If You Can Only Buy One Dividend Stock in April, It Better Be One of These 3 Names

Looking ahead, the future of the US economy is shaped by ongoing debates over interest rate policy and inflation. Recent robust economic data has led investors to anticipate fewer interest rate cuts by the U.S. Federal Reserve in 2024. This has caused a reversal from earlier expectations of more aggressive cuts. This shift reflects a growing belief that the economy’s strength might warrant less monetary easing than previously thought. The Fed’s response to inflation and economic growth will remain as key factors influencing market sentiment and investment decisions in the coming months. With a bit of market uncertainty, it’s best you diversify into some dividend stocks so you can ensure some strong returns. These three are some of the best dividend stocks to buy.

Enbridge (ENB)

Enbridge (NYSE:ENB) is an energy company that operates pipeline systems in Canada and the U.S. It offers oil and natural gas transport along with renewable energy.

Enbridge’s revenue declined by nearly 20% in 2023 compared to 2022, from $53.4 billion in 2022 to $42.8 billion in 2023. However, the company has massively increased its short-term investments by 559.87%, meaning it can quickly deploy its assets for future usage. This shows solid prospects for growth.

The renewable energy market in which Enbridge competes is expected to grow at a CAGR of 9.47%, reaching a valuation of $2450 billion by 2032. Urbanization will cause global power consumption to rise, thus leading to the increased demand for renewable energy.

Enbridge’s diversified portfolio of energy assets provides many opportunities for the company to expand into other markets. The firm has not restricted itself to only gas or renewable energy and instead has a mix of both types of resources. An example is its acquisition of U.S. gas utilities in 2023 and its recent acquisition of the East Ohio gas company.

Overall, Enbridge is one of the dividend stocks to buy for investors interested in energy.

T-Mobile (TMUS)

T-Mobile (NASDAQ:TMUS) is a leading telecommunication service provider. The company also facilitates the sale of wireless devices, including smartphones, wearables, tablets, etc. 

Profits have been rising consistently, with a record-breaking $8.32 billion in 2023. It has a profit margin of 10.59% and an operating margin of 21.01%. Those figures are particularly impressive given that Verizon (NYSE:VZ), its competitor, currently has a profit margin of -7.7%.

The global telecommunications sector is projected to grow at a CAGR of 6.2% from 2023 to 2030, reaching $2.8 trillion by 2030. Rising profits also encourage corporations to roll out dividends. T-Mobile started dividends at the end of Q4 2023, with an annual dividend yield of 1.62%. However, this figure is stated to rise at 10% annually.

High dividend growth is a great indicator for investors, spurring confidence in the company. Growing margins will only increase the dividend yield, contributing to this stock’s being a great buy for dividend-centric investors.

Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) is a multinational pharmaceutical company that develops innovative medicine and medical technology. Valued at $151.59, JNJ has grown 11.35% in the past five years.  

Johnson & Johnson dominates the pharmaceutical sector, with the largest market share being 49.1% of the Acne Treatment Industry. Thanks to this fact, it is one of the medical industry’s leaders, holds a mega market cap value of $373.52 billion as of 2024. 

Johnson & Johnson reports strong figures across the board in fiscal year 2023. The company received revenues of $85.16 billion with a YOY growth of 6.46%. More substantial figures include net income at $35.15 billion and diluted EPS of $13.72, growing at astronomical rates at 95.94% and 103.94%, respectively. 

JNJ has also been a dividend aristocrat for the past 60 years. The revenues and profits of JNJ have been highly stable due to its competitive advantage of having more experience in the pharmaceutical industry. Therefore, Johnson & Johnson ranks among the best dividend stocks to buy due to its strong history and predictable future growth. 

On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.