5 Best Dividend Stocks of 2022

In this article, we discuss 5 best dividend stocks of 2022. If you want to read our detailed analysis of dividend stocks and their performance in the past, go directly to read 16 Best Dividend Stocks of 2022. 

5. Exxon Mobil Corporation (NYSE:XOM)

Year-to-date Returns as of December 12: 66.9%

Exxon Mobil Corporation (NYSE:XOM) is an American multinational energy company that specializes in the distribution of natural gas. The company holds a strong dividend payment record, offering regular dividends to shareholders for over 100 years. Moreover, it also maintains a 40-year streak of consistent dividend growth, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.91 per share and has a dividend yield of 3.46%, as of December 12.

Citigroup noted the outperformance of energy stocks during recessionary periods. Given this, the firm raised its price target on Exxon Mobil Corporation (NYSE:XOM) in November to $110 with a Neutral rating on the shares.

As of the close of Q3 2022, 75 hedge funds tracked by Insider Monkey owned stakes in Exxon Mobil Corporation (NYSE:XOM), up from 72 in the previous quarter. The collective value of these stakes is $5.5 billion. Rajiv Jain’s GQG Partners was the company’s leading stakeholder in Q3.

4. EQT Corporation (NYSE:EQT)

Year-to-date Returns as of December 12: 69.1%

An American energy company, EQT Corporation (NYSE:EQT) reported mixed earnings in the third quarter of 2022. The company’s revenue of $2.07 billion showed a 241% decline from the previous quarter but beat analysts’ estimates by $309.5 million. Its operating cash flow came in at $1.1 billion and generated $591 million in free cash flow during the quarter.

On October 20, EQT Corporation (NYSE:EQT) declared a quarterly dividend of $0.15 per share, which fell in line with its previous dividend. The stock’s dividend yield on December 12 came in at 1.62%.

At the end of Q3 2022, 57 hedge funds in Insider Monkey’s database owned stakes in EQT Corporation (NYSE:EQT), up from 52 in the previous quarter. The collective value of these stakes is over $2.11 billion. With over 6 million shares, Soroban Capital Partners was the company’s leading stakeholder in Q3.

ClearBridge Investments mentioned EQT Corporation (NYSE:EQT) in its Q3 2022 investor letter. Here is what the firm has to say:

“We also added natural gas company EQT (NYSE:EQT) in the energy sector. As one of the lowest-cost domestic producers, EQT stands to benefit from its position as a leading supplier of natural gas to a world suffering from critically low energy reserves. The Russian invasion of Ukraine and threats to hold natural gas exports hostage have spurred a surge in European energy prices, generating long-term agreements by European countries to purchase U.S. natural gas.

This strong demand and elevated prices have helped EQT strengthen its balance sheet and position it to take advantage as opportunities emerge for natural gas to plug the gaps in the global energy transition from fossil fuels to renewables.”

3. Hess Corporation (NYSE:HES)

Year-to-date Returns as of December 12: 74.7%

Hess Corporation (NYSE:HES) is a New York-based global independent energy company that is involved in the exploration and production of crude oil and natural gas. In December, Barclays appreciated the company’s performance this year and its improving fundamentals. The firm raised its price target on the stock to $155 with an Overweight rating on the shares.

During the third quarter of 2022, Hess Corporation (NYSE:HES) returned $265 million to shareholders through dividends and share repurchases. The company’s revenue for the quarter came in at $3.16 billion, which showed a 74.6% growth from the same period last year. The company’s strong cash generation and shareholder obligation make it one of the best dividend stocks on our list.

Hess Corporation (NYSE:HES) currently pays a quarterly dividend of $0.375 per share and has a dividend yield of 1.13%, as of December 12.

As of the close of Q3 2022, 33 hedge funds in Insider Monkey’s database owned stakes in Hess Corporation (NYSE:HES), worth $1.22 billion collectively. Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q3.

2. Occidental Petroleum Corporation (NYSE:OXY)

Year-to-date Returns as of December 12: 106.1%

Occidental Petroleum Corporation (NYSE:OXY) is a Texas-based chemical industry company. The company currently pays a quarterly dividend of $0.13 per share and has a dividend yield of 0.82%, as of December 12.

In the third quarter of 2022, Occidental Petroleum Corporation (NYSE:OXY) reported a strong cash position, with $4.3 billion in operating cash flow. It generated over $3.6 billion in free cash flow before working capital. The company’s revenue for the quarter came in at $9.5 billion, up 39.3% from the same period last year.

Citigroup called Occidental Petroleum Corporation’s (NYSE:OXY) performance ‘outstanding’ in a high oil environment. The firm raised its price target on the stock in November to $75 with a neutral rating on the shares.

Berkshire Hathaway was the leading stakeholder of Occidental Petroleum Corporation (NYSE:OXY) in Q3 2022, owning stakes worth nearly $12 billion. Overall, 74 hedge funds in Insider Monkey’s database owned positions in the company in Q3, up from 66 in the previous quarter.

Smead Capital Management mentioned Occidental Petroleum Corporation (NYSE:OXY) in its Q3 2022 investor letter. Here is what the firm has to say:

“Our top-performing stocks in the quarter includes Occidental Petroleum (NYSE:OXY). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy. For the first three quarters of the year, we should change the name of our fund to the Jed Clampett Fund. Occidental Petroleum (NYSE:OXY), was one of the standouts. Up through the bear market came a “bubblin’ crude!”

1. International Seaways, Inc. (NYSE:INSW)

Year-to-date Returns as of December 12: 162%

International Seaways, Inc. (NYSE:INSW) is one of the world’s largest tanker companies. It specializes in the transportation of crude oil and petroleum products. The company initiated its dividend policy in 2020 and has raised its payouts once since then. It currently pays a quarterly dividend of $0.12 per share and has a dividend yield of 1.20%, as recorded on December 12.

International Seaways, Inc. (NYSE:INSW) was a part of 25 hedge fund portfolios in Q3 2022, up from 19 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these funds have a total value of over $176.4 million.

ClearBridge Investments mentioned International Seaways, Inc. (NYSE:INSW) in its Q2 2022 investor letter. Here is what the firm has to say:

“The Strategy also benefited from our holding in International Seaways, Inc. (NYSE:INSW), in the energy sector, which owns and operates a fleet of oceangoing vessels for the transportation of crude oil and petroleum products. The company benefited during the quarter as a result of tightness in the oil market, particularly in Europe, as low global inventories and high demand have spurred greater need for transportation between states that are net energy producers with those that are net energy consumers.

Additionally, economic sanctions placed on Russia and its companies have reduced the global number of oil and petroleum transportation ships, resulting in greater demand for International Seaways’s services and allowing it to increase its shipping rates, to the benefit of its bottom line. We continue to view the company as a strong value play, as decades of underinvestment in maritime shipping has resulted in many ships approaching a forced retirement date with no obvious replacements.

As the number of available ships declines, particularly specialized ships such as International Seaways’s energy transports, it should help to bolster the company’s pricing and negotiation power with its customers. We believe the company’s shares are currently trading at substantially below the current book value of the company’s assets, and as a result we continue to have high conviction in International Seaways as a long-term value creation opportunity.”

You can also take a look at 11 Best Low-Risk Dividend Stocks to Invest In and 12 Very High-Yield Dividend Stocks To Buy Now

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