In this article, we discuss 5 high dividend stocks to shore up your cash position before recession begins. If you want to skip our detailed discussion on analysts’ views about the recession, go directly to read 10 High Dividend Stocks to Shore Up Your Cash Position Before Recession Begins.
5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Dividend Yield as of August 4: 4.92%
An American pharmaceutical retail company, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) presented solid earnings in fiscal Q3 2022, with its operating cash flow standing at $1.6 billion, up from $1.08 billion in the previous quarter. The company generated $1.25 billion in free cash flow, compared with $669 million in fiscal Q2. Moreover, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) had over $2.2 billion available in cash and cash equivalents at the end of the quarter.
On July 13, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) announced a quarterly dividend of $0.48 per share, up 0.5% from its previous dividend. The stock’s dividend yield came in at 4.92%, as of August 4. The company has been paying dividends for the past 89 years and it has not broken its streak of raising dividends for 47 years.
In July, RBC Capital appreciated the strong earnings of Walgreens Boots Alliance, Inc. (NASDAQ:WBA) and recovery in its international business but showed concerns about supply chain issues. In light of this, the firm set a $42 price target on the stock, with a Sector Perform rating on the shares.
According to Insider Monkey’s Q1 2022 database, 38 hedge funds owned stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), down from 42 a quarter earlier. These stakes hold a consolidated value of $736.8 million.
Miller Howard Investments mentioned Walgreens Boots Alliance, Inc. (NASDAQ:WBA) in its Q3 2021 investor letter. Here is what the firm had to say:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We took a position in Walgreens (WBA) based on its low valuation, high dividend yield, and stable business model.”
4. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of August 4: 6.05%
Enbridge Inc. (NYSE:ENB) is a Canadian multinational pipeline company that operates pipelines throughout Canada and the US.
In Q2 2022, Enbridge Inc. (NYSE:ENB) reported an operating cash flow of over $2.5 billion, and its free cash flow came in at $1.54 billion. The company’s distributable cash flow was $2.7 billion, up from $2.5 billion in 2021. Enbridge Inc. (NYSE:ENB) holds a strong dividend history, paying dividends to shareholders consistently for the past 67 years. Moreover, it also holds a 27-year streak of consistent dividend growth. The company offers a quarterly dividend of C$0.86 per share, with a dividend yield of 6.05%, as of August 4.
On August 2, Raymond James raised its price target on Enbridge Inc. (NYSE:ENB) to C$57 and kept a Market Perform rating on the shares.
At the end of Q1 2022, 24 hedge funds in Insider Monkey’s database owned stakes in Enbridge Inc. (NYSE:ENB), compared with 21 in the previous quarter. The total value of these stakes is roughly $2.4 billion, up from $550 million worth of stakes owned by hedge funds in Q4 2021.
ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter. Here is what the firm had to say:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
3. Kinder Morgan, Inc. (NYSE:KMI)
Dividend Yield as of August 4: 6.23%
Kinder Morgan, Inc. (NYSE:KMI) is a Texas-based energy infrastructure company that owns oil and gas pipelines and terminals.
Kinder Morgan, Inc. (NYSE:KMI) reported over $1.5 billion in operating cash flow in Q2 2022, up from $1.08 billion in the previous quarter. The company’s free cash flow jumped to $1.2 billion, from $677 million in Q1. Its dividend payments amounted to $631 million, which are well-covered within its FCF. Kinder Morgan, Inc. (NYSE:KMI) pays a quarterly dividend of $0.2775 per share, with a dividend yield of 6.23%, recorded on August 4. The company maintains a 5-year track record of dividend growth and raised its annual dividends by 113.4% since 2018.
In July, Barclays set a $20 price target on Kinder Morgan, Inc. (NYSE:KMI) with an Equal Weight rating on the shares, expecting the company to perform better in the energy subsector.
At the end of Q1 2022, 40 hedge funds were bullish on Kinder Morgan, Inc. (NYSE:KMI), up from 39 in the previous quarter, according to Insider Monkey’s data. These hedge funds owned stakes with a total value of over $1.3 billion. FPR Partners was the company’s biggest stakeholder in Q1, with stakes worth over $307 million.
2. ONEOK, Inc. (NYSE:OKE)
Dividend Yield as of August 4: 6.34%
ONEOK, Inc. (NYSE:OKE) is an energy company that is focused on the natural gas industry and also provides midstream services.
In Q1 2022, ONEOK, Inc. (NYSE:OKE)’s operating cash flow was recorded at $462.2 million while it generated $205.2 million in free cash flow during the quarter. Moreover, the company’s net income also jumped to $391.2 million in Q1, from $386.2 million in the previous quarter. ONEOK, Inc. (NYSE:OKE) has been making uninterrupted dividend payments for the past 25 years and raised its dividend at a CAGR of 8.7% in the last five years. Its quarterly dividend stands at $0.935 per share and has a yield of 6.34%, as recorded on August 4.
At the end of Q1 2022, 25 hedge funds tracked by Insider Monkey owned stakes in ONEOK, Inc. (NYSE:OKE), the same as in the previous quarter. The stakes are collectively valued at over $174.3 million. Israel Englander and Ken Griffin were the most prominent stakeholders of the Oklahoma-based company in Q1.
Miller Howard Investments mentioned ONEOK, Inc. (NYSE:OKE) in its Q3 2021 investor letter. Here is what the firm has to say:
“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We added ONEOK Inc. (OKE) with the expectation that it will benefit from increasing natural gas and natural gas liquids (NGL) recovery in the Bakken region.”
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of August 4: 8.14%
Altria Group, Inc. (NYSE:MO) is an American producer of tobacco and related products. The company’s business has been going strong for years, with its free cash flow amounting to over $8 billion in FY21. Its recent quarterly earnings show that the company has repurchased over 10 million of its common shares for a total cost of over $507 million. Moreover, the company had over $2.5 billion available in cash at the end of Q2, with its total assets amounting to $36.7 billion.
Altria Group, Inc. (NYSE:MO) has a run of growing dividends consistently for the past 52 years. The company pays a quarterly dividend of $0.90 per share, with a yield of 8.14%, recorded on August 4.
Jefferies set a $54 price target on Altria Group, Inc. (NYSE:MO) in July, with a Buy rating on the shares but expressed concerns due to slow growth in cigarette volumes in the US.
At the end of Q1 2022, 47 hedge funds in Insider Monkey’s database owned stakes in Altria Group, Inc. (NYSE:MO), up from 39 a quarter earlier. These stakes are collectively valued at nearly $2 billion. GQG Partners was the leading stakeholder of the Virginia-based company in Q1, owning stakes worth over $956.2 million.
You can also take a look at 10 Value Stocks Hedge Funds Like in 2022 and Oil Price Predictions for 2022 and 10 Stocks to Watch
