Economic Outlook - The current economic environment is raising recession alarms, reminiscent of the 2007 downturn, with indicators turning negative despite seemingly solid fundamentals [1] - A shift towards stable and profitable investments is recommended, including a balanced portfolio of treasury bonds and selected dividend stocks [1] Company Highlights Western Midstream Partners (WES) - Western Midstream Partners reported Q1 2024 earnings per share of $1.47, exceeding estimates by $0.68, with revenue growing 20.9% year-over-year to $887.73 million [1] - The company generated record free cash flow of $225 million in Q1 and currently offers a 9.3% dividend yield after a 52% increase in payout [1] Allianz (ALIZY) - Allianz SE's operating profit grew 6.8% to €4 billion in Q1, with net income rising 16%, and the stock is trading $5 above pre-pandemic levels [2] - The company has a 5.6% dividend yield, which is well-covered by earnings, making it an attractive option for dividend investors [3] HSBC Holdings (HSBC) - HSBC reported strong profits in Q2 2024, beating market expectations and initiating a $3 billion share buyback program, with a dividend yield of 7.5% [4] - The bank's robust margins provide a buffer against economic downturns, although concerns exist regarding its exposure to the Hong Kong commercial real estate market [4] Energy Transfer (ET) - Energy Transfer's Q1 results exceeded revenue expectations, with a strong performance across most segments, and it offers an 8.3% dividend yield [5][6] - Analysts have a "strong buy" consensus rating for ET, despite a slight miss in Q1 EPS estimates [6] Deutsche Telekom (DTEGY) - Deutsche Telekom's Q1 2024 service revenue grew 4.1% organically, with adjusted EBITDA increasing 6.9% year-over-year [7] - The stock has gained 26% over the past year and offers a 3.1% dividend yield, making it a reliable dividend payer [7] Axa SA (AXAHY) - Axa SA's Q1 revenues increased by 6%, and the company has made strategic moves, including a €5.4 billion sale and a €500 million acquisition [8] - The stock offers a 6.2% dividend yield and has seen a 12% increase over the past year, supported by a stable life insurance business [8] Canadian Imperial Bank of Commerce (CM) - Canadian Imperial Bank of Commerce has shown resilience in the challenging economic environment, with a 5.4% dividend yield [9] - The bank has seen sequential improvement in impaired PCLs in its Canadian personal and business banking segment, indicating stability [9]
7 Cash-Gushing Dividend Stocks That'll Keep on Giving