Late Monday, Bristol-Myers Squibb (BMY) announced it is boosting its quarterly dividend in 2010 to 32 cents per share, for a total of $1.28 per share annually. The next quarterly dividend is payable to shareholders of record as of Jan. 4, so don’t delay your purchase of this top dividend stock if you want to share in the payout.
After dividends were slashed in 2008 and early 2009, we’re starting to see a move back to regular payouts as corporations return to profitability. Though I never advocate buying a bad stock just for the quarterly payday, investing in fundamentally superior companies that are offering dividends, as well as the potential for big moves in share price, can be quite profitable.
BMY has good growth potential and is one such pick. Here are three other top dividend stocks to buy now.
Top Dividend Stock #1 – Visa (V)
Credit card giant Visa (V) has been moving up steadily in 2009, more than doubling its low. The company has strong numbers and reported third-quarter results in late October that were very impressive. Revenue was up 10% from last year, and earnings came in two pennies above estimates. Visa is now four-for-four, posting earnings surprises in each of the last four quarters by an average 7 cents. Analysts have been scrambling to raise their forecasts higher in response to these results. The icing on the cake? Visa pays a 50-cent dividend. Because we can see that the company is growing and it pays a nice dividend, I rate this stock a buy.
Top Dividend Stock #2 – Colgate-Palmolive (CL)
Colgate-Palmolive (
CL) is a household name in household products. Toothpaste and soap are necessities, not luxuries, and Americans have continued to purchase CL products frequently even during the worst of the economic downturn. On Oct. 29, the company reported that its third-quarter profit rose 18% to $590 million, or $1.12 per share, beating estimates by a penny. Revenue also climbed during the quarter to $4 billion, which was also higher than the consensus. Colgate also pays a $1.76 annual dividend. The company has paid uninterrupted dividends on its common stock since 1895 and increased payments to common shareholders every year for almost half a century. I rate this stock a good buy because shares are doing well and because its dividend is all but a sure thing.
Top Dividend Stock #3 – Best Buy (BBY)
Consumer spending and the economy are recovering, and so is the bottom line of electronics retailer Best Buy (BBY). In its latest quarter, BBY reported an increase in customer traffic to its stores. What’s more, this holiday shopping season should boost the retailer’s sales and earnings in the coming quarter, and Wall Street analysts have been raising their forecasts higher as a result. Positive analyst revisions typically precede earnings surprises, which is why I like the performance prospects of this stock. BBY also pays a 56-cent annual dividend to its common stock shareholders. I rate this stock a buy.
