While the stock market had a solid start to this year, macroeconomic issues continue to keep the market under pressure. With volatility expected to remain, I think reliable dividend-paying stocks Walmart Inc. (WMT - Get Rating) and Boyd Gaming Corporation (BYD - Get Rating) could be worth buying now to ensure a steady income stream.

Despite inflation showing signs of slowing over the past few months, month-over-month inflation ticked up 0.5% in January. The year-over-year inflation rate was 6.4%, higher than expected.

Furthermore, the labor market remains tight. February jobs report is expected to show that 200,000 jobs were created last month, while the unemployment rate is expected to remain at 3.4%. This is likely to prompt the Fed to continue with the rate hike regime and might lead to a recession this year, as analysts have cautioned.

Amid the uncertainties, investors’ interest in dividend stocks is evident from the SPDR S&P Dividend ETF’s (SDY) 3.4% returns over the past six months.

So, let’s delve deeper into the stocks mentioned above:

Walmart Inc. (WMT - Get Rating)

Retail giant WMT operates supercentres, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, membership-only warehouse clubs, and e-commerce websites, including walmart.com and Walmart.com.mx flipkart.com, and others. The company operates through three segments: Walmart U.S.; Walmart International; and Sam’s Club.

On February 28, 2023, WMT collaborated with Citi to deliver the Bridge created by Citi® platform to its 10,000 US-based small and medium-sized enterprises (SMBs). WMT’s suppliers can have greater access to cash by utilizing this platform, which connects them to a network of over 70 lenders, including 20+ varied financial institutions. This should improve the company’s long-term growth potential.

WMT has paid dividends for 49 consecutive years. Over the last three years, WMT’s dividend payouts have grown at 1.9% CAGR. WMT’s four-year average dividend yield is 1.67%. Its forward annual dividend of $2.28 translates to a 1.62% yield.

WMT’s total revenues came in at $164.05 billion for the fiscal fourth quarter that ended January 31, 2023, up 7.3% year-over-year. Its adjusted operating income grew 6.3% from the year-ago value to $6.37 billion. Also, the company’s net income stood at $6.28 billion, up 76.2% year-over-year. Its adjusted EPS came in at $1.71, representing an increase of 11.8% year-over-year.

WMT’s revenue is expected to increase by 3.3% year-over-year to $631.35 billion in 2024. Its EPS is expected to grow 3.7% per annum for the next five years. It surpassed EPS estimates in three of four trailing quarters. WMT’s shares have gained 12.6% over the past nine months to close the last trading session at $140.65.

WMT’s POWR Ratings reflect this promising outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

WMT has an A grade for Stability and a B for Growth, Value, Sentiment, and Quality. Within the A-rated Grocery/Big Box Retailers industry, it is ranked #3 out of 38 stocks. Click here for the additional POWR Ratings for Momentum for WMT.

Boyd Gaming Corporation (BYD - Get Rating)

BYD is a multi-jurisdictional gaming corporation. It operates through three segments, Las Vegas Locals; Downtown Las Vegas; and Midwest & South. It also runs online casino businesses.

Over the last three years, BYD’s dividend payouts have grown at 30.5% CAGR. While BYD’s four-year average dividend yield is 0.53%, its forward annual dividend of $0.64 yields 0.98%.

During the fiscal fourth quarter that ended December 31, 2022, BYD’s total revenues came in at $922.92 million, up 4.9% year-over-year. Its operating income increased 14.2% year-over-year to $247.64 million. Also, its adjusted earnings came in at $181.76 million, up 17.8% year-over-year, and adjusted EPS increased 27.4% year-over-year to $1.72.

The consensus revenue estimate of $3.59 billion for the fiscal year 2024 indicates a marginally increase year-over-year. Its EPS is expected to grow 6.6% year-over-year to $6.26 in 2024. It surpassed EPS estimates in all four trailing quarters. The stock has gained 22% over the past nine months to close the last trading session at $64.80.

It’s no surprise that BYD has an overall A rating which equates to a Strong Buy in our POWR Ratings system.

It has an A grade for Quality and a B for Value and Sentiment. The stock is ranked #3 out of 31 stocks in the Entertainment – Casinos/Gambling industry. We’ve also rated BYD for Growth, Stability, Momentum, and Quality. Get all the BYD ratings here.

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WMT shares fell $0.05 (-0.04%) in premarket trading Tuesday. Year-to-date, WMT has declined -0.78%, versus a 5.80% rise in the benchmark S&P 500 index during the same period.

About the Author: Rashmi Kumari

Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions. More...

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