It feels strange to talk about dividend stocks a day after the S&P 500 crossed the 2,000-point threshold for the first time ever.
Stocks continue to flourish despite myriad geopolitical headwinds in places like Iraq (where else?), Ukraine and the Gaza Strip. The S&P entered 2014 near record territory and has risen another 7.6% since then.
While there is no definitive end in sight for this seemingly endless rally (now more than 1,000 trading days without a correction of 10% or more), eventually it will come to a screeching halt … probably when we least expect it. When that happens, you’ll want to have protection in your portfolio. With short-term interest rates still near zero, right now that means owning dividend stocks.
In particular, it’s wise to have exposure to stocks that are growing their dividends. Next month, three stocks that have demonstrated impressive dividend growth of late stand out as especially attractive income investments.
Here are the three best dividend stocks to buy in September:
September Dividend Stock #1: AMC Entertainment (NYSE: AMC)
AMC Entertainment hasn’t even been publicly traded for nine months, but the movie-theater company is already proving to be a generous dividend payer.
The company initiated a 20-cent quarterly dividend in June, and will issue a second payout next month to shareholders of record as of Sept. 5. That’s good for a hefty 3.4% yield at current share prices. Throw that yield on top of the 24.3% return since the stock went public last December, and there’s a lot to like about AMC.
September Dividend Stock #2: General Motors (NYSE: GM)
General Motors famously didn’t pay a dividend for six years after the recession. Earlier this year, the company reinstituted the payout – and a generous one at that with a 3.6% yield. The sudden change speaks to the resurgence in the U.S. auto industry.
GM’s 30-cent dividend is five cents higher than the 25-cent quarterly dividend it was paying in 2008. The company has much more money in the coffers than it did then, when profits were in freefall. Even after reinstating the dividend, General Motors currently has more than $28 billion in cash, or nearly $18 per share.
GM’s latest payout will be available to shareholders of record as of Sept. 10.
September Dividend Stock #3: Best Buy (NYSE: BBY)
Tales of this big-box retailer’s demise were greatly exaggerated.
The electronics chain is coming off its best quarter in more than three years, sparking a 20% run-up in the company’s share price. Improved sales also convinced Best Buy to increase its dividend for the first time in more than two years. The company is bumping its quarterly payout from 17 cents to 19 cents – its first dividend increase of more than a penny since 2006.
The two-cent increase gives Best Buy a solid 2.6% yield. The new and improved dividend will be available to shareholders of record as of Sept. 11.
Those are three great dividend stocks just for September. If you’d like in-depth analysis of the best dividend payers all year round, try our High Yield Wealth newsletter service, which is focused on finding you the best income investment opportunities across the globe.
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