Forget the old adage "sell and May and go away." Any time is a good time to buy dividend stocks. That's true even when the stock market is highly volatile -- as it is now.
There are two important prerequisites, though. First, you need to have a long-term mindset. Even the best dividend stocks can fall over the short term. Second, you have to pick stocks with strong underlying businesses. Fortunately, there are quite a few that fit the bill. Here are my three favorite dividend stocks to buy in June.
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1. Brookfield Renewable
I can't think of many stocks that I'm more bullish about over the long term than Brookfield Renewable (BEP 2.85%) (BEPC 2.75%). The company ranks as a leader in providing renewable energy across the world.
Brookfield Renewable hasn't delivered sizzling returns so far this year. However, any stock that's in positive territory in this dismal market can be justifiably viewed as a winner.
The company offers a dividend yield of close to 3.4%. Your actual yield will vary a little depending on which Brookfield Renewable stock you buy. Brookfield Renewable Partners is a limited partnership (LP) that trades under the BEP ticker. Brookfield Renewable Corporation doesn't have the tax hassles associated with LPs and trades under the BEPC ticker. Both have the same underlying business, though.
Brookfield Renewable continues to see accelerating demand for renewable energy. The capacity of the company's development pipeline is nearly three times greater than its current capacity. With the global push to reduce carbon emissions, I think this solid dividend stock should also be a great growth stock.
2. AbbVie
AbbVie (ABBV 0.98%) stands out as another company that is built to last. The big drugmaker's dividend track record underscores this view. AbbVie has increased its dividend for 50 consecutive years, which qualifies the company as a member of the elite group of stocks known as Dividend Kings. Its dividend currently yields nearly 3.8%.
The pharma stock was up close to 30% year to date in early April. Although AbbVie has since given up some of those gains, it's still handily beating the broader market indexes this year.
Shares also remain attractively valued, trading at 10.7 times expected earnings. This discounted valuation is largely due to investors' concerns about AbbVie's top-selling drug Humira losing U.S. patent exclusivity next year.
However, the company has a strong product lineup that should enable it to quickly return to growth. Indeed, market research firm EvaluatePharma predicts that AbbVie will be the biggest drugmaker in the world by 2028 based on prescription drug sales.
3. Devon Energy
Unlike Brookfield Renewable and AbbVie, Devon Energy (DVN 0.84%) is an indisputably massive winner so far in 2022. Shares of the oil and gas producer are up nearly 80% year to date.
Even better, Devon is a dividend investor's dream. The company offers a fixed-plus-variable dividend that currently yields 6.7%. Devon estimates that its dividend yield in 2022 will be even higher.
The dynamics causing oil and gas prices to be high don't seem likely to change very soon. As a result, Devon should be able to continue generating strong free cash flow. Its dividend appears to be in good shape.
Could the stock flounder after such a big run? Maybe. However, Devon CEO Rick Muncrief stated in the company's first-quarter conference call, "Devon's strong stock performance over the past year is largely a bounce back from the generational lows we experienced during the COVID crisis." The company believes that "it is still very early in this structural bull market."
