With sky-high inflation, potential recession, and the potential for geopolitical disaster, some of the best stocks to own are high-yielding dividend stocks.
According to NerdWallet contributor Chris Davis, “Investing in companies with a strong track record of paying — and increasing — dividends can lead to stable cash flow even during recessions. Another option is to invest in dividend ETFs, which comprise companies known for routinely paying strong dividends.”
That being the case, investors may want to consider these high-yielding dividend stocks.
Altria Group (MO)
Altria Group carries a dividend yield of 8.32%.
Also, despite recent issues with the US FDA, that dividend appears safe.
According to Stifel analyst Chris Growe, who has a buy rating on the stock, the dividend is vital to the investor base. “It is absolutely necessary for their stock, and I think that most investors expect it,” he said, as quoted by Barron’s. “They are growing their profit, and they are growing their free cash flow each and every year.”
Altria also just produced a decent quarter, but had to cut the value on its e-cigarette, Juul. In its second quarter, the company posted adjusted EPS of $1.26 on sale of $6.54 billion. Revenue came in at $5.37 billion. Analysts were looking for EPS of $1.25 on sales of $5.41 billion. It also had to cut the fair value of its stake in Juul Labs by about 70%.
Moving forward, Altria says it can deliver adjusted EPS of $4.79 to $4.93 for the full year, which is growth of about 4% to 7%. Analysts expect to see $4.84 for the year.
Universal Corp. (UVV)
Tobacco company, Universal Corp. carries a yield of 6.26%, and just recently announced that the Company’s Board of Directors declared a quarterly dividend of seventy-nine cents ($0.79) per share on the common shares of the Company, payable November 7, 2022, to common shareholders of record at the close of business on October 10, 2022.
Kinder Morgan (KMI)
Kinder Morgan is one of the largest infrastructure companies in North America. It owns and controls oil and gas pipelines and terminals, and carries a dividend yield of 6.05%. KMI also just declared a dividend of $0.2775 per share, payable August 15 to shareholders of record, as of August 1. It also just posted second quarter revenue of $5.15 billion, as compared to expectations for $3.79 billion.