It’s great to own a growth stock like Amazon.com Inc. (NASDAQ: AMZN) or Alphabet Inc. (NASDAQ: GOOGL). But these companies aren’t paying dividends right now. That means you’re stuck relying on only share price growth to make money.
Our best dividend stock to buy might not be a well-known tech giant, but it leads two markets poised to grow nearly 100% by 2024. That means projected earnings growth of 154% for our top dividend stock pick.
Over the next four years, the smart home technology market is expected to be worth $151 billion - a 96% change from today’s $77 billion. And industrial automation is expected to hit $352.02 billion - it was $182 billion in 2015. That’s 93% industry growth over just nine years.
The company we’re talking about has a sizable stake in both markets, but it doesn’t stop there.
The International Energy Agency says that over 70% of the world’s electricity will be generated by renewables in 2023. That’s right - the best among our favorite dividend stocks is also a key beneficiary of the renewable energy wave.
And even before this stock gets a bump from three booming industries, this company pays a 2.96% dividend yield, which is more than the interest on your average savings account.
So if you want to make money regularly from simply holding a stock, this is one of the top dividend-paying stocks around.
It’s a Fortune 500 firm with 125 years of experience. It employs over 75,000 people worldwide. And analysts expect shares to jump 30% for the rest of 2019.
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Yep, it delivers both a solid dividend yield and growth prospects.
More importantly, though, this stock scores spectacularly on our proprietary Money Morning Stock VQScore™ system with a perfect 4.45. That means it’s in prime position for a breakout.
Here’s the play - and why this is the best dividend stock to buy…
Why This Is the Best Dividend Stock to Buy Right Now
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St. Louis-based Emerson Electric Co. (NYSE: EMR) started out making the first electric fans in the United States, plus power tools and sewing machines.
The company has had many upgrades since then, expanding its award-winning technology to smart homes, clean energy, and much more.
Emerson’s smart thermostat, the Sensi Touch, for example, received top honors from USA Today, thanks to simple installation and an easy-to-use mobile app.
Emerson also helps businesses that need automation to increase productivity or reduce costs. When craft brewer Deschutes, an Oregon-based company, was looking to expand, EMR customized its automation system, the DeltaV, and raised the company’s production to 300,000 barrels from 100,000, while still preserving quality.
Today, Deschutes has expanded to the East Coast, developed new products, and is now a craft brewery industry leader. None of it would have been possible without EMR’s products and services.
Emerson also provided technology that allowed a chain of convenience stores to monitor all of its 582 store refrigerators from a central location. Previously, each individual refrigerator had to be checked four times a day by store employees. The new system is based in the cloud and reports refrigerator temperatures and analytics to managers.
Emerson has a dedicated market in North America and a strong presence in Latin America and Asia.
EMR’s earnings per share (EPS) has climbed 31% over the past year. But FactSet reports it will increase a total of 154% in the next four.
Emerson’s board of directors is taking advantage of that strength through a stock buyback program. They’ve repurchased $1 billion of EMR stock just this year, indicating that the board sees the stock as undervalued.
Most analysts rate EMR stock a “Buy” or “Overweight,” according to FactSet. Melius Research has a target price of $97, which would represent 49% growth from today’s price.
And of course, the current dividend yield is 2.96% on the company’s $1.96 quarterly dividend. That’s above the yields on money market funds and certificates of deposit.
So EMR is a top dividend-paying stock because it is poised to benefit from three strong growth trends, a nice dividend yield, robustly rising earnings, and a perfect VQScore.
That makes it one of the best stocks to buy in July.
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