Record-high inflation rates have been pressurizing markets since the beginning of 2022. The CPI leaped 8.3% in April, 20 basis points more than the 8.1% estimate. However…
it marked a marginal slowdown from March’s historic 8.5% year-over-year rise and seven-month-long uptrend. Nonetheless, markets are expected to remain volatile due to the Fed’s hawkish tilt.
High-yielding dividend stocks are expected to help investors dodge the near-term market fluctuations. Their ability to pay steep dividends denotes their financial strength. And investors’ interest in the high-yielding dividend stocks is evident in the iShares Core High Dividend ETF’s (HDV) 7.1% returns over the past six months.
Therefore, we think investors looking to beat inflation could bet on fundamentally strong and high-yielding dividend stocks Lumen Technologies, Inc. (LUMN), MPLX L.P. (MPLX), and Black Stone Minerals, L.P. (BSM) now.
Lumen Technologies, Inc. (LUMN)
LUMN in Monroe, La., is a facilities-based technology and communications company. It provides various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands to business and residential customers in the United States and internationally. The company operates in two segments–Business and Mass Markets.
On May 4, 2022, Jeff Storey, LUMN’s President, and CEO, said, “We are excited by significant recent Enterprise wins, and our Quantum Fiber build is accelerating, both of which provide us confidence as we execute on our plans to drive toward revenue growth.”
LUMN has been paying dividends for 22 consecutive years. Its current dividend translates to an 8.77% yield, while its four-year average yield is 10.18%. On May 19, 2022, LUMN declared a $0.25/share dividend.
LUMN’s operating income came in at $1.08 billion for the first quarter, ended March 31, 2022, up 9.7% year-over-year. Its net income was $599 million, up 26.1% year-over-year, while its EPS came in at $0.59, up 34.1% year-over-year.
LUMN surpassed EPS estimates in three of the trailing four quarters. Over the past three months, the stock has gained 14.3% in price to close yesterday’s trading session at $11.36.
LUMN’s strong fundamentals are reflected in its POWR Ratings. It has an overall B rating, which equates to Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
LUMN has an A grade for Value and a B grade for Quality. Within the Telecom – Domestic industry, it is ranked #3 of 21 stocks. Click here to see the additional POWR Ratings for Growth, Momentum, Stability, and Sentiment for LUMN.
MPLX L.P. (MPLX)
MPLX in Findlay, Ohio, owns and operates midstream energy infrastructure and logistics assets primarily in the United States. It operates in two segments–Logistics and Storage; and Gathering and Processing. It is a subsidiary of Marathon Petroleum Corporation.
On May 3, 2022, Michael J. Hennigan, MPLX’s Chairman, President, and CEO, said, “We are advancing several organic growth projects focused on expansions and de-bottlenecking. These actions will continue to support the growth of MPLX, allowing our business to generate free cash flow and return capital to unitholders.”
MPLX has been paying dividends for nine consecutive years. MPLX’s dividend payouts have grown at a 6.1% CAGR over the past five years. Its current dividend translates to a…
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