In this article, we discuss 11 best November dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their performance over the past years, and go directly to read 5 Best November Dividend Stocks To Buy.
Dividend-paying stocks have been a preferred choice among investors for quite some time. They offer a consistent stream of income, attractive yields, and robust cash flow, which can provide stability when the market experiences unexpected fluctuations. However, it's important to note that market dynamics are constantly evolving, and certain investment sectors may outperform others at any given time. While dividend stocks may be trailing behind the dominant tech sector this year, some analysts believe they still have a promising future ahead. Many investors closely monitor dividend growth stocks, largely due to the extensive attention they have received from analysts. Abrdn’s Josh Duitz spoke about the solid performance of dividend growers in one of his interviews with CNBC earlier this year. Here is what he said:
“If you look back historically since 1936, 36% of the total return was from dividends. We think it's no longer about growth or value but really about companies that have dividends, have cash flow, and pay those dividends to their shareholders. That is what we think changed last year and will go forward.”
Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) have consistently increased their dividend payouts over several decades. This practice has proven to be rewarding for shareholders, as it provides them with the benefits of steadily rising returns and dividends. These stocks and others that fall within the category of dividend aristocrats have outperformed the broader market historically. According to a report by T. Rowe Price, this group has outperformed the broader S&P 500 Index by over 75% since 1989. The report also mentioned that dividends, especially when reinvested, have historically played a significant role in driving total returns, with compounded dividends contributing to more than 70% of global equity returns since 1970.
While we've observed the strong long-term returns of dividend stocks, some investors aim to extract short-term gains by employing a dividend capture strategy. It is an investment approach where an investor purchases a stock just before its ex-dividend date and then sells the stock shortly thereafter, often right after the dividend payment is received. The goal is to capture the dividend income without holding the stock for an extended period. To know more about this strategy, readers can have a look at Dividend Capture Strategy: 10 High Yield Stocks To Buy in November. In this article, we will discuss some of the best dividend stocks that are trading ex-dividend in November.
The following list provides details on the dividend capture strategy, focusing on the selection of prominent dividend-paying stocks set to go ex-dividend in November 2023. The ex-dividend date marks the final day to buy a stock and qualify for its upcoming dividend. The list is ranked chronologically, with earlier dates appearing first and later dates following in order.
Intel Corporation (NASDAQ:INTC) is an American multinational tech company that is known for its leading role in the semiconductor industry. The company recently announced its Q3 2023 earnings and posted revenue of $14.1 billion, which fell by 7.7% from the same period last year. However, its cash position remained strong as the company generated $5.8 billion in operating cash flow and paid $0.5 dividends to shareholders.
Intel Corporation (NASDAQ:INTC) currently pays a quarterly dividend of $0.125 per share for a dividend yield of 1.40%, as of October 27. The stock will be going ex-dividend on November 6. In addition to INTC, investors are also paying attention to Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) as these companies have raised their payouts for decades.
As of the end of Q2 2023, 71 hedge funds tracked by Insider Monkey reported having stakes in Intel Corporation (NASDAQ:INTC), up from 68 in the previous quarter. The consolidated value of these stakes is over $2.55 billion. With over 11 million shares, Millennium Management was the company's leading stakeholder in Q2.
ClearBridge Investments mentioned INTC in its Q3 2023 investor letter. Here is what the firm has to say:
“We also added to our position in Intel Corporation (NASDAQ:INTC) to take advantage of signs that it continues to make progress on its goal of regaining technology leadership. Intel appears to be executing its technology/product roadmap; the company is on track to ramp up PC and server products over the next 12 months on advanced manufacturing nodes that we believe will be more competitive with chief rival Advanced Micro Devices. We also see green shoots in the PC and server markets, with an increasing possibility of a cyclical recovery in both end markets in 2024.”
West Pharmaceutical Services, Inc. (NYSE:WST) is a global company that specializes in the design and manufacture of packaging and delivery systems for pharmaceuticals, biologics, and medical devices. The company declared a 5.3% increase in its quarterly dividend on October 26 to $0.20 per share. This was the company's 31st consecutive year of dividend growth, which makes WST one of the best dividend stocks on our list. The stock has a dividend yield of 0.25%, as of October 27.
In the third quarter of 2023, West Pharmaceutical Services, Inc. (NYSE:WST) reported revenue of $747.4 million, up 8.8% from the same period last year. The company's operating cash flow for the first nine months of FY23 came in at $537.4 million and its free cash flow amounted to $284.1 million.
At the end of Q2 2023, 39 hedge funds in Insider Monkey's database owned stakes in West Pharmaceutical Services, Inc. (NYSE:WST), growing from 37 in the previous quarter. These stakes have a consolidated value of more than $1.4 billion. With roughly 1.3 million shares, Durable Capital Partners was the company's largest stakeholder in Q2.
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is next on our list of the best dividend stocks. The stock will be trading ex-dividend on November 13. The multinational retail pharmacy and healthcare company has raised its dividends for 47 consecutive years. It currently offers a quarterly dividend of $0.48 per share and has a dividend yield of 8.98%, as of October 27.
At the end of Q2 2023, Ariel Investments was the largest stakeholder of Walgreens Boots Alliance, Inc. (NASDAQ:WBA). Overall, 34 hedge funds tracked by Insider Monkey held stakes in the company in Q2, with a collective value of over $440.8 million.
The Gorman-Rupp Company (NYSE:GRC) is a leading American manufacturer of pumps and pumping systems. The company specializes in designing, manufacturing, and selling a wide range of pumps and related products for various industries and applications.
On October 26, The Gorman-Rupp Company (NYSE:GRC) declared a 3% hike in its quarterly dividend to $0.18 per share. Through this increase, the company stretched its dividend growth streak to 51 years, which makes GRC one of the best dividend stocks on our list. The stock's dividend yield on October 27 came in at 2.28%.
In the third quarter of 2023, The Gorman-Rupp Company (NYSE:GRC) reported revenue of $167.5 million, which saw an 8.9% growth from the same period last year. The company's operating cash flow for the period came in at $71.7 million.
At the end of Q2 2023, 8 hedge funds owned stakes in The Gorman-Rupp Company (NYSE:GRC), the same as in the previous quarter, as per Insider Monkey's database. The total value of these stakes is over $25.6 million.
An American energy company, Exxon Mobil Corporation (NYSE:XOM) is next on our list of the best dividend stocks to buy in November. In the third quarter of 2023, the company reported a strong cash position with its operating cash flow standing at $16 billion. Moreover, it returned $8.1 billion to shareholders through dividends during the quarter.
Exxon Mobil Corporation (NYSE:XOM) declared a 4.4% hike in its quarterly dividend to $0.95 per share on October 27. This marked the company's 41st consecutive year of dividend growth. The stock currently offers a dividend yield of 3.46%.
At the end of the June quarter of 2023, 71 hedge funds in Insider Monkey's database reported having stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 73 in the previous quarter. The total value of these stakes is over $3.08 billion.
ALLETE, Inc. (NYSE:ALE) is an American diversified energy company that operates in various sectors of the energy industry and provides a range of energy-related services. The company has been paying regular dividends to shareholders for the past 73 years and currently pays a quarterly dividend of $0.6775 per share. As of October 27, the stock has a dividend yield of 5.17%. It will be trading ex-dividend on November 14.
Walmart Inc. (NYSE:WMT), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV) are some other dividend stocks to consider alongside ALE.
The number of hedge funds tracked by Insider Monkey owning stakes in ALLETE, Inc. (NYSE:ALE) jumped to 21 in Q2 2023, from 9 in the preceding quarter. These stakes hold a collective value of more than $90.2 million. Among these hedge funds, Zimmer Partners was the company's leading stakeholder in Q2.
