5 Best Dividend Stocks to Buy in June
Just after Memorial Day, the S&P 500 at last reclaimed the 3,000 mark -- the first time it revisited that level since March 5.
While nothing is ever certain on Wall Street, and a host of pandemic-related challenges remain, the general mood among investors improved dramatically in May as signs of an economic recovery continued to emerge.
Now, as we enter June, it's worth highlighting a few dividends stocks that offer the stability of regular paydays along with hopes for short-term gains in the weeks ahead. Here are five companies to consider today:
[Read: How to Live on Dividend Income.]
-- Foot Locker (ticker: FL)
-- Janus Henderson Group (JHG)
-- Plains GP Holdings (PAGP)
-- Trinity Industries (TRN)
-- ViacomCBS (VIAC)
Foot Locker (FL)
It may seem dangerous to buy a brick-and-mortar retailer right now, but Foot Locker has surged about 50% from its lows at the beginning of April as the impact of the health crisis on its business outlook appears to have been exaggerated.
What's more, FL stock actually increased its dividend slightly from 38 cents to 40 cents per quarter, even as other consumer stocks were in a tailspin.
It's true that there's still uncertainty ahead, but these positive moves should give investors confidence at least in the near term.
Current yield: 5.5%
Janus Henderson Group (JHG)
Asset manager Janus Henderson isn't one of the major exchange-traded fund operators out there, such as BlackRock and its iShares fund family. However, the firm does operate a brisk business with high-net-worth private clients and institutional funds -- a business that offers much juicier margins than managing an index fund.
Recently, JHG has realized the importance of getting competitive in the ETF space by slashing fees to gain new business. This coupled with first-quarter earnings that impressed Wall Street analysts gives investors a strong prospective pick.
The stock offers both momentum as well as a big dividend as it enters June.
Current yield: 7%
Plains GP Holdings (PAGP)
Plains GP owns and operates midstream energy infrastructure focused on the transportation of crude oil and natural gas through pipelines, trucks and even barges.
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Additionally, the company owns an impressive 35 million barrels of above-ground tank capacity.
While energy prices have been volatile, the need for storage and transportation of fossil fuels has not changed. That adds up to reliable revenue to this "midstream" energy stock, even as the fate of other oil and gas firms remains uncertain.
Current yield: 12.1%
Trinity Industries (TRN)
A slightly different play than other picks here is Trinity Industries.
This railroad company provides tankers for oil and gas shipping as well as to chemical firms. Trinity also offers rail cars used by agriculture and metal firms.
Similar to PAGP, this logistics player is a crucial part of the global supply chain that hasn't suffered the same uncertainty as cyclical corners of the market. As all manner of commodity and industrial clients continue to rent Trinity cars, it passes on a piece of that cash to shareholders via regular dividends.
Current yield: 3.8%
ViacomCBS (VIAC)
Despite the recent personnel cuts at CBS, there are a few reasons why its parent company ViacomCBS has been in rally mode lately. To name a few reasons: a 0multiyear distribution deal with Alphabet ( GOOG, GOOGL) and its YouTube platform as well as news that lucrative live-sports programming will return in June.
On top of that, CBS is about to wrap up the 2019-2020 TV viewing season as the most-watched network in America for the 12th year running.
As many folks continue to stay home and enjoy entertainment on their flat-screens, VIAC will continue to thrive in the near term.
Current yield: 4.9%
