10 Best June Dividend Stocks To Buy

In this article, we discuss 10 best June dividend stocks to buy now.

Apart from their significant contribution to the market’s overall returns, dividend stocks can also potentially be beneficial in an inflationary environment. In 2022, consistent interest rates hike jolted the market, which made investors seek solace in the dividend stocks with growth potential. The S&P 500 declined by over 18% last year, compared with a 6.21% drop in the S&P 500 Dividend Aristocrats, an index that tracks the performance of the S&P 500 companies with at least 25 years of consistent dividend growth.

The popularity of dividend stocks has varied over time based on market conditions and investor preferences. Investments in growth stocks surged in the early 2000s because investors were drawn to companies with high growth potential, even if they didn’t offer any dividends. However, with the onset of the Global Financial Crisis of 2008, dividend stocks witnessed a renewed interest. CNBC reported that the S&P 500 companies paid $207 billion to investors in dividends in 2010, showing a 5.6% growth from 2009. The amount has grown tremendously over the years, reaching its record high of $561 billion in 2022, as reported by S&P Dow Jones Indices.

The continuous growth in dividend payments throughout these years shows that investments in dividend-growth stocks can be a reliable option during different market conditions. These stocks can be a hedge against inflation and can also offer long-term capital appreciation potential. Various studies have highlighted that dividend growth has outpaced inflation historically. In 25 Things Every Dividend Investor Should Know, we cited BlackRock’s data, which revealed that dividends paid by US companies from 1971 to 2021 grew by 3.7% per year on average, compared with a 2% growth in inflation per year.

Analysts also advise investing in companies with strong dividend growth track records. Kristen Bitterly, head of North America for Citi Global Wealth, spoke with Bloomberg about the importance of dividend growers. She said that her firm prefers well-established companies that are less sensitive to changes in economic conditions. She further mentioned that dividend aristocrats have outperformed the market in 25 of the last 32 years. McDonald’s Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) are some of the best dividend stocks that have consistently rewarded shareholders with growing dividends.

Also read: 15 Best Large-Cap Dividend Growth Stocks To Buy Now

The Dividend Capture Strategy

In addition to investing in dividend growers to generate regular income, investors also follow a dividend capture strategy. The method involves buying dividend stocks just before their ex-dividend dates and selling shortly after. Through this, investors can capture dividend payments without necessarily holding the stock for the long term. To learn more about this, readers can have a look at Dividend Capture Strategy Stocks To Buy.

Photo by Karolina Grabowska from Pexels

Our Methodology:

For this list, we selected prominent dividend stocks that will trade ex-dividend in June 2023. Ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. The list is ranked chronologically, with earlier dates appearing first and later dates following in order.

10. The Allstate Corporation (NYSE:ALL)

Ex-Dividend Date: June 1

Dividend Yield as of May 27: 3.25%

The Allstate Corporation (NYSE:ALL) is an Illinois-based insurance company that specializes in supplemental insurance coverage. In the first quarter of 2023, the company reported revenues of $13.8 billion, which beat analysts’ estimates by $110 million. Its net investment income for the quarter came in at $575 million. The stock will be trading ex-dividend on June 1.

On May 22, The Allstate Corporation (NYSE:ALL) declared a quarterly dividend of $0.89 per share, which was in line with its previous dividend. In 2023, the company stretched its dividend growth streak to 15 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 3.25%, as of May 27.

In addition to ALL, McDonald’s Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) are some other best dividend stocks to consider.

The Allstate Corporation (NYSE:ALL) attracted positive ratings from Street analysts after posting strong quarterly earnings. In May, BofA lifted its price target on the stock to $149 and kept a Buy rating on the shares.

The Allstate Corporation (NYSE:ALL) was a popular buy among hedge funds at the end of Q1 2023, as 49 hedge funds in Insider Monkey’s database owned stakes in the company, up from 37 a quarter earlier. These stakes have a collective value of over $692 million.

Diamond Hill Capital made the following comment about The Allstate Corporation (NYSE:ALL) in its Q1 2023 investor letter.

“Elsewhere in financials, the stocks of two of our insurance holdings – AIG and The Allstate Corporation (NYSE:ALL) – came under pressure we believe due to the negative sentiment in the sector generally. These businesses are very different from banks, and we continue to have strong conviction in their ability to grow intrinsic value over the long term. In fact, Allstate is a new position that we added to the portfolio in Q1. It is one of the largest providers of auto and homeowners’ insurance in the United States. Allstate has a strong brand and significant scale advantages over smaller peers. Recent results have been pressured by rising claims costs across the industry; however, we believe that price changes instituted by the company will drive improvement to more normalized levels over the next couple of years.”

9. McDonald’s Corporation (NYSE:MCD)

Ex-Dividend Date: June 2

Dividend Yield as of May 27: 2.13%

McDonald’s Corporation (NYSE:MCD) is a multinational fast food chain that deals in a wide range of other menu items. Loop Capital reiterated its Buy rating on the stock in May with a $346 price target, noting the company’s same-store sales growth over the past quarters. MCD is among the best dividend stocks on our list.

In the first quarter of 2023, McDonald’s Corporation (NYSE:MCD) reported a 12.6% year-over-year growth in its global comparable sales. The company’s revenue for the quarter amounted to roughly $6 billion, which showed a 4.10% growth from the same period last year. Its ex-dividend date is June 2.

McDonald’s Corporation (NYSE:MCD) pays a quarterly dividend of $1.52 per share for a dividend yield of 2.13%, as recorded on May 27. The company has been growing its dividends for 46 years running.

At the end of Q1 2023, 64 hedge funds tracked by Insider Monkey reported having stakes in McDonald’s Corporation (NYSE:MCD), up from 57 in the previous quarter. These stakes have a consolidated value of over $4 billion.

8. Brown-Forman Corporation (NYSE:BF-B)

Ex-Dividend Date: June 7

Dividend Yield as of May 27: 1.33%

Brown-Forman Corporation (NYSE:BF-B) is next on our list of the best dividend stocks for June. The American distilleries company announced a $0.2055 per share in quarterly dividends on May 25. It has been making regular dividend payments to shareholders for the past 79 years while maintaining a 39-year streak of dividend growth. The stock has a dividend yield of 1.33%, as of May 27.

In fiscal Q3 2023, Brown-Forman Corporation (NYSE:BF-B) generated $1.08 billion in revenues, which saw a 3.8% growth from the prior-year period. The company’s operating cash flow for the quarter stood at $410 million. BF-B will be going ex-dividend on June 7.

As of the close of Q1 2023, 29 hedge funds in Insider Monkey’s database reported having stakes in Brown-Forman Corporation (NYSE:BF-B), worth over $1.5 billion collectively. With over 12.2 million shares, Fundsmith LLP was the company’s leading stakeholder in Q1.

7. Altria Group, Inc. (NYSE:MO)

Ex-Dividend Date: June 14

Dividend Yield as of May 27: 8.43%

Altria Group, Inc. (NYSE:MO) is a Virginia-based company that specializes in the production of cigarettes, tobacco, and other related products. The company is among the best dividend stocks on our list because of it has remained committed to its shareholder obligation over the years. In the first quarter of 2023, the company returned $1.7 billion to shareholders in dividends.

Altria Group, Inc. (NYSE:MO) is a Dividend King with 53 years of consistent dividend growth. The company currently pays a quarterly dividend of $0.94 per share and has an above-average high dividend yield of 8.43%, as of May 27.

Stifel initiated its coverage on Altria Group, Inc. (NYSE:MO) with a Buy rating and a $52 price target. The firm acknowledged the company’s earnings growth and investments in smoke-free developments.

At the end of March 2023, 49 hedge funds tracked by Insider Monkey owned positions in Altria Group, Inc. (NYSE:MO), up from 45 in the previous quarter. These stakes have a total value of over $1.13 billion.

Here is what Broyhill Asset Management said about Altria Group, Inc. (NYSE:MO) in its Q4 2022 investor letter.

“We rebalanced our tobacco exposure during the year, reducing our investment in Altria Group, Inc. (NYSE:MO) as the future of the company’s combustible cigarette business became increasingly questionable given pending US legislation and a lackluster portfolio of reduced risk products. We reinvested the proceeds in Philip Morris so that relative position sizing is more consistent with our increased conviction.”

6. Best Buy Co., Inc. (NYSE:BBY)

Ex-Dividend Date: June 14

Dividend Yield as of May 27: 4.95%

Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based consumer electronics company. Truist kept its Buy rating on the stock in May with a $77 price target, following the company’s recent quarterly earnings. DA Davidson also maintained its Buy rating on BBY this month.

On May 26, Best Buy Co., Inc. (NYSE:BBY) declared a quarterly dividend of $0.92 per share, which was consistent with its previous dividend. In March 2023, the company lifted its dividend for the tenth consecutive year. With a high dividend yield of 4.95%, BBY is one of the best dividend stocks on our list and it will be going ex-dividend on June 14.

Other best dividend stocks that are grabbing investors’ attention include McDonald’s Corporation (NYSE:MCD), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX).

According to Insider Monkey’s Q1 2023 database, 40 hedge funds owned investments in Best Buy Co., Inc. (NYSE:BBY), up from 33 in the previous quarter. These stakes are collectively worth over $491.4 million. AQR Capital Management was the company’s largest stakeholder in Q1.

5. Telephone and Data Systems, Inc. (NYSE:TDS)

Ex-Dividend Date: June 15
Dividend Yield as of May 27: 11.00%

Telephone and Data Systems, Inc. (NYSE:TDS) is an American telecommunication service company, based in Chicago. In the first quarter of 2023, the company reported mixed results as its revenue fell by 1.5% year-over-year at $1.3 billion. Its operating cash flow for the quarter came in at $46 million. For FY23, the company expects its service revenues to fall between $3.05 billion to $3.15 billion.

On May 19, Telephone and Data Systems, Inc. (NYSE:TDS) declared a quarterly dividend of $0.185 per share, which was in line with its previous dividend. The company has been rewarding shareholders with growing dividends for the past 48 years. The stock’s dividend yield on May 26 came in at 11%. One of the best dividend stocks on our list, TDS will be trading ex-dividend on June 15.

As per Insider Monkey’s database, 19 hedge funds owned stakes in Telephone and Data Systems, Inc. (NYSE:TDS) in Q1 2023, with a collective value of over $56.5 million. Mario Gabelli, Ken Griffin, and Richard Driehaus were some of the company’s major stakeholders in Q1.

4. American Tower Corporation (NYSE:AMT)

Ex-Dividend Date: June 15
Dividend Yield as of May 27: 3.45%

American Tower Corporation (NYSE:AMT) is an American real estate investment trust company that specializes in broadcast communications infrastructures. Barclays remained constructive on the company’s growth prospects in the coming quarters and lifted its price target on the stock in May to $233 with an Overweight rating on the shares.

American Tower Corporation (NYSE:AMT), one of the best dividend stocks, currently pays a quarterly dividend of $1.57 per share. The company holds an 11-year track record of consistent dividend growth. The stock has a dividend yield of 3.45% and will be going ex-dividend on June 15.

The number of hedge funds in Insider Monkey’s database owning stakes in American Tower Corporation (NYSE:AMT) grew to 65 in Q1 2023, from 61 in the previous quarter. The consolidated value of these stakes is over $3.2 billion.

ClearBridge Investments mentioned American Tower Corporation (NYSE:AMT)’s long-term growth prospects in its Q4 2022 investor letter.

“Real estate and communication services sectors generated positive returns but lagged others within the Russell 1000 Value Index. The Strategy benefited from its underweight in the real estate sector with American Tower Corporation (NYSE:AMT) as its only holding. REITs are generally perceived to be interest rate sensitive, which negatively impacted American Tower’s recent stock performance. However, we remain confident in the company’s highly durable and predictable business model, which is supported by long-term customer contracts and insatiable wireless data growth.”

3. Medtronic plc (NYSE:MDT)

Ex-Dividend Date: June 22
Dividend Yield as of May 27: 3.39%

Medtronic plc (NYSE:MDT) ranks third on our list of the best dividend stocks. It will be trading ex-dividend on June 22. The company hiked its dividend by 1.5% on May 25 to $0.69, which marked its 46th consecutive year of dividend growth. The stock’s dividend yield stood at 3.39% on May 27.

Medtronic plc (NYSE:MDT) recently announced earnings beat its fiscal Q4 2023 and FY23 report. In view of this, both Stifel and Evercore ISI raised their price targets on the stock in May to $92 and $100, respectively.

As of the close of Q1 2023, 52 hedge funds in Insider Monkey’s database were long Medtronic plc (NYSE:MDT). The collective value of stakes owned by these hedge funds is over $1.64 billion.

Carillon Tower Advisers mentioned Medtronic plc (NYSE:MDT) in its Q4 2022 investor letter and said:

“Medtronic plc (NYSE:MDT) announced disappointing clinical trial results for a new product in its pipeline and lowered its fiscal 2023 financial guidance due to lingering supply chain issues and slower than expected medical procedure recovery.”

2. Willis Towers Watson Public Limited Company (NASDAQ:WTW)

Ex-Dividend Date: June 29
Dividend Yield as of May 27: 1.48%

Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a multinational insurance company, with headquarters in London, UK. BMO Capital kept its Market Perform rating on the stock in May with a $230 price target, appreciating the company’s transformation over the years and its expense efficiency program.

Willis Towers Watson Public Limited Company (NASDAQ:WTW) offers a per-share dividend of $0.84 every quarter. The company’s dividend growth streak stands at seven years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 1.48%.

Willis Towers Watson Public Limited Company (NASDAQ:WTW) was a part of 42 hedge fund portfolios in Q1 2023, up from 36 in the previous quarter, as per Insider Monkey’s database. The collective worth of stakes owned by these funds is over $1.65 billion.

1. Air Products and Chemicals, Inc. (NYSE:APD)

Ex-Dividend Date: June 30
Dividend Yield as of May 27: 2.56%

Air Products and Chemicals, Inc. (NYSE:APD) tops our list of the best dividend stocks. The chemical industry company has raised its dividends for 41 years in a row. It currently pays a quarterly dividend of $1.75 per share and has a dividend yield of 2.56%. The stock will go ex-dividend on June 30.

At the end of Q1 2023, 48 hedge funds tracked by Insider Monkey had stakes in Air Products and Chemicals, Inc. (NYSE:APD), compared with 41 in the previous quarter. These stakes have a collective value of over $490.2 million.

You can also take a look at 13 Best Basic Materials Stocks to Buy Now and 11 Stocks with Heavy Insider Buying

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Disclosure. None. 10 Best June Dividend Stocks To Buy is originally published on Insider Monkey.