With the Naira constantly losing value, investors explore foreign markets, especially the US stock market, to protect their funds from the clutches of devaluation. Cautious investors look for dividend paying stocks in which to invest to earn passive income while positioning themselves for a time when they can enjoy capital appreciation through an increase in the value of those stocks.
Investing in dividend paying stocks has proven to be a wealth building strategy, especially for those looking for a steady stream of income paid at least once a year.
The major US stock markets, the NYSE and the NASDAQ list dozens of stocks that pay very well dividend-paying stocks. At Nairametrics, we consider dividend paying stocks with a yield of between 4-7% and above to be excellent for any portfolio.
These are our top picks for the week.
Altria Group Incorporated (MO)
Altria Group Inc. is one of the world’s largest producers and distributors of tobacco, cigarettes and related products. It operates around the world and maintains that the future of the tobacco industry rests on innovation, harm reduction and informed consumer choice.
Its first quarter 2021 results show the company generated revenue of $ 4.88 billion. Its net profit stands at $ 1.42 billion with a profit margin of 29.18%. So far, its share price has performed well this year with growth of 14.12%, from $ 41.00 to $ 46.79 with two dividends already paid during the year, at at the time of writing this report.
Altria Group Inc increased its dividend by 2.4% from $ 0.84 to $ 0.86 when it announced its dividend payment in July 2020. It has a dividend yield of 7.35%, a earnings per share (EPS) of 4.32 and a price / earnings ratio (P / E Ratio) of 10.84.
The company has so far been in line with quarterly dividend payments and, based on past trends, is expected to announce another payment around the end of July or the first week of August.
Oneok Incorporated (OKE)
Oneok is a diverse Fortune 500 company based in Tulsa, Oklahoma. It has significant natural gas liquids systems as a result of the 2005 acquisition of the natural gas business of Koch Industries. The company is a leading provider of intermediary services and owns one of the leading natural gas liquids systems in the United States, connecting the supply of NGLs to the Rocky Mountain, Mid Continent and Permian regions with the United States. main market centers.
The company generated revenue of $ 3.19 billion in the first quarter of 2021. Its net profit was $ 386.18 million with a profit margin of 12.09%. Its stock price has also performed well this year, appreciating 44.45%, from $ 38.38 to its current price of $ 55.44 with two dividends declared and paid this year, at the time of writing this report.
Oneok increased its dividend by 2.19% from $ 0.915 to $ 0.935 when it announced its dividend payout in the last quarter of 2019. It has a dividend yield of 6.75%, earnings per share (EPS) of 2.58 and a price / earnings ratio. (P / E Ratio) which amounts to 21.52.
The company has complied with quarterly dividend payments since 2014 and is expected to announce another payment towards the end of July.
Gaming and Leisure Properties Incorporated (GLPI)
Gaming and Leisure Properties is a real estate investment trust based in Wyomissing, Pennsylvania. The company specializes in casino properties and owns 47 such properties. It has partnerships with Penn National Gaming, Caesars Entertainment, Boyd Gaming Corporation, Casino Queen and Bally’s.
The company’s first quarter results revealed revenue generation of $ 301.54 million. Its net profit stood at $ 127.18 million with a profit margin of 42.18%. Its share price is doing well, gaining 8.99% year-to-date, from $ 42.40 to $ 46.21 currently with two dividends declared and paid so far this year, at the time of writing this report.
The company increased its dividend payout by 3.08% from $ 0.65 to $ 0.67 when it announced its dividend payout in the second quarter of this year. It has a dividend yield of 5.80%, an earnings per share (EPS) of 2.20 and a price / earnings ratio (P / E ratio) of 20.99.
The company is in line with quarterly dividend payments and, based on past trends, is expected to announce another payment in August.
Universal Society (UVV)
Universal Corporation is one of the world’s leading tobacco companies. The company is committed to setting industry standards by providing responsible sourcing and handling products.
The company’s first quarter result revealed revenue generation of $ 617.59 million. It generated net profit of $ 39.36 million with a profit margin of 6.37%. Its share price has risen 15.28%, from $ 48.61 to $ 56.04 currently, with three dividends declared and two paid so far this year, at the time of writing.
The company increased its dividend payout by 1.30% from $ 0.77 to $ 0.78 when it announced its dividend payout in the second quarter of this year. It has a dividend yield of 5.60%, earnings per share (EPS) of 4.78 and a price / earnings ratio (P / E ratio) of 11.67.
Universal Corporation is consistent with quarterly dividend payments and is expected to announce another payment at any time, based on past trends.
Security Insurance Group Inc. (SAFT)
Safety Insurance Group Inc. provides personal damage insurance exclusively in Massachusetts, United States. The company is engaged in the property and casualty insurance business and offers a portfolio of property and casualty insurance products.
Its first quarter result showed revenue generation of $ 221.91 million. It generated net profit of $ 36.17 million with a profit margin of 16.30%. Its stock price, on the other hand, has edged down 2.76% from $ 77.90 to $ 75.75 with two dividends declared and paid so far, at the time of writing.
The company has a dividend yield of 4.74%, earnings per share (EPS) of 9.10 and a price / earnings ratio (P / E ratio) of 8.35.
Safety Insurance Group Inc also agrees to pay dividends quarterly. Based on past trends, the company is expected to announce another dividend payout in August.
Why it matters
The companies listed above pay dividends quarterly and are expected to pay two additional dividends in the second half of the year. To earn these dividends, investors must purchase these shares before the markdown date as stipulated by the companies. All statistics were obtained from Bloomberg.
Nairametrics recently reported that the SEC has started licensing fintechs and investment platforms in Nigeria, starting with Chaka, a digital investment platform for stock trading. This is a good sign that more of these platforms may soon follow, which will make it easier for savvy Nigerian investors to take advantage of the opportunities offered to invest in foreign stocks to protect the value of their money, to earn foreign exchange. and increase their income. wealth too.
