It pays to be patient when investing for income is an adage most experienced yield-investors are aware of. Companies that raise their payouts like clockwork decade after decade can produce superior returns for those who seek out dividend stocks.
Sticking with an unimpressive 1% yield on an initial investment in a company that continues to increase its payout may net an investor a double-digit gain over time. The magic of compounding is another tool that shrewd investors must be aware of before deciding to pull the plug on an investment.
After all, keep Ben Franklin’s famous adage in mind: “Money makes money. And the money that money makes, makes money.”
As a result, we have identified three of the top dividend stocks available in the market for April that you should consider purchasing in order to maximize your return on investment.
Walmart (NYSE: WMT)
The company has a massive retail business with 10,500 stores in 24 countries. Low price king as it is referred to attracts over 220 million customers weekly. With price crunches around the world and increasing commodities, low price high choice retailers are poised to do well in such an environment.
Q3 ended with revenues growing at 4.3% or $140.4 billion with the company capitalizing on the e-commerce boom. Charts also show favorable positioning with the stock just edging below the 200 Simple Moving Average (SMA) on the daily chart.
Patience could be rewarded with favorable entry positions which could open up soon.
Wall Street analyst’s prediction on WMT
Notably, 24 Wall Street analysts have provided 12-month price estimates for WMT over the past three months. In general, a median price goal of $163.48 is expected, with a high prediction of $185 and a low projection of $136.00 forecasted.
The average price objective indicates a 15.7% upside over the stock’s most recent trading price of $141.95. The dividend the stock provides is 1.5%, though not the largest dividend, an investor can be sure that Walmart will be able to pay it for the foreseeable future.
Rio Tinto (NYSE: RIO)
Rio Tinto has been actively traded recently with a short-term spike of 2.9%. Talks to end the West African iron-ore deposit of Simandou certainly brought on the trading frenzy. Rio is one of the highest dividend-paying stocks currently with a whopping 7.6% dividend.
The charts are showing that Rio Tinto recently bounced off a low resistance point and is currently trading above 20-50-200 SMA’s something stock trading investors look for when trying to identify an uptrend.
Based on the action the stock seems to be holding its own and predicting a stronger push upwards.
In addition to the charts, the analysts have a firm Hold on the stock with all prices pointing to the $92.00 level.
Analysts’ give 12 month forecast for RIO
This represents a potential 18.13% upside compared to the current $77.18 levels. In addition, this revised estimation comes on the heels of the stock’s performance in the past three months. Commodities price boom may bring more favorable headwinds for Rio Tinto.
Dover (NYSE: DOV)
Dividend growth has been a priority for Dover which has returned money to investors for consecutive 66 years. The dividend currently stands at 1.27% which for a patient investor is a boon in these troubling times.
The charts show that Dover recently broke above its 20-day SMA on the daily chart with a bounce of the recent lows. Charts seem to be pointing to a solid entry point for investors looking to pounce on this dividend king.
Wall Street analysts seem to be in agreement regarding Dover giving the stock a ‘Moderate Buy’ rating.
The view on Wall Street for DOV
Specifically, the expected highest price is $221.00 which represents a 23.72% jump from the current trading price of $157.83. The average target price from the analysts is $195.27 while the lowest expected is at $171.00.
Slow and steady wins the race
Long-term investors are no strangers to patience and thorough research when deciding where to put their hard-earned money to work. Ostensibly these three stocks seem to have more room to run and provide all-around a solid yield.
Interested in renewables? Check out our top three solar stocks picks for April 2022.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.