📊 Top 5 MaxDividends Ideas of October: A Must-Read for Smart Investors
Our latest MaxDividends report for October 2024 is out, and it's packed with insights that could change the way you invest.
Hey Dividend Investors!
Ever wondered how to keep your portfolio growing with minimal effort? Our latest MaxDividends report for October 2024 is out, and it's packed with insights that could change the way you invest.
Market Overview
Markets Slump as Oil Prices Surge Amid Geopolitical Tensions
Global markets had a tough days with rising oil prices and mounting geopolitical tensions in the Middle East driving volatility across the board. Here's a closer look at how key regions performed.
U.S. Markets Hit by Rising Oil and Tech Slump
Wall Street saw a significant downturn as rising oil prices spooked investors. The Dow Jones dropped 0.4%, closing at 42,156.97, while the S&P 500 slipped 0.9% to 5,708.75. The Nasdaq fell hardest, down 1.5% to 17,910.36 as tech stocks took a beating.
European Markets Juggle Inflation and Geopolitical Risks
Across the Atlantic, European markets faced a mix of inflation worries and geopolitical risks. Inflation in the Eurozone dropped to 1.8%, falling below the 2% target, which bolstered expectations of a European Central Bank (ECB) rate cut in October.
However, this positive inflation data was overshadowed by concerns over Middle East tensions, which caused German and French bond yields to drop as investors turned to safe-haven assets.
The Euro Stoxx 50 saw choppy trading, pressured by energy concerns and slowing economic growth. Investors are cautiously eyeing the ECB's next moves, with a potential rate cut on the horizon.
Oil and Gold Jump as Safe Havens Shine
Oil wasn't the only commodity on the rise. Gold prices spiked over 1% as investors sought refuge amidst the growing geopolitical unrest.
However, the yellow metal’s rally failed to break last week’s highs, indicating that short-term traders may have started booking profits after gold’s strong September performance.
What’s Next?
With volatility spiking—the VIX index rose by 15.12% to hit 19.26—investors are bracing for more turbulence ahead. Geopolitical risks in the Middle East, particularly the escalating conflict between Iran and Israel, will likely continue to dominate headlines.
Additionally, the market is keeping a close watch on key U.S. economic reports, such as the upcoming ADP employment data, which could shape the Federal Reserve's next moves.
Dividend Macro Highlights
Global Dividend Trends
Global dividend payouts continued their upward trend in Q2 2024, following the same momentum as Q2 2022.
Most companies have adapted to post-2020 crisis conditions, resulting in steady dividend growth. In Q2 2024, global dividend payouts hit $606.1 billion, compared to $572.7 billion in Q2 2023.
Regional Dividend Leaders
The UK and Europe (excluding the UK) led dividend growth, with increases of 13.8% and 7.7%, respectively. Asia Pacific (excluding Japan) saw the biggest drop, with dividends down by 5.1%.
U.S. Dividend Landscape (S&P 500)
The dividend yield for the S&P 500 has halved over the last decade, now sitting at 1.26%.
This indicates that stock prices relative to dividends are higher than average, with yields near their lower lows.
Inflation's Impact on Dividends
Inflation growth has outpaced dividend growth, causing a correction in the S&P 500 dividend chart. However, as inflation slows, dividend growth is expected to rebound.
S&P 500 Historical Dividend Trends
Adjusted for inflation, dividends in the S&P 500 peaked in May 2020 at 73.09. Currently, that figure is 72.06.
Over the past 32 years, the S&P 500’s dividend growth has been negative only three times, all linked to economic crises. Recently, dividend growth has outpaced inflation, reaching 4.75% in the past month.
The Most Solid Dividend Hikes of September’24
Badger Meter Inc (BMI) +25.93%
Cboe Global Markets Inc (CBOE) +14.55%
Chemed Corp (CHE) +25.00%
Carlisle Companies Incorp (CSL) +17.65%
H&R Block, Inc. (HRB) +17.19%
Lam Research Corp (LRCX) +15.00%
McKesson Corp (MCK) +14.52%
Nordson Corp (NDSN) +14.71%
Primerica Inc (PRI) +20.00%
Virtus Investment Partners Inc (VRTS) +18.42%
Full list of September’s hikes is available in the report. Keep Premium to unlock all the features of MaxDividends!
Let’s continue with a deep dive into the macro stats on dividend stocks, with interesting analytics breakdowns by segment, an overall market recap, and of course, a detailed analysis of this month's top stock ideas—check it out below!
We are recommended on Substack
Supported by 12,000 subscribers. Inspired by 7,000 constant readers.
⭐️⭐️⭐️⭐️⭐️
“If you are interested in dividend strategies or passive income strategies, this Substack ia great! Its worth a visit“
- The Long View ⭐️⭐️⭐️⭐️⭐️
“Practical dividend focus. Saving for retirement.“
- The Astute Investor’s Calculus ⭐️⭐️⭐️⭐️⭐️
“Love the concept and the execution. If you are into building a portfolio that will generate ever growing income for you, subscribe to Max Dividends. I did.“
⭐️⭐️⭐️⭐️⭐️
“A useful substack for those that invest in stocks that pay dividends or are looking to get into such a strategy. Includes education and actionable ideas.“
Timothy Assi - ⭐️⭐️⭐️⭐️⭐️
“Great for helling you pick up high-yield dividend growth stocks“
And 50+ more other great authors and pro’s are recommend MaxDividends!
💎 PREMIUM version of MaxDividends Top 5 Monthly Dividend Report starts here.
Table of Content
Full Research with Top 5 Ideas of the Month
MaxDividends Stocks List for October & Updates
My Short List for October (updated weekly)
Keep reading with a 7-day free trial
Subscribe to Max Dividends to keep reading this post and get 7 days of free access to the full post archives.