While some investors were lulled into a false sense of security by the stormy profits in early 2021, …
While the tumultuous gains in early 2021 lulled some investors into a false sense of security, September proved that stocks never move in a straight line for long. The S&P 500 index lost more than 3% in September, and some big-name stocks have fallen even harder recently.[Sign up for stock news with our Invested newsletter.]
If you are looking at your portfolio with some fear due to these declines, consider the following income investments with decent stock price momentum – and generous dividends of at least 3% to hedge your bets against short-term volatility. Here are five of the best dividend stocks for October:
– Apollo Global Management Inc. (Ticker: APO)
– Comerica Inc. (CMA)
– Lumen Technologies Inc. (LUMN)
– Macerich Co. (MAC)
– PetroChina Co. Ltd. (PTR)
Apollo Global Management Inc. (APO)
Dividend yield: 3.2%
Apollo is a private equity firm specializing in buyouts, recapitalization, and leverage investments. In addition to managing its own money for the benefit of those people who are members of its hedge funds, the company also offers its services to institutional foundations and sovereign wealth funds. APO has made some particularly wise bets over the past few years of volatility, including providing a lucrative lifeline to travel portal Expedia Group Inc. (EXPE) during the worst of the downturn over a $ 1.2 billion preferred stock tranche.
These are the kind of deals that individual investors can’t do on their own – but if you own APO stock, you can share in the profits through generous regular dividends of 50 cents per quarter.
Comerica Inc. (CMA)
Dividend yield: 3.3%
Regional bank Comerica is now enjoying a nice rebound in its major private and commercial banks as the worst of the pandemic is in the rearview mirror. Specifically, earnings in this financial year are expected to more than double compared to the previous year and the share is expected to increase by almost 50% in 2021. Additionally, CMA continues to pay high dividends to its shareholders as it continues to improve its financial performance. Note that Comerica paid 23 cents per share quarterly in dividends in early 2017; now it pays almost three times as much at 68 cents per share.[Read: 7 Best Esports Stocks to Buy]
Lumen Technologies Inc. (LUMN)
Dividend yield: 7.7%
LUMN stock is up an impressive 29% so far in 2021, thanks to continued improvement in this telecommunications company’s financial metrics. Lumen, formerly known as CenturyLink, is a midsize voice and data connectivity provider with a market capitalization of only $ 14 billion. But while they don’t match the size of established players like Comcast Corp. (CMCSA) or Verizon Communications Inc. (VZ), this stock has proven it has what it takes to compete and keep its customers. And with an expected profit of $ 1.67 this fiscal year backing an annual dividend of $ 1.00, the payouts aren’t much at risk – and could rise higher in 2022, if at all.
Macerich Co. (MAC)
Dividend yield: 3.3%
Macerich is a Commercial Real Estate Investment Trust, or REIT, which means it was closely linked to the painful pressures on brick and mortar retailers during the worst part of the pandemic. But now that social distancing controls are waning, MAC is back on track with its 51 million square feet of real estate in 47 regional malls across the US. Previously, Macerich was forced to cut its dividend from 75 cents per share to just 10 cents during the worst of COVID-19 uncertainty.
Dividends have since climbed back to 15 cents per share, and stocks have nearly tripled from their 52-week low of $ 6.42. This is still a risky stock to be sure, but with a dividend yield more than double the S&P 500 average and strong momentum, now could be a good time to break into this rebound game.
PetroChina Co. Ltd. (PTR)
Dividend yield: 7.3%
While fossil fuel companies aren’t exactly the best long-term investments in the age of global warming, it’s undeniable that entrenched big oil companies still have something to offer for the years to come.
One example of this is that state oil giant PetroChina is up about 7% in the last month, rising sharply from its 52-week low due to soaring energy demand and higher crude oil prices. There is certainly a reason to watch this stock closely for signs of trouble going forward, but those momentum coupled with a generous dividend makes PTR worth a look in October.
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The 5 best dividend stocks to buy in October originally appeared on usnews.com