Dividends are payouts from companies that share their profits with their investors. They offer a regular source of income that can increase over time. This makes them particularly attractive for long-term investments. Even a small dividend yield can result in impressive returns after many years. Dividends can offer protection against market volatility, another reason that investors include these stocks in their portfolios.
Top Strong Buy Dividend Stocks
Using the TipRanks Dividend Calendar, we searched for top stocks with an ex-dividend date in October 2021. Investors need to own the stock by the ex-dividend date to receive the next payout. We focused on top dividend stocks with a Strong Buy analyst rating consensus and at least 3.6% yield. We found five top stocks that match these criteria. Four out of the five stocks have an “outperform” Smart Score of eight or nine according to our data-driven stock score.
New Residential Investment Corp (NRZ)
Dividend yield: 7.58%
Ex-dividend date: October 1
Payout ratio: 60.05%
Payout date: October 29
New Residential provides capital and services to the mortgage and financial services industry. It pays a quarterly dividend and has the highest yield on this month’s list. In the past three months, all analysts who rated the stock designated it a Buy rating. Its average price target of $12.70 represents 15.25% upside potential. In the last reported quarter, two leading hedge funds opened positions for NRZ. The stock has an ‘outperform’ Smart Score of 8 out of 10.
ING Groep (ING)
Dividend yield: 4.12%
Ex-dividend date: October 4
Payout ratio: 10.09%
Payout date: October 19
ING is a multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are banking and insurance. All three analysts who recently rated the stock did so with a Buy rating. The stock has an average price target of $15.22, showing 3.45% upside potential. With regards to hedge fund activity, in the last reported quarter Fisher Asset Management added shares, while Causeway Capital reduced theirs. It has a Smart Score of 9, reflecting Bullish blogger opinion and news sentiment.
Four Corners Property Trust (FCPT)
Dividend yield: 4.63%
Ex-dividend date: October 6
Payout ratio: 116.51%
Payout date: October 15
Four Corners is a REIT that owns restaurants and retail properties. All three analysts who cover the stock rate it as a Buy. Its $31 average price target indicates a 12.48% upside. On August 17th, Chief Executive William Lenehan invested $125K of his own money in the stock with an Informative Buy transaction (indicating sentiment). Overall, TipRanks investors are Bearish on FCPT; however, there has been a 2.2% increase in the number of top-performing portfolios holding the stock in the past 30 days. The stock has a neutral Smart Score of 7 out of 10.
Dividend yield: 4.85%
Ex-dividend date: October 14
Payout ratio: -136.75%
Payout date: November 15
Biopharmaceutical company AbbVie seeks drug treatment and discovery for difficult-to-cure diseases. It has a quarterly dividend payout. The stock has received 10 Buy and two Hold ratings in the past three months. Its average price target of $128.00 indicates 17.60% upside potential. Hedge fund activity was mixed in the last reported quarter. Overall, hedge funds decreased their holdings by 3.1M shares. Seven funds opened or increased their ABBV holdings, while eight, including Warren Buffet’s Berkshire Hathaway, reduced their share count. With positive sentiment from financial bloggers, news, and TipRanks investors, the stock has an ‘outperform’ Smart Score of 8.
Royal Bank Of Canada (RY)
Dividend yield: 3.62%
Ex-dividend date: October 25
Payout ratio: 32.03%
Payout date: November 24
The Royal Bank of Canada is Canada’s largest bank in terms of market capitalization. It provides banking and financial services across Canada, the U.S., and other countries. In the past three months, the stock received seven Buy and two Hold analyst ratings. RY’s average price target is $113.47, an upside of 14.34%. The Bank’s CEO, Rod Bolger, has made several informative Sell trades over the past few months (as well as a number of uninformative ones). See all insider activity for the stock here. The stock has a Smart Score of 9.
Dividend Yield & Dividend Payout
Companies determine dividend amounts per share. This can make it difficult for investors to compare the best dividend stocks. Imagine you invest $1,000 in 2 companies. One has shares that trade for $10, the other has shares that trade for $500. Both offer investors $2 per share in dividend payments. The solution to this is dividend yield. It shows dividend payment relative to share price as a percentage.
See Also: Dividend Yield Calculator
It is worth knowing the payout ratio of a dividend stock. This is the proportion of earnings a company pays out as dividends. If the ratio is over 100% this may mean that there is a possibility that a company will reduce its dividends.
See which other stocks have an ex-dividend date in October 2021.
Disclaimer: The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.