Investors looking to rotate capital into high-yielding dividend stocks amid the current market volatility should consider small-cap powerhouse %MurphyOil (NYSE: $MUR).
The Houston, Texas-based company has been a going concern since 1944 and pays one of the richest dividends around.
Currently, Murphy Oil pays a quarterly dividend of $0.33 U.S. per share. That gives the stock a hefty yield of 6%.
The company, which specializes in oil exploration primarily in the U.S. and Canada, has reliably paid a dividend since 1972.
Like many companies, Murphy Oil was forced to reduce its dividend payment during the Covid-19 pandemic in 2020 when crude oil prices plunged.
However, Murphy Oil has since restored its dividend payout to shareholders and raised it again in February of this year.
Analysts continue to like Murphy Oil’s dividend and see it as sustainable with a current payout ratio of 32%.
Beyond the dividend, investors should also like Murphy Oil’s cheap valuation.
The stock is currently trading near its 52-week low of $20.66 U.S. per share, which is less than eight times this year’s earnings expectations.
Despite its history and success, Murphy Oil’s market capitalization is only $3.13 billion U.S., putting it on the cusp of micro-cap stock status.
Should oil prices, which are currently at a four-year low, continue to fall, Murphy Oil’s stock is likely to get even cheaper in coming months, raising its dividend yield in the process.
For investors searching out a safe harbour in the current market storm, Murphy Oil could be a solid choice.
