Top 4 Dividend Stocks to Watch in 2022
A dividend stock is a portion of a company’s stock that pays regular dividends, or distributions, to its shareholders. The dividend is a part of the profits of the company that is paid to the shareholders normally on a quarterly basis. As a result, dividend stocks are a way to generate income from your stock market investments. In addition, they can provide you with a source of cash flow that can be used to reinvest in other stocks or to cover living expenses.
Many investors prefer dividend stocks because they offer a stable source of income and can help diversify your portfolio. When selecting dividend stocks, it is important to consider the company’s financial stability and dividend history. Although dividend stocks can be an important part of your investment portfolio, they shouldn’t be the only type of stock you own. Diversification is key to minimizing risk and maximizing return. With that in mind, here are four top dividend-paying stocks to watch in the second half of 2022.
Dividend Stocks to Invest [Or Avoid] in 2022
Rio Tinto (RIO share)
parting, Rio Tinto (RIO) is one of the world’s largest mining companies, with a portfolio that includes iron ore, aluminum, copper, diamonds and coal. To get a sense of scale, Rio Tinto has operations in more than 40 countries around the world and plans to continue expanding in the coming years. Other than that, RIO has a current annual dividend yield of 12.36%. This week, the company announced that it has entered into a definitive agreement to acquire full ownership of Turquoise Hill.
In detail, the transaction involves an all-cash offer of C$43 per share. This represents a 67% premium to Turquoise Hill’s closing price of C$25.68 per share on March 11, 2022. Rio Tinto Chief Executive Jakob Stausholm commented: “This Transaction will simplify governance, improve efficiency and create greater funding certainty for the long-term success of the Oyu Tolgoi project.With that, RIO stock is still down over 17% so far in 2022. This could present an opportunity to invest in RIO stock at a potential discount. Do you think there is room for Rio Tinto shares in your dividend portfolio?
[Read More] Most active stocks to buy today? 4 metaverse actions to watch
BHP Group Limited (BHP shares)
Next, BHP Group Limited (BHP) is a diversified natural resources company. It is dedicated to the exploration, development, production and marketing of mineral, energy and metal products. Currently, BHP shareholders enjoy an annual dividend yield of 12.90%. Also, in August, the company reported its full-year 2022 financial results.
In detail, the company reported a 34% increase in profit from operations in the year ending June 2022. This was largely due to rising commodity prices. Additionally, earnings from operations advanced to $34.1 billion from $25.5 billion year over year. Additionally, revenue for fiscal 2022 totaled $65 billion.
BHP Group CEO Mike Henry commented in his letter to shareholders: “BHP delivered strong operating performance and disciplined cost control to achieve record underlying earnings of US$40.6 billion and record free cash flow of US$24.3 billion. We have reduced debt and announced a final dividend of $1.75 per share, bringing the total announced cash dividend for the full year to a record $3.25 per share.On Thursday, shares of BHP closed up more than 2% at $50.39 a share. With this in mind, do you think BHP is a good dividend paying stock to buy and hold for the long term?
Devon Energy Corporation (DVN shares)
moving along, Devon Power Corporation (DVN) is an American oil and gas exploration and production company. In short, Devon Energy is one of the largest independent oil and gas producers in the United States. In addition, the company’s operations are focused on unconventional oil and gas resources in North America. In addition, Devon Energy has an annual dividend yield of 6.76%.
In August, Devon Energy announced better than expected second quarter 2022 fiscal results. Diving in, the company reported earnings of $2.59 per share, on revenue of $5.6 billion. Compared to consensus Wall Street earnings estimates of $2.38 per share, on revenue of $4.6 billion. Additionally, Devon Energy reported a 132% increase in revenue over the same period in 2021. Following that, the company announced that it generated $2.1 billion of free cash flow in the second quarter. This represents the largest amount of quarterly free cash flow in the company’s history.
Other than that, Devon Energy shares have outperformed the broader stock market as the stock is up more than 51% year to date. As of the closing bell on Thursday, shares of DVN are trading at $68.91 per share. Given this, will you be keeping an eye on DVN stock this week?
[Read More] What stocks to buy today? 3 cyclical stocks to watch now
Chemical and Mining Society S.A. (SQM Stock)
Last but not least, Chemical and Mining Society S.A. (SQM) is a Chilean chemical company with a long history in the production of potassium nitrate, iodine and lithium. The company has also been involved in the mining, extraction and production of other minerals such as thorium and sodium sulfate. In recent years, SQM has become a major player in the global lithium market, supplying cathode materials for electric vehicles and batteries. Today, SQM has an annual dividend yield of 4.08% for shareholders. Last month, the company announced its financial results for the second quarter of 2022.
Straight to the point, SQM reported second-quarter earnings of $3.01 per share on revenue of $2.6 billion. The consensus earnings estimate was $3.24 per share on revenue of $2.3 billion. Other than that, SQM managed to increase its revenues by 342.0% year over year.
The General Manager of SQM, Ricardo Ramos, commented: “We are very satisfied with the results of the first half of the year. These results were related to favorable market conditions related to fertilizers, iodine and lithium and decades of investment, hard work, R&D and knowledge.” So far this year, SQM shares have risen more than 119.34% so far. On top of that, SQM shares closed Thursday trading up an additional 5.43% to $111.27 per share. With this in mind, do you think SQM can maintain its momentum through the rest of 2022 and beyond?
If you enjoyed this article and are interested in learning how to trade for the best chance of making profits on a consistent basis, then you should check out this YouTube channel.
CLICK HERE RIGHT NOW!!