Despite November’s consumer price index (CPI) coming in less-than-expected at 7.1% from a year ago, the Fed has not pivoted away from its interest rate hike regime as inflation is still far from its target of 2%.
The Fed announced a 50-basis point rate hike, taking the borrowing rate to a targeted range between 4.25% and 4.5%. The central bank is also projected to raise it to 5.1% in 2023. Moreover, even though consumer sentiments peaked after November inflation data, experts warn that market volatility could continue in the foreseeable future amid recessionary concerns.
Therefore, in order to protect their portfolios against economic uncertainties, investors could opt for dividend stocks that ensure consistent returns. Over the past three months, SPDR S&P Dividend ETF’s (SDY) 3.9% gains outpaced the S&P 500’s marginal declines over the same period.
Hence, high-yield dividend stocks AbbVie Inc. (ABBV), Sisecam Resources LP (SIRE), and Bassett Furniture Industries, Incorporated (BSET) could be ideal buys now to retire rich.
AbbVie Inc. (ABBV)
ABBV is a research-based biopharmaceutical company that develops, manufactures, and sells pharmaceuticals worldwide. The company’s product offerings include HUMIRA, SKYRIZI, and RINVOQ.
On December 6, ABBV and HotSpot Therapeutics, Inc., a biotechnology company, announced a collaboration and option to license agreement for HotSpot’s discovery-stage IRF5 program for the autoimmune disease treatment. Commercialization of the treatment should benefit the company.
On October 20, ABBV announced the acquisition of DJS Antibodies Ltd, a privately-held UK-based biotechnology company. This acquisition is expected to deliver new capabilities and strengthen its immunology portfolio.
On October 28, ABBV declared an increase in its quarterly dividend from $1.41 per share to $1.48 per share, reflecting an increase of approximately 5%, payable to shareholders on February 15, 2023. ABBV has raised its dividends for nine consecutive years.
Its annual dividend of $5.92 per share translates to a 3.63% yield on the current price. ABBV’s dividend payments have grown at a CAGR of 9.6% and 17.3% over the past three years and five years, respectively. Its four-year average dividend yield is 4.63%.
ABBV’s net revenues increased 3.3% year-over-year to $14.81 billion in the fiscal third quarter ended September 30, 2022. The company’s operating income amounted to $4.60 billion, up 6.9% year-over-year. ABBV’s adjusted EPS grew 29.3% year-over-year to $3.66.
For the fiscal fourth quarter ending December 2022, analysts expect ABBV’s revenue to come in at $15.32 billion, indicating an increase of 2.9% year-over-year. The consensus EPS estimate of $3.66 for the same quarter indicates a 10.7% year-over-year increase. The company has surpassed the consensus EPS estimates in each of the trailing four quarters.
ABBV’s shares have gained 25.2% over the past year and 19.4% over the past six months to close the last trading session at $163.10.
ABBV has an overall A rating, equating to a Strong Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
ABBV has an A grade for Quality and a B for Value and Growth. It is ranked #12 in the 160-stock Medical – Pharmaceuticals industry.
Beyond what has been stated above, we’ve also rated ABBV for Momentum, Sentiment, and Stability. Click here to see all POWR Ratings of ABBV.
Sisecam Resources LP (SIRE)
SIRE engages in the trona ore mining and soda ash production businesses internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, chemicals, paper, and other consumer and industrial products.
On October 28, SIRE declared its quarterly cash distribution of $0.50 for the third quarter of 2022, which was payable to unitholders on November 17, 2022. Its annual dividend of $2.00 yields 9.29% on the current share price. It has a four-year average yield of 7.16%. Its dividend payouts have increased at 10.7% CAGR over the past three years.
For the fiscal third quarter ended September 30, SIRE’s net sales increased 40.5% year-over-year to $190.50 million. Its net income grew 101.9% from the prior-year period to $31.10 million, while the adjusted EBITDA attributable to SIRE rose 69.2% year-over-year to $20.30 million. Net income per limited partner unit rose 111.1% year-over-year to $0.76.
The stock has gained 30.6% year-to-date to close its last trading session at $21.54. It has gained 25.5% over the past six months.
SIRE’s promising outlook is reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
It also has an A grade for Growth and Quality and a B for Value, Stability, and Sentiment. SIRE is ranked first out of 88 stocks in the B-rated Chemicals industry.
Click here to see the additional POWR Ratings for SIRE (Momentum).
Bassett Furniture Industries, Incorporated (BSET)
BSET develops, manufactures, sources, sells, and distributes home furnishings internationally. It operates in three segments: Wholesale; Retail company-owned stores; and Logistical services.
On September 6, 2022, BSET acquired the capital stock of Noa Home Inc., a mid-priced e-commerce furniture retailer based in Montreal, Canada. The acquisition is expected to provide BSET with a stronger online presence and allow the company to attract more digitally native customers.
In October, BSET declared a quarterly dividend of $0.16 per share of common stock, which was payable on November 25, 2022. Its annual dividend of $0.64 yields 3.65% on prevailing prices. The company’s dividend payouts have increased at a 6.3% CAGR over the past three years and a 7.4% CAGR over the past five years.
For the fiscal third quarter that ended August 27, 2022, BSET’s net sales of furniture and accessories increased 12.5% year-over-year to $118.01 million, and its gross profit grew 15.5% year-over-year to $60.77 million. Its income from operations was $10.67 million, up 114.5% year-over-year.
In addition, BSET’s net income and EPS increased 152.9% and 164.5% year-over-year to $7.63 million and $0.82, respectively.
Analysts expect BSET’s EPS and revenue for the fiscal year ending November 2023 to come in at $2.10 and $456.47 million, respectively. Also, the company has surpassed the consensus EPS estimates in three of the trailing four quarters.
The stock has gained 4.5% year-to-date to close the last trading session at $17.53. Moreover, it has gained 9.4% over the past six months.
BSET’s POWR Ratings reflect its promising outlook. It has an overall A rating, which equates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Sentiment and Quality and a B for Value. Within the Home Improvement & Goods industry, it is ranked #3 out of 60 stocks.
Click here to see additional ratings of BSET for Growth, Momentum, and Stability.
ABBV shares were trading at $161.91 per share on Friday afternoon, down $1.19 (-0.73%). Year-to-date, ABBV has gained 24.24%, versus a -18.68% rise in the benchmark S&P 500 index during the same period.
About the Author: Sristi Suman Jayaswal
The stock market dynamics sparked Sristi's interest during her school days, which led her to become a financial journalist. Investing in undervalued stocks with solid long-term growth prospects is her preferred strategy. Having earned a master's degree in Accounting and Finance, Sristi hopes to deepen her investment research experience and better guide investors.
3 High-Yield Dividend Stocks to Buy Now to Retire Rich StockNews.com
