Sep 21, 2022 (StockMarket.com via COMTEX) -- Dividend stocks are a popular choice for many stock market investors, and for good reason. They offer the potential for high yields, which can provide a significant boost to your investment portfolio. However, before you invest in dividend stocks , it's important to understand how they work.
What Are Dividend Paying Stocks?
Dividend stocks are shares of a company that have been bought by an investor and are then held onto by the investor in order to receive periodic payments (dividends) from the company. Dividends are typically paid out quarterly, but some companies also pay out semi-annually or annually.
Why Dividend Stocks?
Dividend stocks can be an attractive investment because they offer the potential for high yields. However, it's important to remember that dividend yields can vary widely, so it's important to research any potential investments carefully before committing any money. Additionally, dividend stocks can be more volatile than other types of stocks, so it's important to understand the risks involved before investing. But for many investors, the potential rewards of dividend stocks make them worth the risks. Keeping this in mind, here are four top dividend-paying stocks for your watchlist right now.
High Dividend Yield Stocks To Watch Today
Altria Group Inc. ( NYSE: MO )
International Business Machines Corporation ( NYSE: IBM )
Kinder Morgan Inc. ( NYSE: KMI )
Devon Energy Corporation ( NYSE: DVN )
1. Altria Group (MO Stock)
Altria Group is one of the world's largest tobacco companies, with a diversified portfolio of leading international brands. Altria's products include cigarettes, cigars, smokeless tobacco, and wine. Some of the company's most popular brands are names like its flagship Marlboro. Meanwhile, Altria Group also owns approximately a 10% stake in Anheuser-Busch InBev ( NYSE: BUD ). Aside from that, the company's current annualized dividend rate is $3.60 per share, reflecting a dividend yield of 8.2% as of July 25, 2022.
In July, Altria Group reported its second quarter 2022 financial results. Getting straight to it, the company reported second-quarter 2022 earnings of $1.26 per share, along with revenue of $6.5 billion. Additionally, Altria Group closed out the quarter repurchasing 10.1 million shares amounting to a total value of $507 million in share buybacks. What's more, in the first half of 2022, the company repurchased approximately $1.1 billion worth of shares.
Billy Gifford, Altria's Chief Executive Officer had this to say about the quarter, "Our tobacco businesses performed well in a challenging macroeconomic environment for the first half of the year. The smokeable products segment delivered solid operating companies income growth behind the resilience of Marlboro, and our moist smokeless tobacco brands continued to drive profitability."
2. International Business Machines Corp. (IBM Stock)
International Business Machines Corp. (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. IBM manufactures and markets computer hardware, middleware, and software, and offers to host and consulting services in areas ranging from mainframe computers to nanotechnology. Currently, IBM shareholders enjoy an annual dividend yield of 4.92%.
Back in July IBM reported its second quarter 2022 financial results. In detail, the company reported earnings of $2.31 per share and revenue of $15.5 billion for Q2 2022. This is in comparison with Wall Street analysts' estimates, which were earnings of $2.29 per share, along with revenue of $15.3 billion. What's more, software and consulting have jumped 6% and 10% for the quarter on a year-over-year basis.