- AbbVie is slated to pay its next quarterly dividend on February 15, 2023.
- Consolidated Edison reported a net income of US$ 613 million in Q3 2022.
- Chevron paid a quarterly dividend of US$ 1.42.
For investors, dividends have always been one of the key factors that govern their decisions at any given point. Dividend-paying companies are usually considered safe bets by traders, as there is a consensus that such firms are financially stable, both in cash flow and earnings. However, this year has been different, being volatile and bearish. So, how have dividend stocks performed this year? Have they still managed to keep up with their reputation in 2022?
Let’s explore five dividend stocks and look at their financials in recent quarters, even as the broader market deals with upheavals:
AbbVie Inc. (NYSE: ABBV)
AbbVie is a publicly traded US biopharmaceutical firm that is a spin-off of Abbott Laboratories. The company has a market cap of US$ 282.28 billion. AbbVie is slated to pay its next quarterly dividend of US$ 1.48 on February 15, 2023. It has a dividend yield of 3.709 per cent, with three-year dividend growth of 8.98 per cent.
The earnings-per-share (EPS) of the company is 0.47, with a price-to-earnings (P/E) ratio of 341.
In Q3 2022, the North Chicago, Illinois-based company posted net revenues of US$ 14.812 billion. The gross margin ratio of AbbVie in the reported quarter was 66.1 per cent on a GAAP basis.
In the third quarter of fiscal 2022, the company reported its diluted EPS at US$ 2.21 (on a GAAP basis), while the adjusted diluted EPS was US$ 3.66.
The ABBV stock rose over 36.55 per cent YoY while gaining over 17.87 in 2022. The stock's last closing price was US$ 159.62 on November 25, 2022, up 0.14 per cent from its previous closing.
Consolidated Edison Inc. (NYSE: ED)
Consolidated Edison aka Con Edison or ConEd, is among the largest investor-owned energy companies in the US. It is a holding company for Consolidated Edison (in NY) and Orange & Rockland. The company provides natural gas, steam, and electricity to its customers.
The US$ 34.59 billion market valuation company distributed a quarterly dividend of US$ 0.79, which is next payable on December 15, 2022. The dividend yield of Consolidated Edison is 3.241 per cent, and its five-year dividend growth is 2.86.
The company's price-to-book (P/B) ratio is 1.668, while the EPS is 4.76.
In its Q3 2022 results, Con Edison reported a net income of US$ 613 million or US$ 1.73 per share versus US$ 538 million or US$ 1.52 a share in Q3 2021. Its adjusted earnings stood at US$ 579 million or US$ 1.63 a piece in the 2022 period compared with US$ 499 million or US$ 1.41 per share in the same comparative period the previous year.
Shares of Consolidated Edison gained over 14.5 per cent YTD. The ED stock touched its 52-week highest price of US$ 102.21 on September 12, 2022.
Chevron Corporation (NYSE: CVX)
Chevron is a US energy company dealing in global exploration, production, and refining operations.
The second-largest oil company in the US, Chevron paid a quarterly dividend of US$ 1.42. The next dividend payable date is on December 12, 2022. The dividend yield of the company is 3.092 per cent. With a P/E ratio of 10.40, the EPS of Chevron stands at 17.58.
The company’s cash flow from operations in the third quarter of fiscal 2022 was US$ 15.3 billion, and its free cash flow was reported at US$ 12.3 billion.
In the reported quarter, Chevron posted earnings of US$ 11.2 billion, while the adjusted earnings were US$ 10.8 billion. The company’s US upstream operations achieved US$ 3.40 billion in Q3 2022, compared with US$ 1.96 billion in the year-ago quarter. The CVX stock returned 0.3880 per cent WTD while on a QTD basis, it gained more than 27.86 per cent.
McDonald's Corporation (NYSE: MCD)
McDonald's is the world’s biggest restaurant owner-operator, with nearly 40,000 stores. The US$ 201.41 billion market cap company, McDonald's has a dividend yield of 2.211 per cent. It announced a quarterly dividend of US$ 1.52, slated to be paid next on November 30, 2022.
The global comparable sales of McDonald's in Q3 2022 jumped close to 10 per cent, with growth across all segments. The company said that its internationally operated markets segment grew 8.5 per cent. At the same time, the consolidated revenues of the company shrank five per cent.
The price of the MCD stock peaked at US$ 281.67 within the last 52 weeks on November 10, 2022, and tanked to its 52-week low of US$ 217.67 on March 10, 2022.
Walmart Inc. (NYSE: WMT)
Walmart is the largest retailer in the US in sales, running over 10,500 stores under 46 banners at the end of the current fiscal year. The retailer that sells a variety of general merchandise and grocery items has a market valuation of US$ 415.46 billion. The company is expected to pay its next quarterly dividend of US$ 0.56 on January 3, 2023. It has a dividend yield of 1.463 per cent.
In the third quarter of fiscal 2023, Walmart posted revenue growth of 8.7 per cent across segments. Its Q3 2023 GAAP EPS was US$ 0.66, and its adjusted EPS was US$ 1.50.
The company’s US comp sales surged 8.2 per cent and 17.4 per cent on a two-year stack. Walmart’s consolidated operating income in Q3 2023 was US$ 2.7 billion, while the adjusted operating income was US$6 billion.
Although dividends play a deciding role in picking stocks, it can be a different ball game in a volatile market scenario altogether. Investors must be careful when deciding on stocks when the market is bearish. However, a long-term strategy seems to work to weather market uncertainties. Do a thorough research of stocks before putting your bet on them.