It's difficult to gain trust in the stock market, especially with all of the different circumstances that have resulted in an turbulent start to the year for investors. The strongest businesses one week may be under a lot of selling pressure the next, which is why it's critical to take a long-term viewpoint while looking for new investment possibilities at this time. Long-term investors may be interested in dividend stocks, which offer extra money and are generally required to be financially stable businesses in order to continue paying out.
High-yield dividend stocks have divided opinions among investors, and this is understandable. High-yielding stocks are appealing on one level because of their high payouts relative to their share price, which is all the more attractive given the inflation we're seeing in the economy. A high-yield stock, on the other hand, might indicate that a firm is in distress and that the share price has dropped dramatically as a result of internal issues or dismal prospects. That is why it's critical to conduct thorough research on any dividend stock with a yield that appears to be too good to be true.
Let's dig further into three high-yield dividend stocks to buy right now.
Exxon Mobil Corp (NYSE: XOM)
Exxon Mobil Corporation has been one of the market's best gainers thus far in 2022, and a high-yielding dividend payer like it stands out as an enticing potential purchase, even after the recent rally. With Brent crude oil prices climbing to seven-year highs and supplies forecast to remain tight owing to geopolitical conflicts, many experts are predicting big things for the energy industry in 2022. This is great news for Exxon Mobil stock, which is the world's largest fully listed integrated oil firm and appears to be in excellent condition to continue paying its dividend thanks to cost savings and the potential for oil prices to stay high.
Exxon is another name to consider due to the company's exploration of new oil and gas fields in Africa and the Permian Basin, as well as its investment in low-carbon solutions. Some investors are eager to get their hands on the stock since it currently pays a 4.9 percent dividend yield and there's a good chance oil prices will drop in the next weeks, making it an intriguing buying opportunity for those who have been waiting for a decent entry point. The bottom line is that Exxon Mobil is a major energy company led by a management team who fully understands the need to safeguard its dividend payout, which is why it appears on this list.
Lockheed Martin Corp (NYSE: LMT)
Lockheed Martin is another high-yield dividend stock that investors should be checking out right now. The formidable defense, security, and intelligence company is one of the better deals in the S&P 500 as its trading at a forward P/E of 16.59. Lockheed counts the U.S. government as its major customer, which means investors can count on consistent earnings for the company, and you can trust that their dividend is safe. When it comes to military contracts, Lockheed enjoys a significant competitive edge over its rivals owing to its industry-leading position.
The Senate Armed Services Committee has approved a 5% increase in military spending, which is good for Lockheed shares in the years ahead, and problems with the company's global supply chain will be waning by the second half of 2022. Lockheed Martin is also planning to acquire rocket propulsion builder Aerojet Rocketdyne for $4.4 billion in Q1 2022, which could be a long-term growth driver as the aerospace business expands its propulsion systems portfolio. Finally, the firm recently increased its quarterly dividend payout by 8%, and at this time, it pays out a generous 3.01% yield which is higher than the industry average.
International Business Machines (NYSE: IBM)
Finally, we have IBM stock, a legacy technology firm with a dividend yield of 4.89 percent. International Business Machines has established a vital position in the global business IT hardware, software, and services market over time and has recently made some intriguing strategic moves. Following the spinoff of its managed infrastructure operations, the firm will be able to focus on areas of the business with greater future growth potential such as hybrid cloud and artificial intelligence.
There's also a lot to like about the firm's cash position, which was $8.4 billion at the end of Q3 last year. Even while the spinoff would modify the company's balance sheet figures, that big cash balance from last quarter is still a staggering amount that should help dividend investors feel more confident in adding shares of Big Blue. Look no further than IBM if you're searching for a cloud stock with a generous payout and an outstanding track record of holding up under market volatility.