Dividend All-Stars: Smart Buys for October

The best dividend stocks belong to stable, well-established companies with a history of distributing profits to shareholders. We already know this, and I will focus on that point while also highlighting three specific dividend stocks in today’s list. Additionally, these three stocks are an attractive buy right now when you consider the most critical metrics to dividend stocks, such as: 

– Dividend payout ratio: A higher ratio affirms the company’s ability to return profits to investors.

– Debt-to-equity percentage: A measure below 50% suggests healthy debt management.

– Beta score: A beta under 1.00 deems the stock safe from broader market volatility. 

By choosing dividend stocks wisely, investors will enjoy a regular income stream and long-term growth potential, adding extra security and peace of mind to their portfolios… 

Pioneer Natural Resources Co (PXD) 

First, let’s consider investing in Pioneer Natural Resources (PXD), an established oil and gas exploration company operating primarily in the Permian Basin region of the U.S. While PXD’s Q1 revenue declined by approximately 26% year-over-year and earnings per share (EPS) also saw a significant drop, the company 

managed to raise its quarterly base-plus-variable dividend by 14%. This increase indicates PXD’s commitment to rewarding its shareholders despite challenging market conditions. 

PXD’s stock is only slightly down year-to-date by 0.24% and shows comforting numbers within its balance sheet. PXD comes with a positive SMA (simple moving average), positive momentum, a volatility-safe beta of 0.84, and a PEG (price/earnings to growth) ratio of 0.72x. With a D/E (debt to equity) measure of 27.05%, PXD recently beat analysts’ EPS and revenue projections by 6.01% and 0.51%, respectively. PXD has an annual dividend yield of 10.18%, a quarterly payout of $5.80 ($23.20/year) per share, and a 92.3% payout ratio. With a 10-day average volume of 1.91 million shares, PXD has a median price target of $245, with a high of $311 and a low of $196; this represents a potential 36.5% upside from where its price currently sits. PXD has 17 buy ratings and 14 hold ratings

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Genco Shipping & Trading Ltd (GNK) 

Another strong income stock to consider investing in is Genco Shipping & Trading Ltd. (GNK). The ocean transport company, with 44 vessels for dry bulk cargo, has a strong dividend history, paying out for the 15th time consecutively, showing consistency. Despite a year-over-year sales decline in Q1 2023, GNK’s Board of Directors suggested setting aside fewer earnings for investment to sustain its dividend. This, along with what you’ll read below, makes GNK a promising option for those seeking a dividend grower. 

GNK’s stock is down 8.40% year-to-date and is trading near the bottom of its existing range, yet it carries a solid 0.65 beta, a low D/E of 16.51%, and a PEG ratio of 0.07x. GNK, for the current fiscal quarter, is projected to report $62.7 million in sales at $0.26 per share, with a 3-5 year EPS growth rate of 65%. GNK has a 4.26% annual dividend yield, a quarterly payout of 15 cents ($0.60/year) per share, and a 91.3% payout ratio. With a 10-day average volume of approximately 644 thousand shares, GNK has a median price target of $23, with a high of $28 and a low of $17, representing a potential 99% price jump. GNK has nine buy ratings (zero holds).

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Eagle Bulk Shipping Inc (EGLE) 

Eagle Bulk Shipping (EGLE) is an integrated shipowner and operator of midsize dry bulk vessels catering to various industries, including miners, producers, and traders. Despite facing a challenging Q1 in 2023 with a YOY revenue decline due to a downturn in the dry bulk market and lower charter rates, EGLE remains a strong contender for investors. With a diverse customer base and a resilient approach to navigating market fluctuations, EGLE presents an appealing opportunity for income investors. 

EGLE is down by 11.33% year-to-date and is trading near the bottom of its existing price range; however, the stock boasts an impressive 0.18x PEG ratio, a 0.27 beta score, a positive ROE, and a 39.74% D/E measure. At its last earnings call, EGLE exceeded analysts’ EPS and revenue projections handily, most notably reporting EPS of $0.26 per share vs. $0.07 per share as predicted, a whopping 282.35% win. For the current quarter, EGLE is forecasted to show $75.7 million in sales at $0.77 per share, with a 3-5 year EPS growth rate of 59.7%. EGLE has a 0.90% annual dividend yield, a quarterly payout of 10 cents ($0.40/year) per share, and a 43.8% payout ratio. With a 10-day average volume of a modest 171 thousand shares, EGLE has a median price target of $59.55, with a high of $84 and a low of $52, which represents the potential for an almost 90% price upside. EGLE has ten buy ratings (zero holds). 

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