5 Top Dividend Stocks for August 2021

·3 min read

Investors eyeing steady and reliable income could consider adding top-quality dividend stocks to their portfolios. Thanks to their strong earnings bases and resilient cash flow streams, dividend-paying companies are relatively immune to the economic cycles, and boost investors’ returns through higher dividend payments, even in down years.

Thus, using the TipRanks Dividend Calendar, this article focuses on five stocks with a Strong Buy analyst rating consensus and an ex-dividend date in August 2021. An ex-dividend date is important as it implies that one must own stock by that date to be eligible for the next dividend. Furthermore, this article focuses on companies that have uninterruptedly grown dividends for a very long period.

Chevron Corp. (CVX)

Dividend yield: 5.27%
Ex-dividend date: August 18, 2021
Payout ratio: NA
Payout date: September 10, 2021

Integrated energy company Chevron has consistently increased dividends for 34 years in a row. On April 28, Chevron announced a 4% hike in quarterly dividends to $1.34 per share, translating into an annual dividend of $5.36. Chevron stock has a Strong Buy analyst rating consensus, and the average Chevron price target of $129.75 indicates about 27.4% upside potential to current levels. Furthermore, the stock has positive indicators from financial bloggers and investors (who hold portfolios on TipRanks). However, hedge funds decreased their holdings by 24.6M shares in the last quarter.

Enbridge (ENB)

Dividend yield: 6.59%
Ex-dividend date: August 12, 2021
Payout ratio: 110.93%
Payout date: September 01, 2021

Energy infrastructure giant Enbridge is a popular dividend stock that has consistently paid dividends for more than 66 years. Furthermore, Enbridge’s dividend has grown at a CAGR (compound annual growth rate) of 10% since 1995. In December 2020, Enbridge raised its dividend by 3%. Enbridge stock has a Strong Buy analyst rating consensus, and the average Enbridge price target of $44.70 indicates 13.6% upside potential to current levels. Furthermore, stock has an ‘Outperform’ Smart Score of 10. Notably, hedge funds increased their holdings by 81.9K shares in the last quarter.

Metlife (MET)

Dividend yield: 2.77%
Ex-dividend date: August 09, 2021
Payout ratio: 151.26%
Payout date: September 14, 2021

Metlife is a leading financial services company that has grown its dividends at a CAGR of 10% since 2011. On April 27, Metlife announced a 4.3% increase in its quarterly dividend. Stressing its “Next Horizon" strategy, MetLife’s CEO Michel Khalaf said that the company continues to generate strong free cash flow that enables it to enhance shareholders’ returns. Metlife stock has a Strong Buy analyst rating consensus, and average Metlife price target of $72 indicates about 24.8% upside potential. Furthermore, the stock has positive indicators from financial bloggers and individual investors.

Johnson & Johnson (JNJ)

Dividend yield: 2.41%
Ex-dividend date: August 23, 2021
Payout ratio: 61.43%
Payout date: September 07, 2021

Johnson & Johnson has grown its dividend for 59 straight years. On April 20, the diversified healthcare company announced a 5% hike in its quarterly dividend to $1.06 a share. Johnson & Johnson stock has an ‘Outperform’ Smart Score of 9, with positive indicators from financial bloggers and individual investors. Furthermore, it has a Strong Buy analyst rating consensus, and the average Johnson & Johnson price target indicates 10.8% upside potential to current levels.

Walmart (WMT)

Dividend yield: 1.54%
Ex-dividend date: August 12, 2021
Payout ratio: 50.69%
Payout date: September 07, 2021

World’s largest retailer Walmart has uninterruptedly increased its dividend for 48 years. At the beginning of this year, Walmart raised its annual dividend by 2% to $2.20 a share. Media sentiment and financial bloggers’ opinions are positive on Walmart stock. However, insiders and hedge fund managers have been selling. Nevertheless, consensus among analysts is a Strong Buy, based on 14 buys and 3 Holds. The average Walmart price target of $167.06 implies 17.2% upside potential.

Besides these top five Strong Buy stocks, see which other stocks have an ex-dividend date in August 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.

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