Because rising oil prices, high inflation, and the escalating geopolitical tensions related to Russia and Ukraine are expected to keep the stock market under pressure in the near term, we think it could be wise to bet on high-quality dividend stocks Tyson (TSN) , Westlake (WLK), Huntsman (HUN), Global Partners (GLP), and Manning & Napier (MN) to ensure a steady income stream. Let’s discuss these names.
Increasing inflation and lingering supply disruptions have fostered significant market volatility since the beginning of the year. The Russia-Ukraine conflict has added to investors’ concerns. These challenges, along with surging oil prices, are expected to keep the stock market under pressure in the near term. According to Paul Sankey of Sankey Research, “There’s a major, physical, immediate outer that caught an already tight market with very low inventors.” Growth, hopes of an economic rebound are still evident as worldwide COVID-19 restrictions continue to ease.
So, we think it could thus be wise now to invest in quality shares stocks to secure a steady income stream. Optimistic investor sentiment about this space is evident in the Global X S&P 500 Quality Dividend ETF’s (QDIV6.7% returns in the past three months compared to the SPDR S&P 500 Trust ETF’sSPY) 3.9% decline.
Strong fundamentals and impressive dividend yields make Tyson Foods, Inc. (TSNWestlake Corporation (WlkHuntsman Corporation (HUN), Global Partners LP (GLP), and Manning & Napier, Inc. (MN) solid bets now.
Tyson Foods, Inc. (TSN)
TSN, together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef; Pork; Chicken; and Prepared Foods. The Springdale, Ark.-based company is one of the world’s largest food companies and a recognized leader in protein production.
On Feb. 7, 2022, Donnie King, President, and CEO of TSN, said, “Our performance reflects the resilience of our multi-protein portfolio even with continued volatility in the marketplace. We remain committed to winning with our team members, winning with our customers and consumers, and winning with excellence. We have the right team who are taking the right actions, and as a result, we believe our future is bright.”
TSN has consistently paid dividends for more than 30 years. Over the last five years, its dividend payouts have grown at 19.3% CAGR. While its four-year average dividend yield is 2.14%, TSN’s current dividend translates to a 1.94% yield.
TSN’s sales increased 23.6% year-over-year to $12.93 billion in its fiscal year 2022 first quarter, ended Jan. 1, 2022. The company’s adjusted operating income came in at $1.43 billion, up 39.7% year-over-year. Its net income was $1.12 billion, up 140% year-over-year, while its adjusted EPS came in at $2.87, up 47.9% year-over-year.
Analysts expect TSN’s revenue to increase 9.6% year-over-year to $51.54 billion in its fiscal year 2022. Its EPS is estimated to grow 7.5% per annum for the next five years. Also, it surpassed EPS estimates in each of the trailing four quarters. Over the past month, the stock has gained 5.6% in price to close yesterday’s trading session at $95.34.
TSN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assesses stocks by 118 different factors, each with its own weighting.
TSN has an A grade for Value and a B for Growth and Sentiment. Within the B-rated Food Makers industry, it is ranked #8 of 84 stocks. Click here to see the additional POWR Rating for Quality, Momentum, and Stability for TSN.
Westlake Chemical Corporation (Wlk)
Houston, Tex.-based WLK, together with its subsidiaries, manufactures and markets basic chemicals, vinyl, polymers, and building products worldwide. It operates through two segments, Vinyl, and Olefins.
On Feb. 22, 2022, Albert Chao, President, and CEO, said, “Looking at the Housing and Building Products acquisitions we closed in the second half of 2021, as well as our epoxy acquisition in early 2022, we have developed a larger platform for growth which should drive value through our integrated chain and expect these businesses to contribute to earnings in 2022 meaningfully.”
WLK has been paying dividends for more than 15 years. Over the last five years, WLK’s dividend payouts have grown at 8.8% CAGR. While WLK’s four-year average dividend yield is 1.38%, its current dividend translates to a 1.07% yield.
WLK’s net sales came in at $3.51 billion for the fourth quarter, ended Dec. 31, 2021, up 78.5% year-over-year. Its net income was $644 million, up 469.9% year-over-year. Also, its EPS came in at $4.98, up 472.4% year-over-year.
Analysts expect WLK’s revenue to be $13.52 billion in fiscal 2022, representing a 14.8% year-over-year rise. The company’s EPS is also expected to increase 31.9% per annum over the next five years. It surpassed the Street’s EPS estimates in each of the trailing four quarters. And over the past month, the stock has gained 10.8% in price to close yesterday’s trading session at $112.59.
WLK’s POWR Ratings reflects this promising outlook. The stock has an overall B rating, which equates to a Buy in our POWR Ratings system.
It has a B grade for Growth, Value, and Sentiment. It is ranked #13 of 90 stocks in the A-rated Chemicals industry. Click here to see the additional ratings for WLK (Momentum, Quality, and Stability).
Huntsman Corporation (HUN)
HUN manufactures and sells differentiated organic chemical products worldwide. The Salt Lake City, Utah company operates through four segments: Polyurethanes; Performance Products; Advanced Materials; and Textile Effects.
On Feb. 15, 2022, Peter R. Huntsman, Chairman, President, and CEO, said, “We concluded 2021 with the best year in our history with our current portfolio of businesses. The transformation of our portfolio has enabled our company to generate not only our highest ever adjusted EBITDA margins, but consistent profit margins quarter on quarter throughout 2021, a hallmark of a more differentiated chemical business.”
HUN’s dividend payouts have grown at a 7.7% CAGR over the past five years. Its current dividend yields 2.17%, and its four-year average dividend yield is 2.7%.
For its fiscal fourth quarter, ended Dec. 31, 2021, HUN’s revenues came in at $2.31 billion, up 38.3% year-over-year. Its adjusted net income was $207 million, up 83.2% year-over-year, while its adjusted EPS came in at $0.95, up 86.3% year-over-year.
HUN’s revenue is expected to be $8.91 billion in its fiscal year 2022, representing a 5.4% year-over-year rise. The company’s EPS is expected to increase 12.4% year-over-year to $3.98 in 2022. In addition, it surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past month, the stock has gained 7.7% to close yesterday’s trading session at $39.12.
It’s no surprise that HUN has an overall A rating, which equates to a Strong Buy in our proprietary rating system. In addition, it has an A grade for Value and a B grade for Growth, Sentiment, and Quality.
HUN is ranked #10 in the Chemicals industry. Click here to see the additional POWR Ratings for HUN (Momentum and Stability).
Note that HUN is one of the few stocks handpicked currently in the Reitmeister Total Return portfolio. Learn more here.
Global Partners LP (GLP)
GLP purchases, sells, gathers, blends, stores, and manages the logistics of transporting gasoline and gasoline blend stocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers in the New England Mid states -Atlantic region and New York. The company is headquartered in Waltham, Mass.
On Feb. 28, 2022, Eric Slifka, the Partnership’s President and CEO, said, “We had a solid year in 2021, successfully navigating the pandemic and the related macroeconomic challenges that affected virtually all industries during the past year. Our performance speaks to the scale and reliability of our vertically integrated assets and businesses, which enable us to deliver significant value for our customers, consumers, and unitholders.”
GLP’s dividend payouts have grown at 4.5% CAGR over the last five years. While its four-year average dividend yield is 11.32%, GLP’s current dividend translates to a 9.1% yield.
GLP’s sales increased 86.4% year-over-year to $4.09 billion for the fourth quarter, ended Dec. 31, 2021. Its net income came in at $19.32 million, up 334.9% year-over-year, while its EPS increased 633.3% year-over-year to $0.44.
For its fiscal year 2022, analysts expect GLP’s revenue to be $16.64 billion, representing a 25.6% year-over-year rise. In addition, the company’s EPS is expected to increase 24.4% year-over-year to $1.63 in 2022. Over the past three months, the stock has gained 14.9% to yesterday’s close trading session at $26.06.
Manning & Napier, Inc. (MN)
MN in Fairport, NY, is a publicly owned investment manager. It provides high-net-worth individuals and institutions services that cover 401(k) plans, pension plans, Taft-Hartley plans, endowments, and foundations.
On Feb. 8, 2022, Marc Mayer, Chairman of the Board and CEO of MN, said, “We completed 2021 with strong results for clients and increasing business momentum as our suite of investment strategies delivered excellent returns again last year, building on our robust track record over the short-, medium-, and long-term.”
While the four-year average dividend yield for MN is 5.59%, its current dividend translates to a 1.24% yield.
MN’s total revenue increased 12.8% year-over-year to $37.82 million in the fourth quarter, ended Dec. 31, 2021. Its net income came in at $7.44 million, up 46% year-over-year, while its EPS came in at $0.34, up 47.8% year-over-year.
MN’s EPS is expected to grow 8% per annum for the next five years. Over the past month, the stock has gained 2% in price to close yesterday’s trading session at $8.11.
MN’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system.
In addition, it has a B grade for Growth, Value, Momentum, Sentiment, and Quality. MN is ranked #1 of 25 stocks in the B-rated Investment Brokerage industry. Click here to see the additional POWR Ratings for MN (Stability).
TSN shares were trading at $93.92 per share on Friday morning, down $1.42 (-1.49%). Year-to-date, TSN has gained 8.29%, versus a -9.64% rise in the benchmark S&P 500 index during the same period.
Tyson (TSN) is a part of the Entrepreneur Indexwhich tracks some of the largest publicly traded companies founded and run by entrepreneurs.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economicsshe helps investors make informed investment decisions through her insightful commentaries.