As Wall Street plunges toward bear market territory, investors increasingly look for dividend stocks to buy. So far this year, the S&P 500 High Dividend Index has returned 1.5%, compared to the benchmark S&P 500 Index, which has lost 18% year-to-date (YTD).
In addition, the iShares Core High Dividend ETF (NYSEARCA:HDV) has gained 4.3% in 2022. These returns reveal that high-dividend stocks may offer a safe harbor for long-term investors.
Meanwhile, analysts agree that dividends offer an effective hedge against rising inflation and play a key role in generating total equity returns. Since 1926, capital gains have accounted for approximately two-thirds of total returns for the S&P 500, while dividends have contributed the remaining one third.
A hand holds a bag of Dave's Killer Bread at the grocery store
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52-week range: $21.05 – $36.52
B&G Foods (NYSE:BGS) is a packaged-food producer focused on branded shelf-stable and frozen foods. The company boasts a diverse portfolio of more than 50 well-known food brands, such as Crosco, Green Giant, B&M, Baker’s Joy, and Old London.
The food manufacturer released Q1 results on May 5. Revenue increased 5.4% year-over-year (YOY) to $532.4 million. However, adjusted earnings tumbled 34.6% YOY to 34 cents per diluted share, compared to 52 cents in the prior-year quarter.
Adjusted gross margin declined 19% in the first quarter. Industry-wide rising input costs and supply-chain bottlenecks are the main reasons for the disappointing results. B&G Foods is focused on cost-saving initiatives to offset increasing prices.
The company recently announced a regular quarterly cash dividend of 47.5 cents per share, representing a generous dividend yield of 8.8% at the current share price.
On May 20, B&G hit a 52-week low of $21.05, down 30% YTD. Shares are trading at 13 times forward earnings and just 0.7 times trailing sales. The 12-month median price forecast for B&G Foods stock stands at $26.
Devon Energy (DVN)
An image of a hand holding a smartphone displaying the Devon Energy Corporation (DNV) logo in front of a computer screen
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52 week range: $23.34 – $73.18
Devon Energy (NYSE:DVN) is primarily focused on oil and gas exploration, production, and transportation in North America. Over the past year, increasing commodity prices has meant excellent returns fro long-term DVN shareholders.
The energy giantissued Q1 results on May 3. The top line benefited from soaring oil and gas prices. Revenue increased 85.9% YOY to $3.8 billion. Adjusted earnings came in at $1.88 per share, up 35.3% YOY. Cash and equivalents ended the quarter at $2.63 billion.
Devon Energy offers a generous dividend yield of 7.3%, with a very sustainable payout ratio of 50%. In 2022, the oil company anticipates paying out more than $4.75 per share in dividends, up from the $1.97 it paid out in the past year.
DVN stock skyrocketed 175% in 2021. So far in 2022, the stock has also appreciated more than 55% and hit an all-time high on May 18. However, shares still look undervalued at 8.7 times forward earnings and 3.3 times sales. The 12-month median price forecast for Devon stock is at $77.
Dividend Stocks to Buy: Global Ship Lease (GSL)
Side view of a MarineMax (HZO) boat on the water with trees in background. dividend stocks to buy
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52 week range:$15.25 – $30.02
Our next dividend stock takes us over the Atlantic. The London, U.K.-based Global Ship Lease (NYSE:GSL) owns a diversified fleet of containerships. High freight and charter rates over the past year have provided tailwinds for the group.
The containership ownerannounced Q1 results on May 9. Revenue grew 110% to $153.6 million. Earnings per share came in at $1.91, compared to 56 cents for the prior-year period. Cash and equivalents ended the period at $214.5 million.
GSL signs two- to five-year contracts. Liners aim to secure capacity for extended durations to lock in value over time and generate reliable cash flow streams. On May 17, the company announced a forward agreement of a 48 month-52 month charter for the 2004-built GSL Ningbo.
The board has recently issued a quarterly dividend of 37.5 cents, up 50% from the previous quarterly dividend. It currently generates a robust 6.8% dividend yield.
So far in 2022, GSL stock is down 4.5%. Shares are trading at 1.7 times sales. The 12-month median price forecast for Global Ship Lease stock is at $35.
Petmed Express (PETS)
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52-week range: $19.09 – $46.67
Petmed Express (NASDAQ:PETS) sells pet medications and supplies direct to retail consumers. Recent metrics suggest about 70% of U.S. households are pet parents. As a result, Wall Street pays attention to results from Petmed Express and its peers.
On May 9, Petmed Express released Q4 2021 metrics. Revenue declined 7.9% YOY to $66 million. Adjusted net earnings came in at 30 cents per diluted share, down from 34 cents a year ago. Cash and equivalents ended the period at $111.1 million.
Recently, the company has come under pressure due to new competitors that combine a wide range of pet products with veterinary services. As a result, PetMed is shifting to a more comprehensive pet health concept to combat declining revenue and earnings.
So far in the year, PETS stock has lost 25%. Meanwhile, the online pet group pays a generous dividend yield of 5.56%.
Shares are trading at 1.5 times sales. The 12-month median price forecast for Petmed Express stock stands at $22. Potential investors could regard a decline below $20 as a better entry point.
Dividend Stocks to Buy: Simon Property Group (SPG)
building facade of simon property group (SPG)
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52 week range: $105.72 – $171.12
Simon Property Group (NYSE:SPG) is a prominent retail real estate investment trust (REIT). It owns around 200 shopping malls, outlet centers, and lifestyle centers across the nation.
The REIT issued Q1 results on May 9. Revenue came in at $1.3 billion, up 4.5% YOY. Funds from operations (FFO) increased 12.1% to $2.78 per diluted share, compared to $2.48 in the prior-year quarter. Total liquidity stood at $8.2 billion.
Over the past few years, management has capitalized on buying out recognized retail brands in bankruptcy. It is also assisting digital brands in expanding their brick-and-mortar presence.
Readers may be interested to know that the shopping-mall giant, along with Canada-based Brookfield Asset Management (NYSE:BAM), is looking to acquireKohl’s (NYSE:KSS) in an $8.6 billion deal.
In late May, SPG stock hit a 52-week low of $105.72, down 32% YTD. The dividend yield currently stands at 6.07%.
Shares are trading at 18.9 times forward earnings and 7.2 times sales. Meanwhile, the 12-month median price forecast for Simon Property stock is at $155.
Southern Copper (SCCO)
Southern Copper Corporation logo on a phone screen in front of the logo on a computer screen. SCCO stock.
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52-week range: $53.36 – $79.32
Southern Copper (NYSE:SCCO) is one of the largest integrated copper producers worldwide. It operates mines and smelters in Peru, Mexico, Argentina, and Chile.
The miner announced Q1 results on May 3. Revenue increased 9.1% YOY to $2.8 billion. Earnings per share came in at $1.02, up 3% YOY. Cash flow from operating activities in Q1 was $820.7 million.
Despite a 13.4% decline in sales volume, copper prices increased by 18% in the first quarter, leading to a significant increase in revenue. Goldman Sachs (NYSE:GS) analysts have recently suggested that copper prices may seerecord highs in the coming quarters.
For fiscal year 2023, management is predicting an 8.1% YOY increase in revenue to $11.64 billion. Moreover, the current dividend yield stands at a lucrative 8.5%.
So far in 2022, SCCO stock has declined around 2% and hit a 52-week low on May 16. Shares are trading at 28.5 times forward earnings and 3.9 times sales. The 12-month median price forecast for Southern Copper stock is at $62.
Dividend Stocks to Buy: Vornado Realty Trust (VNO)
Real estate investment trust REIT on an office desk. dividend stocks to buy
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52-week range: $32.48 – $50.91
Vornado Realty Trust(NYSE:VNO) is a REIT that operates both office and retail properties, with offices accounting for about 80% of its business. It has ownership interests in Class A office and retail properties concentrated in Manhattan.
The REIT released Q1 results on May 2. The top line grew 16.4% YOY to $442 million. Adjusted FFO increased 21% YOY to 79 cents per diluted share, compared to 65 cents a year ago. Cash and equivalents ended the quarter at $973.9 million.
Office leasing activity in New York has picked up so far in 2022. Vornado completed 30 leases for 272,000 square feet of office space during the first quarter for a weighted average lease term of 8.8 years.
On May 20, VNO stock hit a 52-week low of $32.81 and iscurrently down 15% YTD. The dividend yield stands at 6.05%.
Shares are trading at 3.9 times sales. Lastly, the 12-month median price forecast for Vornado Realty Trust stock stands at $44.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
