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Pioneer Natural Resources (PXD)

Pioneer Natural Resources is an independent oil and gas exploration and production company.

Thanks to the strong rallies in oil and gas prices this year, the company is firing on all cylinders. Year to date, PXD shares are up 35% — in stark contrast to the broad market’s double-digit loss.

But it’s the sheer size of Pioneer’s shareholder payout that makes it stand out.

The company’s board recently declared a cash dividend of $8.57 per share for the third quarter. On an annualized basis, that translates to a yield of 13.6%

However, note that Pioneer has a base-plus-variable dividend policy. Its newly-declared payout includes a $1.10 base quarterly dividend and a $7.47 variable dividend.

In other words, the payouts are not carved in stone. But if the market for energy commodities remains strong, the company will likely continue dishing out oversized dividends.

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Lumen Technologies (LUMN)

Lumen Technologies is a technology and communications company with 450,000 route miles of fiber and customers in more than 60 countries. It offers a wide range of network, edge cloud, security, communication and collaboration solutions.

Unlike Pioneer, Lumen stock hasn’t been a hot commodity — shares are down about 14.5% year to date. But the company still deserves dividend investors’ attention.

Paying quarterly dividends of 25 cents per share, Lumen offers an annual dividend yield of 9.2%.

If you are wondering whether that level of payout is sustainable, management’s latest outlook might cheer you up.

In the Q2 earnings release, the company reiterated its full-year outlook, which includes paying dividends of $1.00 per share for the year — amounting to approximately $1.04 billion in total. Meanwhile, management expects Lumen to generate free cash flow of $2.0 to $2.2 billion for the year.

Therefore, if the company achieves its guidance range, it would be able to cover its payout with ease in 2022.

Simon Property Group (SPG)

Simon Property belongs to a group called real estate investment trusts — companies that own and operate income-producing properties on investors’ behalf.

REITs are particularly appealing to income investors because they allow you to collect rent checks without having to be a landlord.

Simon Property owns commercial real estate — shopping malls, outlet centers, and community/lifestyle centers — across North America, Europe, and Asia. At its U.S. malls and outlets, occupancy rate was 93.9% at the end of June.

The company’s board of directors has already announced two increases to the quarterly dividend rate this year — first from $1.65 to $1.70 per share, then to $1.75 per share.

At the current share price, the REIT provides an annual dividend yield of 6.5%.

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About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

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