Investing in dividend stocks is an excellent option for investors to consider right now. These income-generating investments can provide recurring cash flow and provide some stability during a tumultuous period in the markets.
One stock that has been doing well this year is oil and gas giant Shell (NYSE:SHEL). Up around 28% year to date, it has soundly outperformed the S&P 500, which is down more than 15% over the same time frame. With oil prices remaining strong, Shell looks poised for its strong performance to continue.
The company has been raking in the profits, with adjusted earnings of $9.45 billion last quarter meeting analyst expectations. Shell also announced that it would be increasing its dividend by 15% in the fourth quarter. Today, the stock already pays a high yield of 3.6% -- nearly two full percentage points higher than the S&P 500 average of 1.8%. On a $30,000 investment, Shell's current dividend would pay you around $1,100 per year. With the increase, that amount will be even higher.
Although the latest CPI report indicated inflation is slowing down a bit, at 7.7%, it still remains a problem. And oil prices are still hovering around $90/barrel. For investors looking to hedge against inflation and benefit from rising oil prices, Shell could be a solid stock to invest in right now. Trading at just five times its future profits, this is still a cheap stock with an impressive dividend.
Whether you're looking for growth or dividends, Shell is a stock that you should consider adding to your portfolio.
