As I'm writing this blog post, the temperatures here in Central Wisconsin reflect that of a pleasant summer with highs in the low-80s Fahrenheit and lows in the mid-50s Fahrenheit. Since it often gets oppressively hot and humid where I live, I'm very much enjoying the more ideal temperatures.
With that aside, I will finally be getting to the dividend stocks that are on my July 2021 watch list.
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Dividend Stock #1: Pinnacle West (PNW)
Dividend Stock #2: Clorox (CLX)
Dividend Stock #3: Kimberly Clark (KMB)
The third and final dividend stock on my watch list for July is Kimberly Clark, a large-cap consumer staple in its own right.
Kimberly Clark's reasonable payout ratio and fair operating fundamentals allowed the company to deliver a 6.5% increase to its quarterly dividend to start this year from the previous $1.07/share to $1.14/share.
Even after the solid dividend increase, Kimberly Clark's adjusted EPS payout ratio is positioned to be around 61% at the midpoint of its $7.40-$7.55 guidance for 2021, which strikes a nice balance between rewarding shareholders with immediate income and also retaining enough earnings to invest in growing the business.
Factoring in that Kimberly Clark is trading at 18 times this year's midpoint adjusted EPS and the 3.5% dividend yield is nearly triple that of the S&P 500's 1.3% (based on the $135.02 share price as of July 11, 2021), I believe that Kimberly Clark is another business trading right around fair value.
Kimberly Clark's 3.5% yield and 5.0-6.0% annual earnings growth make it a safe income play with dividend growth that will likely outpace inflation in the years ahead, which make it a solid buy in my opinion.
Since I have one week of earned and unused vacation pay from my day job coming my way, as well as my income from my Seeking Alpha and Motley Fool side hustles, I anticipate that I will have over $3,000 in capital to invest during July 2021.
I'm very excited to deploy my capital into the 3 businesses above, as well as several others to advance my net annual dividends to new heights. I anticipate that I will be investing over $3,000 in capital at an average weighted net yield of 3.5% in July, which would take my net annual forward dividends from about $1,780 to begin the month and just under $1,900 to head into August.
Are any of PNW, CLX, or KMB on your watch list for this month?
If not, what dividend stocks are on your watch list at this time?
Thanks for reading and I look forward to your comments in the comment section below!