In this article, we discuss 5 best high-yield dividend stocks for retirees in 2022. If you want to read our detailed analysis of dividend investment for a retirement portfolio, go directly to read 10 Best High-Yield Dividend Stocks for Retirees in 2022.
5. The Scotts Miracle-Gro Company (NYSE:SMG)
Dividend Yield as of August 21: 3.43%
The Scotts Miracle-Gro Company (NYSE:SMG) is an Ohio-based multinational corporation that manufactures and sells consumer lawn, garden, and pest control products. In fiscal Q3 2022, the company reported cash and cash equivalents of over $27.8 million, while its total assets stood at over $2.5 billion. Its cash flow generation also remained stable, reporting $463 million in operating cash flow and $430 million in free cash flow. The Scotts Miracle-Gro Company (NYSE:SMG) has a safe dividend payout ratio of 36.2%.
On August 2, The Scotts Miracle-Gro Company (NYSE:SMG) declared a quarterly dividend of $0.66 per share, in line with its previous dividend. The company holds a 12-year streak of dividend growth, coming through as one of the best stocks for retirees. As of August 21, the stock’s dividend yield came in at 3.43%.
As of the close of Q2 2022, 25 hedge funds in Insider Monkey’s database owned stakes in The Scotts Miracle-Gro Company (NYSE:SMG), up from 19 in the previous quarter. These stakes are valued at over $142.8 million. First Eagle Investment Management was the company’s largest stakeholder in Q2, owning over 1.7 million shares.
4. ManpowerGroup Inc. (NYSE:MAN)
Dividend Yield as of August 21: 3.44%
ManpowerGroup Inc. (NYSE:MAN) is an American multinational company that specializes in staffing and also provides innovative workforce solutions. In Q2 2022, the company reported revenue of over $5.1 billion and its gross profit margin came in at 18.2%. It ended the quarter with cash and cash equivalents of $886.2 million and its total assets stood at over $6.4 billion.
ManpowerGroup Inc. (NYSE:MAN) is one of the best retirement stocks because of its distinct dividend policy of offering semi-annual dividends. It pays a dividend of $1.36 per share twice a year, raising it by 7.9% in May. The company has been hiking its dividend consecutively for the past 13 years. As of August 21, the stock’s dividend yield stood at 3.44%.
As the labor/supply-demand imbalance is still near record highs, Baird lowered its estimates on the staffing sector in July. Given this, the firm set a $94 price target on ManpowerGroup Inc. (NYSE:MAN) with an Outperform rating on the shares.
Insider Monkey’s data shows that 24 hedge funds owned stakes in ManpowerGroup Inc. (NYSE:MAN) in Q2 2022, down from 25 in the previous quarter. These stakes are collectively valued at roughly $170 million.
3. Spire Inc. (NYSE:SR)
Dividend Yield as of August 21: 3.58%
Spire Inc. (NYSE:SR) is an American natural gas distribution company that provides related services to its consumers.
Spire Inc. (NYSE:SR) is one of the most suitable options for a retirement portfolio as it has been making continuous dividend payments since 1946. In addition to this, the company has also raised its dividends for 19 years in a row. It pays a quarterly dividend of $0.685 per share, with a yield of 3.58%, as of August 21.
In June, Mizuho raised its price target on Spire Inc. (NYSE:SR) to $77, highlighting the higher natural gas prices due to the ongoing geo-political issues.
Hudson Bay Capital Management owned the largest stake in Spire Inc. (NYSE:SR) in Q2 2022, valued at over $14.5 million. In addition to this, 16 hedge funds in Insider Monkey’s database owned stakes in the Missouri-based company, with a collective value of over $34 million.
2. Chevron Corporation (NYSE:CVX)
Dividend Yield as of August 21: 3.60%
An American multinational energy company, Chevron Corporation (NYSE:CVX) reported an operating cash flow of over $13.7 billion in Q2 2022, up from $8 billion in the previous quarter. The company’s free cash flow generation was also stable, standing at $10.6 billion, compared with $6 billion in Q1. Its revenue for the quarter jumped by 82.9% year-over-year to $68.7 billion.
In 2022, Chevron Corporation (NYSE:CVX) extended its dividend growth streak to 35 years. It pays a quarterly dividend of $1.42 per share, with a dividend yield of 3.60%, as of August 21.
On August 10, Credit Suisse initiated its coverage of Chevron Corporation (NYSE:CVX) with an Outperform rating and an unchanged price target of $202.
The number of hedge funds owning stakes in Chevron Corporation (NYSE:CVX) grew to 59 in Q2 2022, from 53 in the previous quarter, as recorded by Insider Monkey. These stakes own a combined value of over $26 billion.
Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm has to say:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
1. ALLETE, Inc. (NYSE:ALE)
Dividend Yield as of August 21: 4.11%
ALLETE, Inc. (NYSE:ALE) is a Minnesota-based electric services company that provides energy and also invests in transmission infrastructure. The company was a popular stock among money managers in Q2 2022, as 22 hedge funds owned positions in the company, up from 16 in the previous quarter, according to Insider Monkey’s data. The stakes owned by hedge funds have a total value of over $107.2 million.
ALLETE, Inc. (NYSE:ALE) has one of the strongest dividend policies, offering uninterrupted payouts to shareholders since 1950. It’s quarterly dividend stands at $0.65 per share, with a dividend yield of 4.11%, as recorded on August 21.
In Q2 2022, ALLETE, Inc. (NYSE:ALE) reported revenue of $373 million, showing an 11.2% year-over-year growth. The company ended first six months of the year with $74.6 million available in cash and cash equivalents, up from $45 million at the end of December. Its cash generation is strong as it pays 71.3% of its net income in dividends.
You can also take a look at Low-Risk Retirement Portfolio: Top 10 Stocks and 10 Dividend ETFs to Buy in August
