For Immediate Release
Chicago, IL – August 3, 2022 – Today, Zacks Investment Ideas feature highlights Icahn Enterprises LP IEP, Sociedad Quimica y Minera SA SQM, and ICL Group ICL.
3 High-Yield Stocks With Remarkable Earnings Growth
Income investing is a widely-deployed strategy in the market. Receiving a steady stream of income paired with the potential of stock price appreciation can generate serious returns over time. After all, we all love getting paid.
Three highly-ranked stocks with steep dividend yields and a history of increasing their dividend include Icahn Enterprises, Sociedad Quimica y Minera SA, and ICL Group.
As we can see, all three stocks have provided a much higher level of performance than the general market year-to-date. Let’s take a closer look at each company’s dividend metrics and projected earnings growth for the current fiscal year.
Sociedad Quimica y Minera SA
Sociedad Quimica y Minera SA is a fertilizer and iodine producer that manufactures industrial chemicals and iodine derivative products. The company sports the highly-coveted Zacks Rank #1 (Strong Buy) with an overall VGM Score of an A.
The company’s dividend metrics would make any income investor ecstatic.
SQM’s annual dividend yield resides on the high side at 9.4%, with a payout ratio sitting at 80% of earnings. In addition, the company has impressively increased its dividend 11 times over the past five years and has a five-year annualized dividend growth rate in the double-digits at 14.6%.
SQM’s annual dividend yield is much higher than that of the S&P 500.
In addition, the company’s free cash flow has been on a strong uptrend, as illustrated in the chart below. In its latest quarter, free cash flow was reported at $865 million, a triple-digit 286% uptick from the prior quarter.
Bottom-line growth is out of this world. For the current fiscal year, the Zacks Consensus EPS Estimate of $12.58 reflects a massive 950% uptick in earnings year-over-year.
Analysts have been bullish across all timeframes with a 100% revision agreement over the last 60 days.
ICL Group is engaged in the fertilizer and specialty chemical sectors, with operating segments including Fertilizers, Industrial Products, and Performance Products. The company sports a Zacks Rank #2 (Buy) paired with an overall VGM Score of an A.
ICL’s annual dividend yield sits nicely at 10.1%, much higher than the S&P 500. In addition, ICL is dedicated to increasingly rewarding its shareholders; the company has increased its dividend seven times over the last five years and carries a five-year annualized dividend growth rate in the double-digits at 17.5%.
ICL’s free cash flow growth has been a strong highlight as well. In its latest quarter, free cash flow was reported at $407 million, reflecting a triple-digit 109% uptick from the prior quarter and 350% year-over-year.
Additionally, analysts have raised their earnings outlook across all timeframes over the last 60 days, a bullish signal. For the current fiscal year, the Zacks Consensus EPS Estimate resides at $1.92, registering a massive 190% expansion in the bottom-line year-over-year.
Icahn Enterprises LP
Icahn Enterprises LP is a diversified holding company engaged in various businesses, including investment management, metals, real estate, and home fashion. Currently, Icahn is a Zacks Rank #2 (Buy) with an overall VGM Score of an A.
IEP’s annual dividend yield is the highest of all three, sitting enticingly at a sizable 14.8% and well above the S&P 500’s yield. In addition, the company’s payout has increased by a double-digit 18% over the last five years, with two dividend increases during the period.
The company’s free cash flow has recently found itself on an uptrend. In its latest quarter, free cash flow was reported at a mighty $1.9 billion, reflecting a massive 650% uptick from the previous quarter.
Over the last 60 days, analysts have been quiet, with zero estimate revisions coming in. Still, the Zacks Consensus EPS Estimate of $0.43 for the current fiscal year displays a sizable triple-digit 113% uptick in earnings year-over-year.
We all love getting paid from our investments. The feeling is even sweeter when you add in the potential of stock price appreciation, making the gains multiply even quicker. In addition, a reliable income stream can help alleviate drawdowns in other portfolio positions.
A market recalibration brought about by a challenging macroeconomic backdrop has punished stocks all year long.
However, dividend stocks have been a great place to park cash year-to-date, crushing the S&P 500’s performance.
All three stocks above have held up remarkably throughout 2022. They have strong Zacks Ranks, free cash flow strength, inspiring earnings growth, and rock-solid dividend metrics, making them attractive investments for any income-focused investor.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report
Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report
ICL Group Ltd. (ICL) : Free Stock Analysis Report
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