10 Best September Dividend Stocks To Buy
In this article, we discuss 10 best September dividend stocks to buy. You can skip our detailed analysis of dividend stocks and dividend capture strategy, and go directly to read 5 Best September Dividend Stocks To Buy.
Dividend investing is a popular way to increase your earnings and generate income through investments. While it might appear straightforward to invest in stocks that pay dividends, this strategy actually involves various other aspects to consider. One approach within dividend investing is the dividend capture strategy. It involves buying a stock just before its ex-dividend date and then selling it shortly after, once the dividend has been paid. The goal is to capture the dividend payout without necessarily holding onto the stock for the long term.
Investors who prefer a more active approach might find the dividend capture strategy suitable, as it involves relatively short holding periods. This can be appealing to those who don't want to commit to long-term investments. However, dividend investing offers benefits in the long run as they have the potential for capital appreciation over time. Dividends have contributed significantly to the market’s overall returns. A study by Hartford Funds revealed that from 1930 to 2019, dividends on average made up about 42% of the total returns each year. This is a yearly average of 1.8%.
Another report by Wisdom Tree also highlighted the performance of dividend stocks in the past. According to the report, dividends played a substantial role in the S&P 500's annual total returns of 10.4%, contributing almost 30%. The report also mentioned that the 2000s were the only decade when the S&P 500 had negative overall returns. During this time, dividend returns of around 2% acted as a buffer, helping to counterbalance the negative price returns caused by the collapse of the dot-com bubble and the Global Financial Crisis.
When investing in dividend stocks, companies that regularly grow their dividends remain on investors’ radars. Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are some of the best dividend stocks in this regard as these companies have a history of steadily raising their dividend payments for many years.
Our Methodology:
This list presents the dividend capture strategy for choosing prominent dividend stocks scheduled to go ex-dividend in September 2023. The ex-dividend date marks the final day to buy a stock and qualify for its upcoming dividend. The list is ranked chronologically, with earlier dates appearing first and later dates following in order.
10. Old Republic International Corporation (NYSE:ORI)
Ex-Dividend Date: September 1
Old Republic International Corporation (NYSE:ORI) is a Chicago-based multi-line insurance company that provides a range of insurance and related services. The company operates in several segments, including General Insurance, Title Insurance, and the Republic Financial Indemnity Group (RFIG).
On August 25, Old Republic International Corporation (NYSE:ORI) declared a quarterly dividend of $0.245 per share, which was in line with its previous dividend. The company has been raising its dividends consistently for the past 43 years, which makes it one of the best dividend stocks on our list. The stock will be going ex-dividend on September 1. As of August 29, the stock has a dividend yield of 3.58%.
In addition to ORI, Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are some other dividend stocks with long dividend growth streaks.
At the end of Q2 2023, 21 hedge funds tracked by Insider Monkey reported having stakes in Old Republic International Corporation (NYSE:ORI), worth collectively roughly $136 million. With over 1.7 million shares, AQR Capital Management was the company's leading stakeholder in Q2.
9. Analog Devices, Inc. (NASDAQ:ADI)
Ex-Dividend Date: September 4
Analog Devices, Inc. (NASDAQ:ADI) is a global semiconductor company that specializes in the manufacturing of a wide range of integrated circuits (ICs) and related technologies. The company is a prominent player in the electronics industry, providing several products and solutions that enable various applications across different sectors.
In its recently announced third-quarter earnings, Analog Devices, Inc. (NASDAQ:ADI) posted revenue of $3.08 billion, which fell by 1.07% from the same period last year. However, its cash position remained strong during the quarter as it generated $4.8 billion in operating cash flow and $3.7 billion in free cash flow. Moreover, the company also returned $0.4 billion to shareholders through dividends, which makes it one of the best dividend stocks on our list. The stock's dividend yield on August 29 came in at 1.88%.
As of the close of Q2 2023, 65 hedge funds tracked by Insider Monkey were bullish on Analog Devices, Inc. (NASDAQ:ADI). The stakes owned by these funds have a total value of over $5.15 billion.
Madison Investments mentioned Analog Devices, Inc. (NASDAQ:ADI) in its Q2 2023 investor letter. Here is what the firm has to say:
“The bottom five individual contributors for the quarter were U.S. Bancorp, Progressive, Analog Devices, Inc. (NASDAQ:ADI), Dollar Tree, and Danaher. Analog Devices and Danaher are both seeing end market demand moderate (in semiconductor and medical research, respectively) compared to the artificially high levels they experienced for two years due to the post-Covid chaos in supply chains. Despite these near-term dynamics, we think the longer-term outlooks remain excellent in both cases.”
8. Amcor plc (NYSE:AMCR)
Ex-Dividend Date: September 6
Amcor plc (NYSE:AMCR) is an American packaging company that specializes in producing a wide range of packaging solutions for various industries. On August 16, the company declared a quarterly dividend of $0.1225 per share, consistent with its previous dividend. In 2022, it took its dividend growth streak to 39 years, which makes it one of the best dividend stocks to buy. The stock has a dividend yield of 5.05%, as recorded on August 29.
Amcor plc (NYSE:AMCR) announced its FY23 earnings on August 16 and posted revenue of $14.7 billion, which showed a 1% growth from the same period last year. The company's financial statement highlighted a favorable and robust cash position, generating over $848 million in free cash flow. Moreover, it also returned $1.2 billion to shareholders through dividends and share repurchases.
At the end of June 2023, 24 hedge funds in Insider Monkey's database were long Amcor plc (NYSE:AMCR), compared with 22 in the previous quarter. The stakes owned by these hedge funds have a total value of over $237 million.
7. FedEx Corporation (NYSE:FDX)
Ex-Dividend Date: September 8
FedEx Corporation (NYSE:FDX) is a global courier delivery services company that provides a range of shipping, logistics, and business services. In fiscal Q4 2023, the company reported revenue of nearly $22 billion, which fell by 10% from the same period last year. The company also bought back 9 million shares during FY23, which accounted for about 4% of the shares that were initially available at the beginning of the year. Moreover, it returned $2.7 billion to shareholders through dividends and share repurchases during the fiscal year.
FedEx Corporation (NYSE:FDX), one of the best dividend stocks, currently pays a quarterly dividend of $1.26 per share. The stock has a dividend yield of 1.93%, as of August 29.
FedEx Corporation (NYSE:FDX) was a popular buy among hedge funds in Q2 2023, as 62 funds tracked by Insider Monkey owned investments in the company, growing from 55 in the previous quarter. The collective value of these stakes is over $2.48 billion.
The London Company mentioned FedEx Corporation (NYSE:FDX) in its Q1 2023 investor letter. Here is what the firm has to say:
“FedEx Corporation (NYSE:FDX) – FDX shares rebounded in Q1 following weakness in 2022. FDX was able to exceed lowered earnings expectations on better cost containment including trimming management ranks. We continue to own FDX shares reflecting its global parcel and freight networks, as well as the company’s potential to improve operating results to peer levels that would create significant shareholder value.”
6. UnitedHealth Group Incorporated (NYSE:UNH)
Ex-Dividend Date: September 8
UnitedHealth Group Incorporated (NYSE:UNH) ranks sixth on our list of the best dividend stocks that would trade ex-dividend on September 8. In the second quarter of 2023, the company's revenue came in at $93 billion, which showed a 15.6% growth on a year-over-year basis. Its operating cash flow for the quarter came in at over $11 billion. The company's shareholder return amounted to more than $4.8 billion.
UnitedHealth Group Incorporated (NYSE:UNH) has been raising its dividends consistently for the past 13 years. It currently pays a quarterly dividend of $1.88 per share and has a dividend yield of 1.53%, as of August 29. Other dividend stocks that are grabbing investors' attention include Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV).
As of the close of Q2 2023, 111 hedge funds in Insider Monkey's database reported having stakes in UnitedHealth Group Incorporated (NYSE:UNH), compared with 116 in the previous quarter. The consolidated value of these stakes is over $10.1 billion. With roughly 5 million shares, GQG Partners was the company's leading stakeholder in Q2.
Mairs & Power mentioned UNH in its Q2 2023 investor letter. Here is what the firm has to say:
“Notable detractors to performance in the first half were US Bank (USB), Charles Schwab (SCHW), and UnitedHealth Group Incorporated (NYSE:UNH), which were down 22.09%, 31.65%, and 8.65%, respectively. Another detractor from relative performance was UnitedHealth Group, which was down 8.65%. However, we have a positive long-term view of the company, headquartered in Minnesota, and especially its potential when it comes to harnessing its vast amounts of patient data via AI. Additionally, its Optum unit, which provides technology and data-driven care delivery, has AI-enabled tools that can help healthcare providers drive more efficient and accurate care to patients.”
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Disclosure. None. 10 Best September Dividend Stocks To Buy is originally published on Insider Monkey.
