While most economists expect a decline in inflation in 2023, many are doubtful that this will herald a fundamental disinflationary trend. Moreover, fears that the continued monetary policy tightening could push the economy into a recession will keep the stock market volatile.
Therefore, dividend-paying stocks could be ideal investments now. These stocks allow investors to cushion their portfolios by generating a stable income. Investors’ interest in dividend stocks is evident from the SPDR S&P Dividend ETF (SDY) 4.5% returns over the past month.
Therefore, Sysco Corporation (SYY), Hillenbrand, Inc. (HI), Ennis, Inc. (EBF), Sisecam Resources LP (SIRE), and Genie Energy Ltd. (GNE), which pay juicy dividends, could be wise additions to one’s portfolio now.
Sysco Corporation (SYY)
SYY engages in the marketing and distribution of various food and related products, primarily to the food service or food-away-from-home industry worldwide. It operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments.
Over the last three years, SYY’s dividend payouts have grown at a 7.2% CAGR. Its four-year average dividend yield is 2.41%, and its forward annual dividend of $1.96 per share translates to a 2.30% yield. It is expected to pay a quarterly dividend of $0.49 per share on January 27, 2023.
On November 11, SYY received its first series-produced battery electric Freightliner eCascadia, which is a zero-emission Class 8 truck. SYY’s senior vice president of corporate affairs and chief communications officer, Neil Russell, stated that the addition is a significant milestone in the company’s climate journey as it works toward electrifying 35% of its U.S. fleet by 2030.
SYY’s non-GAAP gross profit for the first quarter ended October 1, 2022, increased 17.3% year-over-year to $3.48 billion. The company’s non-GAAP net earnings increased 14.6% year-over-year to $492.60 million. Its adjusted EBITDA increased 7.5% year-over-year to $916.86 million. Also, its non-GAAP EPS increased 16.9% from the prior-year period to $0.97.
Analysts expect SYY’s EPS and revenue for the quarter ending December 31, 2022, to increase 47.9% and 13.9% year-over-year to $0.84 and $18.58 billion, respectively. Over the past year, the stock has gained 16.2% to close the last trading session at $85.09.
SYY’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR ratings assess stocks by 118 different factors, each with its own weighting.
It is ranked #7 out of 82 stocks within the B-rated Food Makers industry. It has an A grade for Growth and a B for Value and Stability.
We have also given SYY grades for Momentum, Sentiment, and Quality. Get all the SYY ratings here.
Hillenbrand, Inc. (HI)
HI operates as a diversified industrial company worldwide. It operates through three segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville.
Over the last three years, HI’s dividend payouts have grown at a 1.2% CAGR. Its four-year average dividend yield is 2.36%, and its forward annual dividend of $0.87 per share translates to a 1.79% yield. It paid a quarterly dividend of $0.22 per share on September 30, 2022.
On October 6, 2022, HI announced the acquisition of LINXIS Group. HI’s president and CEO, Kim Ryan, said, “The completion of the LINXIS Group acquisition marks a clear step forward in the execution of our strategy to grow as a world-class industrial company and deliver long-term value to our shareholders.”
For the fiscal fourth quarter ended September 30, 2022, HI’s gross profit increased 0.6% year-over-year to $242.70 million. Its net income attributable to HI increased 3.3% from the year-ago period to $56.80 million. Additionally, its adjusted EPS increased 5% year-over-year to $1.05.
HI’s EPS for fiscal 2022 is expected to increase 8.9% year-over-year to $4.28. Its revenue for the quarter ending December 31, 2022, is expected to increase 6.6% year-over-year to $776.20 million. It has an impressive earnings surprise history, surpassing the consensus EPS estimates in each of the trailing four quarters. Over the past six months, the stock has gained 16.8% to close the last trading session at $48.69.
It is no surprise that HI has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. It is ranked #4 out of 35 stocks in the A-rated Industrial - Manufacturing industry. It has a B grade for Value, Sentiment, and Quality.
To see the additional ratings of HI for Growth, Momentum, and Stability, click here.
Ennis, Inc. (EBF)
EBF designs, manufactures, and sells business forms and other business products. The company offers snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls, and pressure-sensitive products. It distributes business products and forms through independent distributors.
Over the last three years, EBF’s dividend payouts have grown at a 3.6% CAGR. Its four-year average dividend yield is 4.81%, and its forward annual dividend of $1.00 per share translates to a 4.39% yield. It paid a quarterly dividend of $0.25 per share on November 4, 2022.
On August 17, 2022, EBF announced its acquisition of certain assets of Gulf Business Forms. EBF’s Chairman, President & CEO, Keith Walters, stated, "Gulf has been a strong competitor and leading brand throughout the country with customers spanning from California in the southwest to Massachusetts in the northeast. We are excited about adding the Gulf brand and their customers to the Ennis family."
EBF’s net sales for the fiscal second quarter ended August 31, 2022, increased 10.7% year-over-year to $111.23 million. The company’s net earnings increased 63.5% year-over-year to $12.19 million. Moreover, its non-GAAP EBITDA increased 38.8% year-over-year to $21.26 million, while its EPS came in at $0.47, representing a 62.1% increase from the prior-year quarter.
EBF’s EPS and revenue for the fiscal quarter ending November 30, 2022, are expected to increase 44.8% and 7% year-over-year to $0.42 and $110.20 million, respectively. Over the past year, the stock has gained 18.3% to close the last trading session at $22.77.
EBF’s strong fundamentals are reflected in its POWR Ratings. The company has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. It is ranked first out of 59 stocks in the Consumer Goods industry. In addition, it has an A grade for Quality and a B for Growth, Stability, and Sentiment.
In total, we rate EBF on eight different levels. Beyond what we stated above, we have also given EBF grades for Value and Momentum. Get all EBF ratings here.
Sisecam Resources LP (SIRE)
SIRE engages in trona ore mining and soda ash production businesses worldwide. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products.
Over the last three years, SIRE’s dividend payouts have grown at a 10.7% CAGR. Its four-year average dividend yield is 7.16%, and its trailing twelve months dividend of $2.15 per share translates to a 9.41% yield. It paid a quarterly dividend of $0.50 per share on November 17, 2022.
For the fiscal third quarter ended September 30, 2022, SIRE’s total net sales increased 40.5% year-over-year to $190.50 million. Its net income attributable to SIRE increased 108.1% from the year-ago period to $15.40 million. Its adjusted EBITDA attributable to SIRE increased 69.2% year-over-year to $20.30 million.
The stock has gained 28.9% year-to-date to close the last trading session at $21.32.
SIRE’s POWR Ratings are consistent with this positive outlook. The company has an overall rating of A, translating to a Strong Buy in our proprietary rating system. It is ranked first out of 87 stocks in the B-rated Chemicals industry. In addition, it has an A grade for Growth and Quality and a B for Value, Stability, and Sentiment.
To see SIRE’s rating for Momentum, click here.
Genie Energy Ltd. (GNE)
GNE supplies electricity and natural gas to residential and small business customers worldwide. It operates in three segments: Genie Retail Energy (GRE); GRE International; and Genie Renewables. The company also provides energy advisory and brokerage services, solar panel manufacturing and distribution, solar installation design, and project management activities.
Over the last five years, GNE’s dividend payouts have grown at a 1% CAGR. Its four-year average dividend yield is 2.99%, and its trailing twelve months dividend of $0.30 per share translates to a 3.08% yield. It paid a quarterly dividend of $0.08 per share on November 21, 2022.
GNE’s gross margin for the fiscal third quarter ended September 30, 2022, came in at 53.1%, compared to 39.5% from the prior-year quarter. The company’s net income attributable to GNE common stockholders increased 777.8% year-over-year to $18.31 million. Its adjusted EBITDA increased 35.4% year-over-year to $24.50 million. Additionally, its EPS came in at $0.70, representing an 800% increase from the prior-year period.
The stock has gained 74.7% year-to-date to close the last trading session at $9.73.
GNE’s positive outlook is reflected in its POWR Ratings. The company has an overall rating of A, which equates to a Strong Buy. It is ranked first out of 66 stocks in the Utilities - Domestic industry. In addition, it has an A grade for Value and a B for Growth, Momentum, and Sentiment.
Click here to see the additional ratings of GNE for Stability and Quality.
SYY shares were trading at $86.04 per share on Wednesday afternoon, up $0.95 (+1.12%). Year-to-date, SYY has gained 12.18%, versus a -13.97% rise in the benchmark S&P 500 index during the same period.
About the Author: Malaika Alphonsus
Malaika's passion for writing and interest in financial markets led her to pursue a career in investment research. With a degree in Economics and Psychology, she intends to assist investors in making informed investment decisions.
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