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3 Top-Ranked Stocks With Dividend Yields Greater Than 5%
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Targeting dividend-paying stocks is a lucrative strategy that allows investors to receive a steady income stream, providing extra cushion from drawdowns in other positions.
In 2022, dividend-paying stocks have gained increased interest for valid reasons, including a hawkish Fed playing spoilsport for many investors’ favorite technology and high-growth stocks.
In addition, all three carry a favorable Zacks Rank #2 (Buy) or Zacks Rank #1 (Strong Buy), telling us that their near-term earnings outlook is bright.
Below is a chart illustrating the year-to-date performance of all three companies with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three stocks have gained widespread interest in 2022, outperforming the S&P 500 by a wide margin.
Let’s take a deeper dive into each one.
Icahn Enterprises LP
Icahn Enterprises LP is a diversified holding company engaged in various businesses, including investment management, metals, real estate, and home fashion.
The company’s earnings outlook has turned visibly bright over the last 60 days.
Image Source: Zacks Investment Research
IEP’s dividend metrics are stellar – the company’s annual dividend yields a jaw-dropping 15.6%, well above its Zacks Sector average.
Further, IEP has increased its dividend payout twice over the last five years and carries an incredible 17.5% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Another aspect worth highlighting is the company’s free cash flow; in its latest quarter, IEP reported quarterly free cash flow of $709 million, penciling n a massive triple-digit 280% Y/Y uptick.
Image Source: Zacks Investment Research
To top it off, Icahn Enterprises carries a strong growth profile, with earnings and revenue forecasted to soar 145% and 36% Y/Y in FY22, respectively.
Icahn Enterprises carries a Zacks Rank #2 (Buy).
Northwest Bancshares
Northwest Bancshares is a bank holding company whose sole activity is the ownership of all issued and outstanding common stock of Northwest Savings Bank and the majority ownership of Jamestown Savings Bank.
Analysts have been bullish across all timeframes over the last several months, with bottom line estimates rising significantly.
Image Source: Zacks Investment Research
NWBI’s dividend metrics would thrill any income-focused investor – Northwest Bancshares’ annual dividend yields a steep 5.5%, more than double its Zacks Financial Sector average.
In addition, the company has impressively increased its dividend payout four times over the last five years, paired with a five-year annualized dividend growth rate of a strong 5%.
Image Source: Zacks Investment Research
NWBI shares could be considered undervalued; the company’s 13.5X forward earnings multiple resides nicely below its 15.5X five-year median and represents a slight 5% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Northwest Bancshares carries a Zacks Rank #1 (Strong Buy).
Enterprise Product Partners
Enterprise Products Partners is a partnership that provides services to producers and consumers of commodities that are natural gas, natural gas liquids, oil, and refined petrochemical products.
Analysts have noted the company’s favorable position, cranking their earnings outlook across all timeframes.
Image Source: Zacks Investment Research
EPD has shown dedication to its shareholders – the company has upped its dividend payout 13 times over the last five years, paired with a 2% five-year annualized dividend growth rate.
Enterprise Product Partners’ annual dividend yields an attractive 7.4%, well above its Zacks Sector average of an already steep 4.6%.
Image Source: Zacks Investment Research
For the cherry on top, Enterprise Product Partners has displayed remarkable free cash flow strength, as shown in the chart below. The company reported quarterly free cash flow of $1.7 billion in its latest quarterly print, penciling in a 23% Y/Y uptick.
Image Source: Zacks Investment Research
EPD is a Zacks Rank #2 (Buy).
Bottom Line
Investing for an income stream quickly became popular in 2022, with investors looking to offset drawdowns in other positions.
Of course, there’s always room for share price appreciation, making the strategy even sweeter.
All three stocks above – Icahn Enterprises LP (IEP - Free Report) , Northwest Bancshares (NWBI - Free Report) , and Enterprise Product Partners (EPD - Free Report) – reward investors handsomely, have displayed remarkable relative strength year-to-date, and carry a favorable Zacks Rank, telling us that their near-term earnings outlook is bright.
For those seeking strong dividend-paying stocks, all three deserve a spot on the watchlist.
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3 Top-Ranked Stocks With Dividend Yields Greater Than 5%
Targeting dividend-paying stocks is a lucrative strategy that allows investors to receive a steady income stream, providing extra cushion from drawdowns in other positions.
In 2022, dividend-paying stocks have gained increased interest for valid reasons, including a hawkish Fed playing spoilsport for many investors’ favorite technology and high-growth stocks.
Three stocks – Icahn Enterprises LP (IEP - Free Report) , Northwest Bancshares (NWBI - Free Report) , and Enterprise Product Partners (EPD - Free Report) – all pay investors handsomely.
In addition, all three carry a favorable Zacks Rank #2 (Buy) or Zacks Rank #1 (Strong Buy), telling us that their near-term earnings outlook is bright.
Below is a chart illustrating the year-to-date performance of all three companies with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three stocks have gained widespread interest in 2022, outperforming the S&P 500 by a wide margin.
Let’s take a deeper dive into each one.
Icahn Enterprises LP
Icahn Enterprises LP is a diversified holding company engaged in various businesses, including investment management, metals, real estate, and home fashion.
The company’s earnings outlook has turned visibly bright over the last 60 days.
Image Source: Zacks Investment Research
IEP’s dividend metrics are stellar – the company’s annual dividend yields a jaw-dropping 15.6%, well above its Zacks Sector average.
Further, IEP has increased its dividend payout twice over the last five years and carries an incredible 17.5% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Another aspect worth highlighting is the company’s free cash flow; in its latest quarter, IEP reported quarterly free cash flow of $709 million, penciling n a massive triple-digit 280% Y/Y uptick.
Image Source: Zacks Investment Research
To top it off, Icahn Enterprises carries a strong growth profile, with earnings and revenue forecasted to soar 145% and 36% Y/Y in FY22, respectively.
Icahn Enterprises carries a Zacks Rank #2 (Buy).
Northwest Bancshares
Northwest Bancshares is a bank holding company whose sole activity is the ownership of all issued and outstanding common stock of Northwest Savings Bank and the majority ownership of Jamestown Savings Bank.
Analysts have been bullish across all timeframes over the last several months, with bottom line estimates rising significantly.
Image Source: Zacks Investment Research
NWBI’s dividend metrics would thrill any income-focused investor – Northwest Bancshares’ annual dividend yields a steep 5.5%, more than double its Zacks Financial Sector average.
In addition, the company has impressively increased its dividend payout four times over the last five years, paired with a five-year annualized dividend growth rate of a strong 5%.
Image Source: Zacks Investment Research
NWBI shares could be considered undervalued; the company’s 13.5X forward earnings multiple resides nicely below its 15.5X five-year median and represents a slight 5% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Northwest Bancshares carries a Zacks Rank #1 (Strong Buy).
Enterprise Product Partners
Enterprise Products Partners is a partnership that provides services to producers and consumers of commodities that are natural gas, natural gas liquids, oil, and refined petrochemical products.
Analysts have noted the company’s favorable position, cranking their earnings outlook across all timeframes.
Image Source: Zacks Investment Research
EPD has shown dedication to its shareholders – the company has upped its dividend payout 13 times over the last five years, paired with a 2% five-year annualized dividend growth rate.
Enterprise Product Partners’ annual dividend yields an attractive 7.4%, well above its Zacks Sector average of an already steep 4.6%.
Image Source: Zacks Investment Research
For the cherry on top, Enterprise Product Partners has displayed remarkable free cash flow strength, as shown in the chart below. The company reported quarterly free cash flow of $1.7 billion in its latest quarterly print, penciling in a 23% Y/Y uptick.
Image Source: Zacks Investment Research
EPD is a Zacks Rank #2 (Buy).
Bottom Line
Investing for an income stream quickly became popular in 2022, with investors looking to offset drawdowns in other positions.
Of course, there’s always room for share price appreciation, making the strategy even sweeter.
All three stocks above – Icahn Enterprises LP (IEP - Free Report) , Northwest Bancshares (NWBI - Free Report) , and Enterprise Product Partners (EPD - Free Report) – reward investors handsomely, have displayed remarkable relative strength year-to-date, and carry a favorable Zacks Rank, telling us that their near-term earnings outlook is bright.
For those seeking strong dividend-paying stocks, all three deserve a spot on the watchlist.