A common approach by investors is to target dividend-paying stocks.
After all, it’s easy to see why; dividends provide a passive income stream, cushion impacts from drawdowns in other positions, and provide the ability to achieve maximum returns through dividend reinvestment.
And in a historically-volatile 2022, it goes without saying that dividends have been a precious item for investors.
Just recently, several large-cap stocks have upped their dividend payouts, undoubtedly boosting shareholders’ confidence in a big way.
Three large-cap stocks – ConocoPhillips (
COP Quick Quote COP - Free Report) , Atmos Energy Corp. ( ATO Quick Quote ATO - Free Report) , and EOG Resources, Inc. ( EOG Quick Quote EOG - Free Report) – have all recently hiked their dividend payouts.
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
As we can see, all three stocks have witnessed positive momentum in 2022, outperforming the S&P 500 by wide margins.
Let’s take a closer look at each one.
ConocoPhillips is one of the world’s largest independent E&P companies based on production and proved reserves.
In its Q3 report, the company upped its quarterly dividend by 11% to $0.51 per share and announced a variable return of cash of $0.70 per share, payable on Jan. 13
th, 2023, to stockholders of record at the close of business on Dec. 27 th, 2022. Image Source: Zacks Investment Research
Further, COP reported quarterly free cash flow of $6.6 billion in Q3, representing a 61% Y/Y increase. As we can see in the chart below, the company’s free cash flow has recovered nicely from 2020 lows.
Image Source: Zacks Investment Research Atmos Energy Corp.
Atmos Energy Corporation is the nation’s largest fully regulated, natural gas-only distributor of safe, clean, efficient, and affordable energy.
In its latest earnings release, the company’s Board of Directors declared a quarterly dividend increase of roughly 9% on its common stock to $0.74 per share, payable on Dec. 12
th, 2022, to shareholders on record as of Nov. 28 th, 2022. Image Source: Zacks Investment Research EOG Resources
EOG Resources is primarily involved in exploring and producing oil and natural gas. The leading upstream energy player’s operations are spread across the United States, Trinidad, and other international segments.
In the company’s Q3 earnings release, it declared a 10% raise on its quarterly dividend, bringing the payout to $0.82 per share. Further, the company declared a special dividend of $1.50 per share, payable on December 30
th, 2022, to shareholders of record as of December 15 th, 2022. Image Source: Zacks Investment Research
EOG Resources’ free cash flow came in at $3.6 billion in Q3, reflecting a 180% Y/Y uptick and an impressive 400% sequential increase. Similar to COP, the company’s free cash flow has recovered nicely from 2020 lows, shown in the chart below.
Image Source: Zacks Investment Research Bottom Line
Investors love dividends. After all, having financial assets that pay you is undoubtedly a sweet feeling.
In a historically-volatile 2022, dividends have quickly become a hot topic, and for understandable reasons – they cushion drawdowns in other positions and provide a reliable income stream.
All three stocks above – ConocoPhillips (
COP Quick Quote COP - Free Report) , Atmos Energy Corp. ( ATO Quick Quote ATO - Free Report) , and EOG Resources, Inc. ( EOG Quick Quote EOG - Free Report) – have all recently hiked their dividend payouts, providing investors with much-needed confidence surrounding their profitability and growth.