Top dividend and IPO stocks lead the latest update of the IBD Breakout Stocks Index. The index highlights a slew of companies like ExxonMobil and Arista Networks that have already reported earnings. Several, including Planet Fitness and 2021 IPO Sovos Brands, are still warming up.
Market volatility puts pressure on investors trying to navigate this environment. The failure of attempted breakouts to gain traction further illustrates this point.
Retreats in oil companies and dividend stocks like XOM, BP, Shell and TotalEnergies highlight the risks inherent in earnings season. As an example, BP stock just gapped down below its 50-day moving average on a mixed report and expectations of a tightening oil supply. Volume was 153% above average. Meanwhile, Shell is on deck to report Thursday.
ANET stock topped earnings estimates Monday, but the cloud leader fell sharply below its 50-day line in massive volume on a "conservative" 2023 outlook.
As investors look to weather the current turbulence, the breadth of names on the IBD Breakout Stocks Index showcases a range of leading dividend stocks. It also features leading IPOs, including shoemaker On Holding, athletic club operator Life Time Group and packaged-food company Sovos Brands.
See All Companies On The IBD Breakout Stocks Index
Exxon, BP Join Top Dividend Stocks Yielding Up To 4.8%
For investors seeking the best dividend stocks, the table below highlights companies on the IBD Breakout Stocks Index yielding 2% to 4.8% on an annualized basis.
Real estate investment trust (REIT) VICI Properties leads the list. Energy giants BP, Shell and French oil and gas firm TotalEnergies all sport an annualized dividend yield over 3%. Restaurant Brands, which operates Burger King, Tim Hortons and other restaurants, also joins the group with a 3.1% payout.
Rival soda kings Coca-Cola and PepsiCo are in the 2% club. KO stock ties fellow Dow Jones Industrial Average member JPMorgan Chase, sporting an annualized 2.9% dividend yield.
JPM stock is trying to shore up a recent breakout attempt after the bank giant bought First Republic Bank. The takeover came after the FDIC seized First Republic.
| Dividend Stocks | Symbol | Yield % | Comp Rating | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|---|
| VICI Properties | VICI | 4.8 | 90 | 91 | 60 | A |
| BP | BP | 3.9 | 72 | 41 | 88 | B |
| TotalEnergies | TTE | 3.8 | 77 | 75 | 86 | B |
| Shell | SHEL | 3.5 | 86 | 87 | 81 | A |
| ExxonMobil | XOM | 3.3 | 83 | 75 | 83 | A |
| Restaurant Brands | QSR | 3.1 | 96 | 73 | 92 | A |
| Coca-Cola | KO | 2.9 | 90 | 69 | 79 | A |
| JPMorgan Chase | JPM | 2.9 | 97 | 91 | 86 | A |
| Sanofi | SNY | 2.6 | 89 | 83 | 87 | B |
| PepsiCo | PEP | 2.4 | 91 | 84 | 88 | B |
| General Mills | GIS | 2.4 | 90 | 86 | 91 | B |
| Illinois Tool Works | ITW | 2.2 | 90 | 80 | 85 | A |
| Masco Corp | MAS | 2.1 | 88 | 76 | 76 | C |
| Eaton | ETN | 2 | 91 | 86 | 89 | B |
ONON, SOVO, LTH Lead IPO Stocks To Watch
Eight companies coming public between 2020 and 2023 have earned spots on the IBD Breakout Stocks Index. Seven of these leading IPO stocks sport a 90 or better Composite Rating in IBD Stock Checkup. Of course, most IPOs don't make the dividend stocks list because they are plowing back earnings into future growth.
Reflecting volatility in the current market and new IPOs in general, March IPO Atlas Energy Solutions has skidded out of buy range after breaking out of an IPO base in April. The seller of fracking supplies and related logistics for customers in the Permian Basin releases Q1 earnings on May 8.
Life Time Group and Sovos Brands join On Holding and Core & Main in the Class of 2021 IPOs.
After soaring on Q4 numbers in March, popular Swiss shoemaker On Holding is now lacing up to report first quarter numbers on May 16. ONON stock is currently extended and holding its gains.
IPO stocks LTH, SOVO and CNM are testing fresh buy zones.
With its relative strength line at a new high, Core & Main continues to climb, on pace for a fourth-straight up week that would mark its sixth advance in seven weeks.
Building products manufacturer AZEK earns an 88 rating. After a long slump, the 2020 IPO is now testing a 27.60 buy point in a cup with handle. Its relative strength line has already rebounded to a new 52-week high, but the company reports earnings on Thursday. The stock is trading right around its new buy point.
| Company | Symbol | IPO Date | EPS Due Date | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|---|
| Atlas Energy Solutions | AESI | March 9, 2023 | May 8 | 92 | 90 | 69 | A | D |
| Life Time Group | LTH | Oct. 7, 2021 | Aug. 9 | 97 | 79 | 96 | C | A |
| Sovos Brands | SOVO | Sept. 23, 2021 | May 10 | 95 | 76 | 94 | B | A |
| On Holding | ONON | Sept. 15, 2021 | May 16 | 99 | 79 | 97 | A | A |
| Core & Main | CNM | July 23, 2021 | June 13 | 98 | 96 | 90 | A | A- |
| MINISO | MNSO | Oct. 15, 2020 | May 25 | 95 | 98 | 99 | D | A- |
| Academy Sports & Outdoors | ASO | Oct. 2, 2020 | June 6 | 93 | 94 | 96 | C | C |
| AZEK | AZEK | June 12, 2020 | May 4 | 88 | 50 | 95 | C | B+ |
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
