Dividend stocks are a popular choice for many stock market investors, and for good reason. They offer the potential for high yields, which can provide a significant boost to your investment portfolio. However, before you invest in dividend stocks, it’s important to understand how they work.
What Are Dividend Paying Stocks?
Dividend stocks are shares of a company that have been bought by an investor and are then held onto by the investor in order to receive periodic payments (dividends) from the company. Dividends are typically paid out quarterly, but some companies also pay out semi-annually or annually.
Why Dividend Stocks?
Dividend stocks can be an attractive investment because they offer the potential for high yields. However, it’s important to remember that dividend yields can vary widely, so it’s important to research any potential investments carefully before committing any money. Additionally, dividend stocks can be more volatile than other types of stocks, so it’s important to understand the risks involved before investing. But for many investors, the potential rewards of dividend stocks make them worth the risks. Keeping this in mind, here are four top dividend-paying stocks for your watchlist right now.
High Dividend Yield Stocks To Watch Today
- Altria Group Inc. (NYSE: MO)
- International Business Machines Corporation (NYSE: IBM)
- Kinder Morgan Inc. (NYSE: KMI)
- Devon Energy Corporation (NYSE: DVN)
1. Altria Group (MO Stock)
Altria Group is one of the world’s largest tobacco companies, with a diversified portfolio of leading international brands. Altria’s products include cigarettes, cigars, smokeless tobacco, and wine. Some of the company’s most popular brands are names like its flagship Marlboro. Meanwhile, Altria Group also owns approximately a 10% stake in Anheuser-Busch InBev (NYSE: BUD). Aside from that, the company’s current annualized dividend rate is $3.60 per share, reflecting a dividend yield of 8.2% as of July 25, 2022.
MO Recent Stock News
In July, Altria Group reported its second quarter 2022 financial results. Getting straight to it, the company reported second-quarter 2022 earnings of $1.26 per share, along with revenue of $6.5 billion. Additionally, Altria Group closed out the quarter repurchasing 10.1 million shares amounting to a total value of $507 million in share buybacks. What’s more, in the first half of 2022, the company repurchased approximately $1.1 billion worth of shares.
Billy Gifford, Altria’s Chief Executive Officer had this to say about the quarter, “Our tobacco businesses performed well in a challenging macroeconomic environment for the first half of the year. The smokeable products segment delivered solid operating companies income growth behind the resilience of Marlboro, and our moist smokeless tobacco brands continued to drive profitability.“
MO Stock Chart
2. International Business Machines Corp. (IBM Stock)
International Business Machines Corp. (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. IBM manufactures and markets computer hardware, middleware, and software, and offers to host and consulting services in areas ranging from mainframe computers to nanotechnology. Currently, IBM shareholders enjoy an annual dividend yield of 4.92%.
IBM Recent Stock News
Back in July IBM reported its second quarter 2022 financial results. In detail, the company reported earnings of $2.31 per share and revenue of $15.5 billion for Q2 2022. This is in comparison with Wall Street analysts’ estimates, which were earnings of $2.29 per share, along with revenue of $15.3 billion. What’s more, software and consulting have jumped 6% and 10% for the quarter on a year-over-year basis.
James Kavanaugh, IBM senior vice president, and CFO said, “We are a faster-growing, focused, disciplined company with sound business fundamentals. Our recurring revenue stream and solid cash generation position us well to continue to invest in R&D, acquire new companies, and strengthen our talent in every part of the business, while also returning value to shareholders through our dividend.“
IBM Stock Chart
3. Kinder Morgan (KMI Stock)
Kinder Morgan Inc. is one of the largest energy infrastructure companies in North America. It owns and operates an extensive network of pipelines that transport crude oil, natural gas, and refined products. The company also owns and operates terminals, storage facilities, and coal and oil shipping vessels. For a sense of scale, The company owns an interest in or operates over 80,000 miles of pipelines and 144 terminals. Today, KMI offers its shareholders an annual dividend yield of 6.32%.
KMI Recent Stock News
Also in July, KMI announced its Q2 2022 financial results. Diving in, Kinder Morgan reported second quarter 2022 earnings per share of $0.27, with revenue of $5.2 billion. Next, the company posted a 63.5% increase in revenue during the same period, in 2021. Meanwhile, Kinder Morgan reaffirmed its estimates for its full-year 2022 results. In detail, the company reported that it still projects net income for the full-year 2022 of approximately $2.5 billion, or earnings of an estimated $1.10 per share.
Additionally, Executive Chairman Richard Kinder said this about the quarter, “Global and domestic developments have highlighted the importance of energy security. Our company and the U.S. energy sector as a whole have proved to be a major part of the solution to adequately supplying the world with natural gas. That has also contributed to another strong quarter, as we generated robust earnings and strong coverage of this quarter’s dividend.“
KMI Stock Chart
4. Devon Energy Corporation (DVN Stock)
Last but not least, Devon Energy Corporation is an American energy company. The company engages in natural gas and oil exploration, development, and production. In brief, Devon is one of the largest independent natural gas producers in North America and one of the largest independent oil and natural gas exploration and development companies in the world. Shareholders of Devon Energy enjoy an annual dividend yield of 6.76%.
DVN Recent Stock News
Last month, the company reported a beat for its second quarter 2022 financial results. Specifically, Devon Energy announced earnings per share of $2.59, with revenue of $5.6 billion. This came in stronger than the consensus earnings estimates of $2.38 per share, along with revenue of $4.6 billion. As a result, Devon Energy announced a 132% increase in revenue on a year-over-year basis. In addition to that, Devon Energy said they were able to generate $2.1 billion of free cash flow in Q2 2022. This signifies the highest amount of quarterly free cash flow in the history of the company.
Rick Muncrief, president, and CEO commented, “The second quarter saw our business continue to strengthen and build momentum as we delivered systematic execution across the financial, operational, and strategic tenets of our cash-return business model. As a result of the strong financial and operational performance achieved year to date, we have updated our full-year 2022 guidance. This improved outlook raises production targets, increases free cash flow projections, and enhances our ability to accelerate the return of capital to shareholders.”