Kalkine Media explores high dividend yield stocks to watch in Q3

September 07, 2022 06:21 AM PDT | By Rupam Roy
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  • The IEP stock gained over four per cent QTD.
  • Annaly Capital Management Inc (NYSE: NLY) had a dividend yield of 13.79 per cent.
  • Lumen Technologies, Inc. (NYSE: LUMN) had a dividend yield of over 10 per cent.

Icahn Enterprises, L.P. (NASDAQ: IEP), Altria Group, Inc. (NYSE: MO), Annaly Capital Management Inc (NYSE: NLY), MPLX LP (NYSE: MPLX), and Lumen Technologies, Inc. (NYSE: LUMN) are high dividend yield stocks.

The inflation hasn't been transitory, as many have thought initially, and the level may remain higher for some time. On the other hand, the aggressive effort by the Federal Reserve to tame it had raised concerns over a potential recession.

The economy was already cooling this year due to several macroeconomic headwinds, like elevated inflation, higher interest rates, and the geopolitical turmoil between Russia and Ukraine. Meanwhile, the geopolitical tensions had also bumped the oil prices, further adding to the red-hot inflation.

In addition, food prices also went up after Moscow invaded Kyiv, while the supply chain worries worsened due to the pandemic-led lockdowns in China.

The consumer price index, a key gauge of inflation, rose 8.5 per cent in July on an annual basis, following a record jump of 9.1 per cent in the prior month. Additionally, the inflation, excluding food and energy prices, which are generally highly volatile, grew at 5.9 per cent annually in July, the same as the prior month.

While investors are looking for safer assets amid the topsy-turvy scenario in the market, dividend stocks could gain more attention. Investors might consider exploring high dividend yield stocks as they are considered a hedge against inflation.

Here, Kalkine Media® would explore the top dividend-paying stocks, their recent stock performance, and financial highlights.

Icahn Enterprises, L.P. (NASDAQ: IEP)

The stock of the conglomerate company that engages in several investment businesses, including energy, automotive, real estate, etc., has managed to stay on the green side this year amid several macroeconomic concerns.

The IEP stock added over one per cent year-to-date (YTD) while noting a surge of over four per cent in the ongoing quarter. However, in the last 12 months, its price fell more than seven per cent through September 6.

During drafting, it traded about six per cent above its 52-week low of US$ 47.17 noted on June 23, 2022. The US$ 15.45 billion market cap company had a dividend yield of 15.68 per cent, and its annualized dividend was US$ 8.

In the latest quarter of 2022, Icahn reported revenue of US$ 3.5 billion, relatively up from a revenue of US$ 2.98 billion in the same quarter of fiscal 2021. Its attributable net loss totalled US$ 128 million in Q2 FY22, against a loss of US$ 136 million in Q2 FY21.

Altria Group, Inc. (NYSE: MO)

The leading tobacco firm, Altria Group, had a dividend yield of eight per cent. The P/E ratio of the firm stood at 45.95.

The MO stock fell nearly six per cent this year. On a year-over-year (YoY) basis, the stock of the US$ 80.93 billion market cap firm lost about 12 per cent while climbing about seven per cent up in the running quarter.

Altria's net revenue declined 5.7 per cent YoY to US$ 6.54 billion in Q2 FY22. The attributable net earnings of the Richmond, Virginia-based company was US$ 891 million in Q2 FY22, a decrease of 58.5 per cent from the year-ago period.

Annaly Capital Management Inc (NYSE: NLY)

Annaly is a leading mortgage real estate investment trusts (REIT) firm. Annaly Capital Management had a dividend yield of 13.79 per cent, and its P/E ratio was 2.57.

The US$ 10.13 billion market cap company returned gains of over ten per cent quarter-to-date (QTD). However, on a YTD basis, the NLY stock fell over 16 per cent, while on a YoY basis, it lost more than 24 per cent.

The net interest income of Annaly Capital was US$ 475.14 million in Q2 FY22, against an income of US$ 322.85 million in the same quarter or prior year. Its net income was US$ 863.31 million in the fiscal 2022 second quarter, versus a loss of US$ 294.84 million in the year-ago quarter.


MPLX LP is a master limited partnership (MLP) firm that focuses on owning and operating midstream energy infrastructure and other related assets. It also engages in fuel distribution services.

The MPLX stock soared over nine per cent YTD while gaining more than 10 per cent QTD and 12 per cent YoY. The dividend yield of the Ohi-based company was 8.67 per cent. Its P/E was 10.32.

The second quarter fiscal 2022 revenue and other income of MPLX were US$ 2.94 billion, versus US$ 2.39 billion in the year-ago quarter. The net income of the Findlay, Ohio-based firm was US$ 884 million in Q2 FY22, up from US$ 715 million in Q2 FY21.

Top dividend-paying US stocks and their market capitalizationSource: ©Kalkine Media®; © Canva via Canva.com

Lumen Technologies, Inc. (NYSE: LUMN)

The stock of the telecommunications firm had walked a bumpy road this year amid several macroeconomic headwinds. The LUMN stock declined nearly 23 per cent YTD while slipping over 11 per cent QTD and nearly 20 per cent YoY.

Having an annualized dividend of US$ 1, the dividend yield of Lumen Technologies stood at 10.15 per cent.

Lumen Technologies reported total revenue of US$ 4.61 billion in Q2 FY22, down from US$ 4.92 billion in the year-ago period. The net income of the Monroe, Louisiana-based company also declined to US$ 344 million in Q2 FY22, from an income of US$ 506 million in Q2 FY21.

Bottom line:

Although the reading of the Consumer Price Index (CPI) suggested that inflation had already peaked in June, given a reading in the following month, the regulators are not yet sure about that. According to comments from the Fed officials, it cannot be said yet if the inflation had peaked already, and it would require a few more readings to confirm that.

The comments have renewed fears over continuing rate hikes by the central bank while forcing the traders to in keeping distance from the risk-bet assets so far in 2022.

However, the summer rally, which continued in the starting month of the quarter, also ended due to hawkish comments from the officials.

The S&P 500 index fell more than 13 per cent YoY while noting a decline of nearly 18 per cent through this year. However, the summer rally has bolstered gains of over three per cent in the overall index in the current quarter.

Given the highly volatile condition of the market, investors should closely evaluate the assets before spending on them.


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