Combat Market Volatility With These Top Dividend Stocks For September

September is historically an underperforming month for stocks. However, this September has been the worst September for the stock market in 18 years. Although the markets have been on quite a run since it bottomed in March, the S&P and Nasdaq NDAQ , which hit all-time highs just 3 weeks ago, are well off these highs now, and have slogged through a tough stretch. Although tech and growth stocks led the rally ever since the market hit its bottom, there are many concerns now that valuations may be overstretched, and we may be approaching dotcom bubble territory. That is why investors must look at all options when creating a more diverse and more stable portfolio that offers consistent income streams. One of the best ways investors can do that, is through investing in high quality companies that pay strong dividends. Our Artificial Intelligence (“AI”) algorithms at Q.ai have identified some of these standout dividend stocks, which have largely been overlooked and undervalued. Our AI systems identified four stocks as Top Buys, two as Attractive, and two as Neutral. No stocks were rated as Unattractive or Top Shorts this month. These dividend paying stocks may be a safer bet than the overheated tech names and have been high quality names for some time now. These are the Top Dividend Stocks for this month.

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Top Buy

From our list of Top Dividend stocks, we identified four Top Buys this month.

Home Depot Inc (HD), Lowe’s Cos Inc (LOW)

Our first two Top Buys for this month are direct competitors that have really benefited from COVID due to more people at home, and people having a lot more time on their hands for DIY projects- Home Depot HD and Lowe’s. Both of these companies are extremely successful in their space, and are retail mainstays. Our AI systems rate Home Depot C in Technical, B in Growth, A in Momentum Volatility, and B in Quality Value. The stock closed down 1.03% to $272.35 on volume of 3,547,977 vs its 10-day price average of $277.07 and its 22-day price average of $280.76, and is up 23.99% for the year. Revenue was $110225.0M in the last fiscal year compared to $100904.0M three years ago, Operating Income was $15843.0M in the last fiscal year compared to $14681.0M three years ago, and EPS was $10.25 in the last fiscal year compared to $7.29 three years ago. Trading with a Forward 12M P/E of 23.52. Lowe’s ratings and numbers are very comparable to Home Depot. Our AI systems have rated Lowe’s C in Technical, A in Growth, B in Momentum Volatility, and B in Quality Value. The stock closed down 0.31% to $159.6 on volume of 3,929,497 vs its 10-day price average of $161.79 and its 22-day price average of $163.3, and is up 32.49% for the year. Revenue was $72148.0M in the last fiscal year compared to $68619.0M three years ago, Operating Income was $6579.0M in the last fiscal year compared to $6586.0M three years ago, and EPS was $5.49 in the last fiscal year, and compares to $4.09 three years ago. ROE was also a healthy 152.46% in the last year compared to 56.02% three years ago. The stock is currently trading with a Forward 12M P/E of 19.92.

General Dynamics Corp (GD), Lockheed Martin Corp (LMT)

The next two companies on our Top Buy list are also direct competitors in the aerospace and defense industry- General Dynamics GD and Lockheed Martin LMT . Although both stocks are down for the year, with General Dynamics down 22.47%, and Lockheed Martin down 4.95%, our AI systems like both of these companies, and see them as strong buys. Our AI systems have rated General Dynamics B in Technical, C in Growth, A in Momentum Volatility, and B in Quality Value. General Dynamics closed down 3.26% to $138.33 on volume of 1,373,662 vs its 10-day price average of $144.64 and its 22-day price average of $148.37. The company’s revenue was $39350.0M in the last fiscal year compared to $30973.0M three years ago, Operating Income was $4664.0M in the last fiscal year compared to $4177.0M three years ago, EPS was $11.98 in the last fiscal year compared to $9.56 three years ago, and ROE was 27.53% in the last year compared to 26.79% three years ago. Forward 12M Revenue is also expected to grow by 2.13% over the next 12 months, and the stock is trading with a Forward 12M P/E of 11.72. Our AI systems have rated Lockheed Martin B in Technical, B in Growth, A in Momentum Volatility, and A in Quality Value. Lockheed closed down 3.93% to $379.61 on volume of 1,447,716 vs its 10-day price average of $388.66 and its 22-day price average of $390.29. Revenue was $59812.0M in the last fiscal year compared to $49960.0M three years ago, Operating Income was $7698.0M in the last fiscal year compared to $5593.0M three years ago, EPS was $21.95 in the last fiscal year compared to $6.75 three years ago, and ROE was 269.7% in the last year compared to 455.42% three years ago. Forward 12M Revenue is expected to grow by 2.82% over the next 12 months, while the stock is currently trading with a Forward 12M P/E of 14.94.

Attractive

Metlife Inc (MET), Ameriprise Financial Inc (AMP)

Our systems have identified two stocks rated as Attractive this month. Both are mainstays in the financial space, and offer diversified financial services for clients: Metlife Inc. and Ameriprise Financial AMP . Our AI systems have assigned ratings of A in Technical, D in Growth, B in Momentum Volatility, and A in Quality Value to Metlife. Metlife closed down 5.65% to $37.43 on volume of 7,868,056 vs its 10-day price average of $38.25 and its 22-day price average of $38.39, and is down 27.49% for the year. Revenue was $69620.0M in the last fiscal year compared to $62308.0M three years ago, Operating Income was $7856.0M in the last fiscal year compared to $4838.0M three years ago, EPS was $6.06 in the last fiscal year compared to $3.62 three years ago, and ROE was 9.9% in the last year compared to 7.91% three years ago. Forward 12M Revenue is expected to grow by 7.13% over the next 12 months, and the stock is trading with a Forward 12M P/E of 6.29. Our AI systems have rated Ameriprise Financial B in Technical, C in Growth, C in Momentum Volatility, and A in Quality Value. The stock closed down 4.64% to $150.39 on volume of 913,033 vs its 10-day price average of $153.42 and its 22-day price average of $155.4, and is down 11.13% for the year. Revenue was $12890.0M in the last fiscal year compared to $12180.0M three years ago, Operating Income was $3038.0M in the last fiscal year compared to $3125.0M three years ago, EPS was $13.92 in the last fiscal year compared to $9.44 three years ago, and ROE was 33.45% in the last year compared to 24.09% three years ago. Forward 12M Revenue is also expected to grow by 3.08% over the next 12 months, and the stock is currently trading with a Forward 12M P/E of 8.86.

Neutral Rated          

JP Morgan Chase & Co (JPM), Citigroup Inc (C)

On our list of Neutral rated dividend stocks are two more stocks in the financial sector. These stocks are two banking giants, and two of the most well-known dividend paying banking stocks in the markets today: JP Morgan JPM and Citigroup C . Our AI systems have rated JP Morgan A in Technical, D in Growth, C in Momentum Volatility, and F in Quality Value. The stock closed down 3.09% to $95.31 on volume of 28,378,770 vs its 10-day price average of $99.54 and its 22-day price average of $100.08, and is down 32.45% for the year. Revenue was $110041.0M in the last fiscal year compared to $94745.0M three years ago, Operating Income was $44784.0M in the last fiscal year compared to $35220.0M three years ago, EPS was $10.72 in the last fiscal year compared to $6.31 three years ago, and ROE was 14.07% in the last year compared to 9.59% three years ago. The stock is also trading with a Forward 12M P/E of 12.71. Citigroup was rated B in Technical, D in Growth, D in Momentum Volatility, D in Quality Value by our AI systems. The stock closed down 2.07% to $43.93 on volume of 33,469,710 vs its 10-day price average of $47.77 and its 22-day price average of $49.66, and is down 45.92% for the year. Revenue was $66068.0M in the last fiscal year compared to $65272.0M three years ago, Operating Income was $23901.0M in the last fiscal year compared to $23092.0M three years ago, EPS was $8.04 in the last fiscal year compared to $(2.98) three years ago, and ROE was 9.96% in the last year compared to (3.1%) three years ago. The stock is also trading with a Forward 12M P/E of 10.45.

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