Connect with us

4 Highest Dividend Yield Stocks to Beat Inflation in 2022

 To ensure you are getting the most of your returns, here are the highest dividend yield stocks worth investing in.
The post 4 Highest Dividend Yield…

Published

on

The latest Consumer Price Index (CPI) reading shows inflation is still rising, up 8.6% in the past year. To offset the loss of purchasing power, earning a return on your investments is crucial. With the market down this year, you can buy the highest dividend yield stocks for a discount.

Although many analysts thought we would see some relief in the latest inflation reading, it shows little sign of letting up.

Investing in high dividend stocks is one of the best ways to build wealth in the long term. For one thing, if you reinvest the payouts, it can help compound returns over time.

But, be aware, some of the highest dividend yield stocks are not worth investing in. For example, the stock could be selling off for a good reason, driving the yield up.

On the other hand, some companies pay a higher yield to lure investors into “sin stocks.” Sin stocks are companies doing business that may be considered unethical, such as tobacco or gambling. To ensure you are getting the most of your returns, here are the highest dividend yield stocks worth investing in.

What Are the Highest Dividend Yield Stocks Right Now?

To find a company’s current dividend yield, you take its annual dividend per share and divide it by the share price. To illustrate, the formula is below…

Dividend yield = annual dividend per share/current share price

With this in mind, dividend yield gives you an idea of the return you get on your investment. For example, Apple (Nasdaq: AAPL) and Redwood Trust (NYSE: RWT) both pay an annual dividend of $0.92.

However, Apple stock has a dividend yield of 0.62%, while Redwood has a yield near 10%. Does this mean Redwood is the better investment? Not necessarily.

For one thing, Apple’s earnings are known to grow consistently. Investors recognize this and look at Apple stock as a growth opportunity.

In comparison, Redwood Trust is a Mortgage Reit. So, naturally, it pays a larger part of earnings to investors. With this in mind, Apple uses extra cash flow to reinvest back in the business and continue growing.

Lastly, Apple stock is up over 308% in the last five years, while RWT stock is down 30%, with dividends reinvested. So, you can see why it pays to invest in quality, not just the highest dividend-paying stocks. Below you will find the highest dividend yield stocks worth investing in for growth.

No. 4 Kraft Heinz (NYSE: KHC)

  • Dividend Yield: 4.29%
  • Payout Ratio: 57%

Your favorite ketchup and mustard company, Kraft Heinz, is looking to return to earnings growth. After ramping revenue in 2016 to $26.3B, the company has yet to reach that milestone.

But the company is planning to turn things around with strategic innovation. Instead of trying to revamp every product, Kraft is focusing on its highest potential opportunities. For example, condiments and sauces make the most sales, so this will be a category in focus.

At the same time, KHC owns brand names including Philadelphia (cream cheese), Lunchables, Kool-Aid, and Jell-O. With this in mind, strong brand positioning makes the turnaround possible.

Lastly, KHC plans to sell off its low-growth products to pay down debt. Then, Kraft will use the extra cash to expand into higher growth opportunities.

No. 3 Altria Group (NYSE: MO)

  • Dividend Yield: 7.32%
  • Payout Ratio: 76%

Altria is one of the “sin stocks” as the largest cigarette maker in the U.S. If you wish to stick to ethical stocks, skip to #2 on the highest dividend yield stocks list.

A report from the FTC last year found that cigarette sales increased during the pandemic for the first time in 20 years.

Despite this, the industry is in a secular decline. Yet Altria is cutting costs to get ahead of the curve and plan for the future.

Furthermore, the company is investing outside of tobacco to expand its market. For example, in 2019, Altria took a 45% stake in the cannabis company Cronos Group (Nasdaq: CRON). With this in mind, Altria’s dominant position in the tobacco industry and outside investments are why the company plans to continue growing.

No. 2 IBM (NYSE: IBM)

  • Dividend Yield: 4.78%
  • Payout Ratio: 68%

You won’t find too many tech stocks on the highest dividend yield stocks list. For one thing, tech companies often use extra cash flow to reinvest in the business, promoting future growth.

Given this, when the Federal Reserve raised interest rates, tech stocks were the first to fall. Yet IBM is outperforming the market this year as investors look for safety.

IBM is taking drastic steps to lead in the hybrid cloud and AI markets. So far, the company is off to a strong start with solid demand in both software and consulting. With this in mind, IBM is focusing on becoming more profitable with higher cash flow.

No. 1 Devon Energy (NYSE: DVN)

  • Dividend Yield: 6.53%
  • Payout Ratio: 54%

After leading the S&P 500 Index (SPX) in 2021, Devon Energy is off to another strong start in 2022. DVN stock is up 65% so far this year compared to the SPDR S&P 500 ETF (NYSE: SPY), down 17%.

A big reason why Devon Energy is outperforming is due to the near-record energy costs. With natural gas prices up 136% and oil prices over $120 a barrel, energy companies are earning record profits.

For Devon Energy, the company is also restructuring to focus on growth in the Delaware Basin. In fact, the company bought rival WPX Energy last year to expand its shale position. With this in mind, the Permian Basin (where Delaware Basin is) is one of the most profitable spots to drill.

With demand for oil and gas skyrocketing, experts don’t see prices coming down drastically anytime soon. It could take years for supply to fill the Russian energy gap. Given these reasons, Devon Energy is not only one of the highest dividend yield stocks but also a top asset to own in 2022.

Keep Reading This Article and Find Out the Top 2 Highest Dividend Yield Stocks to Buy Now


Enter your email below to read the reveal the top two highest dividend yield stocks.
You’ll also be opted in to receive our free daily e-letter, Investment U, where you’ll find expert investment insight, analysis and stock picks for all the best investment opportunities.

You’ll also receive occasional special offers from Oxford Club and our affiliates. You can unsubscribe at any time. Privacy Policy | Newsletter FAQ

"); } else if (data['response'] == 'Already Active On List') { // email already exists in system send confirmation anyway $(".status").html("
The email address is already on this list. You may now read the rest of the article.
"); } revive.setCookie(listCode, true, 365); function dieGated(){ $(".gated-content").show(); $(".gated").remove(); } setTimeout(dieGated, 3500); }; // hide iframe before adding src iframe.setAttribute("style", "display:none"); // iframe src should be the leadgen link iframe.src = signupUrl; iframe.setAttribute("id", "hacking_iris"); document.body.appendChild(iframe); } else if (data['response'] == 'Undeliverable') { $(".status").html("
Email was processed, but got an undeliverable error. Please check the email address and try again.
"); } else if (data['response'] == 'SpamTrap') { // invalid email $(".status").html("
We could not process this email address. Please check the email address and try again.
"); } else { // uknown error $(".status").html("
An error has occurred, please try again.
"); } }); // portrait });

Read More

Continue Reading

Government

Survey Shows Declining Concerns Among Americans About COVID-19

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat"…

Published

on

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat" to the health of the US population - a sharp decline from a high of 67% in July 2020.

(SARMDY/Shutterstock)

What's more, the Pew Research Center survey conducted from Feb. 7 to Feb. 11 showed that just 10% of Americans are concerned that they will  catch the disease and require hospitalization.

"This data represents a low ebb of public concern about the virus that reached its height in the summer and fall of 2020, when as many as two-thirds of Americans viewed COVID-19 as a major threat to public health," reads the report, which was published March 7.

According to the survey, half of the participants understand the significance of researchers and healthcare providers in understanding and treating long COVID - however 27% of participants consider this issue less important, while 22% of Americans are unaware of long COVID.

What's more, while Democrats were far more worried than Republicans in the past, that gap has narrowed significantly.

"In the pandemic’s first year, Democrats were routinely about 40 points more likely than Republicans to view the coronavirus as a major threat to the health of the U.S. population. This gap has waned as overall levels of concern have fallen," reads the report.

More via the Epoch Times;

The survey found that three in ten Democrats under 50 have received an updated COVID-19 vaccine, compared with 66 percent of Democrats ages 65 and older.

Moreover, 66 percent of Democrats ages 65 and older have received the updated COVID-19 vaccine, while only 24 percent of Republicans ages 65 and older have done so.

“This 42-point partisan gap is much wider now than at other points since the start of the outbreak. For instance, in August 2021, 93 percent of older Democrats and 78 percent of older Republicans said they had received all the shots needed to be fully vaccinated (a 15-point gap),” it noted.

COVID-19 No Longer an Emergency

The U.S. Centers for Disease Control and Prevention (CDC) recently issued its updated recommendations for the virus, which no longer require people to stay home for five days after testing positive for COVID-19.

The updated guidance recommends that people who contracted a respiratory virus stay home, and they can resume normal activities when their symptoms improve overall and their fever subsides for 24 hours without medication.

“We still must use the commonsense solutions we know work to protect ourselves and others from serious illness from respiratory viruses, this includes vaccination, treatment, and staying home when we get sick,” CDC director Dr. Mandy Cohen said in a statement.

The CDC said that while the virus remains a threat, it is now less likely to cause severe illness because of widespread immunity and improved tools to prevent and treat the disease.

Importantly, states and countries that have already adjusted recommended isolation times have not seen increased hospitalizations or deaths related to COVID-19,” it stated.

The federal government suspended its free at-home COVID-19 test program on March 8, according to a website set up by the government, following a decrease in COVID-19-related hospitalizations.

According to the CDC, hospitalization rates for COVID-19 and influenza diseases remain “elevated” but are decreasing in some parts of the United States.

Tyler Durden Sun, 03/10/2024 - 22:45

Read More

Continue Reading

International

Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

Published

on

Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

Read More

Continue Reading

Government

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While “Waiting” For Deporation, Asylum

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several…

Published

on

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several months we've pointed out that there has  been zero job creation for native-born workers since the summer of 2018...

... and that since Joe Biden was sworn into office, most of the post-pandemic job gains the administration continuously brags about have gone foreign-born (read immigrants, mostly illegal ones) workers.

And while the left might find this data almost as verboten as FBI crime statistics - as it directly supports the so-called "great replacement theory" we're not supposed to discuss - it also coincides with record numbers of illegal crossings into the United States under Biden.

In short, the Biden administration opened the floodgates, 10 million illegal immigrants poured into the country, and most of the post-pandemic "jobs recovery" went to foreign-born workers, of which illegal immigrants represent the largest chunk.

Asylum seekers from Venezuela await work permits on June 28, 2023 (via the Chicago Tribune)

'But Tyler, illegal immigrants can't possibly work in the United States whilst awaiting their asylum hearings,' one might hear from the peanut gallery. On the contrary: ever since Biden reversed a key aspect of Trump's labor policies, all illegal immigrants - even those awaiting deportation proceedings - have been given carte blanche to work while awaiting said proceedings for up to five years...

... something which even Elon Musk was shocked to learn.

Which leads us to another question: recall that the primary concern for the Biden admin for much of 2022 and 2023 was soaring prices, i.e., relentless inflation in general, and rising wages in particular, which in turn prompted even Goldman to admit two years ago that the diabolical wage-price spiral had been unleashed in the US (diabolical, because nothing absent a major economic shock, read recession or depression, can short-circuit it once it is in place).

Well, there is one other thing that can break the wage-price spiral loop: a flood of ultra-cheap illegal immigrant workers. But don't take our word for it: here is Fed Chair Jerome Powell himself during his February 60 Minutes interview:

PELLEY: Why was immigration important?

POWELL: Because, you know, immigrants come in, and they tend to work at a rate that is at or above that for non-immigrants. Immigrants who come to the country tend to be in the workforce at a slightly higher level than native Americans do. But that's largely because of the age difference. They tend to skew younger.

PELLEY: Why is immigration so important to the economy?

POWELL: Well, first of all, immigration policy is not the Fed's job. The immigration policy of the United States is really important and really much under discussion right now, and that's none of our business. We don't set immigration policy. We don't comment on it.

I will say, over time, though, the U.S. economy has benefited from immigration. And, frankly, just in the last, year a big part of the story of the labor market coming back into better balance is immigration returning to levels that were more typical of the pre-pandemic era.

PELLEY: The country needed the workers.

POWELL: It did. And so, that's what's been happening.

Translation: Immigrants work hard, and Americans are lazy. But much more importantly, since illegal immigrants will work for any pay, and since Biden's Department of Homeland Security, via its Citizenship and Immigration Services Agency, has made it so illegal immigrants can work in the US perfectly legally for up to 5 years (if not more), one can argue that the flood of illegals through the southern border has been the primary reason why inflation - or rather mostly wage inflation, that all too critical component of the wage-price spiral  - has moderated in in the past year, when the US labor market suddenly found itself flooded with millions of perfectly eligible workers, who just also happen to be illegal immigrants and thus have zero wage bargaining options.

None of this is to suggest that the relentless flood of immigrants into the US is not also driven by voting and census concerns - something Elon Musk has been pounding the table on in recent weeks, and has gone so far to call it "the biggest corruption of American democracy in the 21st century", but in retrospect, one can also argue that the only modest success the Biden admin has had in the past year - namely bringing inflation down from a torrid 9% annual rate to "only" 3% - has also been due to the millions of illegals he's imported into the country.

We would be remiss if we didn't also note that this so often carries catastrophic short-term consequences for the social fabric of the country (the Laken Riley fiasco being only the latest example), not to mention the far more dire long-term consequences for the future of the US - chief among them the trillions of dollars in debt the US will need to incur to pay for all those new illegal immigrants Democrat voters and low-paid workers. This is on top of the labor revolution that will kick in once AI leads to mass layoffs among high-paying, white-collar jobs, after which all those newly laid off native-born workers hoping to trade down to lower paying (if available) jobs will discover that hardened criminals from Honduras or Guatemala have already taken them, all thanks to Joe Biden.

Tyler Durden Sun, 03/10/2024 - 19:15

Read More

Continue Reading

Trending