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Dividend Lovers: 2 U.S. Stocks to Power Up Your Portfolio

·4 min read
edit Balloon shaped as a heart
edit Balloon shaped as a heart

Written by Jitendra Parashar at The Motley Fool Canada

When it comes to dividend investing in Canada, you shouldn’t restrict yourself to only TSX stocks. Investing in some quality dividend stocks in the United States will help you diversify your stock portfolio and allow you to choose from a wide range of quality dividend stocks that could help you generate reliable passive income. In this article, I’ll highlight two of the top dividend stocks from the U.S. market, Canadian investors can buy right now for the long term.

Intel stock

Intel (NASDAQ:INTC) is one of my favourite dividend stocks from the U.S. market that Canadian investors can consider buying now. If you don’t know it already, this Santa Clara-based tech company is the world’s largest semiconductor maker by sales. This NASDAQ-listed stock has seen more than 30% value erosion in 2022 so far to trade at US$36.11 per share due mainly to a tech sector-wide crash earlier this year.

In the second quarter, Intel’s total revenue fell by 17.3% YoY (year over year) to around US$15.3 billion as the sales of its client computing group, datacenter and AI group, and Intel foundry services segments fell. The last quarter’s below expectations revenue figures forced the company to cut its full-year financial outlook, citing a difficult macro environment along with its execution challenges. On the positive side, Intel’s Mobileye segment quarterly revenue jumped to a new record of around US$460 million, reflecting an increase of around 41% YoY as the company’s new design wins continued in the year’s first half.

While Intel admitted that the ongoing market turbulence and its updated outlook are disappointing, its management expects “Q2 and Q3 to be the financial bottom for the company” with clear signs of a turnaround. While this expected turnaround could drive a sharp recovery in Intel stock in the coming quarters, its yield of around 4% makes this U.S. dividend stock look even more attractive.

Energy Transfer stock

Energy Transfer (NYSE:ET) could be another great U.S. dividend stock Canadian investors can buy today. This Dallas-based energy company currently has a market cap of about US$36 billion, as its stock trades at $11.67 per share after witnessing 40% year-to-date gains. It owns a huge network of energy assets in the U.S. market, including infrastructure for natural gas and crude oil transportation.

While Canadian dividend investors get multiple options within the country when it comes to investing in energy sector, Energy Transfer’s solid dividend yield of nearly 8% makes it stand out. In the June quarter, the U.S. energy company reported a solid 71.8% YoY jump in its total revenue to US$25.9 billion, as the demand for natural gas liquids remains strong. With this, the company registered a 95% YoY increase in its adjusted earnings to US$0.39 per share last quarter, exceeding analysts’ estimate of around US$0.36 per share.

After its solid Q2 performance and surging demand, Energy Transfer recently increased its full-year outlook. Now, the energy firm expects its 2022 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be in the range of US$12.6 billion and US$12.8 billion — stronger than its previously provided range of US$12.2 billion to US$12.6 billion. Its improving fundamental outlook and robust operational performance should help Energy Transfer continue rewarding its investors with high dividends.

The post Dividend Lovers: 2 U.S. Stocks to Power Up Your Portfolio appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Intel?

Before you consider Intel, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2022 ... and Intel wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 27 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 8/8/22

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The Motley Fool recommends Intel. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

2022