Amid persistent market volatility on high inflation and concerns of an impending recession, we feel fundamentally strong investing in dividend-paying stocks Vodafone Group (VOD), Gilead Sciences (GILD), and BHP Group (BHP) There may be wisdom. steady income stream. Read more….
The stock market has had a tumultuous year, fueling fears of a possible recession among investors due to rising inflation and the Fed’s aggressive interest rate hikes. According to the World Bank, global economic growth It is expected to decline to 2.9% in 2022, from 5.7% last year.
Since market volatility is not expected to ease soon, investors turn to dividend stocks to dodge market risks. According to CNBC’s June SurveyAbout 42% of respondents said they would invest in dividend-paying stocks for the rest of the year.
Investing in quality dividend-paying stocks can help investors protect their portfolio from market volatility and generate a steady income stream. Investor interest in dividend stocks is evident in the iShares Core High Dividend ETF (hdv) 5.4% return over the previous year.
Hence, it may be wise to invest in quality dividend stocks of Vodafone Group Public Limited Company (VOD), Gilead Sciences, Inc. ,to gild), and BHP Group Limited (bhpThese companies have an impressive history of paying dividends to their shareholders.
Vodafone Group Public Limited Company (VOD,
Headquartered in Newbury, United Kingdom, VOD is a connectivity and digital services provider. It provides mobile, fixed-line services such as broadband, television (TV), and convergence services under the names GigaKombi and Vodafone One.
VOD’s four-year average dividend yield is 6.83%, and its forward annual dividend of $0.91 per share translates to a 6.36% yield. The company declared a dividend of $0.46 per share, payable on August 05, 2022.
During the fiscal year ended March 30, 2022, VOD’s total revenue grew 4% year-on-year to €45.58 billion ($46.49 billion). Its operating profit increased 11.1% year-on-year to €5.66 billion ($5.77 billion). The company’s net profit rose 389.6% from a year ago to €2.62 billion ($2.68 billion), while its eps That increased by 1,786.8% to 7.17c from the prior-year quarter.
Analysts expect VOD revenue to grow 1.1% year-over-year to $47.51 billion for fiscal 2023. The Street expects its EPS to grow 72.2% annually over the next five years. The stock is down 3.7% year-over-year to close the last trading session at $14.38.
VOD power rating Shows solid possibilities. It has an overall rating of B, which translates into a buy according to our proprietary rating system. PoWR Ratings assesses stocks based on 118 different factors, each with its own weighting.
It has an A grade for growth and a B grade for value and stability. It’s A-rated. Ranked #11 out of 47 stocks in Telecom – Foreign industry. click here To see VOD’s other ratings for Momentum, Sentiment and Quality.
Gilead Sciences, Inc. ,to gild,
GILD is a biopharmaceutical company focusing on drug development and commercialization to treat life-threatening diseases, including HIV, viral hepatitis and cancer.
On August 4, 2022, GILD announced that it would acquire UK-based biotechnology company MiroBio. This acquisition provides the company with MiroBio’s unique platform technology and pipeline of immune checkpoint agonists. Its scientific approach to restoring immune balance to treat autoimmune diseases complements the Guild’s inflammation research and development strategy.
GILD has been paying dividend for six consecutive years. Its dividend payout has grown at 6.3% CAGR over the last three years and 7.8% CAGR over the last five years. Its forward annual dividend translates to a 4.72% yield, while its four-year average yield is 3.90%.
For the second quarter of the fiscal year ended June 30, 2022, GILD’s total revenue increased marginally year-over-year to $6.26 billion. The company’s total product sales excluding Veklury grew 7% year-over-year to $5.69 billion.
For the quarter ended December 31, 2022, Guild’s EPS is expected to increase 104.4% year-over-year to $1.41. In three of the last four quarters, it has surpassed EPS estimates. Over the past three months, the stock has fallen marginally to close the previous trading session at $61.91.
GILD’s strong fundamentals are reflected in its POWR rating. The stock has an overall B rating, which translates into a buy in our proprietary rating system.
BHP Group Limited (bhp,
Headquartered in Melbourne, Australia, BHP operates as a resource company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. It operates through the Petroleum, Copper, Iron Ore and Coal segments.
On June 1, 2022, BHP CEO Mike Henry said, “The merger of our petroleum assets with Woodside creates a leading global energy company, helping to supply the energy needed for global growth and development in a rapidly decarbonizing world.” Our shareholders will now be exposed to assets across two organizations, BHP and Woodside, each with a clear focus, strategy and value proposition.”
BHP’s four-year average dividend yield is 7.23%, and its forward annual dividend of $6 translates to an 11.29% yield. Its dividend has grown at a CAGR of 43.7% and 45.3% in the last three and five years respectively.
For the half-year ended December 31, 2021, BHP’s revenue grew 27% to $30.53 billion. Its operating profit rose 50.1% year-over-year to $14.85 billion. Its EPS came in at $186.20, up 143.4% year-on-year. In addition, its profit after tax from continuing and discontinued operations rose 117.6% year-over-year to $10.51 billion.
For fiscal 2022, BHP’s revenue is expected to grow 7.9% year-on-year to $65.60 billion. Over the past month, the stock has fallen 1.8% to close the previous trading session at $53.13.
BHP’s power rating reflects this promising outlook. The stock has an overall rating of B, which is equivalent to a buy in our proprietary rating system. It has a B grade for consistency and quality.
VOD shares were trading at $14.65 per share, up $0.27 (+1.88%) on Friday morning. Year-over-year, VOD is up 0.84%, while the benchmark S&P 500 index has gained -12.84% during the same period.
About the Author: Shweta Kumari
Shweta’s keen interest in financial research and quantitative analysis inspired her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.