5 Top Dividend Stocks for August 2021

Stock Market

Dividends are payouts from companies that share their profits with their investors. They offer a regular source of income that can increase over time. This makes them particularly attractive for long-term investments, as well as for older investors, in particular those reaching retirement, or already retired. Even a small dividend yield can result in impressive returns after many years. Dividends can also offer protection against market volatility, another reason that investors include these stocks in their portfolios.

Top Strong Buy Dividend Stocks

Using the TipRanks Dividend Calendar we searched for top stocks with an ex-dividend date in August 2021. Investors need to own the stock by the ex-dividend date to receive the next dividend payout. We focused on top dividend stocks with at least 5% (one has 4.98%, so we included it!) yield. Four out of the five stocks have a maximum Smart Score of 10 out of 10 according to our data-driven stock score.

We found five top stocks that matched these criteria.

Energy Transfer (ET)

Dividend yield: 6.08%
Ex-dividend date: August 5
Payout ratio: 61.22%
Payout date: August 19

Energy Transfer is one of the largest midstream energy companies in the U.S. The stock’s average price target of $13.88 indicates over 42% upside potential over the next 12 months.  Financial bloggers are also feeling optimistic, and news coverage of ET is very positive, according to our News Score.

Energy transfer analysis overview

NuStar Energy (NS)

Dividend yield: 9.66%
Ex-dividend date: August 5
Payout ratio: -113.23%
Payout date: August 12

NuStar transports petroleum products and anhydrous ammonia, and engages in terminalling, storage, and marketing petroleum products. The stock’s average price target of $20.33 shows upside potential of over 23%. Analysts, bloggers, and news sentiment may be bullish, however individual investors are less enthusiastic, with a drop of 25.3% in the number of portfolios holding the stock.

nustar analysis overview

OneMain Holdings (OMF)

Dividend yield: 15.11%
Ex-dividend date: August 5
Payout ratio: 72.91%
Payout date: August 13

Consumer finance company OneMain operates in the personal loan field. The stock has received 9 Buy ratings in the past three months, with no Hold or Sell ratings. It’s not just analysts who are bullish on the stock, six hedge funds added OMF to their holdings last quarter, while three opened new positions. Three hedge funds reduced their OMF holdings.

Phillips 66 (PSX)

Dividend yield: 4.98%
Ex-dividend date: August 17
Payout ratio: -63.75%
Payout date: September 1

Phillips 66 is a multinational energy company, based in Texas. It processes, transports, stores, and markets fuels and related products.  The stock has received eight Buy and two Hold ratings in the past three months. The average price target of $94.50 indicates almost 27% upside potential. This positive sentiment is being echoed by investors with a TipRanks Smart Portfolio. In the past 30 days there has been a 2.2% increase in the number of portfolios holding PSX.

Phillips stock analysis

Gladstone Commercial (GOOD)

Dividend yield: 6.54%
Ex-dividend date: August 20
Payout ratio: 2,054.79%
Payout date: September 31

Gladstone Commercial is a real estate investment trust that acquires, owns, and operates properties across the United States. Three analysts have given the stock a Buy rating in the past three months, and their average price target of $24.67 indicates close to 7% upside.

Dividend Yield & Dividend Payout

Companies determine dividend amounts per share. This can make it difficult for investors to compare the best dividend stocks. Imagine you invest $1,000 in 2 companies. One has shares that trade for $10, the other has shares that trade for $500. Both offer investors $2 per share in dividend payments. The solution to this is dividend yield. It shows dividend payment relative to share price as a percentage.

It is worth knowing the payout ratio of a dividend stock. This is the proportion of earnings a company pays out as dividends. If the ratio is over 100% this may mean that there is a possibility that a company will reduce its dividends.

See which other stocks have an ex-dividend date in August 2021.

Disclaimer: The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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