Dividend Stocks

There is a lot going on right now. Inflation is becoming a concern and the global supply chain has yet to recover from the pandemic, resulting in product shortages. Semiconductors continue to be in short supply, making supply woes worse — especially when it comes to consumer electronics and cars. The federal government is struggling to pass big bills. At times like this, many investors turn their attention to dividend stocks.

Companies that pay regular dividends tend to be stable and profitable. Their stocks suffer less from price volatility. This lowers your risk during uncertain times. These seven dividend stocks are among the best to buy in Q4, 2021.

  • AbbVie (NYSE:ABBV)
  • Aflac (NYSE:AFL)
  • Allstate (NYSE:ALL)
  • Cincinnati Financial Corporation (NASDAQ:CINF)
  • Interpublic Group of Companies (NYSE:IPG)
  • Omnicom Group (NYSE:OMC)
  • Snap-on (NYSE:SNA)

Each of these dividend stocks is a proven performer that rates a solid “A” in Dividend Grader at the time of publication. You can save those dividend payments for a rainy day, or invest them in a higher-risk stock that might return higher growth.

Dividend Stocks to Buy: AbbVie (ABBV)

Source: Piotr Swat / Shutterstock.com

AbbVie describes itself as a “research-driven biopharmaceutical company.” Its name may not have the same recognition as other companies in this space, but AbbVie is no startup. It has 30,000 employees, sells its products in over 175 countries and has a market cap of $189.95 billion.

AbbVie has a wide range of drugs in production, including Lupron (versions used to treat prostate cancer, endometriosis and early-onset puberty). Its research focus is primarily in treatments for kidney disease, liver disease, neuroscience, oncology and women’s health. The company also has a cosmetic division that produces Botox. 

In its latest quarter, AbbVie reported revenue of $13.96 billion, a year-over-year increase of 33.9%. ABBV stock is up 27.5% over the past 12 months. And it’s on this list of dividend stocks to buy because the company’s dividend yield is 4.57%.

Aflac (AFL)

Source: Ken Wolter / Shutterstock.com

In tumultuous times, insurance companies tend to be reliable performers. They may not post spectacular gains, but your can count on them to at least hold their ground. Insurance isn’t considered a luxury, so while people may cut down on take-out food or movies in tough financial times, they’re reluctant to reduce or cancel insurance coverage.

Georgia-based Aflac reported revenue of $11.4 billion for the first six months of 2021, an 8.2% YoY increase. Over the past 5 years, AFL stock has delivered a 60% return. Not spectacular, but not bad — and it’s relatively low risk. In addition, Aflac has been paying dividends like clockwork since the early 1990s. The current dividend yield for AFL stock is 2.33%.

Dividend Stocks to Buy: Allstate (ALL)

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Allstate is another well-known American insurance company. Founded in 1931, it was spun off as a standalone company in 1993. And it has been paying regular dividends ever since. The latest quarterly dividend announced was 81 cents, payable on Oct. 1. This was 50% higher than what the company paid out a year ago, “reflecting the board’s confidence in Allstate’s capital position and earnings prospects.”

In addition to a 2.34% dividend yield that landed it on this list of dividend stocks, ALL stock has been a decent growth stock as well. Over the past 5 years, investors have enjoyed an 87% return.

Cincinnati Financial (CINF)

Source: Shutterstock

How about a third insurance company for the list? Founded in 1950, Cincinnati Financial is primarily involved in business, personal and life insurance. In its most recent quarter, the company reported net income down 23% YoY. That was explained as being ongoing volatility in investment gains and losses caused by a change in accounting methods adopted in 2018.

Despite the ongoing accounting headache, CINF stock is up 39% so far in 2021. More importantly, in the context of this list, the company pays a regular quarterly dividend. Most recently, that was a payment of 63 cents per share made on Oct. 15. That put CINF’s dividend yield at 2.07%. The company noted that this payment marks 61 straight years of increasing annual cash dividends. In other words, you can count on receiving that quarterly check and you can count on it getting bigger every year.

Dividend Stocks to Buy: Interpublic Group (IPG)

Source: Pavel Kapysh / Shutterstock.com

Even in difficult times, companies advertise their products. Perhaps even more so, as they compete for consumer dollars. That makes the Interpublic Group a safe investment. Interpublic is comprised of collection of marketing and advertising firms. In all, it operates 90 groups in 100 countries worldwide.

IPG stock had been holding steady since 2017, but it took off during the pandemic. Since the market crash last March, IPG is up 205%, and it has gained over 50% from pre-pandemic levels. The company reported that revenue was up 22.5% in the first half of 2021 compared to the same period a year ago. Business is strong enough to upgrade its guidance for the remainder of the year. IPG is also paying dividends to investors, with a 2.86% dividend yield.

Omnicom Group (OMC)

Source: Artur Szczybylo via Shutterstock

Like the Interpublic Group, the Omnicom Group is a global group of marketing agencies. This one is made up of over 1,500 agencies across 70 countries. They count more than 5,000 clients on their roster.

In its latest quarter, Omnicom reports its revenue is bouncing back from the hit it took during the worst of the pandemic. It was up 27.5% in Q2 compared to Q2 2020.

OMC stock was hit hard by the 2020 market crash and continued to struggle through last year. In fact, it didn’t bottom out until the end of October. However, since then, it has been in recovery mode. Over the past 12 months, shares have increased in value by 50%.

Why is OMC on a list of dividend stocks? The company paused its quarterly dividend for the first half of 2020 as it weathered the pandemic’s impact. However, it had a solid payment history before that. Omnicom not only resumed its dividend last October, it increased the payment starting in 2021. At this point OMC has a 3.66% dividend yield. 

Dividend Stocks to Buy: Snap-on (SNA)

Source: RMC42/ShutterStock.com

Time for a company that has nothing to do with insurance, marketing or biotech. 

Snap-on is a company with a long history (dating back to 1920) and an almost “captive” market. It’s the go-to supplier of professional tools for industries like auto repair. True, there are concerns that electric cars will require less maintenance and, therefore, cut into the auto mechanic business. However, over the years, Snap-on has diversified, expanding into markets like aircraft maintenance, electronic parts catalogs for OEMs, credit offerings for customers and even home tools.

SNA stock has delivered a return of 54% so far in 2021. It continued to pay a quarterly dividend through 2020, even raising the payment substantially from 2019 level. Last November, the company announced it was hiking that dividend again to $1.23 per share. That was a 13.9% increase and brings SNA’s current dividend yield to 2.28%.

On the date of publication, Louis Navellier had a long position in ABBV and CINF. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (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.

Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.

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