Check out these 3 dividend stocks in April
Being able to block market noise and short-term events that affect equity value is best for staying as an investor year after year. That being said, it’s hard to ignore some of the recent headlines that have moved markets to the beginning of the year. Whether it’s rising inflation, heated geopolitical conflicts, or flat-out market volatility, investors must have made an uncomfortable start in early 2022. While these factors should play a big role in forward markets, it should not stop investors from looking for high-quality dividend stocks that can help them build long-term wealth.
Dividend stocks are particularly attractive at this time thanks to their perceived security and the earnings they add to portfolios. However, not all dividend stocks are worth your time and capital, which is why we’ve put together the following list of the top 3 dividend stocks to buy in April.
Let’s take a closer look below.
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Southern Copper Corp (NYSE: SCCO)
Commodity stocks are benefiting from the description that they could potentially act as a hedge against inflation and investors should expect stocks like Southern Copper to continue to move higher in the coming months. Copper is one of the most important metals in the world, as it is used for everything from building and construction to consumer electronics. The price of this essential commodity had risen even before the conflict in Ukraine, and it is difficult to imagine a better scenario for the improvement of Southern Copper with new supply-chain problems after the Russian invasion.
With large assets in Mexico and Peru, the company is one of the largest integrated copper producers in the world. The stock pays investors a dividend of 5.12% and more than 25% per annum, which is an impressive figure for investors to consider. Although there have been protests in Peru that have temporarily halted production for the company’s Caozone mines, the stock is certainly one of the best ways to get copper exposure at this time.
It is difficult to argue against including consumer staple stocks in a diversified portfolio, as these companies have business models that will help support dividend payments in almost any economic environment. Kraft Heinz stands as a great alternative in that sector, as it is the third largest food and beverage manufacturer in North America and a stock that has surpassed the S&P 500 this year. With classic brands including Kraft, Heinz, Oscar Mayer, Ore-Ida, Philadelphia, Maxwell House, and more, it is a company that has the ability to raise prices to offset inflation without losing a lot of customers, which is a matter of volume. The company is strong.
Kraft Heinz considers Wal-Mart to be its biggest customer, which will help reassure investors that it is a stable earning company and can cope with the economic downturn. The stock pays investors a 4.01% dividend and is one of the largest holdings for Warren Buffett’s Berkshire Hathaway, both additional reasons for considering adding shares. Finally, Kraft Heinz is changing its strategy to segregate low-growth products and brands, to invest in international expansion, and to restructure its business, leading to a stronger company in the next few years.
Eli Lily & Co (NYSE: LLY)
Biopharmaceutical stocks such as Eli Lilly and Co have been incredibly impressive this year, and the stock may be eligible to be added in April, even with stock trading near all-time highs. The biopharmaceutical sector will probably not be affected by the current geopolitical conflict, which is certainly a huge positive to consider, and innovation in healthcare has never been more arguably important in the aftermath of a global epidemic. As Eli Lilly focuses on developing therapies for the treatment of pain, diabetes, cancer and neurodegenerative diseases, investors who want to add shares of a company that can change the world must be interested.
Eli Lilly’s new Alzheimer’s drug, Donamemeb, has the potential to be a real blockbuster, and the drug has already been dubbed the US FDA’s Breakthrough Therapy for its treatment of the disease. With an excellent combination of the best-selling existing drugs and a powerful pipeline of potentially groundbreaking treatments, it’s hard to find many alternatives in the healthcare sector that offer the opposite, like Eli Lilly. The company will report its Q1 earnings at the end of the month, which is definitely an event to keep in mind as we go deeper into the month.
