S&P 500   4,427.45 (+1.63%)
DOW   34,659.85 (+1.06%)
QQQ   352.22 (+2.06%)
AAPL   162.84 (+1.92%)
MSFT   300.96 (+4.32%)
FB   302.03 (+0.63%)
GOOGL   2,630.75 (+3.63%)
AMZN   2,824.06 (+0.87%)
TSLA   956.29 (+4.13%)
NVDA   232.45 (+4.13%)
BABA   116.24 (-2.43%)
NIO   23.61 (-0.76%)
AMD   113.80 (+2.40%)
CGC   7.56 (+2.72%)
MU   83.60 (+3.57%)
GE   90.57 (-0.59%)
T   25.51 (-3.66%)
F   20.26 (+1.40%)
DIS   136.83 (+0.23%)
AMC   16.93 (+5.68%)
PFE   53.19 (+1.24%)
ACB   4.24 (+0.71%)
BA   197.06 (-3.45%)
S&P 500   4,427.45 (+1.63%)
DOW   34,659.85 (+1.06%)
QQQ   352.22 (+2.06%)
AAPL   162.84 (+1.92%)
MSFT   300.96 (+4.32%)
FB   302.03 (+0.63%)
GOOGL   2,630.75 (+3.63%)
AMZN   2,824.06 (+0.87%)
TSLA   956.29 (+4.13%)
NVDA   232.45 (+4.13%)
BABA   116.24 (-2.43%)
NIO   23.61 (-0.76%)
AMD   113.80 (+2.40%)
CGC   7.56 (+2.72%)
MU   83.60 (+3.57%)
GE   90.57 (-0.59%)
T   25.51 (-3.66%)
F   20.26 (+1.40%)
DIS   136.83 (+0.23%)
AMC   16.93 (+5.68%)
PFE   53.19 (+1.24%)
ACB   4.24 (+0.71%)
BA   197.06 (-3.45%)
S&P 500   4,427.45 (+1.63%)
DOW   34,659.85 (+1.06%)
QQQ   352.22 (+2.06%)
AAPL   162.84 (+1.92%)
MSFT   300.96 (+4.32%)
FB   302.03 (+0.63%)
GOOGL   2,630.75 (+3.63%)
AMZN   2,824.06 (+0.87%)
TSLA   956.29 (+4.13%)
NVDA   232.45 (+4.13%)
BABA   116.24 (-2.43%)
NIO   23.61 (-0.76%)
AMD   113.80 (+2.40%)
CGC   7.56 (+2.72%)
MU   83.60 (+3.57%)
GE   90.57 (-0.59%)
T   25.51 (-3.66%)
F   20.26 (+1.40%)
DIS   136.83 (+0.23%)
AMC   16.93 (+5.68%)
PFE   53.19 (+1.24%)
ACB   4.24 (+0.71%)
BA   197.06 (-3.45%)
S&P 500   4,427.45 (+1.63%)
DOW   34,659.85 (+1.06%)
QQQ   352.22 (+2.06%)
AAPL   162.84 (+1.92%)
MSFT   300.96 (+4.32%)
FB   302.03 (+0.63%)
GOOGL   2,630.75 (+3.63%)
AMZN   2,824.06 (+0.87%)
TSLA   956.29 (+4.13%)
NVDA   232.45 (+4.13%)
BABA   116.24 (-2.43%)
NIO   23.61 (-0.76%)
AMD   113.80 (+2.40%)
CGC   7.56 (+2.72%)
MU   83.60 (+3.57%)
GE   90.57 (-0.59%)
T   25.51 (-3.66%)
F   20.26 (+1.40%)
DIS   136.83 (+0.23%)
AMC   16.93 (+5.68%)
PFE   53.19 (+1.24%)
ACB   4.24 (+0.71%)
BA   197.06 (-3.45%)

7 Dividend Stocks that Help Take the Bite Out of Inflation

Posted on Monday, December 20th, 2021 by MarketBeat Staff
7 Dividend Stocks that Help Take the Bite Out of InflationInflation and its effects on corporate earnings going forward is the headline story taking over the stock market. The Consumer Price Index rose at a 6.8% pace on a year-over-year (YOY) basis. That marked the fastest rate since June 1982.

And even when the CPI stripped away food and energy prices (because who buys groceries or puts gas in their car?), the CPI was still 4.9% on a YOY level, the highest since 1991.

The market is coming to grips with the idea that not only is inflation is not transitory, but that it’s drawn the attention of the Federal Reserve. And after the Federal Reserve’s last meeting, investors are starting to see how the market may be affected in 2022.

Growth investors may be able to ride out whatever comes next. The same can’t be said for income investors, particularly those who are at or nearing retirement age. The effect of inflation may be having a stark effect on their portfolios at a time when they need money the most.

One great way to offset the effect of inflation in their portfolios is by buying high-quality dividend stocks. And that’s the focus of this special presentation. Dividends can help provide a source of income. And for investors who don’t need the money right away, reinvesting dividends can allow for a greater total return.

In this special presentation, we’ll highlight seven stocks that made the MarketBeat list of 100 dividend-paying companies that received the highest average rating among analysts in the last 12 months.

#1 - Enterprise Product Partners (NYSE:EPD)

Enterprise Products Partners logo

Dividend Yield: 8.60%

Market Capitalization: $46.04 billion

Dividend yield can be a misleading metric. A high dividend yield can sometimes be a trap because it gets investors plowing money into laggard stocks. Enterprise Product Partners (NYSE:EPD) is no yield trap. The company operates as a holding company engaging in the production and trade of natural gas and petrochemicals. This has been a sector that’s seen a renaissance as awareness grows that natural gas will be an important point of our transition away from traditional fossil fuels.

Through three quarters of the year, Enterprise Product Partners has already delivered $29.44 billion in revenue, surpassing its revenue for all of 2020. And the company is also likely to beat 2020 earnings when it reports its fourth-quarter in February 2022.

And the company has increased its dividend in each of the last 24 years, putting it one year shy of Dividend Aristocrat status. Some may quibble with its three-year dividend growth which is well below the sector average. However, a 24-year track record of increasing its dividend offers security that more than makes up for the softer year-over-year growth.

About Enterprise Products Partners

Enterprise Products Partners LP operates as holding company, which engages in the production and trade of natural gas and petrochemicals. It operates through the following segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.Read More 
Current Price
$24.66
Consensus Rating
Buy
Ratings Breakdown
5 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$27.33 (10.8% Upside)




#2 - Marathon Petroleum (NYSE:MPC)

Marathon Petroleum logo

Dividend yield: 3.71%        

Market capitalization: $38.54 billion

Sticking with oil and gas stocks, Marathon Petroleum (NYSE:MPC) is another solid choice. Oil stocks have made a recovery this year, and MPC stock is no exception with a gain of 51.6%. Not surprisingly, revenue through the first three quarters of the year has surpassed that of 2020. And the company is once again posting positive earnings, a sharp contrast to the negative earnings of 2020.

Between July and October, the company repurchased $1.5 billion of its own stock as part of its prior announcement that it would be buying back $10 billion in common stock as part of the sale of its Speedway business earlier in the year.

That’s one reason that analysts continue to see upside for MPC stock and have a price target of $72.58, a 15% increase from its current level. Marathon has increased its dividend for the last nine years. That’s no small feat considering the tough market conditions that the sector faced in 2020. And the company’s three-year dividend growth of over 52% is well above the sector average.

About Marathon Petroleum

Marathon Petroleum Corp. is an independent company, which engages in refining, marketing, and transportation of petroleum products in the United States. Itoperates through the following segments: Refining and Marketing; Retail; and Midstream. The Refining and Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast and Midwest regions of the United States; purchases ethanol and refined products for resale and distributes refined products through various means, including barges, terminals, and trucks that the company owns or operates.Read More 
Current Price
$72.40
Consensus Rating
Buy
Ratings Breakdown
12 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$74.38 (2.7% Upside)




#3 - Chevron (NYSE:CVX)

Chevron logo

Dividend yield: 4.64%

Market capitalization: $220.55 billion

Chevron (NYSE:CVX) is the last (but not the least) stock to look at in the oil and gas sector. Chevron is the second-largest oil company in the United States and produces up to 3.1 million barrels of oil equivalent a day.

But fans of a company’s balance sheet will point to the company’s free cash flow (FCF) which reached its highest level of $6.7 billion. And that’s on top of the $47 billion of cash and cash equivalents that the company has on its balance sheet combined with total debt of $37 billion.

This is a reason that CVX stock is given a consensus buy by analysts with a $124.38 price target. That 8.7% upside may not excite investors. However, when you add in the company’s dividend which the company has increased for 33 consecutive years, you have a stock that deserves a place in your portfolio.

About Chevron

Chevron Corp. engages in the provision of administrative, financial management, and technology support for energy and chemical operations. It operates through the Upstream and Downstream segments. The Upstream segment consists of exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; processing, transporting, storage, and marketing of natural gas; and a gas-to-liquids plant.Read More 
Current Price
$133.90
Consensus Rating
Buy
Ratings Breakdown
17 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$128.90 (3.7% Downside)




#4 - Kilroy Realty (NYSE:KRC)

Kilroy Realty logo

Dividend yield: 3.10%

Market capitalization: $4.64 billion

It wouldn’t be a list of dividend stocks to buy if we didn’t include at least one real estate investment trust (REIT). And for this presentation, we’re including Kilroy Realty (NYSE:KRC). Ultimately your decision to buy KRC stock will depend on what you believe the office of the future will look like.

For its part, in its most recent earnings report, Kilroy Realty pointed to a survey of 185 companies in which only 9% expected to see a decrease in square footage in the next year.  The company also points to its stable of clients which has a lease length of nearly 10 years.

Analysts give the stock an 11% upside from its current level. And with most analysts holding the line on the stock, there may be a wait-and-see sentiment. However, the company has increased its dividend for the last six years and has three-year dividend growth of over 19%.

About Kilroy Realty

Kilroy Realty Corp. engages in the development, acquisition, and management of office and mixed-use real estate assets. It owns, develops, acquires and manages real estate assets, consisting primarily of Class A properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and Greater Seattle.Read More 
Current Price
$64.57
Consensus Rating
Buy
Ratings Breakdown
6 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$79.57 (23.2% Upside)




#5 - AbbVie (NYSE:ABBV)

AbbVie logo

Dividend yield: 3.99%

Market capitalization: $230.51 billion

AbbVie (NYSE: ABBV) has a track record of increasing its dividend and has done so for 49 years. That puts it within striking distance of joining the exclusive Dividend King club. Due to concerns about patent expirations in the United States, ABBV stock has “only” gone up 21% this year. But that has to be disappointing for investors who got a 55% jump in the stock from the lows of the pandemic to the end of 2020.

However, some of these patent concerns may be overblown. Sales of the drug in question, Humira, have been slowing. However, AbbVie has been proactive in diversifying its revenue streams including its acquisition of Allergan. That’s the company known for the drug Botox. AbbVie paid $63.4 billion for Allergan in 2020 but should start seeing the fruits of that deal flow through to the company’s bottom line moving forward.

About AbbVie

AbbVie, Inc is a research-based biopharmaceutical company, which engages in the development and sale of pharmaceutical products. It focuses on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology, and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson's disease; metabolic diseases, comprising thyroid disease and complications associated with cystic fibrosis; pain associated with endometriosis; and other serious health conditions.Read More 
Current Price
$134.46
Consensus Rating
Buy
Ratings Breakdown
13 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$142.92 (6.3% Upside)




#6 - Newell Brands (NASDAQ:NWL)

Newell Brands logo

Dividend yield: 4.08%        

Market capitalization: $9.39 billion

Newell Brands (NASDAQ:NWL) was one of the pandemic winners as the company known for its Rubbermaid brand surged with people sheltering in place. But the stock has had a correction in 2021. However, it looks like NWL stock may have found some support and is ready to move higher.

One reason for that is the company’s pleasing pattern of beating earnings and revenue expectations. The company has done both for the last eight quarters. And for the first three quarters of 2021, Newell’s revenue is higher on a year-over-year (YoY) basis. But the spread is narrowing which is justifying negative sentiment in the stock.

Analysts give the stock a consensus price target of $29.11 which would be a 30% upside from its current level. And regarding the dividend, the dividend yield of over 4% is well above the sector average of around 2.5%. Investors may not love the slow three-year dividend growth of just 4.55%.

About Newell Brands

Newell Brands, Inc engages in the manufacture, marketing, and sale of consumer and commercial products. It operates through the following segments: Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment includes commercial cleaning and maintenance solutions, closet and garage organization, hygiene systems and material handling solutions, connected home and security, and smoke and carbon monoxide alarms.Read More 
Current Price
$23.74
Consensus Rating
Buy
Ratings Breakdown
3 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$29.57 (24.6% Upside)




#7 - Reynolds Consumer Products (NASDAQ:REYN)

Reynolds Consumer Products logo

Dividend yield: 3.00%

Market capitalization: $6.36 billion

The last stock on our list is Reynolds Consumer Products (NASDAQ:REYN). The company has only been publicly trading for about two years. And the timing couldn’t have been worse. However, the company has been posting consistent revenue and earnings and keeping margins at attractive rates. In the company’s most recent earnings report, they projected mid- to high-teens growth in net revenue.

That’s been attracting the attention of analysts including Zack’s Research. REYN stock is enjoying upgrades. And that’s one reason that analysts give the stock a $33 price target which is an upside of nearly 10% from its current level.

The consistency of the company’s revenue should also be good news for the company’s dividend which has a yield of 3%. The company has increased the dividend in both 2020 and 2021 which puts it in line with other consumer discretionary stocks.

About Reynolds Consumer Products

Reynolds Consumer Products Inc produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and E-Z Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally.Read More 
Current Price
$30.19
Consensus Rating
Buy
Ratings Breakdown
4 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$34.17 (13.2% Upside)



 

As part of the Great Resignation, many workers in their 50s have decided to call it a career. That decision may have looked better when the market was hitting record levels nearly every day.

Today, that decision may be looking a bit frightening. But they may be looking at adjusting their portfolios to reflect the reality of a different retirement than they may have imagined. That includes dividend stocks.

Inflation is not going away anytime soon. And at some point next year, interest rates are going higher. That means that the stock market is likely to remain volatile in 2022. Still, the equities market is still one of the only places for investors to get a decent return. Investing in quality, reliable dividend stocks can be a way to diversify a portfolio.

12 Stocks Corporate Insiders are Abandoning

An insider trade occurs when a corporate executive (such as a CEO, CFO, or COO) has non-public information about a company buys or sells shares of that company's stock. Company insiders are required by law to regularly report their stock purchases and sales to the SEC.

Tracking a company's insider trades is a metric that can be used to identify the direction that the company's executives believe that the company is headed. If a number of insiders sell shares of their company, they may believe that the company will have weak future earnings and that the share price will decline in the near future.

For example, if Microsoft's CEO, CFO, and COO all recently sold shares of Microsoft stock, that would be an indication that there could be unreported news that may negatively affect Microsoft's stock price in the near future.

This slideshow lists the 12 companies that have had the highest levels of insider buying within the last 180 days.

View the "12 Stocks Corporate Insiders are Abandoning" Here.





Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.