September 2022 Dividend Stock Watch List

As I'm writing this blog post, the temperature is expected to reach a high of 74 degrees Fahrenheit today. And the next week of weather looks like it will be in the mid-70 degrees to low-80 degrees Fahrenheit range here in Central Wisconsin. That's why I plan on getting outside as much as possible in the days ahead.

With August almost already half over, now is as good of a time as any to start planning a few weeks ahead for possible dividend stock purchases in September.

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Dividend Stock #1: Albemarle (ALB)

Albemarle is a leading specialty chemicals business. The company's predominant business is lithium, which made up 55.3% of its net sales through the first half of 2022. The remaining 44.7% of its net sales was generated from its bromine and catalysts segments (info from Albemarle Q2 2022 earnings press release).

With the penetration rate of electric vehicles expected to soar from just 3.4% of all new car sales in 2021 to 29.5% by 2030, global lithium demand is going to rapidly grow for the foreseeable future. That's why analysts are forecasting 77.2% annual adjusted diluted EPS growth over the 2021 base of $4.04 for the next five years.

Trading at a forward P/E ratio of 13.3 at the current $281 share price (as of August 13, 2022), ALB appears to be a bargain. ALB's 0.6% dividend yield is minuscule. But with the company's significant growth potential in the years ahead, it should prove to be an incredible dividend growth stock.

Dividend Stock #2: Bristol-Myers Squibb (BMY)

With mega-blockbusters such as the anti-coagulant drug co-owned with Pfizer (PFE) called Eliquis and cancer drugs Revlimid and Opdivo, Bristol-Myers Squibb is one of the most dominant pharma companies in the world. As I explained in a recent Motley Fool article on Cigna and BMY, the latter also has a deep drug pipeline to propel its adjusted diluted EPS higher over time.

The stock's 2.9% dividend yield also seems to be well-covered with a dividend payout ratio set to come in under 30% in 2022. Yet the stock is a downright bargain at a forward P/E ratio of 9.4 at the current $76 share price (as of August 13, 2022).

Dividend Stock #3: Philip Morris International (PM)

Philip Morris International is the largest tobacco company in the world. And as I discussed in a recent Motley Fool article, the stock is a great buy for income investors.

That's because PM's market-smashing 5% dividend yield is reasonably safe for a tobacco company based on its dividend payout ratio. Not to mention that analysts are predicting steady adjusted diluted EPS growth over the medium term. The cherry on top is that the stock's forward P/E ratio of 16.7 at the current $99 share price (as of August 13, 2022) is a slight discount to the tobacco industry.

Concluding Thoughts:

September's capital deployment will be lighter as I build up my emergency fund. I'm continuing to strive toward a balance between low yield, high growth, moderate yield, moderate growth, and high yield, low growth dividend stocks as my purchases. I'm excited for yet another month to bring high-quality dividend growth stock purchases with it.

Discussion:

Are any of ALB, BMY, or PM on your watch list for September 2022?

If not, what stocks are you watching for next month?

As usual, thanks for reading. I look forward to your comments below!