January 21, 2017

Target Drops 8% On Another Disappointing Report – An Update For Dividend Investors


Target (TGT) is a popular holding across many dividend growth investors’ portfolios.

After all, few companies can match Target’s impressive track record.

With over 100 years of operating history, Target has proven to be one of the most durable companies in the world.

The company also holds the title of being a dividend aristocrat, rewarding shareholders with 49 consecutive years of payout raises. You can view analysis on all of the dividend aristocrats here.

Despite Target’s impressive history, the company has fallen on hard times recently. Once fourth quarter results are finalized, Target’s revenue will have declined year-over-year for five consecutive quarters.

Target’s stock has disappointed investors as well, trailing the S&P 500 by more than 20% over the last year.

After dropping by 8% since revising its guidance earlier this week, Target’s shares offer investors a yield above 3.7% and trade for less than 14 times 2016 earnings – a large discount to the broader market.

Let’s take a closer look at the issues impacting Target to determine if the stock might make sense for our Conservative Retirees dividend portfolio, which seeks to preserve capital and deliver a very safe, above average dividend yield.



Source: TalkMarkets

January 20, 2017

Are You Undervaluing These 3 Biopharmas' Pipelines?

The drugs in research and development at Gilead Sciences, Johnson & Johnson, and AbbVie could reward investors with multiple blockbuster wins in the coming years.



Biopharma companies are continously investing in new development projects to offset the risks of competition and patent expirations, but sometimes, the nature of business' landscape can keep investors from seeing opportunities that may be lurking in research-and-development pipelines. For instance, while challenges facing Gilead Sciences (NASDAQ:GILD), Johnson & Johnson (NYSE:JNJ), and AbbVie (NYSE:ABBV) shouldn't be ignored, each has compelling products under development that could send shares soaring someday.




Berenberg Bank Upgrades National Grid PLC (NGG) to Buy

National Grid PLC (NYSE:NGG) was upgraded by equities research analysts at Berenberg Bank from a “hold” rating to a “buy” rating in a report issued on Friday.

NGG has been the topic of several other reports. Zacks Investment Research upgraded National Grid PLC from a “sell” rating to a “hold” rating in a research report on Tuesday, January 3rd. Beaufort Securities restated a “buy” rating on shares of National Grid PLC in a research report on Friday, December 9th. Deutsche Bank AG restated a “hold” rating on shares of National Grid PLC in a research report on Friday, December 9th. Argus upgraded National Grid PLC from a “hold” rating to a “buy” rating in a research report on Thursday, December 1st. They noted that the move was a valuation call. Finally, Investec upgraded National Grid PLC from a “hold” rating to a “buy” rating in a research report on Friday, January 13th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $72.50.





Visa Inc. (V) Earns Outperform Rating from Analysts at Wedbush

Wedbush initiated coverage on shares of Visa Inc. (NYSE:V) in a research note issued on Friday. The brokerage set an “outperform” rating on the credit-card processor’s stock.

A number of other brokerages also recently weighed in on V. Goldman Sachs Group Inc. reiterated a “buy” rating and set a $96.00 price target on shares of Visa in a report on Monday, October 24th. Citigroup Inc. reiterated a “buy” rating and set a $92.00 price target on shares of Visa in a report on Monday, October 24th. Guggenheim downgraded Visa from a “buy” rating to a “neutral” rating and increased their price target for the stock from $90.00 to $97.00 in a report on Tuesday, October 25th. Stifel Nicolaus decreased their price target on Visa from $94.00 to $93.00 and set a “buy” rating for the company in a report on Tuesday, October 25th. Finally, Royal Bank Of Canada increased their price target on Visa from $87.00 to $89.00 and gave the stock an “outperform” rating in a report on Tuesday, October 25th. Four analysts have rated the stock with a hold rating, twenty-eight have given a buy rating and one has given a strong buy rating to the stock. Visa presently has an average rating of “Buy” and an average price target of $91.65.



January 19, 2017

Verizon Communications Inc. (VZ) Rating Increased to Buy at HSBC

Verizon Communications Inc. (NYSE:VZ) was upgraded by research analysts at HSBC from a “hold” rating to a “buy” rating in a research report issued on Thursday. The firm currently has a $61.00 target price on the cell phone carrier’s stock. HSBC’s price target indicates a potential upside of 16.75% from the stock’s current price.

A number of other equities analysts also recently commented on VZ. Vetr downgraded Verizon Communications from a “strong-buy” rating to a “buy” rating and set a $58.40 target price for the company. in a research note on Thursday, September 22nd. Citigroup Inc. upgraded Verizon Communications from a “neutral” rating to a “buy” rating and lifted their target price for the company from $52.25 to $53.38 in a research note on Tuesday, January 3rd. Cowen and Company restated a “market perform” rating and issued a $50.00 target price on shares of Verizon Communications in a research note on Sunday, October 23rd. Morgan Stanley restated an “overweight” rating and issued a $60.00 target price on shares of Verizon Communications in a research note on Sunday, October 23rd. Finally, Goldman Sachs Group Inc. restated a “neutral” rating and issued a $51.00 target price on shares of Verizon Communications in a research note on Sunday, October 23rd. One analyst has rated the stock with a sell rating, twenty-one have issued a hold rating and ten have given a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average price target of $54.48.



Source:  Ticker Report

National Oilwell Varco (NOV) Upgraded by Societe Generale to “Buy”

National Oilwell Varco (NYSE:NOV) was upgraded by analysts at Societe Generale from a “hold” rating to a “buy” rating in a research report issued on Thursday. The firm currently has a $44.00 price objective on the oil and gas exploration company’s stock. Societe Generale’s target price would suggest a potential upside of 17.58% from the stock’s current price.

Several other equities analysts have also recently commented on NOV. Seaport Global Securities cut shares of National Oilwell Varco from a “neutral” rating to a “sell” rating and set a $34.00 target price for the company. in a research report on Thursday, December 1st. Johnson Rice cut shares of National Oilwell Varco from a “buy” rating to a “hold” rating in a research report on Friday, December 9th. RBC Capital Markets reiterated a “hold” rating and set a $47.00 price objective on shares of National Oilwell Varco in a research report on Friday, January 6th. Zacks Investment Research cut shares of National Oilwell Varco from a “buy” rating to a “hold” rating in a research report on Tuesday, October 18th. Finally, BMO Capital Markets set a $30.00 price objective on shares of National Oilwell Varco and gave the stock a “sell” rating in a research report on Thursday, January 12th. Four equities research analysts have rated the stock with a sell rating, twenty have given a hold rating and six have assigned a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $34.94.




Genuine Parts Co. (GPC) Upgraded to Neutral by Goldman Sachs Group Inc.

Genuine Parts Co. (NYSE:GPC) was upgraded by equities researchers at Goldman Sachs Group Inc. to a “neutral” rating in a research report issued to clients and investors on Thursday.

A number of other equities research analysts have also recently commented on GPC. Wedbush reissued a “neutral” rating on shares of Genuine Parts in a research report on Tuesday, January 3rd. Zacks Investment Research raised shares of Genuine Parts from a “sell” rating to a “hold” rating in a research report on Monday, December 5th. Atlantic Securities started coverage on shares of Genuine Parts in a research note on Wednesday, December 14th. They set a “neutral” rating and a $100.00 price target on the stock. Finally, Jefferies Group cut their price target on shares of Genuine Parts to $95.00 in a research note on Thursday, October 20th. Ten analysts have rated the stock with a hold rating and one has issued a buy rating to the company. The company has a consensus rating of “Hold” and an average target price of $98.91.




The Walt Disney Co. (DIS) Upgraded by RBC Capital Markets to Outperform

The Walt Disney Co. (NYSE:DIS) was upgraded by investment analysts at RBC Capital Markets from a “sector perform” rating to an “outperform” rating in a research note issued to investors on Thursday. The brokerage currently has a $130.00 price objective on the entertainment giant’s stock, up from their previous price objective of $101.00. RBC Capital Markets’ price target would indicate a potential upside of 20.19% from the company’s current price.

A number of other equities research analysts also recently commented on the stock. Barclays PLC raised their price objective on shares of The Walt Disney to $99.00 in a research report on Thursday. Citigroup Inc. raised their price objective on shares of The Walt Disney from $117.00 to $124.00 and gave the company a “buy” rating in a research report on Wednesday. Needham & Company LLC restated a “hold” rating on shares of The Walt Disney in a research report on Wednesday. BMO Capital Markets cut shares of The Walt Disney from a “market perform” rating to an “underperform” rating and dropped their target price for the company from $90.00 to $88.00 in a report on Wednesday. Finally, Loop Capital reaffirmed a “buy” rating and issued a $117.00 target price (up from $113.00) on shares of The Walt Disney in a report on Tuesday. Five investment analysts have rated the stock with a sell rating, eleven have given a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $112.14.



Source: BBNS

Cummins Inc. (CMI) Raised to Buy at Longbow Research

Cummins Inc. (NYSE:CMI) was upgraded by research analysts at Longbow Research from a “neutral” rating to a “buy” rating in a note issued to investors on Thursday. The firm presently has a $165.00 target price on the stock. Longbow Research’s price target points to a potential upside of 17.94% from the stock’s current price.

A number of other analysts have also weighed in on the company. BMO Capital Markets reissued a “hold” rating and set a $150.00 price objective on shares of Cummins in a research note on Friday, January 13th. Barclays PLC raised Cummins from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $108.00 to $135.00 in a research note on Monday, January 9th. Vetr raised Cummins from a “sell” rating to a “buy” rating and set a $144.50 price target for the company in a research note on Monday, December 19th. Evercore ISI raised Cummins from a “hold” rating to a “buy” rating and raised their price target for the stock from $113.00 to $144.00 in a research note on Monday, November 7th. Finally, Stifel Nicolaus reaffirmed a “hold” rating and issued a $109.00 price target (up previously from $103.00) on shares of Cummins in a research note on Wednesday, November 2nd. Two investment analysts have rated the stock with a sell rating, fourteen have issued a hold rating and eight have given a buy rating to the stock. Cummins presently has an average rating of “Hold” and an average price target of $124.26.




The Top Dividend Stocks to Buy for Safety in 2017

These dividend stocks not only throw off yield, but keep risk at bay as well



I like to scan over the universe of dividend stocks at the beginning of each year. I try to suss out which dividend stocks not only offer a healthy dividend greater than 4%, but might also be undervalued. That creates a list of dividend stocks to buy that may not only offer income, but offer safety and even nice upside as well.

The list of dividend stocks to buy is quickly narrowed, however, by the fact that the overall market is about 20% overvalued. So your typical blue-chip stocks that allegedly represent both income and safety, in my opinion, offer nothing of the kind.

One of the biggest misleads in the market is that you can invest in some legacy Big Pharma or consumer name that pays a 3% yield and things will be just fine. Making 3% is little consolation when one loses 20% in a correction.

Instead, we’re looking at a trio of investments that not only yields between 4% and 10%, but that should provide more safety than most other stocks throughout the rest of the year.



Source: InvestorPlace

January 18, 2017

3 Cheap Value Stocks to Buy Today

The market is expensive, but there are still some great value stocks available.



Value stocks come in all shapes and sizes, and value investors can have wildly different portfolios despite sharing the core idea that buying something for less than it's worth is the best way to beat the market. Growth plays an important role in value investing, as a company's intrinsic value depends not only on its current earnings power, but also on its growth potential.

We asked three of our contributors to each discuss a stock that they consider to be a great value in today's market. Here's why Walt Disney (NYSE:DIS), International Business Machines (NYSE:IBM), and Amgen (NASDAQ:AMGN) are cheap value stocks worth buying.




January 17, 2017

Coca-Cola’s Growth Potential & Market Share


Coca-Cola (KO) is the gold standard in the beverage industry.

The company is the largest seller of non-alcoholic beverages in the world.

Coca-Cola operates a tremendously strong business model. This is evident in their dividend history.

With 54 years of consecutive dividend increases and counting, Coca-Cola is a Dividend Aristocrat (25+ years of rising dividends) and a Dividend King (50+ years of rising dividends).
Coca-Cola is one of 18 businesses with 50+ years of consecutive dividend raises. Click here to download your free detailed Dividend Kings Excel Spreadsheet so you can see other businesses with strong and durable competitive advantages like Coca-Cola.

This level of dividend growth would not exist unless the company operated a recession resistant business model with distinct competitive advantages and a wide economic moat.

That being said, there are some that believe that Coca-Cola’s best days are behind it. Soda sales have dropped for 11 straight years. Fiscal 2015 fanned this flame, as investors watched total revenues fall 4% and operating profits drop by 10%.

In short, many believe that Coca-Cola is on the decline. This is not the case.

In fact, the company still has plenty of room to grow. The beverage industry is expected to increase by $300 billion between 2015 and 2020, and the company continues to hold dominant market share.


This article examines Coca-Cola’s growth potential and market share in detail.


Source: TalkMarkets

January 16, 2017

10 Dividend Growth Stocks That Simply Print Money

These 10 stocks collectively yield 3%, but thanks to fantastic cash generation, your yield down the road will be far more generous



History has taught us that dividend growth stocks are the absolute best way to grow both your income and wealth over time.

One such group of dividend stocks is known as the S&P 500 Dividend Aristocrats — S&P 500 companies that have increased their payouts for at least 25 consecutive years. Aristocrats have collectively outperformed the S&P 500 over time with less volatility.

Of course, to be able to pay secure and growing dividends, a company needs to have a strong competitive advantage that gives it good pricing power and allows it to generate strong free cash flow.

Today, we’re going to look at 10 great dividend growth stocks worth investigating. These are companies with strong businesses that consistently generate rivers of FCF that allow them to reward long-term dividend lovers. Each of these companies also scores well using our Dividend Safety Scores, which income investors can learn more about here.

Here they are, in order of free cash flow margin:



Source: InvestorPlace

January 15, 2017

Medtronic PLC (MDT) Dividend Stock Analysis


Medtronic PLC (NYSE:MDT) manufactures and sells device-based medical therapies worldwide. This dividend champion has paid dividends since 1977 and increased them for 39 years in a row.

The company’s last dividend increase was in June 2016 when the Board of Directors approved a 13.10% increase (1) to 43 cents/share. The company’s largest competitors include Baxter International Inc (NYSE:BAX), Becton Dickinson and Co (NYSE:BDX) and St Jude Medical Inc (NYSE:STJ).

Over the past decade this dividend growth stock (2) has delivered an annualized total return of 5% to its shareholders.