S&P 500’s KMI, VNO among top 7 dividend stocks to watch now

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S&P 500’s KMI, VNO among top 7 dividend stocks to watch now

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 S&P 500’s KMI, VNO among top 7 dividend stocks to watch now
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Highlights

  • Kinder Morgan, Inc. (NYSE: KMI) has a dividend yield of 6.16%. The company expects a 3% YoY increase in net income to US$2.5 billion in 2022.
  • Vornado Realty Trust (NYSE: VNO) has a dividend yield of 5.13% and a P/E ratio of 82.21.
  • Williams Companies, Inc’s (NYSE: WMB) dividend yield is 5.34%, and the P/E ratio is 36.41.

The dividend stocks may be worth exploring in a highly volatile market, mainly when looking at safe, passive income. Investing in risky assets in a volatile market can lead to major losses. Currently, the S&P 500’s dividend yield is around 1.85%. 

Therefore, the dividend-paying value stocks become attractive in a troubled market.  

Last week, the bond yield touched 2%, the highest increase since 2019, as volatility in the market grew amid the Ukraine crisis and tech sell-offs. Here we explore the top seven S&P 500 dividend payers, which also saw notable gains in stock prices. 

Also Read: Top 10 Nasdaq semiconductor stocks to explore

Altria Group, Inc. (NYSE: MO) 

Market Cap: US$91 billion

Closing Price on February 15, 2022: US$50.32

Dividend yield: 7.15%, 

The Richmond, Virginia-based Altria Group owns brands like Philip Morris USA, John Middleton, US Smokeless Tobacco, Nu-Mark, Philip Morris Capital, and Ste. Michelle Wine Estates. It is a leading cigarette and tobacco manufacturer in the US. 

For the fiscal year 2021, the company reported net revenue of US$26 billion, down 0.5% from the previous year. Its adjusted earnings per share diluted rose 5.7% YoY to US$4.61 in FY2021. 

Altria’s net earnings fell 44.6% YoY to US$2.47 billion or US$1.34 per share diluted in FY2021. It paid US$1.7 billion in dividends in Q4, 2021, and US$6.4 billion for the entire year. Its P/E ratio is 37.83, the forward P/E for one year is 10.33, and the annualized dividend is US$3.60.

 Also Read: Top 7 healthcare stocks on NASDAQ to consider

Kinder Morgan, Inc. (NYSE: KMI) 

Market Cap: US$38.46 billion

Closing Price on February 15, 2022: US$17.01

Dividend yield: 6.16% 

This Houston, Texas-based company engages in transporting, storing, and processing crude oil, refined oil products, natural gas, natural gas liquids, and carbon dioxide.  

Kinder Morgan is a midstream energy firm and runs an 83,000-mile pipeline network, 143 storage terminals, and natural gas storage facilities with a capacity of 700 billion cubic feet. 

For the full year 2021, KMI reported revenue of US$16.6 billion, up 42% over the previous year, and a net income attributable to KMI of US$1,784 million or US$0.78 per share diluted, compared to US$119 million or US$0.05 per share diluted in 2020.  

For FY2022, the company expects a net income attributable to KMI of US$2.5 billion and a 3% YoY increase in dividend at US$1.11 per share. Its P/E ratio is 21.78, the forward P/E for one year is 16.07, and the annualized dividend is US$1.08. 

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 Top dividend stocks of S&P 500 to look out for

Also Read: Top communication stocks on S&P 500 to watch 

ONEOK, Inc. (NYSE: OKE) 

Market Cap: US$27.84 billion

Closing Price on February 15, 2022: US$62.43

Dividend yield: 5.8% 

Oneok provides natural gas and gas liquids processing, storage, fractionation, and transportation services. The company is based in Oklahoma, Tulsa. 

It will announce its Q4 and full-year 2021 earnings on Feb. 28, 2022. 

For the September quarter of 2021, OKE posted a net income attributable to common shareholders of US$391 million or US$0.88 per share diluted on revenue of US$4.56 billion.  

Its P/E ratio is 19.51, the forward P/E for one year is 18.56, and the annualized dividend is US$3.74.

 Also Read: Top 7 financial stocks on NYSE to explore

PPL Corporation (NYSE: PPL) 

Market Cap: US$21.2 billion

Closing Price on February 15, 2022: US$28.25

Dividend yield: 5.79% 

PPL is a holding company of Pennsylvania and Kentucky Regulated Utilities. The Pennsylvania utilities distribute electricity in central and eastern Pennsylvania, and LG&E and KU provide electricity generation, transmission, and distribution services in Kentucky.  

PPL is based in Allentown, Pennsylvania. It will announce consolidated fourth-quarter and full-year 2021 results on February 18. 

For the third quarter ended September 30, 2021, the company reported a net income of US$207 million or US$0.27 per share diluted on revenue of US$1.5 billion. Its forward P/E for one year is 25.09, the dividend yield is 4.39%, and the annualized dividend is US$1.66.

 Also Read: Top S&P 500 consumer discretionary stocks to explore

Iron Mountain Incorporated (NYSE: IRM) 

Market Cap: US$12.7 billion

Closing Price on February 15, 2022: US$43.75

Dividend yield: 5.57% 

The Boston, Massachusetts-based Iron Mountain Inc is a REIT. It provides record management services and earns most of its revenue from its storage business. It also makes revenue from value-added services. It will declare its Q4 and year-end 2021 results on February 24. 

Its revenue was US$1.13 billion, and the net income came in at US$67.68 million or US$0.23 per share diluted in the quarter ended September 30, 2021. Its P/E ratio is 19.89, the forward P/E for one year is 15.93, and the annualized dividend is US$2.474. 

Also Read: Top utility sector stocks of NYSE to watch

Williams Companies, Inc. (NYSE: WMB)

Market Cap: US$36.28 billion

Closing Price on February 15, 2022: US$29.86

Dividend yield: 5.34% 

Williams is a midstream energy company based in Oklahoma, Tulsa. It operates pipeline systems and assets for associated natural gas gathering, processing, and storage. 

The company will release its fourth-quarter and full-year results on February 21. 

Its net income came in at US$165 million on revenue of US$2.47 billion in the September quarter of 2021. The earnings per share diluted were US$0.13 for the third quarter. Its P/E ratio is 36.41, the forward P/E for one year is 23.69, and the annualized dividend is US$1.70.

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 Top dividend stocks of S&P 500 to look out for

Source: Pixabay

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Vornado Realty Trust (NYSE: VNO) 

Market Cap: US$8.35 billion

Closing Price on February 15, 2022: US$43.57

Dividend yield: 5.13% 

The New York-based Vornado operates as a REIT. It owns or has ownership interests in office and retail properties in Manhattan, San Francisco, and Chicago. 

For the fiscal year ended December 31, 2021, its net income attributable to common shareholders came in at US$101 million, or US$0.53 per share diluted, compared to a net loss of US$348 million or US$1.83 per share diluted in the previous fiscal year. 

Its P/E ratio is 82.21, the forward P/E for one year is 12.57, and the annualized dividend is US$2.12. 

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Bottomline

The SPDR S&P Dividend ETF (SDY) was down around 4% in one year. This ETF holds dividend-paying stocks in its portfolio. Dividend-paying companies sometimes go into the negative price territory after payments. So, the dividends may climb, but the stock prices may fluctuate.   

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