OXY to LMT: 5 dividend stocks to explore as inflation scorches US

Highlights:

• The OXY stock returned over 100% gains YTD.
• Bristol-Myers Squibb Company (NYSE: BMY) to report quarterly results on July 27.
• Lockheed Martin Corp’s (NYSE: LMT) net sales were US$15 billion in Q1, FY22.

Rising inflation and interest rates have dealt a double blow to the stock markets. As nervous investors look for haven assets to cope with the current turmoil, some dividend stocks are back in focus. Unlike growth stocks, which are sensitive to interest rates and other tricky market conditions, dividend-paying companies are generally well-insulated internally to weather some of the shocks.  

US inflation zoomed at an annual rate of 8.6% in May, the biggest increase since 1981. The latest CPI figures of the Labor Department have deepened fears that the Federal Reserve could go to extreme lengths to rein in the unrelenting spike in inflation.

Against this backdrop, as growth stocks lose shine and short-term gains become increasingly hard to achieve, dividend shares could be worth exploring for the long haul, at least until the uncertainties pass. Here we discuss five dividend stocks that may be worth exploring in the coming months.

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Occidental Petroleum Corporation (NYSE: OXY)

Occidental Petroleum is a Houston, Texas-based company specializing in hydrocarbon exploration and petroleum products.

The shares of the company closed at US$63.87 on June 10, down 2.01% from their previous close. The OXY stock rose around 105% YTD (as of June 10).

The firm has a market cap of US$59.85 billion, a P/E ratio of 9.72, and a forward one-year P/E ratio of 6.17. Its current yield is 0.81%, and its annualized dividend is US$0.52.

The 52-week highest and lowest stock prices were US$74.04 and US$21.62, respectively. Its trading volume was 27,441,950 on June 10.

The company's total revenue and other income were US$8.53 billion in Q1, FY22, compared to US$5.47 billion in the year-ago quarter. Its net income was US$4.87 billion, or US$4.65 per diluted share, against a loss of US$146 million, or US$0.36 per diluted share, in Q1, FY21.

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LyondellBasell Industries N.V. (NYSE: LYB)

LyondellBasell Industries is one of the leading licensors of polyethylene and polypropylene technologies. It is based in Rotterdam, Netherlands.

The stock closed at US$102.57 on June 10, down 5.22% from its previous close. The LYB stock rose 10.1% YTD (as of June 10).

Its market cap is US$33.60 billion, the P/E ratio is 5.84, and the forward one-year P/E ratio is 5.79. Its current yield is 4.64%, and its annualized dividend is US$4.76.

The stock touched the highest price of US$117.22 and the lowest price of US$84.17 in the last 52 weeks. Its share volume on June 10 was 2,130,078.

The company reported net sales and other operating revenue of US$13.15 billion in Q1, FY22, compared to US$9.08 billion in the same quarter of the previous year.

Its net income came in at US$1.32 billion, or US$4 per diluted share, against an income of US$1.07 billion, or US$3.18 per diluted share, in Q1, FY21.

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Bristol-Myers Squibb Company (NYSE: BMY)

American biopharmaceutical firm Bristol-Myers Squibb manufactures drugs for oncology, immunology, and cardiovascular diseases. It is based in New York.

Its shares closed at US$75.09 on June 10, down 1.17% from their closing price of June 9. Its stock value surged 21.35% YTD (as of June 10).

Bristol-Myers has a market cap of US$159.87 billion, a P/E ratio of 26.63, and a forward one-year P/E ratio of 9.95. Its current yield is 2.88%, and its annualized dividend is US$2.16.

The 52-week highest and lowest stock prices were US$78.61 and US$53.22, respectively. Its trading volume was 10,964,780 on June 10.

The company will report its second-quarter fiscal 2022 results on July 27.

In the first quarter of fiscal 2022, its revenue rose 5% YoY to US$11.64 billion. Its net earnings were US$1.28 billion, or US$0.59 per diluted share, against an income of US$2.02 billion, or US$0.89 per diluted share, in Q1, FY21.

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Lockheed Martin Corporation (NYSE: LMT)

Lockheed Martin is a defense-focused company specializing in aerospace, arms, defense, and other related fields. It is based in Bethesda, Maryland.

The stock closed at US$430.19 on June 10, down 0.58% from its previous close. The LMT stock soared 22.11% YTD (as of June 10).

Its market cap is US$114.47 billion, the P/E ratio is 19, and the forward one-year P/E ratio is 16.03. Its current yield is 2.6%, and its annualized dividend is US$11.20.

The stock’s highest price was US$479.99, and the lowest price was US$324.23 in the last 52 weeks. Its share volume on June 10 was 1,166,079.

The company reported net sales of US$15 billion in Q1, FY22, compared to US$16.3 billion in the same quarter of the prior year. Its net income came in at US$1.7 billion, or US$6.44 per share, against an income of US$1.8 billion, or US$6.56 per share, in Q1, FY21.

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Image Description: Top dividend stocks: OXY, LYB, BMY, LMT, PKG

Packaging Corporation of America (NYSE: PKG)

Packaging Corp of America manufactures containerboard products and uncoated freesheet paper. It is based in Lake Forest, Illinois.

The shares of the company closed at US$151.50 on June 10, down 2.98% from their closing price of June 9. Its stock value increased by 12.55% YTD (as of June 10).

The firm has a market cap of US$14.19 billion, a P/E ratio of 15.49, and a forward one-year P/E ratio of 12.99. Its current yield is 2.64%, and its annualized dividend is US$5.00.

The 52-week highest and lowest stock prices were US$168.50 and US$124.78, respectively. Its trading volume was 585,254 on June 10.

The company's net sales were US$2.13 billion in Q1, FY22, compared to US$1.80 billion in the year-ago quarter. Its net income was US$254.2 million, or US$2.70 per diluted share, against an income of US$166.5 million, or US$1.75 per diluted share, in Q1, FY21.

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Bottom line:

The US market has been retreating this year due to various adverse macroeconomic factors, including inflation, supply constraints, and a tight labor market. The S&P 500 index slumped 7.98% over the past 12 months while decreasing 18.16% YTD. Hence, investors should exercise due diligence before investing in a volatile stock market.