During market volatility and economic uncertainties, investors tend to turn to reliable stocks like dividend stocks for stability, passive income, and potential opportunities for long-term gains. Investors can also benefit from the less volatile nature of high-dividend yield stocks.
Against this backdrop, it could be wise to invest in high-dividend yield stocks International Seaways, Inc. (INSW), The Buckle, Inc. (BKE), and Movado Group, Inc. (MOV) to boost your portfolio this fall.
Uncertainties lingering around the US economy have led to mixed outlooks for the upcoming period. Fluctuating inflation levels, tightening Federal Reserve policies to keep the economy in check, and rising unemployment rates have emerged as significant risks amid speculations of recession.
In the short-term, the US economy performed well. U.S. retail sales rose 0.1% in August as decline in auto dealerships were offset by strengthening online purchases, implying sound footing during the third quarter. Also, the beginning of the interest rate cuts lifted hopes.
However, the economy is expected to slow into 2025 as restrictive monetary policies and high costs continue to dampen private sector activity. Also, households are likely to spend more cautiously as labor market conditions and income growth weaken, while elevated financing costs may lead businesses to be more selective in hiring and investment. Real GDP growth is projected to average 2.7% in 2024 and ease to 1.8% in 2025.
Considering this trends, let’s delve into the fundamentals of the high dividend yield stocks that can provide a steady income stream.
International Seaways, Inc. (INSW)
INSW owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products in the international flag trade. The company operates through Crude Tankers and Product Carriers segments.
On August 6, INSW’s Board of Directors declared a combined dividend of $1.50 per share of common stock, composed of a regular quarterly dividend of $0.12 per share of common stock and a supplemental dividend of $1.38 per share of common stock. Both dividends were paid on September 25, 2024, to shareholders of record on September 11, 2024.
INSW pays an annual dividend of $5.82, which translates to a yield of 11.29% at the current share price. Its four-year average dividend yield is 6.90%. Moreover, the company’s dividend payouts have increased at a CAGR of 26% over the past three years.
INSW reported total shipping revenues of $257.41 million for the second quarter that ended June 30, 2024, of which its time and bareboat charter revenues increased 19.2% year-over-year to $31.14 million. The company’s adjusted net income came in at $118.01 million and $2.37 per share for the quarter, respectively.
Analysts expect INSW’s revenue and EPS for the fourth quarter (ending December 2024) to grow 14.6% and 37.7% year-over-year to $284.11 million and $3, respectively. Also, the company topped the consensus revenue estimates in all of the four trailing quarters, which is promising.
Shares of INSW have surged 1.4% over the past month and 19.2% over the past year to close the last trading session at $51.39.
INSW’s solid fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
INSW has a B grade for Quality. It is ranked #33 out of 37 stocks in the A-rated Shipping industry.
In addition to the POWR Ratings we’ve stated above, we also have INSW ratings for Growth, Momentum, Value, Sentiment, and Stability. Get all INSW ratings here.
The Buckle, Inc. (BKE)
BKE operates as a retailer of casual apparel, footwear, and accessories for young men and women. It markets a selection of brand-name casual apparel, including denim, other casual bottoms, tops, sportswear, outerwear, accessories, and footwear. It also markets private label merchandise primarily comprising BKE, Buckle Black, Salvage, Red by BKE, and Daytrip.
On September 10, BKE’s Board of Directors authorized a $0.35 per share quarterly dividend to be paid to shareholders of record at the close of business on October 11, 2024, with a payment date of October 25, 2024.
BKE pays an annual dividend of $3.90, which translates to a yield of 8.87% at the current share price. Its four-year average dividend yield is 12.01%. Also, the company’s dividend payouts have increased at a CAGR of 7% over the past five years.
For the second quarter that ended August 03, 2024, BKE posted sales, net of returns and allowances of $282.39 million, and its gross profit was $132.53 million. The company’s net income and EPS stood at $39.25 million and $0.78 for the quarter, respectively.
Also, the company’s cash and cash equivalents were $287.27 million as of August 3, 2024, compared to $268.21 million as of February 3, 2024.
Street expects BKE’s revenue for the first quarter (ending April 2025) to increase 3.1% year-over-year to $270.56 million, while its EPS is expected to grow 7.3% year-over-year to $0.74, respectively. For the fiscal year (ending January 2026), the company’s revenue and EPS are expected to grow 3.2% and 5.6% year-over-year to $1.22 billion and $3.75, respectively.
BKE’s stock has gained 6.7% over the past six months and 29.2% over the past year to close the last trading session at $42.98.
BKE’s bright prospects are reflected in its POWR Ratings. The stock has an A grade for Quality. BKE is ranked #24 among 59 stocks in the A-rated Fashion & Luxury industry.
Click here to access BKE’s ratings for Value, Growth, Stability, Momentum, and Sentiment.
Movado Group, Inc. (MOV)
MOV designs, sources, markets, and distributes watches internationally. The company operates in two segments, Watch and Accessory Brands, and Company Stores.
On September 5, MOV’s Board of Directors approved a cash dividend of $0.35 for each share of its outstanding common stock and class A common stock. The dividend was paid on September 30, 2024, to shareholders of record as of the close of business on September 16, 2024.
MOV pays an annual dividend of $1.40, which translates to a yield of 7.53% at the current share price. Its four-year average dividend yield is 4.39%. Moreover, the company’s dividend payouts have increased at a CAGR of 26% over the past three years.
For the second quarter ended July 31, 2024, MOV’s net sales amounted to $159.31 million. The company’s gross profit was $86.36 million, and its operating income stood at $3.03 million for the quarter. Net income attributable to MOV came in at $3.72 million and $0.16 per share, respectively.
For the fiscal year 2025, the company expects net sales to range from $665 million to $675 million. Its operating income is expected to be between $23 million to $26 million.
Street expects MOV’s revenue for the first quarter (ending April 2025) to increase 5% year-over-year to $143.50 million, and its EPS is expected to grow 238.5% year-over-year to $0.44 for the same period. Further, the company has surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past month, MOV’s stock has plunged 17.9% to close the last trading session at $19.35.
MOV’s sound fundamentals are reflected in its POWR Ratings. The stock has a B grade for Sentiment and Value. Within the A-rated Fashion & Luxury industry, MOV is ranked #26 out of 59 stocks.
Click here to access additional ratings of MOV for Quality, Momentum, Growth, and Stability.
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INSW shares were unchanged in after-hours trading Wednesday. Year-to-date, INSW has gained 23.10%, versus a 20.81% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.
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