3 Dividend Stocks to Buy This Week
Dividend stocks offer investors steady payments and the opportunity to reinvest those dividends to buy additional shares. But many investors are also attracted to dividend-paying stocks because they’re typically associated with larger, mature companies that are financially stable. If you’re looking to diversify your portfolio, here are three dividend-paying stocks to buy this week:
1. T. Rowe Price Group (TROW)
Stocks in the financial services sector have been hit hard over the last year, and TROW was no exception. But that has left the stock with a dividend yield of 2.88%.
The high yield is the main selling point of this stock, but the company has also raised distribution at a significant pace. On occasion, the company also distributes “special” dividends, like the $2.00 per share it paid out in April 2015 on top of its $0.52/share quarterly dividend.
- Rowe Price Group used 44.6% of its profits to cover the dividend payout, which totaled $135.9 million.
The asset manager, which is debt-free, has made 30 annual dividend increases.
2. AbbVie (ABBV)
AbbVie may not be a recognizable name to most investors, but this pharma company offers an attractive dividend payout and is poised to continue its fast-paced growth in the years to come.
A spinoff of its parent company, Abbott Laboratories, AbbVie hit the market in 2013. Its biggest driver of growth has been its blockbuster immunosuppressant and chemotherapy drug, Humira.
Sales of Humira reached $14 billion in 2015, giving it the title of the top-selling drug in the world. Humira continues to grow at an impressive rate, over 19% year over year.
While there are some concerns to consider – one of the drug’s key patents will expire at the end of the year, and 60% of the company’s revenue is derived from the drug – AbbVie does have other promising drugs, including a new cancer drug and a hepatitis C cure. Management also believes that Humira is protected from competitors because of its other patents.
Right now, the stock is trading at just 11 times its earnings estimates for next year, and it offers a dividend yield of 3.82%.
3. HCP (HCP)
HCP is a little riskier than the other stocks on this list, but it offers a 6.74% yield. The only REIT to be listed on the S&P Dividend Aristocrats Index, HCP rents out healthcare properties, like medical office and senior living buildings.
While the real estate market can be unstable, healthcare REITs are a bit safer because healthcare is something everyone needs regardless of the state of the economy.
HCP currently holds 1,200 properties and recently increased its dividend, the 31st consecutive raise.
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