SO - 3 Dividend Stocks to Double Up On Right Now
2023-11-16 06:22:00 ET
It can be hard to buy stocks when they're most attractively priced, because that often means they're out of favor. But if you can hold your nose and push the buy button, the end result is often more income and a price rebound -- a double win. That's exactly the story behind Texas Instruments (NASDAQ: TXN) and Realty Income (NYSE: O) today. And then there's Southern Company (NYSE: SO) , which had been a utility industry laggard for years but is about to see a big change in its business. All three are worth doubling up on right now.
Texas Instruments is one of the world's largest producers of microchips -- but not the exciting complicated ones that drive AI. It makes simple chips that turn physical events into digital ones -- think pushing a button and having something happen on a device. These boring chips go into just about every product with computer tech in it. The world is only going to get more and more digital as well. Texas Instruments has ridden this ongoing wave to two decades worth of dividend increases. That said, the dividend yield is historically high today at 3.5%.
The reason for the high yield is that the chip sector is cyclical and currently in a downturn. Oh, and Texas Instruments is investing heavily in new chip capacity. That seems counterintuitive, investing during a downturn, but it prepares the company to come out the other side a stronger competitor. Given the long history of success here, Wall Street's jitters about spending into a downturn are probably an opportunity for long-term income investors to buy an attractive dividend growth stock on the cheap. The annualized dividend increase over the past decade was a hefty 17%.
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3 Dividend Stocks to Double Up On Right Now