In this article, we discuss 10 best October dividend stocks to buy now. You can skip our detailed analysis of dividend stocks and the dividend capture strategy, and go directly to read 5 Best October Dividend Stocks To Buy.
Dividend payments around the world have been growing significantly because investors are increasingly interested in income-generating assets. This strong reputation of dividend stocks didn't happen overnight; it's based on historical data that demonstrates how these stocks have consistently performed better than other types of investments over the years. Companies that regularly increase their dividends are particularly attractive in this scenario. They are considered real winners because they not only garner appreciation from investors but also thrive in changing market conditions. According to a report by Morgan Stanley, dividends are a crucial investment for long-term investors. Stocks with high dividends typically do well when inflation is higher than usual but on a downward trend. These stocks are also considered safe and become even more appealing during uncertain economic times because they provide stability and reliable income.
As mentioned above, global dividends have experienced significant growth this year. China's largest companies have paid out 1.5 trillion yuan ($206 billion) in dividends this year, which has already exceeded the 1.27 trillion yuan paid out in 2022, according to a report by Bloomberg. The major contributors to this increase are the largest state-owned banks, with PetroChina and Kweichow Moutai following closely behind. Similarly, Janus Henderson reported that 98% of US companies either increased their dividends or maintained them at the same level in the second quarter of 2023. This percentage is significantly higher than the global average.
Dividend investing can be a sound strategy for long-term investors. Holding onto stocks with consistently increasing dividends can lead to higher yields on original investment over time. Regular dividend hikes often contribute to an increase in the stock's share price. According to a recent report by T. Rowe Price, between the end of 1985 to the close of 2022, dividend growers in the Russell 1000 Index performed better than the broader benchmark index. Furthermore, these dividend-growing stocks showed lower levels of price fluctuations or volatility. Some of the best dividend stocks in this regard are The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) as these firms have consistently increased their dividend payments for many years.
In addition to long-term investors, dividend investing can be appealing to some short-term investors through a dividend capture strategy. It involves purchasing a stock just before it goes ex-dividend and then selling it shortly thereafter, typically after the dividend is received. This strategy aims to capture the dividend income while minimizing exposure to the stock's price fluctuations. To learn more about this investment approach, have a look at our article Dividend Capture Strategy Stocks To Buy.
10 Best October Dividend Stocks To Buy
Our Methodology:
This list outlines the dividend capture strategy for selecting prominent dividend stocks that will trade ex-dividend in October 2023. The ex-dividend date is the last day for purchasing a stock to be eligible for the upcoming dividend. The list is organized by date, with earlier ex-dividend dates listed first, and later dates following in sequence.
American Express Company (NYSE:AXP) is a multinational financial services corporation known for its range of payment, financial, and travel-related services. The company is primarily known for its credit and charge card products.
In the second quarter of 2023, American Express Company (NYSE:AXP) reported revenue of $15.05 billion, which showed a 12.3% growth from the same period last year. The company's net income for the quarter amounted to over $2.1 billion, compared with $1.9 billion in the prior-year period.
American Express Company (NYSE:AXP) is one of the best dividend stocks on our list as the company has paid regular dividends to shareholders since 1989. The company currently pays a quarterly dividend of $0.60 per share and has a dividend yield of 1.64%, as of October 4. In addition to AXP, investors are also paying attention to dividend growers such as The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
At the end of Q2 2023, 73 hedge funds in Insider Monkey's database reported having stakes in American Express Company (NYSE:AXP), compared with 77 in the previous quarter. The collective value of these stakes is over $28 billion. With roughly 152 million shares, Berkshire Hathaway was the company's leading stakeholder in Q2.
Roper Technologies, Inc. (NASDAQ:ROP) is an American diversified tech company that operates in several industries, providing a wide range of engineered products and solutions. On September 27, the company declared a quarterly dividend of $0.6825 per share, which was in line with its previous dividend. It has been raising its dividends consistently for the past 31 years, which makes it one of the best dividend stocks on our list. The stock will be going ex-dividend on October 6.
Roper Technologies, Inc. (NASDAQ:ROP) generated $1.5 billion in revenues in the second quarter of 2023, up 16.8% from the same period last year. The company's operating cash flow for the quarter came in at $320 million and its free cash flow amounted to $295 million, up 20% and 17% year-over-year, respectively.
As of the close of Q2 2023, 41 hedge funds in Insider Monkey's database reported having stakes in Roper Technologies, Inc. (NASDAQ:ROP), compared with 42 in the previous quarter. The consolidated value of these stakes is over $2.38 billion.
AT&T Inc. (NYSE:T) is a diversified telecommunications and media conglomerate that provides a wide range of services to consumers, businesses, and institutions. The company's revenue for the second quarter of 2023 stood at roughly $30 billion, which saw a 0.9% growth from the same period last year. It ended the quarter with over $9.5 billion available in cash and cash equivalents, compared with $3.7 billion at the end of December 2022.
AT&T Inc. (NYSE:T) is trading ex-dividend on October 9. The company offers a quarterly dividend of $0.2775 per share and has a dividend yield of 7.58%, as of October 4. It is among the best dividend stocks on our list.
At the end of June 2023, 56 hedge funds tracked by Insider Monkey owned stakes in AT&T Inc. (NYSE:T), down slightly from 58 in the previous quarter. The total value of these stakes is over $1.4 billion. With over 14 million shares, D E Shaw was the company's largest stakeholder in Q2.
McCormick & Company, Incorporated (NYSE:MKC) is an American food company that specializes in the manufacturing, marketing, and distribution of spices, seasonings, flavorings, and other food products. On September 29, the company declared a quarterly dividend of $0.39 per share, which was consistent with its previous dividend. Its dividend growth streak currently stands at 37 years, which makes it one of the best dividend stocks on our list. The stock's dividend yield on October 4 came in at 2.28%.
In its recently announced third-quarter earnings, McCormick & Company, Incorporated (NYSE:MKC) posted revenue of $1.68 billion, up 5.7% from the same period last year. The company's operating cash flow for the quarter amounted to over $660 million, compared with $250 million in the year-ago period.
The number of hedge funds tracked by Insider Monkey owning stakes in McCormick & Company, Incorporated (NYSE:MKC) grew to 35 in Q2 2023, from 27 in the previous quarter. The collective value of these stakes is over $1.84 billion. Among these hedge funds, Ken Griffin, Israel Englander, and Terry Smith were some of the company's most prominent stakeholders in Q2.
Accenture plc (NYSE:ACN) is a global professional services company that offers a wide range of consulting, technology, digital, and outsourcing services to businesses and organizations worldwide. The stock will be going ex-dividend on October 11 and is one of the best dividend stocks on our list.
On September 28, Accenture plc (NYSE:ACN) declared a 15.2% hike in its quarterly dividend to $1.29 per share. The company has been growing its dividends consistently since 2019, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 1.67%, as of October 4. The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some other dividend stocks grabbing investors' attention.
Insider Monkey's database of Q2 2023 indicated that 56 hedge funds owned investments in Accenture plc (NYSE:ACN), compared with 60 in the previous quarter. The consolidated value of these stakes is over $2.12 billion.
ClearBridge Investments mentioned Accenture plc (NYSE:ACN) in its Q2 2023 investor letter. Here is what the firm has to say:
“While the ClearBridge Multi Cap Growth Strategy has limited mega cap exposure, which has been a recent headwind to relative performance, we own several companies that stand to benefit from the explosive growth in generative AI. These holdings play key roles in building out the necessary infrastructure and helping customers leverage capabilities enabled by this emerging technology
