Whether you're looking at growth stocks, value stocks, or dividend stocks, just about every type of investment has been struggling in 2022. But dividend stocks can be particularly attractive buys on the dip because if their share prices decline, that means their yields will rise (assuming of course, their payouts remain intact).
Three high-yielding stocks investors may want to consider adding to their portfolios today are Healthpeak Properties (PEAK -0.33%), Verizon Communications (VZ 0.88%), and Kimberly-Clark (KMB -0.28%). All pay more than the S&P 500 average of 1.3%, and their shares are down around their 52-week lows.
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1. Healthpeak Properties
Healthpeak Properties is a real estate investment trust (REIT) that focuses on healthcare properties that can help the business generate stable earnings and dividend growth. And consistency is what investors can certainly expect from the business.
The REIT's diluted funds from operations (FFO) last year totaled $879.2 million, showing minimal change from the $880.7 million Healthpeak reported in 2020. Its FFO per share of $1.61 was down three cents but still puts the company's payout ratio at 75%. That's a manageable percentage, and investors should feel safe with it. Plus, in the past year the company closed on $1.5 billion worth of acquisitions, which can help fuel more growth down the road and potentially strengthen its bottom line.
Year to date, however, the stock has fallen more than 8%, doing a bit worse than the S&P 500, which has fallen by 7%. It's a negligible difference which suggests that the REIT is simply falling along with the broader markets, as there isn't an overwhelming reason to be down on Healthpeak's stock; the company isn't coming off a bad earnings report nor does its future look to be in trouble.
But with its stock down to $33 -- not far from its 52-week low of $30.16 -- Healthpeak makes for an attractive buy on the dip. At a 3.6% dividend yield, the shares offer a safe, above-average payout that provides healthcare investors some great income.
2. Verizon
There also isn't much love for telecom company Verizon. Its shares are down a modest 2%, but it too is trading within just a few dollars of its 52-week low. Investing in one of the top telecom businesses in the U.S. looks as though it should be a solid move, especially with Verizon rolling out more 5G coverage which will likely lead to stronger revenue as consumers upgrade their plans and buy newer phones.
At the start of the year, the company said its 5G Ultra Wideband service reached 100 million people. But by the end of 2022, that number will rise to 175 million, a deployment that the business says is a year ahead of schedule. That's a great bonus for a business that has been strong even amid the pandemic; Verizon has reported a profit margin of at least 14% in each of the last three years.
Overall, Verizon's business makes for a safe investment to hold in your portfolio, regardless of the current outlook for the economy. And its modest payout ratio of 47% makes the company's 5% dividend yield incredibly attractive right now.
3. Kimberly-Clark
Kimberly-Clark sells common household products that also make its business a safe one to buy and hold. From Huggies to Cottonelle to Kleenex, it estimates that its products are essential to one-quarter of the world. While inflation may lead to some consumers looking to cheaper options and may affect the company's margins, over the long haul the strong brands in the company's portfolio are what make Kimberly-Clark a relatively stable investment to own.
The company's profits took a bit of a hit last quarter due to inflation, with net income of $361 million for the last three months of 2021 declining 34% year over year, even though net sales of just under $5 billion rose by 3%. But management did say that it is "committed to recovering margins to pre-pandemic levels over time," suggesting that there could be price increases in the future to help offset the current headwinds.
However, the dividend itself looks to be fine as the company projects its per-share profit to land between $5.60 and $6.00 this year. With dividend payments likely totaling $4.64 per share this year, that would result in a payout ratio of some 83%. Although that's a bit high, this is also amid some serious challenges due to inflation and supply-chain disruptions.
At 16%, Kimberly-Clark's stock has suffered the largest decline on this list as it too continues to get closer to hitting a new 52-week low. But with its yield still looking safe and paying a generous 3.8%, Kimberly-Clark is another top dividend stock investors should consider buying today.
