Historically, oil prices have risen before the US recession. Thus, with crude oil prices hovering above 100 100 a barrel and inflation hovering at a 40-year high, many economists expect the economy to suffer a recession this year. Therefore, we think it would be wise to place bets on high quality dividend-yielding stock Exxon Mobil (XOM), Dow (DOW), Coca-Cola FEMSA (KOF), Altria (MO), and Telefônica Brasil (VIV) now. Can The potential recessionary weather creates a steady income stream. Let’s talk.
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Major market indices have faced high volatility due to rising inflation, the possibility of aggressive interest rate hikes, rising electricity prices and investors’ concerns over very little progress in ending the Ukraine-Russia war.
Concerns over the growing recession have weighed on the market. March inflation data has been proposed Year-on-year CPI growth 8.5%Its highest profit since December 1981. In addition, March job information offered a Tough labor market. The price of crude oil has risen above 100 100 a barrel due to concerns that sanctions on Russia could disrupt the supply of crude oil. Historically, high crude oil prices have triggered a recession.
Due to the combination of these factors, we think it would be wise to place a bet on a standard dividend-yielding stock action. Mobile Corporation (XOM) Dow Inc.DOW), Coca-Cola FEMSA, SAB de CV (KOF), Altria Group, Inc. (MO), And Telefônica Brasil SA (VIV) To create a fixed income stream. These stocks yield more than 4% and have the potential to increase capital.
Exxon Mobil Corporation (XOM)
XOM is in the power business in Irving, Texas. The main business of the company is exploration and production of crude oil and natural gas and production, trade, transportation and sale of crude oil, natural gas, petroleum products, petrochemicals and various specialized products. Its parts include upstream; Subdivision And chemical.
On March 1, 2022, XOM announced that it was planning a hydrogen production plant and one of the largest carbon capture and storage projects in the world to reduce its integrated refining and petrochemical site, its activities and emissions in the local industry at its Beatown, Texas. “By helping to activate new markets for hydrogen and carbon capture and storage, this project could play a significant role in achieving America’s low-emission aspirations,” said Joe Blomirt, president of XOM’s Low Carbon Solutions.
XOM’s total revenue and other revenue grew 82.5% year-on-year to 84 84.96 billion in the fourth quarter, ending December 31, 2021. The company’s net income came in at $ 8.87 billion, compared to a net loss of $ 20.07 billion a year earlier. Also, its EPS came in at $ 2.08, compared to a loss of $ 4.70 per share a year ago.
In the last three years, XOM’s Dividends Payouts increased to a 2.1% CAGR. Its four-year average dividend yield is 5.7%, and its current payout translates to a 4% yield.
Analysts expect XOM’s EPS and revenue to grow by 221.5% and 69.8% for the quarter ended March 31, 2022, to $ 2.09 billion and $ 92.70 billion year-on-year, respectively. This exceeds the road EPS estimate in each of the four back quarters. And over the past year, the stock has risen 55.8% in value to close the last trading session at $ 86.81.
It reflects the powerful fundamentals of XOM POWR rating. It has an overall B rating, which is equivalent to a buy in our proprietary rating system. POWR ratings are calculated taking into account 118 individual factors, each factor weighing to an optimal degree.
It has an A grade for momentum and a B grade for growth and quality. It ranks # 38 out of 97 B-rated stocks Energy – oil and gas Art Click here See XOM’s other ratings for quality, stability and feel.
Dow Inc. (DOW)
DOW is the holding company of Dow Chemical Company and its affiliates The Midland, Mitch-based The company’s plastic, industrial intermediate, coating and silicone business portfolio provides science-based products and solutions for its customers in a variety of market segments, including packaging; Infrastructure; Mobility; And consumer care.
On January 25, 2022, DOW announced an agreement with Locas Performance Ingredients to sell its high-performance Sophorolipid Biosurfactants in the global home care and personal markets. The ingredients offer a significant reduction in carbon footprint compared to conventional surfactants. The agreement will enable DOW to strengthen its position in the biosurfactants market.
For the fiscal quarter ended December 31, 2021, DOW’s net sales increased 34.1% year on year to $ 14.36 billion. Net income for the company’s ordinary shareholders rose 40.4% year-on-year to $ 1.73 billion. Also, its EPS came in at $ 2.32, representing a 40.6% year-over-year increase. In addition, its non-GAAP operating EBIT increased by 4 114.85 per year to $ 2.26 billion.
DOW’s four-year average dividend is 4.5%, and its current dividend translates into a 4.3% profit.
For the quarter ended March 31, 2022, DOW’s EPS and revenue are expected to grow 50.7% and 21.9%, respectively, 2.05 billion and $ 14.48 billion year-on-year. It surpassed the consensus EPS estimate in each of the next four quarters. The stock rose 13.1% year-over-year to close the last trading session at $ 64.16.
DOW’s strong prospects are reflected in its POWR ratings. The stock has an overall A rating, which is equivalent to a strong buy in our proprietary rating system.
It has an A grade for quality and a B grade for sentiment. In A-rated Chemical Industry, it ranks # 9 out of 89 stocks. To see other DOW ratings for growth, speed, stability and quality, Click here.
Coca-Cola FEMSA, SAB de CV (KOF)
KOF is located in Mexico City, Mexico. The company is the largest franchise bottler in terms of sales volume of the Coca-Cola trademark beverage worldwide. It produces, distributes and markets some Coca-Cola drinks. Its parts include its Mexico and Central America divisions; Its South America division; And its Asian division.
For the fourth quarter ended December 31, 2021, KOF’s total revenue grew 8.4% year on year to MNX53.27 billion ($ 2.69 billion). The company’s total profit grew 9.3% year on year MXN23.98 billion (1.21 billion). Also, its net income rose 82.8% year on year to MNX5.80 billion ($ 0.29 billion).
Over the past three years, KOF’s dividend payout has increased to a CAGR of 13.1%. Its four-year average dividend yield is 3.8%, and its current payout translates to a 4.4% yield.
For FY 2023, KOF’s EPS and revenue are expected to grow 11.6% and 6%, respectively, to 3.76 billion and $ 10.66 billion year-on-year. It has exceeded the road EPS estimate in three of the last four quarters. Over the past year, the stock has risen 16.3% to close at শেষ 55.81 to close the last trading session.
KOF’s POWR rating reflects solid potential. The company has an overall A rating, which translates into a strong byte in our proprietary rating system.
It has an A grade for stability and a B grade for quality, feel and quality. Within B-rated Drinks Industry, it ranks first among 34 stocks. Click here See KOF’s other ratings for growth and speed.
Altria Group, Inc. (MO)
MO In Richmond, VA, Manufactures and sells smoky and oral tobacco products in the United States. The company supplies cigarettes, primarily under the Marlboro brand; Cigar and pipe tobacco, mainly under black and light brands; And moist smokeless tobacco products under the Copenhagen, Squal, Red Seal and Husky brands, as well as deliver! Oral nicotine pouch.
On April 5, 2022, MO announced that it had signed a virtual power purchase agreement for the power generated by the new wind farm project in Haskell and Throckmorton Counties, Texas. “This marks our first VPPA and our science-based environmental goal – to make significant progress towards achieving 100% renewable energy and reducing operational greenhouse gas emissions by 55% by 2030,” said Sal Mankuso, MOP’s Executive VP and CFO.
For the fiscal quarter ended December 31, 2021, MO’s net revenue for smoking products increased 0.4% year-on-year to $ 5.59 billion, while net revenue for oral tobacco products increased 4.9% year-on-year to $ 663 million. The company’s consistent EPS came in at 1.09, representing a 10.1% year-over-year increase.
Over the past three years, MO’s dividend payout has increased to a CAGR of 4.7%. Its four-year average dividend yield is 6.8%, and its current payout translates to 6.5% yield.
For its 2023 fiscal year, MO’s EPS and revenue are expected to grow 6.2% and 1.5%, respectively, $ 5.14 billion and $ 21.37 billion year after year. It surpassed the consensus EPS estimate in three of the next four quarters. And in the last nine months, the stock has risen 17% to close at. 54.80 in the last trading session.
MO’s POWR rating reflects this promising outlook. The stock has an overall B rating, which is equivalent to a buy in our proprietary rating system.
It has an A grade for quality and a B grade for growth. It ranks # 3 out of 10 B-rated stocks Tobacco See MO’s other ratings for industry quality, speed, stability and feel, Click here.
Telefonica Brasil SA (VIV)
Headquartered in Sao Paulo, Brazil, VIV provides mobile and exclusive telecommunications services to residential and corporate customers. Its fixed-line service portfolio includes local, domestic and international long distance calls. Its mobile portfolio includes voice, 3G, 4G, 5G broadband and other value added and roaming services.
VIV’s net operating revenue rose 2.8% year-on-year to R $ 11.50 billion ($ 2.45 billion) in the fourth quarter, ending December 31, 2021. The company’s net income rose 103.2% year on year to R $ 2.62 billion ($ 0.55 billion). Also, its recurring EBITDA increased 1.2% year on year to R $ 4.93 billion ($ 1.05 billion).
VIV’s $ 0.64 forward translates into an annual dividend of 5.6%. The company’s five-year average dividend is 6.1%.
Analysts expect VIV’s EPS and revenue to grow 60% and 14% for the quarter ended March 31, 2022, to $ 0.16 billion and $ 2.26 billion year-on-year, respectively. It has exceeded the road EPS estimate in three of the last four quarters. And over the past year, the stock has risen 45.7% to close at .3 11.35 to close the last trading session.
VIV’s strong fundamentals are reflected in its POWR ratings. The stock has an overall B rating, which is equivalent to a buy in our proprietary rating system.
It has a B grade for durability and quality. It ranks 9th out of 47 A-rated stocks Telecom – Foreign Art Click here See VIV’s Additional Rating for Growth, Value, Momentum and Sentiment.
XOM shares fell $ 0.46 (-0.53%) in premarket trading on Thursday. Year-to-date, XOM rose 43.44% over the benchmark S&P 500 Index over the same period, up -6.37%.
Author Profile: Dipanjan Banchur
Dipanjan has been interested in the stock market since he was in grade school. As a result, he earned a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging financial market trends.
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