With the Naira consistently losing value investors are exploring foreign markets, particularly the U.S stock market, to keep their funds safe from the clutches of devaluation. Conservative investors are looking for dividend-paying stocks to invest in to earn passive income while also positioning for such as time as when they can enjoy capital appreciation from a rise in the value of these stocks.
Investing in dividend stocks has proven to be a wealth-building strategy especially for those looking for a steady stream of income that is paid at least once yearly.
The major US stock markets, NYSE and NASDAQ list dozens of stocks that are great paying dividend stocks. At Nairametrics we consider stocks that pay dividends with a yield of between 4 to 7% and above as great 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 marketers of tobacco, cigarettes and related products. It operates worldwide and maintains that the future of the Tobacco industry is about innovation, harm reduction and informed consumer choice.
Its Q1, 2021 results show that the company generated a revenue of $4.88 billion. Its net income stands at $1.42 billion with a profit margin of 29.18%. Its share price so far has performed well this year as it has grown by 14.12%, appreciating from $41.00 to $46.79 with two dividends already paid during the year, as of the time of writing this report.
Altria Group Inc increased its dividend pay 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%, an earnings per share (EPS) of 4.32 and a price to earnings ratio (P/E Ratio) that stands at 10.84.
The company has so far been consistent with quarterly dividend payments and based on past trends, is expected to announce another payout towards the end of July or the first week in August.
Oneok Incorporated (OKE)
Oneok is a diversified Fortune 500 corporation based in Tulsa, Oklahoma. It owns major natural gas liquid systems due to the 2005 acquisition of Koch Industries natural gas businesses. The company is a leading midstream service provider and owns one of America’s premier natural gas liquids systems, connecting NGL supply in the Rocky Mountain, Mid-Continent and Permian regions with key market centres.
The company generated a revenue of $3.19 billion in the first quarter of 2021. Its net income stood at $386.18 million with a profit margin of 12.09%. Its share price has also performed well this year, appreciating by 44.45% from $38.38 to its current trading price of $55.44 with two dividends declared and paid this year, as of the time of writing this report.
Oneok increased its dividend pay by 2.19% from $0.915 to $0.935, when it announced its dividend payment in the last quarter of 2019. It has a dividend yield of 6.75%, an earnings per share (EPS) of 2.58 and a price to earnings ratio (P/E Ratio) that stands at 21.52.
The company has been consistent with quarterly dividend payments since 2014 and is expected to announce another payout 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 the likes of Penn National Gaming, Caesars Entertainment, Boyd Gaming Corporation, Casino Queen and Bally’s.
The company’s first-quarter results revealed a revenue generation of $301.54 million. Its net income stood at $127.18 million with a profit margin of 42.18%. Its share price is doing well, gaining 8.99% year to date (YTD), from $42.40 to currently stand at $46.21 with two dividends declared and paid so far this year, as of the time of writing this report.
The company increased its dividend payment by 3.08% from $0.65 to $0.67, when it announced its dividend payment 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 to earnings ratio (P/E Ratio) that stands at 20.99.
The company is consistent with quarterly dividend payments and based on past trends, is expected to announce another payout in August.
Universal Corporation (UVV)
Universal Corporation is one of the world’s leading tobacco merchants. The company is committed to setting industry standards in providing products that are responsibly sourced and processed.
The company’s first-quarter result revealed a revenue generation of $617.59 million. It generated a net income of $39.36 million with a profit margin of 6.37%. Its share price has grown by 15.28%, appreciating from $48.61 to trade currently at $56.04 with three declared dividends and two paid so far this year, as of the time of writing this report.
The company increased its dividend payment by 1.30% from $0.77 to $0.78, when it announced its dividend payment in the second quarter of this year. It has a dividend yield of 5.60%, an earnings per share (EPS) of 4.78 and a price to earnings ratio (P/E Ratio) that stands at 11.67.
Universal Corporation is consistent with quarterly dividend payments and is expected to announce another payout any moment from now, based on past trends.
Safety Insurance Group Inc. (SAFT)
Safety Insurance Group Inc. provides personal lines property and casualty insurance focused exclusively in Massachusetts U.S. The company is engaged in property and casualty insurance operations and offers a portfolio of property and casualty insurance products.
Its first-quarter result revealed a revenue generation of $221.91 million. It generated a net income of $36.17 million with a profit margin of 16.30%. Its share price on the other hand has declined marginally by 2.76%, declining from $77.90 to trade currently at $75.75 with two declared and paid dividends so far, as of the time of writing this report.
The company has a dividend yield of 4.74%, an earnings per share (EPS) of 9.10 and a price to earnings ratio (P/E Ratio) that stands at 8.35.
Safety Insurance Group Inc is also consistent with paying dividends quarterly. Based on past trends, the company is expected to announce another dividend payout in August.
Why this 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 buy these stocks before the markdown date as stipulated by the companies. All statistics were gotten from Bloomberg.
Nairametrics recently reported that SEC has commenced the issue of operating licenses to fintechs and investment platforms in Nigeria, beginning with Chaka, a digital investment platform for trading stocks. This is a good sign that more of these platforms may soon follow, making it easier for savvy Nigerian investors to take advantage of the opportunities provided to invest in foreign equities as a way to protect the value of their money, earn foreign currency and grow their wealth as well.
This is really good information. Thank you
Please how can someone living in Nigeria buy shares of companies in the USA?