As I'm writing this blog post, the high temperature is expected to reach 72 degrees Fahrenheit today here in Central Wisconsin. And over the next few days, the temperatures will range from the high-70 degrees Fahrenheit to low-80 degrees Fahrenheit. This is truly perfect weather, which makes it very pleasant to be outside.
With half of July behind us already, I'll be looking ahead a few weeks to potential dividend stocks to purchase in August 2022.
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Dividend Stock #1: National Retail Properties (NNN)
National Retail Properties is the first dividend stock on my watch list for August. As I noted in a Motley Fool article on the stock and Simon Property Group a few weeks ago, NNN is a high-quality single-tenant net lease REIT.
The company's thousands of properties throughout the U.S. and its resilient business model have allowed it to raise its dividend for 33 consecutive years. This is after the most recent 3.8% dividend increase that was announced today, July 15.
And given its mid-60% dividend payout ratio, NNN should be able to keep the dividend increases coming for many more years. Best of all, the stock's 5% dividend yield can be snatched up at a forward price-to-AFFO-per-share ratio of just over 14 (based on the $44 share price as of July 15, 2022).
Dividend Stock #2: Visa (V)
The next dividend stock I'm considering purchasing next month is Visa. For an in-depth explanation of why Visa is on my watch list, I'd refer interested readers to my Motley Fool article on the stock from early June.
V continued to deliver double-digit net revenue and earnings growth when it reported its earnings results for the first quarter a while back. Since cash will continue to be displaced by alternative payment methods, this should enable high earnings growth to continue for the next decade or more.
Along with V's dividend payout ratio in the low-20% range, this should translate into robust dividend growth in the years to come. And at a forward P/E ratio a bit over 29 (based on the $210 share price as of July 15, 2022), V is priced to create significant wealth over the long run.
Dividend Stock #3: Texas Instruments (TXN)
The final dividend stock that I'm thinking about buying in August is Texas Instruments. As I explained in a Motley Fool article on the stock (and Norfolk Southern and McDonald's), TXN will benefit from a positive industry outlook.
Growing demand for semiconductor chips will help TXN's earnings to grow in the high-single-digits to low-double-digits annually. Along with the stock's well-covered 2.9% dividend yield, this makes TXN a solid stock for income, income growth, and total returns.
The stock can be purchased at a forward P/E ratio of just below 18 (based on the $160 share price as of July 15, 2022), which is a solid value for a stock of TXN's quality.
Concluding Thoughts:
August should be another month of capital deployment around $2,500 to $3,000. My dividend stock purchases as of late are a decent balance of high-yield, low growth dividend stocks, moderate-yield, moderate growth dividend stocks, and low-yield, high growth dividend stocks in my opinion.
Discussion:
Are any of NNN, V, or TXN on your watch list for next month?
If not, what stocks are you considering buying in August 2022?
As always, I appreciate your readership. Please feel free to comment below!
We already own V and I wouldn't mind adding TXN but will probably hold off for now since we have a stake in ADI. I wish that yield from ADI was closer to TXN though. ROK looks interesting especially if we see a capex cycle to push for better supply chains as that has wreaked havoc on a lot of businesses the last couple years. Others that I'm looking at are probably continued DCA in to BLK, ICE, MDT, MSFT and a handful of others. Happy hunting in August.
ReplyDeleteThanks for the comment. You can't go wrong DCAing BLK, MDT, and MSFT.
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