The stock market has experienced high volatility due to a spike in inflation, the Ukraine-Russia war, and several rate hikes planned by the Fed this year. So, investors looking to avoid market volatility can be well served by betting on high-dividend-yielding stocks. Gilead Sciences (GILD), Walgreens Boots Alliance (WBA), Valero Energy (VLO), and Phillips 66 (PSX) are the best dividend yielding stocks in the S&P 500 index. So, we thought it would be a good idea to add these stocks to our watchlist. somebody. Read on.
shutterstock.com – StockNewsSince the start of the year, the market has experienced significant volatility due to decades of high inflation, planned Fed rate hikes, and ongoing supply chain disruptions. The Russian invasion of Ukraine added fuel to the fire. The S&P 500 is down more than 8% year-to-date. Despite bouncing back from lows, rising oil prices are expected to keep the benchmark index under pressure in the near term.
High-yielding dividend stocks are known to provide a buffer against market volatility. Stocks that pay dividends are considered an efficient way to protect one’s portfolio from market uncertainty. In addition to delivering high dividend yields, they usually have capital appreciation potential. Investors’ interest in dividend stocks is evidenced by the ETF Global X S&P 500 Quality Dividend (QDIV) 7% return over the last six months compared to the SPDR S&P 500 Trust ETF (PEOPLE) 2.5% decrease.
Against this backdrop, we thought it would be a good idea to add Gilead Sciences, Inc.’s high-yield, high-yield dividend stock. (GILD), Walgreens Boots Alliance, Inc. (WBA), Valero Energy Company (VLO), and Phillips 66 (PSX) to someone’s watchlist. The dividends paid by these S&P 500 members yield 4% or more.
Gilead Sciences, Inc. (GILD)
Foster City, based in California GILD is a biopharmaceutical company that focuses on developing drugs to prevent and treat diseases including human immunodeficiency virus, viral hepatitis, and cancer. The company’s investigative drug product portfolio and channel covers treatments for HIV, COVID-19, liver disease, and hematology/oncology/cell therapy.
On February 16, 2022, GILD announced the new one-year results of the ongoing Phase 2/3 CAPELLA trial to evaluate lenacapavir, a long-term study of the HIV-1 capsid inhibitor, in people with severe treatment experience living with multi-resistant HIV. against drugs. The findings revealed that lenacapavir, when administered subcutaneously every six months in combination with other antiretrovirals, achieves high rates of virologic suppression and clinically significant CD4 cell count increases in people with HIV.
Over the past three years, GILD’s dividend payout has grown at a CAGR of 6.9%. The four-year average dividend yield is 3.7%, and the current payout is 5%. It is expected to pay a quarterly dividend of $0.73 per share on March 30, 2022.
GILD’s total revenue for fiscal year 2021 increased 10.5% year over year to $27.30 billion. The company’s non-GAAP net income increased 2.5% year-on-year to $9.19 billion. And non-GAAP EPS came in at $7.28, representing a 2.6% year-over-year increase.
Analysts expect GILD’s EPS and revenue for fiscal year 2023 to increase 0.3% and 0.4%, year-on-year, to $6.57 and $24.61 billion, respectively. Over the past month, the stock has fallen 6.3% to close its last trading session at $57.97.
GILD’s strong fundamentals are reflected in POWRA Rating. It has an overall B rating, which is equivalent to Buy in our proprietary rating system. The POWR rating is calculated taking into account 118 different factors, with each factor being weighted to an optimal level.
It has an A for Value and a B for Quality. It is ranked #18 of 424 stocks on biotech industry. Click here to see other GILD ratings for Growth, Momentum, Stability and Sentiment.
Click here to check out our Health Sector Report for 2022
Walgreens Boots Alliance, Inc. (WBA)
WBA in Deerfield, Illinois, operates as a pharmacy-led retail beauty and wellness company. It operates through the USA Retail Pharmacy, International Retail Pharmacy, and Pharmaceutical Wholesale segments. The company’s retail and business brand portfolio includes Walgreens, Duane Reade, Boots, and global health and beauty product brands, including No7, NICE! Soap & Glory, Liz Earle Best Nutrition, Botany, A Good Start, Lean Makeup, and YourGoodSkin.
On November 30, 2021, WBA announced that it would become 100% owner of the joint venture GEHE Pharma Handel and Alliance Healthcare Deutschland after approving McKesson Corporation (MCK) to acquire 30% of its shares. WBA COO, Ornella Barra, said, “We are delighted to have agreed with McKesson to take full control of our German pharmaceutical wholesale operations. This exciting new move allows the Walgreens Boots Alliance to further strengthen its position as the leading pharmaceutical wholesaler in Germany.”
Over the past three years, WBA’s dividend payout has grown at a CAGR of 3.3%. The four-year average dividend yield is 3.4%, and the payout is currently 4%.
For the fiscal first quarter, ending November 30, 2021, WBA sales increased 7.8% year-on-year to $33.90 billion. The company’s non-GAAP net income increased 38.3% year-on-year to $1.45 billion. Also, adjusted EPS came in at $1.68, representing a 54.1% year-over-year increase.
For the quarter ended February 28, 2022, WBA EPS is expected to increase 9.5% year-on-year to $1.38. Its revenue for fiscal year 2023 is expected to increase 3.2% year-on-year to $135.76 billion. It topped EPS Street forecasts in each of the last four quarters. Over the past month, the share price has fallen 1% to close the last trading session at $47.38.
The WBA’s POWR rating reflects this promising outlook. The stock has an overall B rating, which is equivalent to Buy in our proprietary rating system.
It has a B for Value and Sentiment. In the value of A Medical – Drug Store industry, it ranks #2 out of 4 stocks. To see more WBA rankings for Growth, Momentum, Stability, and Quality, Click here.
Click here to check out our Health Sector Report for 2022
Valero Energy Company (VLO)
VLO is an international manufacturer and marketer of transportation fuels and petrochemical products. That San Antonio, Texas, the company’s segments include Refining, Renewable Diesel, and Ethanol.
On February 21, 2022, the VLO announced that it had reduced its long-term debt by approximately $750 million through debt reduction and refinancing transactions. These transactions, which were completed in the third and fourth quarters of 2021, helped reduce VLO’s long-term debt by approximately $2 billion.
Over the past three years, VLO’s dividend payout has grown at a CAGR of 5.9%. The four-year average dividend yield is 5%, and the payout is currently yielding 4.6%.
VLO revenue increased 116.2% year-on-year to $35.90 billion for the fourth quarter, ending December 31, 2021. The company’s adjusted net income attributable to its shareholders was $1.01 billion, compared with an adjusted net loss of $429 million. Also, adjusted EPS was $2.47, compared to an adjusted loss of $1.06 per share.
Analysts expect VLO EPS for the quarter ended June 30, 2022, to increase 389.6% year-on-year to $2.35. Its revenue for the quarter ended March 31, 2022, is expected to increase 63.3% year-on-year to $30.45 billion. Also, topped consensus EPS forecasts in each of the last four quarters. And over the past six months, the share price has gained 29.7% to close the last trading session at $84.94.
VLO’s strong fundamentals are reflected in its POWR Rating. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system.
It has a B rating for Growth and Quality. It is ranked #11 of 87 stocks on A-rated Energy – Oil & Gas industry. Click here to see other VLO ratings for Value, Momentum, Stability and Sentiment.
Phillips 66 (PSX)
PSX is an energy manufacturing and logistics company with midstream, chemical, refining, marketing and specialization businesses. The Houston, Texas-based company operates through the Midstream, Chemicals, Refining, and Marketing and Specialties (M&S) segments.
On August 9, 2021, PSX announced it had entered into a technology development agreement with NOVONIX Limited to advance the production and commercialization of next-generation anode materials for lithium-ion batteries. The deal came after PSX acquired a 16% stake in NOVONIX. PSX’s VP of Energy Research & Innovation, Ann Oglesby, said: “This sets the framework for companies to work closely and collaboratively to accelerate the development of next-generation materials for the US battery supply chain.”
Over the past three years, PSX’s dividend payout has grown at a CAGR of 14.9%. The four-year average dividend yield is 4%, and the payout is currently yielding 4.8%.
For the fourth quarter, ending December 31, 2021, PSX’s revenue increased 98.8% year-on-year to $32.55 billion. The company’s adjusted revenue was $1.29 billion, compared with an adjusted loss of $507 million. Also, adjusted EPS was $2.94, compared to an adjusted loss of $1.16 per share.
For the quarter ended March 31, 2022, PSX’s EPS and revenue are forecast to increase 247.4% and 49%, year-on-year, to $1.71 and $32.67 billion, respectively. It topped EPS Street forecasts in each of the last four quarters. Over the past six months, the share price has gained 16.3% to close the last trading session at $76.50.
PSX’s POWR rating reflects this promising outlook. The stock has an overall B rating, which is equivalent to Buy in our proprietary rating system.
It has a B value for Growth. It is ranked #19 in Energy – Oil & Gas industry. To see additional PSX ratings for Value, Momentum, Stability, Sentiment and Quality, Click here.
GILD shares were up $0.13 (+0.22%) in premarket trading Thursday. This year, the GILD has fallen -18.96%, compared to the -8.72% gain in the benchmark S&P 500 index during the same period.
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