Different investors have different priorities and objectives. If you're in your twenties or thirties, you'll prefer stocks with great long-term growth prospects. The closer you get to retirement, though, the more important income generated by stocks will be to you.
Some stocks have the potential to provide growth and income. If you're looking to obtain both, here are three top dividend stocks to buy in October.
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1. Brookfield Renewable
There are few types of investments that offer more solid growth prospects than renewable energy stocks. Industry experts project that as much as $150 trillion will be invested over the next three decades to support carbon emission reduction. Much of the global economy will be transformed.
This makes Brookfield Renewable (BEP -1.66%) (BEPC -0.89%) a fantastic pick to buy right now. The company ranks as one of the world's top providers of renewable energy. It owns hydroelectric, wind, and solar facilities (close to 6,000 in total) that can generate around 20 gigawatts of power.
But the world will need a lot more renewable energy to meet the aggressive carbon reduction goals set by countries and large corporations. Brookfield Renewable should be up to the task. The company's development pipeline includes an additional 31 gigawatts of capacity.
Investors should enjoy significant growth from Brookfield Renewable over the long term. They'll also benefit from the dividend. Its yield currently tops 3%. The company has increased its distribution by a compound annual growth rate of 6% since 2010.
2. Devon Energy
With this transition to renewable energy, you might think that a stock like Devon Energy (DVN 0.98%) might not be a great pick. After all, Devon makes around 78% of its revenue from oil production. But there are two compelling reasons to buy the stock in October.
Most important, you won't find many stocks with a more attractive dividend. Devon has a fixed plus variable dividend. The fixed portion translates to a yield of 1.25%. However, the variable portion could easily boost Devon's total dividend yield to more than 10%. The company believes that it will have the highest yield in the S&P 500 index by a wide margin.
In addition, Devon's growth prospects might surprise you. The consensus Wall Street price target for the stock reflects an 8% upside potential. That kind of gain combined with an especially juicy dividend would provide a total return that nearly any investor would like.
Over the longer term, growth in oil production is likely to moderate. But fossil fuels will be needed for several decades as the global economy expands. Devon should be able to keep its dividends flowing for a long time to come.
3. Pfizer
Many income investors have loved Pfizer (PFE -3.85%) for years. The company's dividend yield stands at 3.6%. It was even able to keep its dividend payout steady after merging its Upjohn unit with Mylan.
But growth investors have something to like about the big pharma stock now. Pfizer and its partner, BioNTech, have racked up jaw-dropping sales so far for their COVID-19 vaccine, Comirnaty. The vaccine is expected to rake in $32.5 billion this year, making it the best-selling biopharmaceutical product in the world.
Pfizer projects that it will grow adjusted earnings by at least 10% annually through 2025 -- excluding its COVID programs. Those programs include a COVID pill that could be a huge winner for Pfizer as soon as early next year.
The company does face something of a patent cliff beginning in 2025. However, Pfizer has a large pipeline and a growing cash stockpile that it will likely use on development deals to fuel growth. Income investors will probably continue to have a lot to love with this pharma stock throughout this decade and beyond.
