Dividend stocks are stocks issued by corporations that pay out a portion of their profits to shareholders in the form of regular cash payments known as dividends. Dividend-paying companies are typically well-established, financially stable, and have a track record of generating consistent profits. As a result, high-dividend stocks can be an appealing option for income-seeking investors because they provide a consistent and predictable stream of cash flow.
One of the primary advantages of investing in dividend stocks is the potential for income generation. Dividend-paying stocks can often provide higher yields than traditional fixed-income investments like bonds or CDs. Furthermore, dividend income is typically taxed at a lower rate than other types of income, which can provide tax benefits to investors.
Another advantage of dividend stocks is their potential for long-term growth. This can provide investors with a level of stability and predictability. Furthermore, dividend-paying companies frequently have strong fundamentals, such as solid balance sheets, sustainable cash flows, and healthy profit margins. These factors can contribute to long-term price increases and potentially significant capital gains over time. One risk of investing in dividend stocks is that companies may reduce or suspend dividend payments. If this has you keen on investing in high-dividend stocks, here are two to check out in the stock market this week.
High Dividend Stocks To Watch Now
Devon Energy (DVN Stock)
First up, Devon Energy Corporation (DVN) is an American energy company. The company engages in the exploration, development, and production of oil, natural gas, and natural gas liquids. As it stands today, DVN offers its shareholders a quarterly dividend payment of $1.09, which equates to an annual dividend yield of 8.19%.
DVN Recent Stock News
Just last week, Devon Energy reported its 4th quarter and full-year 2022 financial and operating results. In the report, the company notched in Q4 2022 earnings of $1.66 per share, and revenue of $4.3 billion. This is compared to Wall Street’s consensus estimates for the quarter which were earnings of $1.75 per share, and revenue estimates of $4.6 billion.
Furthermore, President & CEO Rick Muncrief stated, “2022 was another year of outstanding accomplishment for Devon that resulted in record-setting operating results and the best financial performance in our company’s prestigious 52-year history.“
DVN Stock Chart
Year-to-date, shares of DVN stock have dropped by 8.24% so far. Meanwhile, as of this past Friday’s closing bell, Devon Energy stock is trading at around $53.33 a share.
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International Business Machines (IBM Stock)
Next, International Business Machines (IBM) is a technology company that offers a range of enterprise IT solutions and services. These include cloud computing, blockchain, and artificial intelligence. Currently, IBM pays a quarterly dividend in the amount of $1.65, which results in an annual dividend yield of 4.89%.
IBM Recent Stock News
Last month, IBM reported its 4th quarter 2022 financial results. Diving in, the company reported fourth-quarter 2022 earnings of $3.60 per share, to go along with revenue of $16.7 billion. For context, the analysts’ consensus estimates for the quarter were earnings of $3.61 per share on revenue of $16.4 billion.
What’s more, Arvind Krishna, IBM chairman, and CEO commented, “Our solid fourth-quarter performance capped a year in which we grew revenue above our mid-single digit model. Clients in all geographies increasingly embraced our hybrid cloud and AI solutions as technology remains a differentiating force in today’s business environment.”
IBM Stock Chart
So far in 2023, shares of IBM stock have pulled back 4.61% year-to-date. While this past Friday, IBM stock closed the day at $135.02 per share.
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