SBLK to DVN: 5 stocks with over 9% dividend yield to explore?

Highlights:

• Star Bulk Carriers Corp. (NASDAQ: SBLK) has a dividend yield of 27.2%.
• Golden Ocean Group's (NASDAQ: GOGL) dividend yield is 17.5%.
• Devon Energy Corp's (NYSE: DVN) dividend yield is 9.45%.

Pandemic, geopolitical strife, supply chain, inflation, and interest rates are the factors that defined the stock market movement this year and are expected to have a prolonged impact on the market. 

 Amid higher interest rates, stocks took a plunge. Growth stocks witnessed a steep decline in the last few months while companies downsized their forecasts for the year, and volatility has become a pervasive feature of 2022. 

However, dividends can bring respite to the investors burned by scorching hot inflation. It rose 8.6% annually in May 2022, a record four-decade high, making Federal Reserve follow monetary tightening stringently. Here we discuss five stocks that gave dividend yields and YTD returns of more than a 9%.

Star Bulk Carriers Corp. (NASDAQ: SBLK)

 

Dividend yield: 27.2%

Annualized dividend: US$6.60

 

Athens, Greece-based Star Bulk Carriers Corp provides marine transportation solutions for the dry bulk. It owns and operates 128 dry bulk carrier vessels for transporting bulks, such as iron ore, bauxite, fertilizers, coal, grains, and steel products.

 

The company reported a voyage revenue of US$360.9 million for the first quarter ended March 31, 2022, compared to US$200.5 million for the same quarter a year ago. Its net income came in at US$170.4 million or US$1.67 per diluted share compared to US$35.7 million or US$0.36 per diluted share in the March quarter of 2021. 

 

Its cash and cash equivalents were US$442.4 million as of March 31, 2022, versus US$471.2 million as of December 31, 2021.

 

The stock has a market capitalization of US$2.57 billion. Its P/E ratio is 3.14 and the forward P/E or one year is 3.64.

 

The stock traded in the range of US$33.99 to US$16.56 in the last 52 weeks and closed at US$25.96 on June 27, 2022.

 

 

Golden Ocean Group Limited (NASDAQ: GOGL)

 

Dividend yield: 17.5%

Annualized dividend: US$2.00

 

Hamilton, Bermuda-based Golden Ocean Group Ltd is a dry bulk shipping company. Its transports dry bulk cargo, including ores, grains, and fertilizers.

 

For the quarter ended March 31, 2022, its net income was US$125.3 million and earnings per share diluted was US$0.62 compared to US$23.5 million or earnings per share of US$0.14 for the same quarter in 2021. Its operating revenue came in at US$265 million compared to US$158 million for the March quarter of the previous year.

 

The stock has a market capitalization of US$2.34 billion. Its P/E ratio is 3.75.

 

The stock traded in the range of US$16.46 to US$7.58 in the last 52 weeks and closed at US$12.13 on June 27, 2022.

 

Black Stone Minerals, L.P. (NYSE: BSM)

 

Dividend yield: 22.61%

Annualized dividend: US$1.60 

 

Black Stone Minerals is an oil and gas mineral company. 

 

This Houston, Texas-based company owns oil and natural gas mineral interests. The company owns a portfolio of mineral and royalty assets and earns revenue from them.

 

The oil and gas company reported a revenue of US$36.4 million for the quarter ended March 31, 2022, compared to US$61.5 million in the same period a year ago. It incurred a net loss of US$7 million or US$0.06 per share diluted compared to the net income of US$10.9 million or US$0.05 per share diluted in the March quarter of 2021.

 

The stock has a market capitalization of US$3.03 billion. Its P/E ratio is 22.61 and the forward P/E or one year is 8.42.

 

The stock traded in the range of US$17.36 to US$9.47 in the last 52 weeks and closed at US$14.14 on June 27, 2022.

 

Viper Energy Partners LP (NASDAQ: VNOM)

 

Dividend yield: 10.61%

Annualized dividend: US$2.68

 

It is a limited partnership formed by Diamondback Energy, an independent oil and natural gas company in 2014 to own mineral royalty interests from properties primarily in the Permian Basin.

 

For the three months ended March 31, 2022, its net income was US$128.0 million or US$0.22 per diluted share compared to US$23.8 million or US$0.05 per share diluted in the same quarter in 2021. 

 

It repurchased 1.6 million common units in Q1 2022 for US$39.3 million, as well as increased authorization for the common unit repurchase program to US$250.0 million from US$150.0 million earlier. 

 

The stock has a market capitalization of US$2.11 billion. Its P/E ratio is 26.1 and the forward P/E or one year is 17.51.

 

The stock traded in the range of US$35.85 to US$15.98 in the last 52 weeks and closed at US$26.62 on June 27, 2022.

 

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Devon Energy Corporation (NYSE: DVN)

 

Dividend yield: 9.45%

Annualized dividend: US$5.08

 

Oklahoma City-based Devon Energy is an independent exploration and production company.

 

Devon will report the second quarter 2022 earnings results on August 1, 2022. 

 

For the March quarter of 2022, the company reported a revenue of US$3.8 billion compared to US$2.05 billion in the same quarter the previous year. It posted a net income of US$995 million or US$1.48 per share diluted compared to US$216 million or US$0.32 per share diluted in the corresponding period of 2021.

 

The stock has a market capitalization of US$38.1 billion. Its P/E ratio is 10.84 and the forward P/E or one year is 6.35.

 

The stock traded in the range of US$79.40 to US$24.05 in the last 52 weeks and closed at US$57.79 on June 27, 2022.

 

Bottom line:

 

Historically, low-interest rates support growth stocks and vice versa for value stocks. Dividend stocks are a good source of passive income, yet the investors must analyze their fundamentals and invest only after factoring in all the relevant detail.