And to cap off this beautiful weekend, the latest edition of U.S. News Invested once again has its most current recommendations for those who invest for income.
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Major stock market indexes have fallen to new lows for the year in October, and the Federal Reserve keeps hiking interest rates amid an unprecedented surge in inflation. This has caused investors to reassess their valuations for a whole host of financial assets including stocks, bonds and the U.S. dollar. Investors might be tempted to sell out of stocks given this confusing macroeconomic environment. However, historically, it has generally not been a wise decision to try to time the market. Instead, investors might seek to lower their portfolio risk by picking up more stable blue-chip companies paying large dividends. These 15 dividend stocks to buy all offer yields above 3% while having significant upside potential once the current bear market lets up:
Exxon Mobil Corp. (ticker: XOM). The energy sector has long been a reliable hunting ground for dividends. That's been especially true in 2022 as oil and natural gas have been among the few bright spots in the economy. Supply shortages and geopolitical uncertainty have lifted energy prices, and resulting sector profits, to their highest point since at least 2014. Exxon Mobil has been one of the biggest beneficiaries. It kept investing in additional production in the late 2010s when so many energy peers cut back spending in new projects. On top of that, Exxon Mobil held onto its refining and chemical plant assets. These are earning tremendous profits now, thanks to a boom in refining profit margins and shortages for various chemical goods within industrial supply chains. Add it all up and Exxon is still cheap, even after its big run-up over the past year. Shares currently trade for about 9 times forward earnings, and the stock pays a 3.6% dividend.
Verizon Communications Inc. (VZ). Verizon is one of America's three primary mobile phone carriers. The company also has extensive operations in fiber via its Fios division. Verizon was supposed to enjoy renewed prosperity thanks to its heavy investments in 5G and spectrum to upgrade its network quality and speed. Instead, these investments have been slower to bear fruit than anticipated. Throw in rising interest rates, which will make Verizon's debt more expensive to service, and it's understandable why some investors are nervous. However, these fears are overblown. Verizon is trading at just 7 times earnings, and earnings are stable. The company just raised its dividend, and it signaled that a buyback may be on the menu in the future as well. Shares currently yield about 7.3%.
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Exxon Mobil Corp. (ticker: XOM). The energy sector has long been a reliable hunting ground for dividends. That's been especially true in 2022 as oil and natural gas have been among the few bright spots in the economy. Supply shortages and geopolitical uncertainty have lifted energy prices, and resulting sector profits, to their highest point since at least 2014. Exxon Mobil has been one of the biggest beneficiaries. It kept investing in additional production in the late 2010s when so many energy peers cut back spending in new projects. On top of that, Exxon Mobil held onto its refining and chemical plant assets. These are earning tremendous profits now, thanks to a boom in refining profit margins and shortages for various chemical goods within industrial supply chains. Add it all up and Exxon is still cheap, even after its big run-up over the past year. Shares currently trade for about 9 times forward earnings, and the stock pays a 3.6% dividend.
Verizon Communications Inc. (VZ). Verizon is one of America's three primary mobile phone carriers. The company also has extensive operations in fiber via its Fios division. Verizon was supposed to enjoy renewed prosperity thanks to its heavy investments in 5G and spectrum to upgrade its network quality and speed. Instead, these investments have been slower to bear fruit than anticipated. Throw in rising interest rates, which will make Verizon's debt more expensive to service, and it's understandable why some investors are nervous. However, these fears are overblown. Verizon is trading at just 7 times earnings, and earnings are stable. The company just raised its dividend, and it signaled that a buyback may be on the menu in the future as well. Shares currently yield about 7.3%.
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15 of the best dividend stocks to buy for 2022:
- Exxon Mobil Corp. (XOM)
- Verizon Communications Inc. (VZ)
- Enbridge Inc. (ENB)
- VF Corp. (VFC)
- Intel Corp. (INTC)
- Unilever PLC (UL)
- 3M Co. (MMM)
- Canadian Imperial Bank of Commerce (CM)
- Realty Income Corp. (O)
- Northrim BanCorp Inc. (NRIM)
- Dow Inc. (DOW)
- Citigroup Inc. (C)
- Suncor Energy Inc. (SU)
- Banco de Chile (BCH)
- Pinnacle West Capital Corp. (PNW)
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