Zacks Investment Ideas feature highlights: Petroleo Brasileiro S.A. Petrobras, Star Bulk Carriers and Golden Ocean Group

For Immediate Release

Chicago, IL – October 12, 2022 – Today, Zacks Investment Ideas feature highlights Petroleo Brasileiro S.A. Petrobras PBR, Star Bulk Carriers Corp. SBLK and Golden Ocean Group Ltd. GOGL.

3 Stocks with Juicy Dividend Yields Greater than 20%

It’s common for investors to park their hard-earned cash into income-generating assets. Paydays are, after all, the best.

In a historically-volatile 2022, dividends have become a hot topic.

And it’s easy to understand why – dividends help alleviate drawdowns in other positions, and of course, it provides more than one way to reap a return from your investment.

It’s common for companies to up their dividend payouts when business is fruitful, making them enticing investments for income-focused investors from a shorter-term perspective.

Three stocks that currently carry an annual dividend yield above 20% – Petroleo Brasileiro S.A. Petrobras, Star Bulk Carriers Corp. and Golden Ocean Group Ltd. – could all be of interest to income-focused investors looking to build a cash pile quick.

Below is a chart illustrating the share performance of all three companies in 2022, with the S&P 500 blended in as a benchmark.

Let’s take a deeper dive into each one.

Petroleo Brasileiro S.A.

Petroleo Brasileiro S.A. (or Petrobras S.A.) is Brazil’s largest integrated energy firm, with operations in the exploration, production, and distribution of oil and gas.

PBR’s dividend metrics would thrill any income investor; the company’s annual dividend currently yields a massive 25.3%, notably higher than its Zacks Sector average of an already steep 4.7%.

Even more impressive, the company has upped its dividend payout 11 times over the last five years, paired with a triple-digit 145% five-year annualized dividend growth rate.

PBR’s payout ratio sits at 80% of earnings.

Further, the company carries a strong free cash flow; PBR reported quarterly free cash flow of a steep $14.4 billion in its latest quarter (Q2 2022), good enough for a 50% sequential increase and a 58% Y/Y uptick.

Golden Ocean Group Ltd.

Golden Ocean Group is a shipping company engaging in the transportation of dry bulk cargoes, operating primarily in the Capesize and Panamax market.

GOGL’s annual dividend yield currently comes in at a steep 28.9%, with a payout ratio sitting at 61% of earnings.

The company has also consistently upped its dividend payout, with nine dividend increases over the last five years and a substantial 66.4% five-year annualized dividend growth rate.

In addition, the company has a strong free cash flow trend – GOGL’s free cash flow came in at $192 million in its latest quarterly print (Q2 2022), reflecting a sizable 57% sequential increase.

Star Bulk Carriers

Star Bulk Carriers is a global shipping company that provides seaborne transportation solutions in the dry bulk sector.

SBLK’s annual dividend comes in at the highest of all three, sitting at 34.3% with a payout ratio of 74% of earnings.

The company has shown a stellar commitment to increasingly rewarding its shareholders, upping its dividend payout five times over the last five years with a substantial 500% five-year annualized dividend growth rate.

Further, SBLK has a strong earnings track record as of late, exceeding revenue and earnings estimates in each of its previous four quarterly prints. Below is a chart illustrating the company’s revenue on a quarterly basis.

Bottom Line

Investing for an income stream is a widely-deployed strategy.

And all three stocks above pay investors handsomely, currently carrying annual dividend yields greater than 20%.

Still, investors should be highly aware that steep annual dividend yields can be unsustainable from a long-term perspective and typically get cut when business isn’t as fruitful, perhaps steering away income investors that prefer reliability.

For those seeking stability in dividends, pivoting to companies that are part of the elite Dividend King group would be a great alternative.

Dividend Kings have upped their dividend payouts for a minimum of 50 consecutive years.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Petroleo Brasileiro S.A. Petrobras (PBR) : Free Stock Analysis Report
 
Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
 
Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report
 
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