Major stock market indices have witnessed huge selloff in the past few months due to rising inflationary pressures, aggressive interest rate hike and rising bearish fears. Given the current market volatility, we think fundamentally strong dividend stocks ARC Document Solutions (ARC), Nippon Steel (NPSCY), and AP Moller-Maersk (AMKBY), which yield more than 7%, are a Can be ideal investments to ensure steady income. stream. These shares are also trading at a discount to their competitors. For more information, read.
Multi-decade high inflation and the Fed’s continued efforts to raise interest rates have led to a massive sell-off on Wall Street over the past few months., The S&P 500 is still down more than 18% year-over-year. Earlier this month, Fed raises interest rates 75 basis pointsThe biggest increase in nearly three decades, and also indicated further aggressive tightening.
Many analysts expect the Fed’s swift moves could eventually propel the US economy into recession. However, Jack Ablin, chief investment officer at Crescent Capital, said, “We’re Calling a Small “R” Recession, That means it’s not going to last long, and things aren’t going to break.”
Given the market’s volatility, we think fundamentally strong dividend stock ARC Document Solutions, Inc. ,arch), Nippon Steel Corporation (NPSCY), and AP Möller – Maersk A / S (AMKBY), which are giving more than 7% returns, can be safe additions to one’s portfolio. These shares are currently trading at a discount to their competitors.
ARC Document Solutions, Inc. ,arch,
ARC is a digital printing company that provides digital printing and document related services in the United States. It provides managed print services that maintain, manage and customize print and imaging equipment at customers’ offices, job sites, and other facilities; and cloud-based document management software and other digital hosting services.
ARC declared a quarterly dividend of $0.05 on April 29, 2021, payable on August 31, 2022. Its $0.20 annual dividend is 7.49% at current share price.
During the first quarter ended March 31, 2022, ARC’s net sales increased 12.6% year-on-year to $69.50 million. Its income from operations increased 78.2% from its year-ago value to $3.06 million, while its adjusted net income increased 150% from its prior-year quarter to $2.00 million. The company’s adjusted EPS increased 150% year-over-year to $0.05.
ARC’s trailing-12-month non-GAAP P/E of 14.83x is 5.7% lower than the industry average of 15.72x. Its 0.64x trailing-12-month EV/sales is also 62.3% below the 1.70x industry average.
It has an impressive earnings surprise history, as it exceeded consensus EPS estimates in all four previous quarters.
of ARC power rating Reflect on this promising outlook. The company has an overall rating of A, which translates into a strong buy in our proprietary rating system. PoWR Ratings assesses stocks based on 118 different factors, each with its own weighting.
The stock also has an A grade for quality and value and a B for sentiment. within B-rated Outsourcing – Professional Services Industry, it is ranked #2 out of 44 stocks.
To view additional PoWR ratings for Growth, Stability, and Speed for ARC, click here,
Nippon Steel Corporation (NPSCY,
Headquartered in Tokyo, Japan, NPSCY is engaged in steelmaking and steelmaking, engineering and construction, chemicals and materials, and systems solutions businesses in Japan and internationally. The company’s steelmaking and steel fabrication business provides steel plates, sheets and slags; bar and rod material; structure steel; Pipes and tubes, and other related products.
NPSCY paid a half yearly dividend of $0.62 on December 8, 2021. Its $1.31 annual dividend is 9.7% at its current share price. Its four-year average dividend yield is 2.84%. In addition, the Company’s dividend payout has grown at a CAGR of 26.7% in the last five years.
For the fiscal year ended March 31, 2022, NPSCY’s net sales grew 41% year-on-year to ₹6808.89 billion ($5.04 billion). its operating profit It increased significantly from its year-ago value to 840.90 billion ($6.22 billion), while its profit for the year stood at 637.32 billion ($4.72 billion), compared to a loss of 32.43 billion ($142.99 million). The company’s EPS came in at 657.48, compared to a loss per share of 35.22 in the prior-year period.
NPSCY’s 0.87x forward EV/sales is 37.1% lower than the 1.38x industry average. Its 5.00x forward EV/EBITDA is also 19.9% lower than the 6.24x industry average.
Analysts expect NPSCY revenue to grow 5% year-on-year to $14.47 billion for the first quarter ending June 2022.
The strong fundamentals of NPSCY are reflected in its power rating. The stock has an overall B rating, which is the equivalent of Buy in our power rating system. The stock also has an A grade for value and a B for stability. within A-rated steel Industry, it is ranked #10 out of 32 stocks.
Overall, we rate NPSC in eight different levels. Apart from what we have said above, we have also given NPSCY grades for Growth, Sentiment, Momentum and Quality. Get All NPSCY Ratings Here,
AP Möller – Maersk A/S (AMKBY,
Headquartered in Copenhagen, Denmark, AMKBY operates as a worldwide integrated transportation and logistics company. The company’s Ocean segment engages in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment under Maersk Line, Safmarine, Sealand – a Maersk Company, Hamburg Süd and APM Terminals. Services are included. brand; and the sale of bunker oil.
Recently, AMKBY announced a share buy-back program of up to DKK 32 billion (about $5 billion) to be executed over a period of two years. As announced on 4 May 2022, during the second phase of the program running from 5 May 2022 to 1 November 2022, the company will buy back A and B shares for an amount of up to DKK 8bn.
AMKBY yields an annual dividend of $1.85 15.27% at the current share price. Its four-year average dividend yield is 6.11%. In addition, the dividend payout of the company has grown at a CAGR of 76.6% in the last five years.
In the first quarter of fiscal year 2022, ended March 31, 2022, AMKBY’s total revenue grew 55.1% year-on-year to $19.29 billion. Its profit for the period rose 150.1% from its year-ago value to $6.81 billion. The company’s cash and bank balances for the 12 months ended March 31, 2022 increased 88.6% from its prior-year quarter to $12.11 billion.
AMKBY’s 2.02x forward non-GAAP P/E is 15.19x, 86.7% lower than the industry average. Its forward EV/sales of 0.63x is also 84.9% lower than the industry average of 11.79x.
Analysts expect AMKBY’s revenue to grow 38.4% year-over-year to $19.69 billion for the second quarter ending June 2022.
It should come as no surprise that AMKBY has an overall A rating, which equates to strong buys in our POWR rating system. AMKBY has an A grade for value and a B grade for speed and quality. Out of 44 stocks in A-rated shipping industry, it is ranked #1.
click here To see additional power ratings for AMKBY (Growth, Sentiment and Sustainability).
Shares of ARC remained unchanged in premarket trading on Tuesday. Year-to-date, the ARC is down -20.60%, while the benchmark S&P 500 index has gained -17.30% during the same period.
About the Author: Spandan Khandelwal
Spandan is a financial journalist and investment analyst focused on the stock market. Along with their ability to interpret financial data, they are intended to help investors evaluate a company’s fundamentals before investing.