As the U.S. stock market begins 2025 on a challenging note, with major indices extending recent declines, investors are increasingly seeking stability and income through dividend stocks. In a market environment marked by volatility and uncertainty, selecting dividend-paying stocks can provide a reliable source of income while potentially enhancing portfolio resilience.
Overview: EOG Resources, Inc. is involved in the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas primarily in the United States and Trinidad and Tobago with a market cap of $68.95 billion.
Operations: EOG Resources generates revenue of $23.86 billion from its crude oil and natural gas exploration and production activities.
Dividend Yield: 3.1%
EOG Resources trades at a significant discount to its estimated fair value, offering potential value for investors. Its dividend yield of 3.13% is lower than the top 25% of US dividend payers, but its payout ratio of 29.2% suggests dividends are well-covered by earnings and cash flows (36.8%). However, EOG's dividend history is volatile and unreliable over the past decade. Recent financial activities include a $994 million fixed-income offering and share buybacks totaling $3.21 billion since 2021.
Overview: The Bank of N.T. Butterfield & Son Limited offers community, commercial, and private banking services to individuals and small to medium-sized businesses, with a market cap of approximately $1.61 billion.
Operations: The Bank of N.T. Butterfield & Son Limited generates its revenue primarily from its banking segment, which amounts to $573.10 million.
Dividend Yield: 4.8%
Bank of N.T. Butterfield & Son offers a compelling dividend yield of 4.84%, placing it in the top 25% of US dividend payers, supported by a low payout ratio of 38.5%. Despite having only an eight-year history, dividends have been stable and reliable. Recent strategic moves include a $100 million share buyback program and plans for acquisitions, indicating robust capital management while maintaining focus on shareholder returns through consistent quarterly dividends.
Overview: Southern Copper Corporation is involved in the mining, exploration, smelting, and refining of copper and other minerals across Peru, Mexico, Argentina, Ecuador, and Chile with a market cap of $72.03 billion.
Operations: Southern Copper Corporation generates revenue primarily from its Mexican Open-Pit operations ($5.97 billion), Peruvian Operations ($4.47 billion), and the Mexican Industrial Minera Mexico and Subsidiaries (IMMSA) Unit ($673 million).
Dividend Yield: 3%
Southern Copper's dividend payments are covered by earnings with a payout ratio of 61.4% and cash flows at 86.1%, though the yield of 3.02% is below top-tier US payers. Despite past volatility, dividends have grown over the last decade, highlighted by a recent increase to $0.70 per share in October 2024. The company reported strong Q3 results with net income rising to US$896.7 million, reflecting robust operational performance amid board changes and no recent buyback activity.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
