Tuesday, April 25, 2023

May 2023 Dividend Stock Watch List

As I'm writing this blog post on April 15th, it's my 26th birthday. The temperature here in Central Wisconsin is going to dip down to a high of just 34 degrees Fahrenheit on Monday, which is well below the average for this time of year.

With just two weeks left in April, let's take a look at three dividend stocks that are on my watch list for May 2023.

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Dividend Stock #1: Comcast (CMCSA)

The first dividend stock on my watch list for next month is Comcast (CMCSA). Readers can check out my October 2022 Dividend Stock Watch List blog post for more details on why I like the stock.

Basically, CMCSA offers a safe and market-beating 3.1% dividend yield to investors at the current $38 share price (as of April 15, 2023). Coupled with high-single-digit annual earnings growth prospects, this is a nice mix of income and growth. Best of all, the stock is trading at a forward P/E ratio of just 10.4 based on the average analyst EPS estimate of $3.66 for 2023.

Dividend Stock #2: Home Depot (HD)

The next dividend stock on my watch list for May is Home Depot (HD). Interested readers can peruse my Motley Fool article on the stock from last month for the specifics of my investment thesis.

In a nutshell, HD's market-topping 2.9% dividend yield is sustainable. Home ownership doesn't seem as though it will be going out of style anytime soon, which should lead to fairly steady revenue for the home improvement retail industry that HD leads. Finally, analysts anticipate that HD will generate $15.82 in 2023 EPS. Against the current $293 share price (as of April 15, 2023), this equates to a reasonable forward P/E ratio of 18.5.

Dividend Stock #3: Texas Instruments (TXN)

The third dividend stock on my watch list for next month is Texas Instruments (TXN). My investment thesis remains unchanged from last August.

Electronics like smartphones and laptops are becoming a bigger part of our personal and business routines. And TXN's semiconductor chips are what make our modern life possible. This makes the stock's 2.8% dividend yield quite safe moving forward. At the current $180 share price, TXN's forward P/E ratio is sensible at 23.5 based on the average 2023 analyst EPS estimate of $7.63.

Concluding Thoughts:

I expect to again deploy between $3,000 and $3,500 in capital for the month of May. With at least high-single-digit annual dividend growth potential, the stocks on my watch list for next month arguably do a great job of balancing starting income with future growth.


Are any of CMCSA, HD, or TXN on your watch list for May 2023?

If not, what stocks are you monitoring for next month?

Thanks for reading. Please feel free to comment below!

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