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Two dividend stocks worth owning for a tough September

on Sep 5, 2022
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  • Kevin Simpson makes a bull case for Chevron Corporation.
  • Andrew Graham likes AbbVie Inc for a 4.0% dividend yield.
  • CVX is up over 30% YTD; ABBV is roughly flat for the year.

Historically, September tends to be the worst month for the benchmark S&P 500 index. Still, the following two mega-cap names, according to experts, are worth owning here.

Chevron Corporation (NYSE: CVX)

Chevron is already up more than 30% versus the start of 2022 but Kevin Simpson (Capital Wealth Planning) still likes it for the 3.50% dividend yield. In a recent interview with CNBC’s Becky Quick, he said:

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I like companies that make money, increase earnings, and most importantly, that increase dividends. We’re looking at a stock that over the past five years, has given us a raise of about 4.0% in dividends.

Simpson dubs the stock a great hedge against inflation. His constructive view is in line with Wall Street that has a consensus “overweight” rating on Chevron.

In late July, the multinational energy company reported a blockbuster Q2.

AbbVie Inc (NYSE: ABBV)

On the same interview, Andrew Graham (Jackson Square Capital) made a bull case for AbbVie that also pays a dividend yield of 4.0%. The stock is roughly flat for the year.  

It’s trading at 12 times trough earnings, which is the lowest we’ve seen in more than two decades. It’s lower than Pfizer two decades ago when it had nothing in the pipeline. AbbVie has a lot in the pipeline.

He’s particularly bullish on “Rinvoq” and “Skyrizi”, both of which have recently secured approval from the U.S. FDA. Graham recommends that investors build their positions in “ABBV” ahead of its quarterly earnings in October.