Best Dividend Stocks to Buy Now for May 2022

See, dividend payers are typically big, stable companies with rock-solid balance sheets. They not only can rise in value, but also provide stable cash flows. They’re holding their own right now, helping buoy markets overall. Let me show you what I mean.

Markets and Big Money in the Last Six Months

My research firm, MAPsignals, measures Big Money investor activity. That includes institutions, pension funds, big individual investors, and so on. Our research shows Big Money moves markets.

In fact, we created the Big Money Index (BMI), which is a 25-day moving average of Big Money buy and sell activity. It tends to be a leading indicator of market movement. Here is the BMI over the last six months laid over SPY:

The BMI is trending up lately because there are sections of strength within the market. Today, I want to focus on four of them – energy, staples, real estate, and health care. Unsurprisingly, they also happen to be big dividend-paying sectors.

Energy stocks have been on fire due to the geopolitical situation right now. Investors have often leaned on them in uncertain times because they pay dividends.

Staples too have been seeing inflows. Recession fears are setting in and investors want the certainty of companies selling what people need.

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The real estate sector saw three HUGE buying days recently as people rush to holding tangible assets with strong cash flows.

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Lastly, health care companies pay big, growing dividends, which is music to investors’ ears right now. Historically, it’s been a defensive area for investors, and it’s performing well now.

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Not only do these sectors pay dividends, but the cream-of-the-crop dividend payers in these sectors increase their dividends regularly. That means investors get a raise, which is always welcome. So, those four strong sectors are featured in the top five dividend-paying stocks we like: XOM (energy), MO (staples), EXR (real estate), JNJ (health care), and ABBV (health care).

Exxon Mobil Corporation (XOM) Analysis

Up first is Exxon Mobil, which is an oil and gas producing giant that has consistently paid a big dividend (currently it’s at 4.0%).

Even though great stocks can be volatile, like Exxon Mobil the last few years, these companies are worthy of attention. Check out XOM:

  • 1-month performance (11.8%)
  • Historical Big Money signals

Just to show you what our Big Money signals look like, have a look at the buy signals XOM has made the last year in the chart below. Green bars show it was likely being bought by a Big Money player according to MAPsignals.

When you see a lot of them, as XOM has this year, I call it the stairway to heaven:

Source: www.MAPsignals.com

But, what about fundamentals? As you can see, XOM’s sales are strong, and its debt is manageable:

  • 1-year sales growth rate (+57.4%)
  • Debt/equity ratio (+31.5%)

Altria Group, Inc. (MO) Analysis

Next up is Altria Group, which is a tobacco company that has paid dividends for decades. Its current dividend yield is 6.5%.

Check out these technicals for MO:

  • 1-month performance (+7.1%)
  • Recent Big Money signals

Let’s look long-term. These are the top buy signals for Altria Group since 1990. The Big Money has bought time and again:

Source: www.MAPsignals.com

Let’s dive deeper. As you can see, Altria Group has been a stabile giant:

  • 1-year sales growth rate (+1.3%)
  • 3-year sales growth rate (+2.5%)
  • Profit margin (+11.7%)
  • Forward price-to-earnings ratio of 11.4x earnings

Extra Space Storage Inc. (EXR) Analysis

Another dividend-paying name we like is Extra Space Storage, which owns and operates self-storage facilities throughout the U.S. and Puerto Rico. It pays a nearly 2.3% dividend right now.

Strong dividend payers usually have Big Money buying the shares, and EXR has that. It’s also jumped in price recently:

  • 1-month performance (+13.1%)
  • Historical Big Money signals

Below are the top Big Money signals EXR has made since 2010. That’s the JUICE!

Source: www.MAPsignals.com

Now let’s look under the hood. Extra Space Storage’s sales growth and profits are impressive. I expect more in the coming years:

  • 1-year sales growth rate (+12.0%)
  • Profit margin (+50.5%)

Johnson & Johnson (JNJ) Analysis

Number four on the list is Johnson & Johnson, which is a health care behemoth and one of the biggest companies in the world. It just posted great earnings and raised its dividend by 6% (it currently yields almost 2.5%).

Here are the technicals important to me:

  • Year-to-date performance (+7.0%)
  • Historical Big Money signals

Below are the top Big Money signals for JNJ since 2006:

Source: www.MAPsignals.com

Let’s examine a bit more. Johnson & Johnson has been growing nicely and it should continue:

  • 1-year sales growth rate (+13.5%)
  • 2-year vs. 1-year EPS growth estimate (+5.5%)

AbbVie, Inc. (ABBV) Analysis

Our last dividend payer is AbbVie, which is a pharmaceutical company with many different focus areas. It makes a lot of money, which means it can pay big dividends (currently it yields more than 3.6%).

Check out these technicals:

  • Year-to-date performance (+15.0%)
  • Historical Big Money signals

ABBV is a high-quality stock with a high-quality dividend. That’s why it’s made the Top 20 report 14 times since 2012:

Source: www.MAPsignals.com

Now look under the hood. The company has had solid sales and earnings growth:

  • 3-year sales growth rate (+20.6%)
  • 3-year EPS growth rate (+44.3%)

Bottom Line and Explanatory Video

 

XOM, MO, EXR, JNJ, & ABBV represent top dividend-paying stocks to buy now for May 2022. Strong fundamentals, big and growing dividends, and historical Big Money buy signals make these stocks worthy of extra attention.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds long positions in MO, EXR, & ABBV in personal and managed accounts, and no positions in XOM or JNJ.

Contact:

https://mapsignals.com/contact/

 

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:

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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:

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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

Best Dividend Stocks July 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 DPZ, LRCX, MSFT, SBUX, & EXR.

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 Domino’s, Inc. (DPZ), which is a large pizza chain. 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 (+8.82%)
  • Historical Big Money buy signals

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

Chart, histogramDescription automatically generated
Source: MAPsignals, End of day data sourced from Tiingo.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, DPZ has a strong dividend history:

  • 3-year dividend growth rate (+19.2%)
  • Current dividend per share = .94
  • Forward yield = .82%
  • 3-year earnings growth rate (+28.28%)

Next up is Lam Research Corp. (LRCX), which is a leading semiconductor company. 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 (-.24%)
  • Historical big money signals

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

Chart, histogramDescription automatically generated
Source: MAPsignals, End of day data sourced from Tiingo.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, Lam Research has a nice dividend history. Their earnings growth has been stellar as well:

  • 3-year dividend growth rate (+40.7%)
  • Current dividend per share = 1.30
  • Forward yield = .82%
  • 3-year earnings growth rate (+15.48%)

Next, I’m looking at Microsoft Corp. (MSFT), which is a leading software company. They have a solid dividend history.

When deciding on a strong candidate for long-term dividend growth, recent performance in the shares is important:

  • 1 month performance (+7.63%)
  • Recent Big Money signals

Below are the big money signals that Microsoft has made since 2015. It’s clear the stock has been in a nice uptrend:

Chart, histogramDescription automatically generated
Source: MAPsignals, End of day data sourced from Tiingo.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, MSFT has a strong dividend history:

  • 3-year dividend growth rate (+9.2%)
  • Current dividend per share = .56
  • Forward yield = .84%
  • 3-year earnings growth rate (+43.33%)

Next, I’m looking at Starbucks Corp. (SBUX), which is a global coffee chain. They operate over 32,000 restaurants globally.

When deciding on a strong candidate for long-term dividend growth, recent muted performance is not a bad thing:

  • 1 month performance (-1.44%)
  • Historical Big Money signals

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

Chart, histogramDescription automatically generated
Source: MAPsignals, End of day data sourced from Tiingo.com

On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, Starbucks has a strong dividend history.

  • 3-year dividend growth rate (+17.9%)
  • Current dividend per share = .45
  • Forward yield = 1.61%
  • 3-year earnings growth rate (-6.23%)

Lastly, I’m looking at Extra Space Storage, Inc. (EXR), which is a leading storage company. They’ve been a leader in the Real Estate sector for years.

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

  • 1 month performance (+11.22%)
  • Historical Big Money signals

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

Chart, histogramDescription automatically generated
Source: MAPsignals, End of day data sourced from Tiingo.com

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

  • 3-year dividend growth rate (+4.9%)
  • Current dividend per share = 1.00
  • Forward yield = 2.40%
  • 3-year earnings growth rate (-.11%)

The Bottom Line

DPZ, LRCX, MSFT, SBUX, & EXR 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 personal accounts in LRCX, MSFT, SBUX, & EXR and long positions in managed accounts in DPZ, LRCX, SBUX, & EXR.

To learn more about the MAPsignals process, click here.

Disclaimer