July 2023 Dividend Stock Watch List

As I'm writing this blog post on Friday, June 16, the high temperature is expected to reach 75 degrees Fahrenheit today here in Central Wisconsin. And with highs forecasted to reach into the upper-70s Fahrenheit range this weekend, I hope to get outside for at least a few hours!

With that aside and July just two weeks away, now would be a good time to look at three dividend stocks on my watch list for next month.

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Dividend Stock #1: Automatic Data Processing (ADP)

The first dividend stock on my watch list for July 2023 is Automatic Data Processing (ADP). Readers looking for my investment thesis for ADP can find it in this Motley Fool article on the stock (and PepsiCo) from April.

The gist of my investment thesis is that so long as there are businesses, there will be a need for the industry-leading ADP to handle payroll and human resources for those businesses. Along with a sustainable payout ratio, the company is almost guaranteed to soon become a Dividend King. At the current $222 share price (as of June 16, 2023), the dividend growth stock and its 2.3% yield looks reasonably attractive.

Dividend Stock #2: Bristol Myers Squibb (BMY)

The second dividend stock that I'm watching for next month is Bristol Myers Squibb (BMY). Interested readers can find my investment thesis for BMY in this recent Motley Fool article.

Basically, the company balances out a stacked product portfolio with a deep product pipeline. This should support revenue and earnings growth over time. Paired with its low dividend payout ratio, this is why BMY's 3.5% dividend yield is quite safe. Last but not least, the stock's valuation is dirt cheap at the current $66 share price (as of June 16, 2023).

Dividend Stock #3: Raytheon Technologies (RTX)

The final dividend stock on my watch list for July 2023 is Raytheon Technologies (RTX). This business hasn't been explicitly on my watch list since October 2021. But with its fundamentals looking intact, now is a good time to revisit it.

RTX is a company that looks ready to quickly grow. The company's backlog remains enviable while an improvement in the supply chain issues that it has faced in recent years is inevitable. This is why analysts think RTX's earnings will grow by 10.8% annually over the next five years. Finally, the stock's 2.4% dividend yield can be scooped up at a current share price of just $98 (as of June 16, 2023).

Concluding Thoughts:

July 2023 should remain consistent on the capital deployment front, so I'm quite excited to build out my ownership stakes in several remarkable businesses soon!

Discussion:

Are any of ADP, BMY, or RTX on your watch list for July 2023?

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

Thanks for reading and please feel free to comment below!