These Quality Dividend-Paying Stocks Are Worth a Look in March
As we move into the month of March, dividend stocks remain some of the strongest options to consider in the current market environment. Whether you are concerned about the impacts of inflation or simply want to own stocks that are known to hold up well during volatility, adding dividend-payers to your strategy could continue to be a recipe for success in 2022. With that said, not all dividend stocks are worth your hard-earned capital, and being selective is particularly important given all of the complicated factors that are impacting the economy.
So what exactly makes a dividend stock dependable? It’s a company that investors can rely upon over the years to deliver consistent earnings and stable payouts. After all, a company that is forced to cut its dividend can be a disastrous scenario to deal with. If you’re interested in adding some quality dividend-payers to your portfolio this month, this article is for you.
Here are 3 dependable dividend stocks to buy in March:
Archer-Daniels Midland (NYSE: ADM)
With the way commodity prices have been soaring lately, it makes a lot of sense to explore adding shares of this dividend stock at this time. Archer-Daniels Midland is one of the world’s leading producers of food and beverage ingredients, along with other products made from a variety of agricultural products. That includes products like vegetable oil, corn sweeteners, animal feed, natural flavors, and biofuels, which play an important role in the global food products industry. It’s worth noting that higher crop prices tend to benefit this company’s earnings, and with grain prices hitting record highs and expected to remain elevated for the majority of 2022, investors can expect a strong year from Archer-Daniels Midland.
Long-term shareholders can count on this company given the vital role it plays in the food products industry. After all, people will always need to eat, and as the world’s population continues to grow the demand for agricultural products should increase as well. It’s also worth mentioning that Archer-Daniels has developed very efficient processing, storage, and transportation networks that will be difficult for competitors to replicate, which is another strong reason to consider adding shares. With a 2.05% dividend yield and positive Q4 earnings results, this is certainly one of the strongest dividend stocks to consider adding at this time.
Lowe’s Companies Inc (NYSE: LOW)
This leading home improvement retailer is another great option for dividend investors to consider adding in March, particularly since the stock is now back above the 200-day moving average after a sharp decline from 52-week highs. Lowe’s has been delivering impressive earnings growth over the last few quarters and is benefitting from a strong housing market, which are both trends that should continue in the coming months. It’s a dependable name for portfolios thanks to strong operating leverage, a leading brand name, and the company’s CEO Marvin Ellison, who clearly has the company heading in the right direction following the pandemic.
Lowe’s reported a 34% year-over-year increase in Q4 EPS to $1.78, which beat the consensus estimates by $0.07. The company also raised its FY23 EPS guidance from $12.25-$13.00 to $13.10-$13.60, which should give investors even more confidence in adding shares. The stock currently offers a 1.44% dividend yield and the company’s board authorized a new $13 billion share repurchase program back in December, making it a great pick for long-term investors looking to add a leading home improvement stock to their accounts.
Finally, investors that are interested in adding shares of a dividend stock that has been beaten up in recent months might want to take a look at Starbucks. The world’s leading retailer of high-quality coffee products has been facing heavy selling pressure thanks to inflation and wage concerns, but long-term investors should rest assured that Starbucks still has bright growth prospects ahead. These are only temporary challenges that are likely already priced in at this point given that the stock is down over 20% year-to-date.
With over 34,000 stores across 83 countries, this is one of the most instantly recognizable brands in the world and a company that should continue steadily increasing the scale of its business over the years. In fact, Starbucks plans to add roughly 2000 net new stores in FY22, with the majority of new locations in international markets. There’s also a lot to like about the company’s very successful loyalty program and leading market share in China. Finally, Starbucks reported Q1 comparable store sales up 13% globally, which is impressive considering the continued impacts of the pandemic.