MSFT, RMD, EXR, & ABBV represent solid dividend choices. Given the strong historical dividend growth and Big Money signals, these stocks could be worth an extra look for a dividend investor.

Disclosure: the author holds long positions in MSFT, RMD, EXR, & ABBV in personal and managed accounts but no position in LOW at the time of filming.

To learn more about the MAPsignals process, click here: www.mapsignals.com

Disclaimer