Top 5 Stocks To Buy For July 2021

My first dividend growth stock pick for July 2021 is Bristol-Myers Squibb Co. - stock ticker BMY. With a market cap of $149 billion, this is a major pharma business. They've got one of the top drugs in the world - Revlimid. Growth has been pretty solid, too. Revenue has grown at a compound annual growth rate of 8% over the last decade, while EPS has a CAGR of almost 13% over the last 10 years. Bristol-Myers Squibb has increased its dividend for 12 consecutive years, with their most recent dividend increase coming in at almost 9%. And the dividend is protected by a low payout ratio of 26.3%, based on midpoint FY 2021 non-GAAP EPS guidance. Plus, the stock yields a market-beating 2.9%.

My second dividend growth stock pick for July 2021 is Enbridge Inc. - stock ticker ENB. You usually have to pick between a high yield and a high growth rate. Enbridge is the rare business that has typically given its investors both. The stock yields a market-smashing 6.8%. Even without much growth, that yield is awesome. However, Enbridge has increased its dividend for 25 consecutive years, with a 10-year DGR of 11.3%. This is a high yield high dividend growth. You'll rarely find this combination of yield and growth. And the payout ratio of 68.9% indicates no trouble with the dividend.

My third dividend growth stock pick for July 2021 is Huntington Bancshares Incorporated - stock ticker HBAN. This is a pretty small business compared to my other picks. The market cap is only $21 billion. But that just means there's room to grow. And grown it has. They've compounded revenue at an annual rate of 7% over the last decade. Now, EPS has a CAGR of less than 2% over that same time frame. But that's only because of the pandemic and the loan loss reserves nicking FY 2020's results. Profit is springing back big time this year. The regional bank has increased its dividend for 10 consecutive years, with a five-year DGR of 20.1%. That's incredible. And I think there's much more to come - the payout ratio is only 52.6%, giving them plenty of dividend growth firepower. Meanwhile, the stock yields 4.2%. That yield beats out almost every other regional bank stock I know of.

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