5 of the Best Dividend Stocks to Buy in June

Lou Carlozo

Weddings, graduations, picnics. June gives everyone ample reason to get pumped. That means popping open a cold Bud, getting those Rubbermaid containers ready and saluting those fine coal marketing folks. And you thought we were talking about a cookout, though in theory someone could fire up the grill with coal.

Or, you can see these products and services the way market mavens do, as investments worthy of a summer shindig. Indeed, it's a good time to expand your horizons as a dividend stock investor, as the market remains bullish, inflation sheepish and Federal Reserve interest rate hawks skittish.

[See: 10 of the Best Stocks to Buy for 2019.]

Here are five dividend stocks to buy this month, all of which look ready to simmer this summer:

-- Alliance Resource Partners (ticker: ARLP)

-- Anheuser-Busch InBev (BUD)

-- Home Depot (HD)

-- Newell Brands (NWL)

-- Phillips 66 (PSX)

Alliance Resource Partners (ARLP)

Chances are you've never heard of this Tulsa-based company, even if you live in Tulsa, Oklahoma. A limited partnership, ALRP cuts a low profile in the energy sector, producing and marketing coal to U.S. utilities and industrial users; it also holds coal reserves in Illinois, Indiana, Kentucky, Maryland and West Virginia. You could say that the stock has been on a "coal-er coaster," as it's spiked and dipped roughly a dozen times over the last 12 months between $17 and $21 per share. Right now, it's at a low point -- $17.39 cents per share through Memorial Day -- but it still has an analyst price target set at $26.

"It is trading at the low end of their historical valuation on both a price-to-book, price-to-cash flow, and low relative price-to-earnings," says John Essigman, managing member at John Essigman Wealth Advisors in Cleveland, Georgia. Since mid-2016, the dividend has climbed steadily to 53.5 cents per share. That adds up to a dividend yield of more than 12 percent, which makes ALRP hard to ignore.

Anheuser-Busch InBev (BUD)

With indie craft beer making major inroads with young adults, BUD hit a five-year low on Dec. 21, trading at $66.39 per share. It's since climbed back on the beer wagon, rising 24 percent to its current price of $83. Known also for its Corona and Beck's brands, Anheuser-Busch InBev owes its rising fortunes in part to its growing global footprint. That has moved Anheuser-Busch firmly into the "strong buy" category for five out of seven analyst firms, with one each labeling it a "hold" and an "underperform."

[Read: Is Income Investing for You?]

This year, BUD will distribute its dividends in June and December. June's payout is 82.9 cents per share; historically, its winter disbursement is always smaller. "BUD currently boasts an annual dividend yield of 4 percent," says Kenneth Ameduri, financial analyst and CEO of CrushTheStreet.com. "That's a great rate for savers even if you're living a non-alcoholic lifestyle."

Home Depot (HD)

The home improvement sector has experienced robust growth over the last decade, and Home Depot has helped investors to build nest eggs as well as spare bedrooms. Sixty percent of analyst firms rate the stock a "strong buy" at its current price of $194 per share, and there's plenty of room to grow as the stock has ticked up just under 3 percent year over year.

"The dividend yield is 2.7 percent, compared to 1.9 percent for the S&P 500," says Kian Salehizadeh, senior analyst at Blockforce Capital in San Diego. Using Blockforce's DIVCON rating scale for dividend stocks, HD scores a five out of five. "The company has been consistently increasing dividends over the last decade." In fact, dividends have more than tripled since 2013, when the quarterly payout was 39 cents per share. The most recent dividend, at the end of March, netted investors $1.36 per share.

Newell Brands (NWL)

While the actual number of colors in a complete set of Sharpie markers is open to debate, there's more permanence in this company's dividend, which has soared from 5 cents per share in 2009 to 23 cents today. Aside from the Sharpie brand, Newell also owns the investor's equivalent of aisle three at the chain pharmacy store: Rubbermaid, Krazy Glue, Bicycle Playing Cards and Yankee Candle. They're all "well-recognized, unsexy brands," says Robert Johnson, professor of finance at Creighton University's Heider School of Business.

And like a Yankee Candle burning down to the wick, NWL has had a drippy 12 months, falling 40 percent to $15 per share. "It is out of favor, but analysts that follow this company expect it over the next five years to grow earnings at an average annual rate of 4.87 percent," Johnson says. Among those betting on Newell is activist investor Carl Icahn. "He has a large stake in NWL, so expect the firm to make changes to improve performance."

Phillips 66 (PSX)

Many energy companies have yet to shake off the sector-wide funk, and among those hard hit is this Houston-based company, which takes its name and familiar shield logo from the one-time service station giant, but is actually an energy spinoff of ConocoPhillips ( COP). PSX began trading on the New York Stock Exchange in 2012; it deals in natural gas, petrochemicals, aviation and motor fuels and lubricants.

[Read: How to Understand Undervalued Stocks.]

"The company has been consistently increasing dividends since 2012," Salehizadeh says. In fact, it essentially tripled to the current quarterly award of 90 cents per share. And while the stock's performance may look glum for now, just wait. "The company's earnings per share almost tripled -- 196 percent growth -- compared to the previous year." Perhaps spooked by the industry's lingering woes, two analysts rate PSX an "underperform" and "sell," respectively. But while another seven sit on the "hold" fence, four analysts call PSX a "strong buy."