The 3 Best Dividend Stocks To Buy In June 2020

Investors looking for income have had few choices in recent years as interest rates have stayed close to zero.

Now, of course, to fight the COVID-19 pandemic, the Fed has lowered rates to zero, making stocks the only opportunity for yield-seeking investors.

Dividend investing is more popular than ever right now. But not all dividend stocks are worth owning. Today, we're separating the weak from the strong to show you only the best dividend stocks to buy in June.

As crucial as dividends are, the cash payout is not the whole story. Stock buybacks are another way of handing cash back to shareholders. Buybacks reduce the number of shares outstanding, making each remaining share more valuable. Add up the dividend payout, and the percentage of the outstanding shares retired gives us the total shareholder yield for a particular company.

Research has shown that considering the total shareholder yield can result in higher total returns. Since 1981, portfolios of those large-company stocks that have the highest shareholder yield have trounced the S&P 500 index and a portfolio comprised of the highest dividend-paying S&P 500 companies.

Looking at the top shareholder yield stocks today uncovers some exciting ideas right now. Here are the three best dividend stocks today…

Best Dividend Stocks to Buy in June, No. 3: MetLife

MetLife Inc. (NYSE: MET) had a strong first quarter, but they inevitably face some headwinds from the zero-interest-rate environment. At the current price, all of the potential short-term difficulties appear to be priced into the stock right now as the stock is trading for less than five times earnings and below half of the company book value.

MetLife has a strong record of rewarding shareholders. They have raised their payout every year for the past eight years. From 2007 through 2012, they held the payout steady to conserve cash in the wake of the financial crisis. The most recent increase was in April of this year, as the payout was hiked by 4.5%. The shares currently yield about 5.5%.

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Disclosure: None.

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