- Dividend stocks are generally issued by blue-chip or large-cap companies that are well-established in their industries.
- Evolution Petroleum Corporation Inc., an autonomous oil and gas company, has a dividend yield of 6.89% based on Thursday’s closing price.
- National CineMedia Inc., a digital media network, has a dividend yield of 26.67% based on Thursday’s closing price.
Dividend stocks are frequently the most sought-after stocks in the market due to the guaranteed returns they offer. These stocks are generally considered to be well-established in their industry and have a stable income stream, which results in the regular payout of dividends.
Most blue-chip and large-cap organisations are responsible for issuing dividends as they generally have the bandwidth to release dividends for their shareholders. Since many of these companies are generally at the peak of their growth process, they do not require as many funds for further expansion.
Thus, these companies issue dividends which can be an added incentive for investors while choosing these stocks.
On that note, let us look at two dividend stocks that investors can examine:
Evolution Petroleum Corporation Inc. (NYSEAmerican: EPM)
Evolution Petroleum is an autonomous oil and gas company in the US, that is primarily engaged in operating property used in oil and natural gas production. EPM generates revenue through royalty, mineral and working interests.
The oil producer reported a revenue of US$18.2 million for the quarter ended June 30, 2023. Meanwhile, its net income for the June 2023 quarter was US$0.2 million, as against US$14 million in the prior quarter. The adjusted EBITDA stood at US$4.7 million in Q4 2023, as compared to US$22 million in the previous quarter.
At the same time, EPM’s cash and cash equivalents amounted to US$11 million at the end of the period. Overall, Evolution reported a 65% increase in liquidity since June 30, 2022.
The stock price grew 16.61% over a 6-month period, while it was down by 13.74% on a YTD basis as at the close of trade on September 21, 2023. Based on Thursday’s closing price of US$6.53, EPM has a P/E ratio of 6.69x and a dividend yield of 6.89%.
National CineMedia Inc. (NASDAQ: NCMI)
National CineMedia manages a digital media network that is played in movie theaters throughout North America. NCMI operates First Look, its key prefeature programming that is played before a movie.
On August 2, 2023, NCMI’s stockholders approved a 1-for-10 reverse stock split. This means that for every 10 shares held by an investor before the announcement, the investor will receive only 1 share after the split.
Although the company had filed for bankruptcy earlier this year, accelerated price movements are visible for the NCMI stock. At the close of trade on September 21, 2023, the stock price was 92.73% higher on a YTD basis.
Additionally, NCMI closed 1.33% higher on Thursday, September 21, 2023, at US$4.56. The stock’s 6-month gains stood at a whopping 233.58% at its closing price on Thursday. Meanwhile, its P/E ratio was 1.61x and dividend yield was 26.67% based on Thursday’s closing price.
NCMI reported a net income of US$545.3 million for the three months ended June 29, 2023, which was higher than the net loss of US$0.7 million incurred in the same quarter of the previous year.