The top dividend stocks for October 2023 include Danish shipping, transport, and logistics company A.P.Moller (AMKBY), a diversified holding company, Icahn Enterprises LP (IEP), a renewable energy company, Enviva Inc.(EVA), and Torm PLC, (TRMD) a U.K. based global shipping company.
Key Takeaways
Dividend stocks are issued by companies that pay shareholders a percentage of earnings on a regular basis, typically quarterly or, less commonly, semiannually or annually.The dividend yield represents the ratio of annual dividend amount with stock price. It is expressed as a percentage.Because it is linked to stock price, dividend yield changes as the price of a company’s stock rises and falls.
Companies paying dividends are usually well-established and have stable earnings. Many dividend-paying companies also have a long record of distributing a portion of earnings to shareholders in the form of dividends.
The dividend payout ratio (DPR) measures total dividends divided by a company’s net income. It is a useful way to measure how sustainable a company’s dividend payments are, as it shows how much of a company’s income is being paid to shareholders versus how much the company keeps to put toward future growth.
If a DPR exceeds 100% or is negative (meaning that the company has a net loss), the firm may be borrowing to pay dividends. Dividends in these situations are at a higher risk of being cut.
While dividend stocks are known for paying dividends regularly, the payout may be cut to preserve cash in tough times.
Dividend stocks, as measured by the S&P 500 Dividend Aristocrats Index, are up 7.5% in the last year versus the 14.6% gain of the Russell 1000 Index, as of Sep. 28, 2023.
Below, we look at the top four dividend stocks in the Russell 3000 Index as measured by forward dividend yield, excluding companies with payout ratios that are either negative or in excess of 100%. The statistics below are as of Sep. 28, 2023.
A.P. Møller – Mærsk A/S (AMKBY)
Forward Dividend Yield: 34.8%Price: $8.77Market Cap: $30.1 billion1-Year Total…..
