My Top Dividend Stock To Buy In November
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Right now, we’re knee-deep in the middle of earnings season—the time when companies open their books and share the good, the bad, and the ugly. And as I’m sure you can imagine, depending on the results, share prices can either soar or sink in a big way.
For example, Digital Realty Trust (DLR) recently jumped almost 10% on solid earnings, while other companies like Genuine Parts Company (GPC) and Elevance Health (ELV) dropped like anvils after disappointing results. I’ve seen this volatility make an appearance pretty much every quarter, and it always amazes me how quickly the market reacts to even the slightest hint of surprise, good or bad.
Still, this unpredictability is what makes earnings season so exciting for investors. Sometimes, this volatility creates golden buying opportunities, which have been in short supply these last couple of months.
That brings me to L’Oréal (LRLCY), my top dividend stock to buy in November. This stock also took a hit after its recent earnings report, which makes it look like one of the best deals on the market right now (and you can learn about some of my other top picks here).
Source: Snapstock
Now, you’re probably already familiar with L’Oréal. It’s the world leader in beauty and holds a diversified portfolio spanning several segments: L’Oréal Luxe, Consumer Products, Dermatological Beauty, and Professional Products.
Within these segments, it owns brands like Garnier, Maybelline, Redken, Pureology, La Roche-Posay, and Kiehl’s. Plus, they’re the force behind beauty products for high-end brands like Armani, Ralph Lauren, Yves Saint Laurent, and Maison Margiela (which makes my favorite cologne—Jazz Club).
Long story short, L’Oréal has a lot of good stuff going on, and it operates in a pretty resilient industry. Beauty products—whether we’re talking makeup, skincare, or salon-quality shampoo—are essentials to those who use them, which means they tend to be less impacted by economic turbulence than other types of consumer products.
Interestingly, the stock’s recent dip wasn’t even triggered by bad news. L’Oréal reported higher sales pretty much across the board (+6.0% YoY), which is on trend with the steady growth they’ve been delivering for years.
Source: Snapstock
Not everything was perfect, though. L’Oréal, like many companies, struggled in China, which was the only region where it reported negative growth.
With that, it’s worth noting that other companies—such as Starbucks (SBUX) and Procter & Gamble (PG)—also reported declines in their China sales recently, suggesting that this is a broader issue not unique to L’Oréal.
And of course, investing in L’Oréal does come with some additional considerations.
Since it’s a French company, its dividends are subject to foreign withholding taxes—basically, a cut taken by the French government before you receive your dividend. L’Oréal is also traded as an ADR (American Depositary Receipt) in the U.S., which can add another layer of complexity. And like any international company, it’s exposed to political and economic risks tied to its home country.
Even with these factors, I think L’Oréal is a great dividend growth stock to consider. It’s definitely on my watchlist, and if you’re looking for a reliable dividend grower, it might deserve a spot on yours too.
While the yield is on the lower side at around 1.8%, the dividend growth rate is solid, with a 5-year CAGR just north of 10%.
Overall, during a time when share prices are swinging like George of the Jungle on earnings results, L’Oréal stands out as a dependable option in a resilient industry. The company’s fundamentals still look very strong, and the current dip could be a great buying opportunity.
With that said, I’d love to hear from you: Which discounted stocks do you have your eye on for this upcoming month? Write to me here and let me know.
And if you want to learn about some other great buying opportunities right now, I've got a few more for you here.
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IN MY PORTFOLIO 📈
Portfolio performance provided by Snowball Analytics
ICYMI 🎥
3 Reasons Why I ONLY Buy Dividend Stocks
In this video, I’ll be answering some of the really great questions that I’ve been getting from you guys lately like: Why do you only buy dividend stocks? What are your thoughts on Altria Group (MO)? And what are your top 3 book recommendations for dividend investors?
CAREFULLY CURATED 🔍
📺 The War On Dividends - Dividend investing has been out of favor for a while, drawing its fair share of criticism along the way. But the truth is, every investment style—or any way of doing literally anything—comes with its own set of pros and cons. At the end of the day, there’s no reason for all the negativity, and JP Dividends' recent video makes a great case for this perspective.
🎧 The Last Liberal Art - Investing By The Books has been one of my favorite podcasts to listen to lately. This was a really great episode featuring Robert Hagstrom, the author of The Warren Buffett Way and Investing: The Last Liberal Art—my most recent read.
📚 On A ROL - I've had my eye on Rollins Inc. (ROL) for a couple of years now—it's my "great white whale." This recent write-up on why it might be worth buying right now has me especially tempted, I can't lie.
SINCE YOU ASKED 💬
"When do you think that you can start living off your dividends? How much do you need?"
- Valmirking1104 | YouTube
This is the million-dollar (or more) question. Thankfully, it’s easy to forecast my portfolio’s future growth using free tools like this calculator here.
Based on my current portfolio value of around $83,000, my annual contributions of $13,000, and estimated returns (a 3.59% current dividend yield, 7% dividend growth rate, and 7% share price appreciation), here’s what my portfolio could look like in 20 years (when I'll be 51 years old):
If things play out as expected, I’ll be averaging over $4,000 per month in dividends. Realistically, though, I may start pulling from those dividends a bit sooner.
In my head (at least for now), my plan is to start using some of my dividends to cover expenses once I reach a point where I'm generating $2,000 per month. Maybe I'll use half of them to pay bills and then reinvest the other half—that'd be a nice way to reward myself for all the hard work along the way.
With the numbers I’m using, I estimate it’ll take around 14-15 years to reach that $2,000 monthly milestone. What’s crazy is that between years 15 and 20, my annual dividend income basically doubles! That just goes to show the incredible power of the dividend snowball.
Have a question? Ask me here to see it featured in an upcoming newsletter.
HOT TAKES 🔥
In last week's newsletter, I asked readers about the last time they misjudged an investment. Here's a great response from Kristian:
My biggest mistake in the stock market so far has been Tesla. I know that sounds crazy. It's supposed to be one of the "Magnificent 7."
Well, I got into Tesla a little late. I bought around the spring of 2021 and picked up some more about 6 months later. And since then, it's been ups and downs, Elon tweets, political shenanigans, etc.
Right now, my cost per share is around $270. As soon as I'm even, I'm out. If I had bought the stock back in 2019, I would have been out two years ago having made a ton of money! The company is too close to Elon Musk, and it suffers for it, in my opinion.
Not only that, but it also doesn't pay a dividend (I bought it before I knew about dividend investing), so why should I stick with it?
As far as being wrong, I have a slight advantage: I went from being a subject matter expert in my field to being a full-time engineering student in a completely different field. Since August of 2019, I have been wrong at least twice a week!
I can tell you that having that experience when you are entering your 40s is very different than having that experience when you are entering your 20s! It's like a big mental reset, and I hope I can hang on to it going forward!
For my part, I generally expect to be wrong, and make the best decision I can, then wait to find out how I could have done better. And once I find that out, I adjust my goals and process as best I can.
LAST WORD 👋
Earlier this week, I hit a pretty exciting milestone on Blossom—10,000 followers!
If you haven’t checked out Blossom yet, it’s a lot like Twitter and Instagram, but exclusively for investors. Personally, I find it much more enjoyable than my experience on Twitter, and I think you might too.
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