Oil is up, the Russian ruble is down, and financial markets are showing increased levels of volatility. The rolling boil in the markets comes as Russia’s Vladimir Putin has launched the largest ground war in Europe since the Second World War. It’s no wonder that investors are starting to seek out defensive positions.
The classic defensive position, of course, is the dividend stock. Plenty of companies send out a dividend but only a select group attract the attention of serious dividend investors. These are the stocks that pay out the highest yielding dividends with the most reliable payment histories. In turbulent times like these, the market’s dividend champions are sure to get a second look from investors.
Bearing this in mind, we used the TipRanks’ database to zero-in on two stocks that are showing high dividend yields – on the order of 8%. Each stock also holds a Strong Buy consensus rating; let’s see what makes them so attractive to Wall Street’s analysts.
Brigham Minerals (MNRL)
One of the biggest economic sectors to feel the fallout from the Russia-Ukraine fighting is the energy sector. Russia is a major hydrocarbon exporter, and has not been shy about using its energy clout in foreign policy. In the lead-up to the Ukraine crisis, Russia has been building the Nordstream 2 pipeline, a natural gas pipeline to Germany that bypasses Ukraine. While the ins and outs of the project and its impact on international relations are beyond the scope of this article, it may be of interest to take a look into the US hydrocarbon sector.
And there we’ll find Brigham Minerals. Based in Austin, Texas, Brigham is a mineral and royalty interest acquisition company – that is, it buys up land holdings and the rights to resource exploitation thereon, and collects royalties on the oil and gas extracted from those lands. Brigham’s portfolio includes land holdings some of the richest resource basins in the lower 48, including the Williston of North Dakota, the DJ of Colorado/Wyoming, the Scoop/Stack of Oklahoma, and the Midland and Delaware of Texas and New…