Zacks Investment Ideas Highlights: Devon Energy, ICL Group and Cheniere Energy Partners

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Chicago, IL – July 18, 2022 – Today’s Zacks Investment Ideas presentation highlights Devon Energy DVN, ICL Group ICL and Cheniere Energy Partners CQP.

3 Highly Ranked Stocks Perfect for Income Investors

Investing for a stream of income is a very popular strategy deployed by investors, and for understandable reasons – we all like to get paid.

A reliable stream of income from your investments is undoubtedly a significant boost, and it’s even better when those investments perform well.

Investors are well aware of the brutality of the market in 2022, but there are still stocks that are doing relatively well, such as Devon Energy, ICL Group and Cheniere Energy Partners.

Plus, all three pay a big dividend and have strong Zacks ranks, which makes them even more attractive.

Shares of all three companies were significantly stronger than the S&P 500, no doubt a major plus.

Let’s take a closer look at each company’s dividends and free cash flow to understand why they would be solid bets for income investors.

ICL Group

ICL Group is engaged in the fertilizer and specialty chemicals sectors. The Company’s operating segments include Fertilizers, Industrial Products and Performance Products.

ICL is a Zacks Rank #1 (Strong Buy) with an overall VGM score of B.

Analysts have significantly raised their earnings outlook in all periods over the past 60 days.

ICL has stellar dividend metrics. The company rewards its shareholders through its annual dividend which yields a whopping 10.6%, with a payout ratio standing at a sustained 39% of earnings.

In addition, the company has increased its dividend payout sevenfold over the past five years, with a five-year annualized dividend growth rate of 17.5%.

The company’s annual return is well above the average for its Zacks industry.

Additionally, the company’s free cash flow has been on an upward trend recently.

Cheniere Energy Partners

Cheniere Energy Partners owns and operates regasification units at the Sabine Pass LNG terminal. It provides clean, secure and affordable LNG to multiple entities.

CQP is a Zacks Rank #1 (Strong Buy) with an overall VGM score of B.

Over the past 60 days, analysts have raised their earnings outlook slightly.

CQP’s annual dividend yield sits at 7.5%, definitely at the high end.

However, what stands out is CQP’s commitment to rewarding its shareholders; over the past five years, the company has multiplied its dividend by 19 times, with an annualized five-year dividend growth rate of 11.5%.

The return is well above the average for its Zacks sector.

Additionally, the company’s free cash flow has recently been strong.

Devon Energy

Devon Energy Corp. is an independent energy company principally engaged in the exploration, development and production of oil and natural gas.

DVN is a Zacks Rank #2 (Buy) with an overall VGM score of an A.

Over the past 60 days, analysts have pushed their earnings estimates significantly higher in all periods.

DVN is committed to constantly rewarding its shareholders; over the past five years, the company has grown its dividend in an impressive tenfold and is posting a five-year, double-digit annualized dividend growth rate of 47%. The company’s annual dividend yields a whopping 9.9%.

Additionally, DVN’s annual dividend yield is well above the average for its Zacks sector.

The company’s free cash flow has also increased steadily.

Conclusion

Everyone likes to get paid. Income-driven investing is a widely used strategy in the market, and it’s not going anywhere anytime soon. All three companies above have high dividend yields paired with robust dividend growth, no doubt enough to excite any income investor.

Additionally, the three companies above have strong Zacks rankings, rising free cash flow, strong year-to-date stock performance, and positive estimate revisions across all time periods.

All three companies would be solid bets for investors looking to add an income stream to their portfolios.

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

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.

This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

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Click to get this free report

Devon Energy Corporation (DVN): Free Inventory Analysis Report

Cheniere Energy Partners, LP (CQP): Free Stock Analysis Report

ICL Group Ltd. (ICL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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