As I'm writing this blog post, it's already almost late March. But you wouldn't know it by the temperature here in Central Wisconsin. The high is expected to reach just 23 degrees Fahrenheit today (March 18, 2023).
With that in mind, now would be just as good of a time as any to look ahead to the next month. Let's dig into three dividend stocks on my watch list for April 2023.
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Dividend Stock #1: TJX Companies (TJX)
The first dividend stock on my watch list for April is TJX Companies (TJX). Readers seeking more detail on why I like the stock can check out my Motley Fool article from earlier this month.
In a nutshell, TJX offers income investors above-average starting income compared to the S&P 500 index. And with the company still opening tons of stores, double-digit earnings growth can also sustain similar dividend growth moving forward. Finally, the stock's current year price-to-earnings (P/E) ratio of 21.2 (at the current $74 share price as of March 18, 2023) isn't unreasonable for its quality.
Dividend Stock #2: Visa (V)
The next dividend stock on my watch list for next month is Visa (V). Anyone looking for my investment thesis on the stock can take a look at my Motley Fool article from February.
Basically, V is poised to be the biggest winner from the shift toward alternative payments. This is why double-digit earnings growth lies ahead for the company, which will power significant dividend growth. The stock's current year P/E ratio of 25.8 (at the current $217 share price as of March 18, 2023) is a sensible valuation.
Dividend Stock #3: Realty Income (O)
The third dividend stock on my watch list for April is Realty Income (O). Readers can check out my latest Motley Fool article on the stock here.
As dominant of a REIT as O is, the company has a lengthy growth runway remaining. This should lead to mid-single-digit annual AFFO per share growth in the future. Along with a generous dividend and rational valuation, this makes the stock a buy (at the current $62 share price).
April 2023 will (hopefully) be another month of capital deployment in the $3,000 to $3,500 range. As usual, I'm grateful to have the opportunity to buy so many wonderful businesses each month.
Are any of TJX, V, or O on your watch list for next month?
If not, what stocks are on your radar for April?
I appreciate your readership and look forward to your comments below!