5 Dividend Stocks To Watch Ahead Of Earnings Season

The S&P 500 is heading into first-quarter earnings season at record highs. The only other time the S&P’s Shiller PE ratio has been as high as its current level of 36.8 was during the dot com bubble of the late 1990s.

For now, the battle rages on between growth investors who see a significant rebound runway ahead for stock prices and value investors who believe inflation and rising interest rates could be a rude awakening for the stock market.

Whether the market is up, down or sideways, a dividend payment from a solid company is always reliable. The average dividend yield for S&P 500 companies is at 1.43%, but there are plenty of companies that pay much higher yields than that. With Treasury yields near all-time lows and a growing number of corporate bond yields dropping below 0% around the world, investors can find reliable income in dividends instead.

Related Link: 3 REITs To Buy With 10% Dividends

U.S. companies reportedly added a net of $18 billion to their dividend payments in the first quarter. Here are five high-yield dividend stocks that Bank of America recommends heading into earnings season.

Williams Companies Inc WMB

Williams is a domestic natural gas company with a dividend yield of 6.9%. Bank of America has a Buy rating and $26 price target for the stock. Williams is expected to report earnings on May 3. Analysts are expecting EPS of 29 cents on revenue of $1.9 billion, down 0.6% from a year ago.

Altria Group Inc MO

Altria is the largest U.S. cigarette producer and has a dividend yield of 6.6%. Bank of America has a Buy rating and $53 price target for the stock. Altria is expected to report earnings on April 29. Analysts are expecting EPS of $1.04 on revenue of $5 billion, down 1.6% from a year ago.

AT&T Inc. T

AT&T is the largest U.S. telecom and the parent company of WarnerMedia. The stock pays a 6.9% dividend. Bank of America has a Buy rating and $36 price target for the stock. AT&T is expected to report earnings on May 6. Analysts are expecting EPS of 78 cents on revenue of $42.7 billion, down 0.2% from a year ago.

Kinder Morgan Inc KMI

Kinder Morgan is one of the largest midstream U.S. energy companies and specializes in natural gas and liquids. The stock pays a 6.2% dividend. Bank of America has a Buy rating and $17 price target for the stock. Kinder Morgan is expected to report earnings on April 21. Analysts are expecting EPS of 24 cents on revenue of $3 billion, down 2.9% from a year ago.

Exxon Mobil Corporation XOM

Exxon Mobil is the largest U.S. integrated oil & gas major. The stock pays a 6.2% dividend. Bank of America has a Buy rating and $90 price target for the stock. Exxon is expected to report earnings on April 30. Analysts are expecting EPS of 56 cents on revenue of $54.6 billion, down 2.8% from a year ago.