It’s not uncommon for investors to often times turn to dividend paying stocks as a defensive position during times of stock market turmoil. In brief, dividends are sums of money that are paid out by a company to its shareholders. Generally, this payout is typically on a quarterly basis. Dividends can be either positive or negative, but most companies strive to pay their shareholders a dividend that represents a portion of the company’s profits. There are several reasons why companies offer shareholders dividends. For one, it is a way to share the wealth with the individuals who have invested in the company.
Continuing on, dividend stocks are stocks that have been identified as having the potential to pay regular dividends. Investors like dividend-paying stocks for several reasons. Dividends provide a source of income, which can be helpful in retirement planning. Dividend payments can also act as a buffer against stock price fluctuations.
However, there are also some disadvantages to investing in dividend stocks. Specifically, dividends are not guaranteed. Moreover, dividends also can be reduced or suspended at any time. If reading this so far has you interested in researching high paying dividend stocks, here are two to watch in the stock market today.
Dividend Stocks To Invest In [Or Avoid] Now
BHP Group (BHP Stock)
BHP Group Limited is a diversified natural resources company. The company is one of the biggest globak producers of major commodities, including steel-making coal, copper, zinc, iron ore, and nickel. As of today, BHP has an annual dividend yield of 12.90%.
In August, BHP Group Limited reported its 2022 full-year financial results. Diving right in, BHP announced a 34% increase in profit from business operations. The company said this is mainly because of the increase in commodity prices. Additionally, BHP also reported its profit from operations increased to $34.1 billion from $25.5 billion on a year-over-year basis. What’s more, BHP notched in revenue for it full-year 2022 fiscal of $65 billion.
Meanwhile, the company’s CEO, Mike Henry commented this in its releae to shareholders, “BHP delivered strong operational performance and disciplined cost control to realise record underlying earnings of US$40.6 billion and record free cash flow of US$24.3 billion. We have reduced debt and announced a final dividend of US$1.75 per share, bringing total cash dividends announced for the full year to a record US$3.25 per share.“
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Rio Tinto (RIO Stock)
Following that, let’s check out mining company Rio Tinto (RIO). For starters, the company is one of the largest mining companies in the world. Rio Tinto’s portfolio includes iron ore, aluminum, copper, diamonds, and coal. For a sense of scale, the company has operations in over 40 countries around the world, and it plans to continue its expansion in the coming years. Currently, RIO stockholders enjoy an annual dividend yield of 12.36%.
Earlier this month, Rio Tinto reoprted that it has enteted a definitive agreement to buy full ownership of Turquoise Hill. Specifically, the deal inclues an all-cash offer of $43 CAD per share. As a result, this reflects a premium of 67% to Turquoise Hi’ll’s closing price, which is $25.68 CAD..
Movinga along, Rio Tinto CEO Jakob Stausholm stated, “This Transaction will simplify governance, improve efficiency and create greater certainty of funding for the long-term success of the Oyu Tolgoi project.” As of Friday’s closing bell shares of RIO stock are trading at $55.06 a share.
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