6 High-Yield Dividend Stocks To Buy And Hold In A Volatile Market

Zinger Key Points
  • An analyst says British American is well-positioned to navigate inflationary pressure, the stock pays a 6.6% dividend.
  • Enterprise Products shares have climbed by 18.1% in 2022 and still provide a dividend yield of 7.1%.

During periods of stock market weakness, investors can still generate yield from high-quality dividend stocks. The Federal Reserve has already raised interest rates by 0.75% so far in 2022, but there are plenty of high-yield dividend stocks paying 6% or more at current prices.

Not only could these stocks service as a source of regular income, they could also generate valuation upside if the stock market recovers. Unfortunately, high yield dividend stocks are only as good as the underlying companies. Dividend cuts are often the first line of defense if a company runs into balance sheet problems.

Here are six high-yield dividend stocks to buy with at least 6% yields, according to Bank of America.

PetroChina Company Limited ADR PTR

PetroChina is the largest oil and gas producer in China and is 87% owned by the Chinese government.

Chinese stocks have performed horribly in the past year amid regulatory crackdowns by both the U.S. and Chinese governments. However, soaring oil and gas prices have made energy stocks like PetroChina the rare exception. PTR shares are up 16.8% in the past year, and analyst Matty Zhao says the stock is trading at an attractive valuation of less than half the company's book value and 4.9 times forward earnings. PetroChina shares also pay a 7.5% dividend.

Bank of America has a Buy rating and $73.30 price target for PTR stock.

Rio Tinto plc ADR RIO

Rio Tinto is one of the world’s largest mining companies, producing iron ore and a broad range of other metals and minerals.

Rising commodity prices have helped support Rio shares so far in 2022 despite weaker-than-expected production in the first quarter. Analyst Jason Fairclough says Rio shares are attractively valued, and the company has the highest return on capital deployed (ROCE) and cash distributions of any diversified miner. Fairclough says the company's operations require minimal additional capital to drive modest production growth. Rio shares have a 12.8% dividend yield.

Bank of America has a Buy rating and $94 price target for RIO stock.

British American Tobacco PLC BTI

British American Tobacco is one of the world's largest global tobacco companies.

British American was forced to abandon its Russia business earlier this year after determining that it is "no longer sustainable in the current environment" following Russia's invasion of Ukraine. Following the Russia exit, analyst Mirco Badocco said he still expects 2.4% organic revenue growth from British American in fiscal 2022, down from 4.6% organic revenue growth expectations prior to the invasion. Badocco says British American is well-positioned to navigate the Russia situation and mounting inflationary pressure. The stock pays a 6.6% dividend.

Bank of America has a Buy rating and $52 price target for BTI stock.

China Petroleum & Chemical Corp ADR SNP

China Petroleum & Chemical, also known as Sinopec, is another one of the major integrated energy companies in China.

Like PetroChina, Sinopec has significantly outperformed the weak Chinese stock market in 2022, gaining 5.3% year-to-date. Zhao says downstream energy demand in China will continue to be pressured by lingering COVID-19 lockdowns in the near-term, but Russian supply constraints will help support crude oil prices. Zhao says Sinopec offers investors an attractive valuation at under half book value and an appealing dividend yield of 9.1%.

Bank of America has a Buy rating and $6.30 price target for SNP stock.

Also Read: 5 American Stocks To Buy To Bet On An Economic Rebound: From Amazon To Coca-Cola

Enterprise Products Partners L.P. EPD

Enterprise Products Partners provides natural gas and natural gas liquids services, including processing, fractionation, storage, transportation, and terminal operations.

Soaring natural gas prices have sent Enterprise Products shares up 18.1% in 2022, making the stock the top year-to-date performer on this list. Incredibly, even after its big run, Enterprise shares still have a dividend yield of 7.1%. Analyst Chase Mulvehill says Enterprise's first-quarter earnings beat was not an outlier, and investors can expect the company's natural gas liquids and Petchem segments to continue to perform well throughout the remainder of 2022.

Bank of America has a Buy rating and $33 price target for EPD stock.

ING Groep NV ING

ING is a Dutch company that offers banking, insurance, and asset management services to more than 60 million clients in 50 countries.

Unlike other stocks on this list, ING shares have taken a big hit so far in 2022, falling 32.5% year-to-date. Fortunately for dip-buyers, that sell-off has pushed ING's dividend yield all the way up to 8.4%. Analyst Tarik El Mejjad says ING's operating performance is improving, but investors need clarity on the pace of ING's capital returns. El Mejjad is anticipating a 2022 cash dividend yield of between 7% and 9%, as well as buybacks of about 6% of the company's shares per year.

Bank of America has a Buy rating and $15.90 price target for ING stock.

Posted In: Bank of AmericaChase MulvehillJason FaircloughMatty ZhaoMirco BadoccoTarik El MejjadAnalyst ColorLong IdeasDividendsPrice TargetTop StoriesAnalyst RatingsTrading Ideas