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Like Dividends? 3 Top-Ranked Stocks With Yields Above 5%
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Investors love dividends. After all, there are few things in life better than getting paid.
And in a historically-volatile 2022, dividends have become a hot topic.
Dividends help alleviate drawdowns in other positions, provide a passive income stream, and can provide maximum returns through dividend reinvestment.
Three stocks with an annual dividend yield currently above 5% – AT&T (T - Free Report) , The Williams Companies, Inc. (WMB - Free Report) , and Sociedad Quimica Y Minera (SQM - Free Report) – could all be considerations for investors with a focus on income.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each one.
The Williams Companies, Inc.
The Williams Companies, Inc. is a premier energy infrastructure provider in North America, with core operations including finding, producing, gathering, processing, and transporting natural gas and natural gas liquids.
Like many other energy names, analysts have been bullish on WMB’s earnings outlook, helping land the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
WMB’s current annual dividend yield of 5.2% is nicely above its Zacks Oils and Energy sector average of an already steep 4.3%.
Further, the company has upped its dividend five times over the last five years, carrying a 6.2% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
For the cherry on top. WMB’s bottom-line is forecasted to grow at a solid pace, with estimates calling for 14% earnings growth in FY22 and an additional 16% in FY23.
Image Source: Zacks Investment Research
AT&T
AT&T is North America's second-largest wireless service provider and one of the world’s leading communications service carriers. The company sports a Zacks Rank #2 (Buy).
Analysts have had a bullish stance on the company’s earnings outlook over the last few months.
Image Source: Zacks Investment Research
AT&T’s annual dividend yield comes in at 6%, well above its Zacks Wireless National industry average of 3.9%. Further, T carries a sustainable payout ratio sitting at 39% of its earnings.
Image Source: Zacks Investment Research
Further, AT&T shares aren’t expensive; the company’s 6.9X forward earnings multiple is well beneath its 9.1X five-year median and reflects a 37% discount relative to its Zacks Wireless National industry.
AT&T sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Sociedad Quimica Y Minera
Sociedad Quimica Y Minera is one of the world's largest lithium producers, with one of the industry's least impactful water, carbon, and energy footprints.
The company’s earnings outlook has turned bright over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s annual dividend currently sits at a solid 5.3%, notably higher than that of its Zacks Basic Materials sector average.
Impressively, the company has upped its dividend ten times over the last five years, translating to a 26.1% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Keep an eye open for SQM’s upcoming quarterly print on November 16th; the Zacks Consensus EPS Estimate of $3.32 suggests nearly an 800% Y/Y uptick in quarterly earnings.
Bottom Line
Structuring an income-generating portfolio is a widely-deployed strategy.
And in 2022, many investors have parked cash in dividend-paying stocks, helping cushion drawdowns in other positions.
All three stocks above – AT&T (T - Free Report) , The Williams Companies, Inc. (WMB - Free Report) , and Sociedad Quimica Y Minera (SQM - Free Report) – currently carry annual dividend yields greater than 5%.
In addition, all three carry a favorable Zacks Rank, telling us that their near-term earnings outlook has recently improved.
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Like Dividends? 3 Top-Ranked Stocks With Yields Above 5%
Investors love dividends. After all, there are few things in life better than getting paid.
And in a historically-volatile 2022, dividends have become a hot topic.
Dividends help alleviate drawdowns in other positions, provide a passive income stream, and can provide maximum returns through dividend reinvestment.
Three stocks with an annual dividend yield currently above 5% – AT&T (T - Free Report) , The Williams Companies, Inc. (WMB - Free Report) , and Sociedad Quimica Y Minera (SQM - Free Report) – could all be considerations for investors with a focus on income.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a deeper dive into each one.
The Williams Companies, Inc.
The Williams Companies, Inc. is a premier energy infrastructure provider in North America, with core operations including finding, producing, gathering, processing, and transporting natural gas and natural gas liquids.
Like many other energy names, analysts have been bullish on WMB’s earnings outlook, helping land the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
WMB’s current annual dividend yield of 5.2% is nicely above its Zacks Oils and Energy sector average of an already steep 4.3%.
Further, the company has upped its dividend five times over the last five years, carrying a 6.2% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
For the cherry on top. WMB’s bottom-line is forecasted to grow at a solid pace, with estimates calling for 14% earnings growth in FY22 and an additional 16% in FY23.
Image Source: Zacks Investment Research
AT&T
AT&T is North America's second-largest wireless service provider and one of the world’s leading communications service carriers. The company sports a Zacks Rank #2 (Buy).
Analysts have had a bullish stance on the company’s earnings outlook over the last few months.
Image Source: Zacks Investment Research
AT&T’s annual dividend yield comes in at 6%, well above its Zacks Wireless National industry average of 3.9%. Further, T carries a sustainable payout ratio sitting at 39% of its earnings.
Image Source: Zacks Investment Research
Further, AT&T shares aren’t expensive; the company’s 6.9X forward earnings multiple is well beneath its 9.1X five-year median and reflects a 37% discount relative to its Zacks Wireless National industry.
AT&T sports a Style Score of an A for Value.
Image Source: Zacks Investment Research
Sociedad Quimica Y Minera
Sociedad Quimica Y Minera is one of the world's largest lithium producers, with one of the industry's least impactful water, carbon, and energy footprints.
The company’s earnings outlook has turned bright over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s annual dividend currently sits at a solid 5.3%, notably higher than that of its Zacks Basic Materials sector average.
Impressively, the company has upped its dividend ten times over the last five years, translating to a 26.1% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Keep an eye open for SQM’s upcoming quarterly print on November 16th; the Zacks Consensus EPS Estimate of $3.32 suggests nearly an 800% Y/Y uptick in quarterly earnings.
Bottom Line
Structuring an income-generating portfolio is a widely-deployed strategy.
And in 2022, many investors have parked cash in dividend-paying stocks, helping cushion drawdowns in other positions.
All three stocks above – AT&T (T - Free Report) , The Williams Companies, Inc. (WMB - Free Report) , and Sociedad Quimica Y Minera (SQM - Free Report) – currently carry annual dividend yields greater than 5%.
In addition, all three carry a favorable Zacks Rank, telling us that their near-term earnings outlook has recently improved.