11 Best December Dividend Stocks To Buy
In this article, we discuss 11 best December dividend stocks to buy now. You can skip our detailed analysis of dividend stocks, their performance, and dividend capture strategy, and go directly to read 5 Best December Dividend Stocks To Buy.
The American economy has shown robust performance this year. In October, the Commerce Department revealed that the country's GDP expanded by 4.9% over the third quarter. This growth rate marked the strongest quarterly increase in GDP in almost two years, reflecting a significant acceleration in economic activity within that period. However, some analysts are concerned that things might slow down. Chris Senyek, the chief investment strategist at Wolfe Research, mentioned that this year, the economy did better than expected but looking ahead, both his team and other experts predict a slowdown in the coming months for the U.S. economy.
Dividend stocks have become a cornerstone for many investors due to their unique appeal in generating consistent income. This consistent stream of cash is a big draw for investors who appreciate getting a slice of the company's earnings on top of any potential growth in the stock's value. It's like having a steady paycheck while also having the opportunity for your investment to increase in worth. Income-focused strategies have encountered significant challenges throughout this year. Factors such as market volatility, economic shifts, or changes in investment landscapes might have made it harder for these strategies to deliver the anticipated levels of income or profits. In the third quarter, the total global dividends dropped by 0.9%, totaling $421.9 billion, as reported in the most recent Janus Henderson Global Dividend Index. In addition to this, The ProShares S&P 500 Dividend Aristocrats ETF, which represents a collection of stocks known for consistent dividend payments, has experienced a 0.82% return this year so far, factoring in the dividends earned. That stands in stark contrast to the 19.5% return seen in the broader market.
That said, dividends continue to show promise as we head into 2024, provided investors adopt the right strategies. According to Wolfe Research, investors should focus on dividend aristocrats, companies that have raised their dividends for 25 consecutive years or more. The firm also recommends investors steer clear of companies that might be at risk of reducing their dividend payments. Here are some comments from the firm from its recent research note:
“As the U.S. economy slows, we expect more defensive strategies to outperform the broader market. During economic slowdowns or recessionary environments, our favorite dividend-focused strategy is buying companies with a long record of consistently increasing dividends.”
Some of the best dividend stocks that have consistently raised their dividend include The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP). In addition to the dividend growth strategy, investors also favor the dividend capture strategy. It's a popular way to get dividends by buying a stock right before the company pays out its dividend and then selling it shortly after. People are into this strategy because they aim to grab that dividend payment without holding onto the stock for a long time. It's like a quick way to catch those dividends as they come and then move on to the next opportunity. Investors like it because it's about snagging those dividend payments without committing to keeping the stock for the long haul. To learn more about this, readers can have a look at our article: Dividend Capture Strategy: 10 High Yield Stocks To Buy in November.
In this article, we will take a look at 11 prominent stocks that are trading ex-dividend in December.
Image by Steve Buissinne from Pixabay
Our Methodology:
The following list provides details on the dividend capture strategy, focusing on the selection of prominent dividend-paying stocks set to go ex-dividend in December 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.
11. Analog Devices, Inc. (NASDAQ:ADI)
Ex-Dividend Date: December 1
Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor manufacturing company that caters to a wide range of industries, including automotive, communications, industrial, healthcare, and consumer electronics. On November 21, the company declared a quarterly dividend of $0.86 per share, which was in line with its previous dividend. Overall, it has been growing its dividends for 20 consecutive years. The stock has a dividend yield of 1.88%, as of November 29.
As of the close of Q3 2023, 64 hedge funds in Insider Monkey's database reported having stakes in Analog Devices, Inc. (NASDAQ:ADI), compared with 65 in the previous quarter. The consolidated value of these stakes is over $4.56 billion. With over 4.4 million shares, Generation Investment Management was the company's leading stakeholder in Q3.
10. Donaldson Company, Inc. (NYSE:DCI)
Ex-Dividend Date: December 4
Donaldson Company, Inc. (NYSE:DCI) is a Minnesota-based company that specializes in manufacturing filtration systems and solutions. In fiscal Q1 2024, the company reported an operating cash flow of over $138 million, up from $118 million in the same period last year. During the quarter, the company returned $30.2 million to shareholders through dividends, which makes DCI one of the best dividend stocks on our list.
Donaldson Company, Inc. (NYSE:DCI) currently offers a quarterly dividend of $0.25 per share, having raised it by 9% in May this year. Through this increase, the company took its dividend growth streak to 28 years. As of November 29, the stock has a dividend yield of 1.67%.
At the end of Q3 2023, 21 hedge funds tracked by Insider Monkey reported having stakes in Donaldson Company, Inc. (NYSE:DCI), down from 28 in the previous quarter. The total value of these stakes is over $222 million.
9. NVIDIA Corporation (NASDAQ:NVDA)
Ex-Dividend Date: December 5
NVIDIA Corporation (NASDAQ:NVDA) is an American tech company renowned for its expertise in designing and manufacturing graphics processing units (GPUs) and other computing technologies. The company does not maintain a dividend growth track record but has been making regular dividend payments since 2012. It currently pays a quarterly dividend of $0.04 per share and has a dividend yield of 0.03%, as of November 29.
In the third quarter of 2023, NVIDIA Corporation (NASDAQ:NVDA) reported revenue of $18.1 billion, which significantly grew by 205.6% from the same period last year. The company's operating cash flow for the quarter came in at $7.33 billion, up from $392 million in the prior-year period. The stock will be going ex-dividend on December 5.
NVIDIA Corporation (NASDAQ:NVDA) was a part of 180 hedge fund portfolios at the end of Q3 2023, up from 175 in the preceding quarter, according to Insider Monkey's database. The consolidated value of these stakes is roughly $30 billion. Among these hedge funds, GQG Partners was the company's leading stakeholder in Q3.
8. Union Pacific Corporation (NYSE:UNP)
Ex-Dividend Date: December 5
Union Pacific Corporation (NYSE:UNP) is an American major transportation company primarily engaged in the railroad business. On November 28, the company announced a quarterly dividend of $1.30 per share, which was consistent with its previous dividend. It has been rewarding shareholders with growing dividends for the past 16 consecutive years. With a dividend yield of 2.35%, as of November 30, UNP is one of the best dividend stocks on our list.
The number of hedge funds in Insider Monkey's database owning stakes in Union Pacific Corporation (NYSE:UNP) jumped to 90 in Q3 2023, from 84 in the previous quarter. The collective value of these stakes is more than $5.4 billion.
7. Harley-Davidson, Inc. (NYSE:HOG)
Ex-Dividend Date: December 8
Harley-Davidson, Inc. (NYSE:HOG) is a renowned manufacturer of motorcycles and related products. The company is known for its iconic, heavyweight motorcycles designed for cruising and touring. It generated revenue of over $1.55 billion, which beat analysts' estimates by $190 million. During the quarter, the company paid $73 million to shareholders through dividends, which makes HOG one of the best dividend stocks on our list.
Harley-Davidson, Inc. (NYSE:HOG) offers a quarterly dividend of $0.165 per share and has a dividend yield of 2.20%, as of November 29.
At the end of September 2023, 26 hedge funds tracked by Insider Monkey reported owning stakes in Harley-Davidson, Inc. (NYSE:HOG), compared with 27 in the preceding quarter. The total value of these stakes is roughly $601 million. H Partners Management owned 11.8 million HOG shares, becoming the company's largest stakeholder in Q3.
6. FedEx Corporation (NYSE:FDX)
Ex-Dividend Date: December 8
FedEx Corporation (NYSE:FDX) is a global logistics and delivery services company renowned for its extensive network in the transportation and shipping industry. The company's quarterly payout stands at $1.26 per share and has a dividend yield of 1.98%, as recorded on November 29. It is one of the best dividend stocks on our list as the company has been growing its dividends for three consecutive years.
In fiscal Q1 2024, FedEx Corporation (NYSE:FDX) generated $21.6 billion in revenues, which fell by 6.72% from the same period last year. However, the company's cash position remained strong as it had over $7.1 billion available in cash on hand.
FedEx Corporation (NYSE:FDX) was a part of 67 hedge fund portfolios at the end of Q3 2023, up from 62 a quarter earlier, according to Insider Monkey's database. The stakes held by these hedge funds have a collective value of nearly $3 billion.
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Disclosure. None. 11 Best December Dividend Stocks To Buy is originally published on Insider Monkey.
