Table of Contents
For Immediate Release
Chicago, IL – July 18, 2022 – Today, Zacks Investment Ideas feature highlights Devon Energy DVN, ICL Group ICL and Cheniere Energy Partners CQP.
3 Highly Ranked Stocks Perfect for Income Investors
Investing for a stream of income is a widely-popular strategy deployed by investors, and for understandable reasons – we all love getting paid.
A reliable income stream from your investments is undoubtedly a significant boost, and it’s even better when those investments perform well.
Investors are well aware of how brutal the market has been in 2022, but there are still stocks out there performing relatively well, such as Devon Energy, ICL Group and Cheniere Energy Partners.
In addition, all three pay a hefty dividend and have strong Zacks Ranks, making them even more appealing.
All three companies’ shares have been notably more robust than the S&P 500, undoubtedly a major positive.
Let’s look at each company’s dividend and free cash flow metrics a little closer to understand why they’d be solid bets for income investors.
ICL Group
ICL Group is engaged in the fertilizer and specialty chemical sectors. The company’s operating segments include Fertilizers, Industrial Products, and Performance Products.
ICL is a Zacks Rank #1 (Strong Buy) with an overall VGM Score of a B.
Analysts have substantially raised their earnings outlook across all timeframes over the last 60 days.
ICL has stellar dividend metrics. The company rewards its shareholders via its annual dividend that yields a massive 10.6%, with a payout ratio sitting sustainably at 39% of earnings.
In addition, the company has increased its dividend payout seven times over the last five years, with a five-year annualized dividend growth rate of a double-digit 17.5%.
The company’s annual yield is much higher than its Zacks Sector’s average.
Additionally, free cash flow of the company has recently been on an uptrend.
Cheniere Energy Partners
Cheniere Energy Partners owns and operates regasification units at the Sabine Pass LNG terminal. It provides clean, secure, and affordable LNG to several entities.
CQP is a Zacks Rank #1 (Strong Buy) with an overall VGM Score of a B.
Within the last 60 days, analysts have raised their earnings outlook marginally higher.
CQP’s annual dividend yield resides at a steep 7.5%, undoubtedly on the high end.
However, what sticks out is CQP’s dedication to rewarding its shareholders; over the last five years, the company has increased its dividend a whopping 19 times, with a five-year annualized dividend growth rate of 11.5%.
The yield is much higher than its Zacks Sector’s average.
In addition, free cash flow of the company has recently been strong.
Devon Energy
Devon Energy Corp. is an independent energy company engaged primarily in the exploration, development, and production of oil and natural gas.
DVN is a Zacks Rank #2 (Buy) with an overall VGM Score of an A.
Over the last 60 days, analysts have pushed their earnings estimates notably higher across all timeframes.
DVN is dedicated to consistently rewarding its shareholders; over the last five years, the company has impressively increased its dividend ten times and has a double-digit five-year annualized dividend growth rate of a sizable 47%. The company’s annual dividend yields a massive 9.9%.
In addition, DVN’s annual dividend yield is much higher than its Zacks Sector’s average.
The company’s free cash flow has also consistently increased.
Bottom Line
Everybody loves getting paid. Income investing is a widely-used strategy in the market, and it won’t be going anywhere anytime soon. All three companies above have high dividend yields paired with robust dividend growth, undoubtedly enough to make any income investor excited.
In addition, all three companies above have strong Zacks Ranks, rising free cash flow, strong year-to-date share performance, and positive estimate revisions across all timeframes.
All three companies would be solid bets for investors looking to add an income stream into their portfolios.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Devon Energy Corporation (DVN): Free Stock Analysis Report
Cheniere Energy Partners, LP (CQP): Free Stock Analysis Report
ICL Group Ltd. (ICL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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