10 Best January Dividend Stocks To Buy

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1. Pentair plc (NYSE:PNR)

Ex-Dividend Date: January 24

Pentair plc (NYSE:PNR) is an American water treatment company. The company is drawing heightened investor attention due to the growing demand for water solutions. Its business model aligns with worldwide initiatives to tackle environmental issues and move towards achieving carbon neutrality. In the past 12 months, the stock has delivered a 47% return to shareholders.

In the third quarter of 2024, Pentair plc (NYSE:PNR) posted revenue of $993.4 million, a slight decrease of 1.5% compared to the same period the previous year. Despite this decline, the revenue surpassed analysts’ expectations by $5.02 million. The company’s operating income for the quarter remained steady at $180 million year-over-year. Pentair has updated its full-year 2024 GAAP EPS forecast to about $3.70 and increased its adjusted EPS guidance to approximately $4.27.

Pentair plc (NYSE:PNR) reported a strong cash position in Q3 2024. The company generated an operating cash flow of $249 million, up from $162 million in the same quarter last year. Its free cash flow also grew to $234 million, compared to $143 million in the previous year’s quarter. On December 17, the company announced an 8.7% increase in its quarterly dividend to $0.25 per share, extending its streak of dividend growth to 49 consecutive years. The stock offers a dividend yield of 0.99%, as of January 5.

The number of hedge funds tracked by Insider Monkey owning stakes in Pentair plc (NYSE:PNR) grew to 47 in Q3 2024, from 40 in the previous quarter. These stakes are worth over $1.7 billion in total. Among these hedge funds, Impax Asset Management was the company’s leading stakeholder in Q3.

Overall, Pentair plc (NYSE:PNR) ranks first on our list of the best dividend stocks to buy in January. While we acknowledge the potential for PNR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PNR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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