10 Best Dividend Stocks To Buy June 2023
In this blog, we discuss 10 best June dividend stocks to buy now. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best June Dividend Stocks To Buy.
Apart from their significant contribution to the market’s overall returns, dividend stocks can also potentially be beneficial in an inflationary environment. In 2022, consistent interest rates hike jolted the market, which made investors seek solace in the dividend stocks with growth potential. The S&P 500 declined by over 18% last year, compared with a 6.21% drop in the S&P 500 Dividend Aristocrats, an index that tracks the performance of the S&P 500 companies with at least 25 years of consistent dividend growth.
The popularity of dividend stocks has varied over time based on market conditions and investor preferences. Investments in growth stocks surged in the early 2000s because investors were drawn to companies with high growth potential, even if they didn’t offer any dividends. However, with the onset of the Global Financial Crisis of 2008, dividend stocks witnessed a renewed interest. CNBC reported that the S&P 500 companies paid $207 billion to investors in dividends in 2010, showing a 5.6% growth from 2009. The amount has grown tremendously over the years, reaching its record high of $561 billion in 2022, as reported by S&P Dow Jones Indices.
The continuous growth in dividend payments throughout these years shows that investments in dividend-growth stocks can be a reliable option during different market conditions. These stocks can be a hedge against inflation and can also offer long-term capital appreciation potential. Various studies have highlighted that dividend growth has outpaced inflation historically. In 25 Things Every Dividend Investor Should Know, we cited BlackRock’s data, which revealed that dividends paid by US companies from 1971 to 2021 grew by 3.7% per year on average, compared with a 2% growth in inflation per year.
Analysts also advise investing in companies with strong dividend growth track records. Kristen Bitterly, head of North America for Citi Global Wealth, spoke with Bloomberg about the importance of dividend growers. She said that her firm prefers well-established companies that are less sensitive to changes in economic conditions. She further mentioned that dividend aristocrats have outperformed the market in 25 of the last 32 years. McDonald’s Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) are some of the best dividend stocks that have consistently rewarded shareholders with growing dividends.
Also read: 15 Best Large-Cap Dividend Growth Stocks To Buy Now
In addition to investing in dividend growers to generate regular income, investors also follow a dividend capture strategy. The method involves buying dividend stocks just before their ex-dividend dates and selling shortly after. Through this, investors can capture dividend payments without necessarily holding the stock for the long term. To learn more about this, readers can have a look at Dividend Capture Strategy Stocks To Buy.
Best June Dividend Stocks To Buy
Photo by Karolina Grabowska from Pexels
For this list, we selected prominent dividend stocks that will trade ex-dividend in June 2023. Ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. The list is ranked chronologically, with earlier dates appearing first and later dates following in order.
10. The Allstate Corporation (NYSE:ALL)
Ex-Dividend Date: June 1
Dividend Yield as of May 27: 3.25%
The Allstate Corporation (NYSE:ALL) is an Illinois-based insurance company that specializes in supplemental insurance coverage. In the first quarter of 2023, the company reported revenues of $13.8 billion, which beat analysts’ estimates by $110 million. Its net investment income for the quarter came in at $575 million. The stock will be trading ex-dividend on June 1.
On May 22, The Allstate Corporation (NYSE:ALL) declared a quarterly dividend of $0.89 per share, which was in line with its previous dividend. In 2023, the company stretched its dividend growth streak to 15 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 3.25%, as of May 27.
In addition to ALL, McDonald’s Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) are some other best dividend stocks to consider.
The Allstate Corporation (NYSE:ALL) attracted positive ratings from Street analysts after posting strong quarterly earnings. In May, BofA lifted its price target on the stock to $149 and kept a Buy rating on the shares.
The Allstate Corporation (NYSE:ALL) was a popular buy among hedge funds at the end of Q1 2023, as 49 hedge funds in Insider Monkey’s database owned stakes in the company, up from 37 a quarter earlier. These stakes have a collective value of over $692 million.
Diamond Hill Capital made the following comment about The Allstate Corporation (NYSE:ALL) in its Q1 2023 investor letter.
“Elsewhere in financials, the stocks of two of our insurance holdings – AIG and The Allstate Corporation (NYSE:ALL) – came under pressure we believe due to the negative sentiment in the sector generally. These businesses are very different from banks, and we continue to have strong conviction in their ability to grow intrinsic value over the long term. In fact, Allstate is a new position that we added to the portfolio in Q1. It is one of the largest providers of auto and homeowners’ insurance in the United States. Allstate has a strong brand and significant scale advantages over smaller peers. Recent results have been pressured by rising claims costs across the industry; however, we believe that price changes instituted by the company will drive improvement to more normalized levels over the next couple of years.”
9. McDonald’s Corporation (NYSE:MCD)
Ex-Dividend Date: June 2
Dividend Yield as of May 27: 2.13%
McDonald’s Corporation (NYSE:MCD) is a multinational fast food chain that deals in a wide range of other menu items. Loop Capital reiterated its Buy rating on the stock in May with a $346 price target, noting the company’s same-store sales growth over the past quarters. MCD is among the best dividend stocks on our list.
In the first quarter of 2023, McDonald’s Corporation (NYSE:MCD) reported a 12.6% year-over-year growth in its global comparable sales. The company’s revenue for the quarter amounted to roughly $6 billion, which showed a 4.10% growth from the same period last year. Its ex-dividend date is June 2.
McDonald’s Corporation (NYSE:MCD) pays a quarterly dividend of $1.52 per share for a dividend yield of 2.13%, as recorded on May 27. The company has been growing its dividends for 46 years running.
At the end of Q1 2023, 64 hedge funds tracked by Insider Monkey reported having stakes in McDonald’s Corporation (NYSE:MCD), up from 57 in the previous quarter. These stakes have a consolidated value of over $4 billion.
8. Brown-Forman Corporation (NYSE:BF-B)
Ex-Dividend Date: June 7
Dividend Yield as of May 27: 1.33%
Brown-Forman Corporation (NYSE:BF-B) is next on our list of the best dividend stocks for June. The American distilleries company announced a $0.2055 per share in quarterly dividends on May 25. It has been making regular dividend payments to shareholders for the past 79 years while maintaining a 39-year streak of dividend growth. The stock has a dividend yield of 1.33%, as of May 27.
In fiscal Q3 2023, Brown-Forman Corporation (NYSE:BF-B) generated $1.08 billion in revenues, which saw a 3.8% growth from the prior-year period. The company’s operating cash flow for the quarter stood at $410 million. BF-B will be going ex-dividend on June 7.
As of the close of Q1 2023, 29 hedge funds in Insider Monkey’s database reported having stakes in Brown-Forman Corporation (NYSE:BF-B), worth over $1.5 billion collectively. With over 12.2 million shares, Fundsmith LLP was the company’s leading stakeholder in Q1.
7. Altria Group, Inc. (NYSE:MO)
Ex-Dividend Date: June 14
Dividend Yield as of May 27: 8.43%
Altria Group, Inc. (NYSE:MO) is a Virginia-based company that specializes in the production of cigarettes, tobacco, and other related products. The company is among the best dividend stocks on our list because of it has remained committed to its shareholder obligation over the years. In the first quarter of 2023, the company returned $1.7 billion to shareholders in dividends.
Altria Group, Inc. (NYSE:MO) is a Dividend King with 53 years of consistent dividend growth. The company currently pays a quarterly dividend of $0.94 per share and has an above-average high dividend yield of 8.43%, as of May 27.
Stifel initiated its coverage on Altria Group, Inc. (NYSE:MO) with a Buy rating and a $52 price target. The firm acknowledged the company’s earnings growth and investments in smoke-free developments.
At the end of March 2023, 49 hedge funds tracked by Insider Monkey owned positions in Altria Group, Inc. (NYSE:MO), up from 45 in the previous quarter. These stakes have a total value of over $1.13 billion.
Here is what Broyhill Asset Management said about Altria Group, Inc. (NYSE:MO) in its Q4 2022 investor letter.
“We rebalanced our tobacco exposure during the year, reducing our investment in Altria Group, Inc. (NYSE:MO) as the future of the company’s combustible cigarette business became increasingly questionable given pending US legislation and a lackluster portfolio of reduced risk products. We reinvested the proceeds in Philip Morris so that relative position sizing is more consistent with our increased conviction.”
6. Best Buy Co., Inc. (NYSE:BBY)
Ex-Dividend Date: June 14
Dividend Yield as of May 27: 4.95%
Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based consumer electronics company. Truist kept its Buy rating on the stock in May with a $77 price target, following the company’s recent quarterly earnings. DA Davidson also maintained its Buy rating on BBY this month.
On May 26, Best Buy Co., Inc. (NYSE:BBY) declared a quarterly dividend of $0.92 per share, which was consistent with its previous dividend. In March 2023, the company lifted its dividend for the tenth consecutive year. With a high dividend yield of 4.95%, BBY is one of the best dividend stocks on our list and it will be going ex-dividend on June 14.
Other best dividend stocks that are grabbing investors’ attention include McDonald’s Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX).
According to Insider Monkey’s Q1 2023 database, 40 hedge funds owned investments in Best Buy Co., Inc. (NYSE:BBY), up from 33 in the previous quarter. These stakes are collectively worth over $491.4 million. AQR Capital Management was the company’s largest stakeholder in Q1.
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Disclosure. None. 10 Best June Dividend Stocks To Buy is originally published on Insider Monkey.
Consumer Reports: What To Buy In June
PHOENIX (3TV / CBS 5) — June is here! Whether you’re looking for a gift for dad, a recent grad or just something nice for yourself, Consumer Reports has found money-saving deals on top tested products, helping you kickstart your summer just right.
Consumer Reports tracks the prices of many of the products it tests all year long, so it knows exactly when they go on deep discount. Here are some to look out for in this month’s Best Time to Buy. Even though it’s the beginning of June, you still might see Memorial Day sales on things like dishwashers, blenders, and mattresses. And with Father’s Day coming up on June 18, start looking for discounts on things like tech items and power tools.
If your dad is a DIY-er, get him something he can use for jobs big and small. This drill from Dewalt is as low as $105.70 at Amazon. CR says the cordless model is very powerful, capable of driving even the largest screws. And for new dads who still want to work out, what about a jogging stroller? The Thule Urban Glide 2 is as low as $549.95 at Nordstrom and Pottery Barn Kids. CR says easy to maneuver and features a handbrake for better control when jogging.
If you need a gift for a recent graduate who likes to geek out on tech, why not get them a new smartwatch? The Apple Watch SE is as low as $149 at Walmart. CR says the first-generation Apple Watch did great in its tests, and if you’re okay with foregoing the latest and greatest features on newer models, you can enjoy these big savings.
And finally, an item that will satisfy all inside the kitchen: the Vitamix One. It’s as low as $149.95 at Wayfair. CR says the blender aced its tests in making smoothies and frozen desserts. Something cool to jump into summer.
Looking for something else on sale this month? CR says insect repellants, pressure washers, smart speakers, string trimmers, and sunscreens typically go on deep discount in June.
Copyright 2023 KTVK/KPHO via Consumer Reports. All rights reserved.
10 Things To Buy For Summer Before They Sell Out
Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission.
Given the current coronavirus (COVID-19) pandemic, your biggest shopping concern is likely where to buy toilet paper or how you can get your hands on some trendy clothing that’s both comfortable and appropriate for your morning conference call. The last thing you’re thinking about is what you need for summer.
But warmer months are coming—and with them, the need for things like fans, ice-cream makers, and barbeques. And while these things might not be on the top of your mind, if you don’t get them now, there’s a chance they could sell out by the time June rolls around. To help you prepare for summer, we’ve rounded up 10 of the top products you should add to your basket while you still can.
1. Our experts favourite barbeque
Imagine waiting until June to buy a new barbeque—only to find that they’re all sold out and you’re stuck eating boiled hot dogs. No thank you. But which grill should you get? Here at Reviewed, we’ve found the Weber Spirit II E-310 to be the best gas barbeque. Not only did it outperform other products on every test (from producing perfect sear marks to cooking chicken evenly), but it’s also built to last so you can use it for many summers to come.
2. This powerful fan
When it’s scorching outside you need (and we do mean need) a fan. Our experts tested some of the most popular ones out there and dubbed the Vornado the best. Despite its smaller size, it had better airflow and speed than the other fans, even at a distance, so it’ll keep your home cool.
3. Some lightweight loungewear
Credit: Everlane / @everythingerz
Few things have been as popular so far in 2020 as loungewear. And we expect that trend will continue into the warmer months. But when the temps get higher, a tracksuit isn’t going to cut it. Instead, shop for breezy shorts like these from Everlane.
4. Garden games to stay entertained
If you’re still trying—or being required—to stay at home this summer, you might as well make the most of it. For those of us lucky enough to be quarantined with family or flatmates in a house that has a yard, that means garden games galore.
5. A few bottles of suntan lotion
Credit: Supergoop! / Neutrogena
Sun is great. Sunburn, however, not so much. Protect yourself and your family by replenishing your suntan lotion supplies now (i.E. Before you all look more like a family of lobsters than humans). Some of the most popular sunscreens based on reviews and ratings are the trendy Supergoop! Lotion, NIVEA SUN Suncream Mist, and the incredibly convenient Neutrogena Beach Defense stick.
6. This quality charcoal for your barbeque
Credit: Reviewed / Betsey Goldwasser
You’re all excited for your first barbeque of the season—until you go to light up your charcoal barbeque and realize, well, you have no charcoal. To avoid that sad situation, stock up on the summertime staple now before everyone and their mother flocks to the shops to do the same.
7. An at-home ice cream maker
Mark my words: Once June rolls around, ice cream making is going to become the new bread baking. And for that, well, you’ll need an ice cream maker. The Cuisinart ICE30BCU is popular with reviewers because it’s affordable and quick and easy to use (you can have perfectly blended ice cream or frozen yoghurt in just 25 minutes!).
8. A slip and slide for the backyard
Credit: Team Magnus
Garden games are great (see above) but you’ll want to way to cool off after a rousing round of croquet. Enter everyone’s favourite backyard activity: the slip ‘n slide. If you have space in your garden and you think your children—and you—will want one in the months ahead, you might want to buy one now while they’re still in stock since many parents will likely have the same idea once the temperatures rise.
9. Patio furniture for your outdoor space
Credit: Wayfair / Pottery Barn
You’ve spent all of quarantine decking out the inside of your home—now it’s time to move onto the outside. And since it’s likely everyone will have the same idea (after all, what else is there to do?!), shopping for patio furniture ASAP is a smart idea. Plus, since it isn’t quite summer yet, you can still get great deals on things like outdoor dining sets, chaises, swings, and more.
10. A cool box
Now that unlimited exercise, sunbathing, and picnics are allowed, chances are you can spend some of your summer in public outdoor places (provided you follow social distancing, of course!). So a cool box or cooler is going to come in handy. With a 4 and a half star rating and nearly 1,500 reviews on Amazon, the Coleman Cool Box Xtreme is a safe bet.
The product experts at Reviewed have all your shopping needs covered. Follow Reviewed on Facebook, Twitter, and Instagram for the latest deals, product reviews, and more.
Prices were accurate at the time this article was published but may change over time.