While some investors may have been lulled into a false sense of security by the roaring gains of early 2021, September has proven that stocks never move in a straight line for long. The S&P 500 index lost more than 3% in September, and some big name stocks have fallen by even more lately.
If you’re looking at your portfolio with a bit of trepidation as a result of these declines, consider the following income investments that have decent share price momentum — and generous dividends of at least 3% to hedge your bets against any short-term volatility. Here are five of the best dividend stocks to buy for October:
— Apollo Global Management Inc. (ticker: APO)
— Comerica Inc. (CMA)
— Lumen Technologies Inc. (LUMN)
— Macerich Co. (MAC)
— PetroChina Co. Ltd. (PTR)
Apollo Global Management Inc. (APO)
Dividend yield: 3.2%
Apollo is a private equity firm that specializes in buyouts, recapitalization and debt investments. In addition to running its own money for the benefit of those individuals who have membership in its hedge funds, the firm also provides its services to institutional endowments and sovereign wealth funds. APO has made some particularly shrewd bets in the last few years of volatility, including providing a lucrative lifeline to travel portal Expedia Group Inc. ( EXPE) during the worst of the downturn via a $1.2 billion preferred equity tranche.
These are the kind of deals individual investors can’t make on their own — but if you own APO stock, you can share in the profits via generous regular dividends of 50 cents per quarter.
Comerica Inc. (CMA)
Dividend yield: 3.3%
Regional bank Comerica is seeing a nice recovery in its core consumer and business banking lines now that the worst of the pandemic is in the rearview mirror. Specifically, earnings are set to more than double this fiscal year compared with the prior year and the stock is up nearly 50% in 2021. What’s more, as CMA continues to improve its financial performance it also continues to deliver large dividends to its shareholders. Consider that at the beginning of 2017, Comerica paid 23 cents per share quarterly in dividends; now it pays nearly three times that at 68 cents per share.
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Lumen Technologies Inc. (LUMN)
Dividend yield: 7.7%
LUMN stock is up an impressive 29% so far in 2021, thanks to continued improvement in this telecom’s financials. Lumen, previously known as CenturyLink, is a mid-tier provider of voice and data connections with a market cap of just $14 billion. But while it doesn’t have the scale of entrenched players like Comcast Corp. ( CMCSA) or Verizon Communications Inc. ( VZ), this stock has proven it has what it takes to compete and keep its customers. And with an expected $1.67 in earnings this fiscal year to support a $1.00 annual dividend, the payouts are not at very much risk of reduction — and if anything, could move higher in 2022.
Macerich Co. (MAC)
Dividend yield: 3.3%
Macerich is a commercial real estate investment trust, or REIT, meaning it was closely tied to the painful pressures on brick-and-mortar retail during the worst of the pandemic. But now that social distancing controls are abating, MAC is getting back on track with its 51 million square feet of real estate in 47 regional shopping centers across the U.S. Previously, Macerich was forced to slash its dividend from 75 cents per share to just 10 cents during the worst of the COVID-19 uncertainty.
Dividends have increased since then back to 15 cents a share, and shares have nearly tripled from their 52-week low of $6.42. This is certainly still a risky stock, but with a dividend yield that’s more than twice the S&P 500 average and strong momentum, now could be a great time to gain a foothold in this rebound play.
PetroChina Co. Ltd. (PTR)
Dividend yield: 7.3%
While fossil fuel companies aren’t exactly the best long-term investments in the age of global warming, it’s undeniable that entrenched Big Oil companies still have something to offer investors in the next few years.
Case in point, state-run oil giant PetroChina is up 7% or so in the last month, and is up sharply from its 52-week low on rising energy demand and higher crude oil prices. There’s certainly reason to watch this stock closely for signs of trouble down the road, but this momentum coupled with a generous dividend makes PTR worth a look in October.
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