Dividend stocks form the core part of my portfolio. They deliver passive income, an important revenue stream that requires very little input from me.
Over the past week, global markets fell after US inflation data came in unexpectedly high. This was followed by poor economic forecasts from the UK and Germany.
But this stock market correction has also created buying opportunities.
These are three dividend stocks that I’ve bought or am looking to buy more of, and why!
Centamin
Centamin (LSE:CEY) shares are down 8% over the past week. The stock was also likely affected by renewed Covid-19 restrictions in China that will negatively impact demand for commodities.
Centamin is a gold miner that offers a whopping 8.9% dividend yield at today’s price.
The company performed poorly last year amid falling revenue and an impairment on assets in Burkina Faso.
However, 2022 is looking like a better year. Its gold production forecast is between 15,000 and 45,000 ounces higher than total production in 2021.
Profitability is also dependent on the price of gold. In the first quarter of 2022, Centamin achieved $1,883 per ounce, up from $1,778 in Q1 of 2021. Currently, the spot price is $1,825.
However, it looks like costs are rising. Centamin said all-in sustaining costs were expected to rise to $1,275-$1,425 an ounce sold for the year ahead. That’s considerably above the all-in sustaining costs were $1,256 per ounce sold in Q4 of 2021.
Synthomer
Synthomer (LSE:SYNT) is another dividend big hitter, offering an 11.2% yield.
The stock is down 15% over the past week, but its also worth noting that it went ex-dividend on 1st June. But at 265p, I think Synthomer looks like a great buy.
The polymers manufacturer saw its profits soar during the pandemic. But, analysts say that demand for its latex gloves, among other products, is likely to remain strong despite Covid-19 becoming less virulent.
In fact, in Q1, Synthomer said that all but one of its businesses were ahead of or in line with Q1 2021 performance.
Synthomer registered pre-tax profits of £283m in 2021, more than double any year before the pandemic. Anything near that would be a great result in 2022.
As a result of its stellar 2021, and its falling share price, the stock currently has a P/E ratio of just 3.46.
However, the group recently took on a new business unit, and a new CEO. So maybe there could be some teething problems here.
Hargreaves Lansdown
Hargreaves Lansdown is down 7.5% over the past week. But that’s just the tip of the iceberg. It’s down 52% over the year.
The business performed extraordinarily well during the pandemic, but growth has slowed since. After all, people are getting back to work and there’s a cost of living crisis. Many individuals just don’t have that much cash to invest anymore.
However, I think this is a business that will benefit in the long run. Generally, more and more individuals are seeking to investing their money themselves. And, in my opinion, Hargreaves Lansdown has the best platform for serious investors.
The group is also offering a 4.86% dividend yield at today’s prices.
I own shares in all these stocks, but recently bought more Synthomer.
