Commodities companies continue to dominate as top dividend-paying stocks
Discusses 5 attractive dividend-paying stocks from the Fintel platform
This year’s market rout has prompted savvy investors to play defense and buy stable, dividend-paying stocks rather than aggressive growth stocks.
Fintel Search highlights five stocks whose dividends can deliver what today’s investor is looking for.
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The Dividend Score combines a stock’s dividend yield and growth rate to generate a score of up to 100, based on its ranking against selected peers.
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Commodity companies that have benefited from rising commodity prices this year topped the list.
Manufacturer of integrated wood products Boise Cascade (NYSE:BCC), with a score of 97.64, ranks fifth in Fintel’s US rankings with a rolling dividend yield of 10.13%. The stock has seen dividend growth of 1.99% over the past two years.
BCC has paid special and ordinary dividends over the past five years. Despite the stock’s poor performance, including the $5.98 in cash dividends paid in the previous 12 months, the stock has returned 18.9% to investors since September 2021.
The street remains listed as “neutral” on BCC with a target price of $72.
American coal mining company Arch Resources (NYSE:ARCH) ranks fourth with a dividend score of 97.82. Arch Resources’ share price and earnings have soared this year after the miner turned a profit on high coal prices.
Arch sports a dividend yield of 10.9%, including a recent special dividend.
Arch analysts remain bullish and have a medium “buy” call. The average price target between them is $196 per share.
oil and gas producer Berry Petroleum’s (NASDAQ:BRY) 97.95 the dividend score ranked it third on the list.
The share of berries has increased by 7% since the start of the year, but has lagged behind its peers.
The company benefited from soaring energy prices due to the war in Ukraine. Its shareholders appreciate its dividend yield of 7.6%.
Analysts produce an overweight consensus rating and Berry price target of $12.30.
American natural gas explorer and producer Pioneering Natural Resources (NYSE: PXD) ranks second on the dividend list, with 98.85.
Despite its 35% gain this year, the company’s stock still has a trailing 13.6% return.
PXD shared the success of its peers in the oilfield as commodity prices soared. It boasts a two-year dividend growth rate of 14.58%.
consumer finance company of america One Main Holdings (NYSE:OMF) stands out as the most attractive revenue payer, with a bullish dividend score of 99.50.
OneMain’s holdings have consistently increased quarterly dividends over the past three years and recorded an annualized dividend yield of 31.13% based on the amount paid over the past 12 months.
OMF’s 2-year dividend growth rate is 0.86%.
In the past, OMF distributed excess capital to holders with a special dividend, but ended this practice this year in difficult market conditions.
OMF shares have returned all the gains they had made since December 2020, just before the pandemic, this year. They are down 31.3% this year and trade with a price-earnings (PE) ratio of just 4.2, significantly below the S&P 500.
Analysts remain bullish on the company with a consensus “buy” rating and a target of $52 on the stock, well above the last traded price of $34.69.
Article by Ben Ward, Fintel