The 7 Best Dividend Stocks to Buy in November

There are many reasons to be upbeat about dividend stocks right now.

The Federal Reserve appears to be ready to slow down the pace of its interest rate hikes. Still, the economy is not growing very much, if at all.

Inflation remains a problem as well. Accordingly, many investors may be looking for the best, most stable dividend stocks to buy.

For those investors, these seven dividend stocks with high yields could be the right fit. They can provide significant amounts of income that will help investors cope with inflation.

So, without further ado, let’s dive into this list of the best dividend stocks to buy in November.

Prudential (PRU)

Prudential (NYSE:PRU) specializes in life insurance and annuities.

Consumers are unlikely to cut back on either of these categories if the economy turns south. That’s because life insurance is a necessary precaution for many families. Meanwhile, annuities provide stable income at a time when many see the stock market as volatile and high inflation makes keeping money in savings a losing proposition.

PRU stock has an alluring 4.4% dividend yield. In the first half of 2022, the company’s net cash also climbed by an impressive total of nearly $1.5 billion. As of the end of Q3, Prudential had a very good-looking balance sheet, with $31 billion of cash and total debt of only $35 billion.

Prudential should benefit from rising interest rates, as it invests the money it gets from life insurance premiums and annuities in fixed-income instruments.

PRU stock has a forward price-to-earnings (P/E) ratio of just nine times and has been resilient this year. Shares are down only 1% year-to-date (YTD).

Invesco Preferred ETF (PGX)

The Invesco Preferred ETF‘s (NYSE:PGX) nine largest holdings are the preferred stocks of large banks.

Historically, preferred stocks are not nearly as volatile as common stocks, although this fund has fallen about 18% YTD — slightly worse than the S&P 500’s decline.

Still, this ETF does have a hefty 6.2% dividend yield. And, if the economy does not go off a cliff, large banks should do fairly well. Specifically, their net interest income (NII) will jump but their chargeoffs should not climb nearly enough to offset those NII gains.

Investors saw this phenomenon occur last quarter when JPMorgan’s (NYSE:JPM) revenue climbed 10.4% year-over-year (YOY). In addition, PNC (NYSE:PNC) saw its top line advance 7% YOY and Wells Fargo (NYSE:WFC) saw sales rise nearly 4%.

Finally, as a Forbes columnist explained in February, preferred stocks offer “the stable and consistent income payments of bonds with the equity ownership advantages of common stock.” That includes the “potential for the shares to rise in value over time.”

JPMorgan (JPM)

JPMorgan (NYSE:JPM) has been implicitly endorsed by one of its largest, most well-respected competitors, Morgan Stanley.

Morgan Stanley reportedly owned nearly $7 billion of JPM stock as of Sept. 30. Moreover, MS actually increased its investment in JPM by 2.6% last quarter.

JPMorgan’s top line jumped 10% year-over-year in Q3, while it generated earnings per share of $3.12, well above analysts’ average estimate of $2.89.

Moreover, its average loans climbed 7% YOY and its average deposits increased 3% YOY.

JPM has adividend yield of 3%, the lowest on this list. But the endorsement of Morgan Stanley, along with the stock’slow forward P/E ratio of 10.7 times, earns JPM a place on this list of dividend stocks to buy.

The Southern Company (SO)

The Southern Company (NYSE:SO) is a monopoly with very low risk of bankruptcy and very stable cash flows.

But the top and bottom lines of utilities are also poised to surge, driven by the electrification of transportation and utilities’ ability to enter new, more profitable businesses like renewable energy, electric vehicle (EV) charging and energy storage.

This company’s subsidiary, Southern Power is also currently operating or developing 15 wind-energy projects and two fuel-cell projects in the States.

Also making the case of SO stock, utilities stocks in general should perform better in the near-to-medium term as the Fed becomes more dovish. That’s because shares of the sector tend to move in the opposite direction of interest rates.

SO stock has a dividend yield of 4.1%.

Icahn Enterprises (IEP)

I must confess that, until a few weeks ago, I had never heard of Icahn Enterprises (NASDAQ:IEP).

But after learning about it from other pieces on InvestorPlace, I’m impressed with the company because, as other writers noted, IEP has a huge dividend yield of nearly 16%.

It also owns multiple, highly resilient businesses. On top of this, the investing company sports impressive cash flow from operations.

Importantly, Carl Icahn himself owns 85% of outstanding shares worth over $15 billion, according to Yahoo! Finance. That’s a tremendous vote of confidence in IEP stock and its outlook from the famed billionaire investor.

Finally, according to Seeking Alpha, Icahn Enterprises “has reduced its overall debt load from $12.6 billion in 2016 to just over $7 billion” as of the end of Q2.

At the end of Q3, its debt rose very slightly, reaching $7.55 billion. This indicates that the company is doing well from a financial perspective.

IBM (IBM)

I’ve been bullish on IBM (NYSE:IBM) for a long time. With the company’s dividend now yielding a robust 4.89% — and the firm having recently reported strong third-quarter results — I remain very upbeat on the name. That’s particularly true for more conservative investors who are seeking exposure to the tech sector.

For Q3, IBM’s top line climbed 6.4% YOY to $14.1 billion, coming in $550 million above analysts’ average estimate. Moreover, the company reported a strong EPS of $1.81. Software sales jumped an impressive 14% YOY as well, excluding the impact of currency fluctuations.

Writing that the Q3 results showed broad-based strength, Bank of America kept a $145 price target and “buy” rating on IBM stock.

Brookfield Renewable Partners (BEP)

At its Investor Day on Sept. 29, Brookfield Renewable Partners (NYSE:BEP) reported owning and/or developing 25,300 megawatts (MW) of wind energy and 55,000 MW of solar energy globally.

BEP also noted that its funds from operation per unit had jumped from 65 cents in 2011 to $1.45 in 2021.

Some of the strong, positive catalysts for BEP stock include governments’ incentives for investing in renewables, rapidly increasing electricity demand and higher electricity prices.

Brookfield has even reported that rising electricity prices have enabled it to offset increasing commodity costs. Meanwhile, rising inflation has actually raised its profit margins at more than 70% of its projects.

Over 90% of Brookfield’s revenue is generated by 14-year contracts, making the outlook for its business highly certain and stable as well. BEP stock has a dividend yield of 4.4%

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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