PepsiCo, Inc.: One More Year to Go to Reach This Dividend Milestone

 

PEP Stock Remains a Top Pick for Dividend Investors

 


In a world of soaring tickers, dividend announcements often get ignored. After all, if you can earn a double-digit profit from one upswing in a company’s share price, who cares about a few percentages of dividend yield?

 

However, when a company has the ability to increase its dividend payment to shareholders year after year for a long time, it’s often a sign of durable competitive advantage. And if there’s one thing that every income investor should do, it’s to consider businesses with durable competitive advantages.

 

And that’s why the latest dividend announcement from PepsiCo, Inc. (NASDAQ:PEP) deserves attention.

 

On February 11, PepsiCo announced a five-percent increase to its annual dividend rate from $4.09 per share to $4.30 per share, starting with the June payment.

 

That gives PepsiCo stock a forward dividend yield of just over three percent at the current share price.

 

Here’s the more important part: the announcement marked the company’s 49th consecutive annual dividend hike.

 

In other words, if PepsiCo, Inc. continues its track record for another year, it will become a Dividend King—a title reserved for companies that have increased their payouts for at least 50 consecutive years.

 

Half a century of yearly pay raises to shareholders is no easy feat. Among the thousands of companies that trade on U.S. stock exchanges, there are only 31 Dividend Kings at the time of this writing.

 


Of course, track records—however impressive they are—represent past performance. And past performance is no guarantee of future results. But as I mentioned earlier, this kind of track record is often a sign of a durable competitive advantage.

 

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Notable Analyst Upgrades and Downgrades for Week of April 12, 2021

 


Upgrades:

 


Exxon Mobil (NYSE:XOM) was upgraded by research analysts at Raymond James from an "underperform" rating to a "market perform" rating in a research note issued on Wednesday, Analyst Price Targets reports.

XOM has been the subject of a number of other reports. UBS Group reissued a "neutral" rating and set a $62.00 price objective (up from $48.00) on shares of Exxon Mobil in a research note on Monday, March 15th. Exane BNP Paribas raised shares of Exxon Mobil from an "underperform" rating to a "neutral" rating and set a $45.50 target price for the company in a research note on Monday, February 8th. The Goldman Sachs Group restated a "buy" rating and set a $65.00 target price on shares of Exxon Mobil in a research report on Tuesday, March 16th. Wells Fargo & Company raised their price objective on Exxon Mobil from $53.00 to $65.00 and gave the stock an "overweight" rating in a report on Tuesday, March 2nd. Finally, Evercore ISI initiated coverage on Exxon Mobil in a report on Tuesday, February 23rd. They issued an "inline" rating and a $48.00 price target for the company. Two analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and eight have assigned a buy rating to the company. Exxon Mobil has an average rating of "Hold" and a consensus target price of $53.26. Read more …

 


U.S. Bancorp (NYSE:USB) was upgraded by analysts at Bank of America from an “underperform” rating to a “neutral” rating in a research report issued to clients and investors on Monday, The Fly reports. The brokerage presently has a $62.00 price objective on the financial services provider’s stock, up from their prior price objective of $58.00. Bank of America‘s price target suggests a potential upside of 8.22% from the company’s current price.

Other analysts also recently issued research reports about the company. Barclays lifted their target price on U.S. Bancorp from $61.00 to $65.00 and gave the company an “overweight” rating in a research note on Wednesday, April 7th. JPMorgan Chase & Co. raised U.S. Bancorp from a “neutral” rating to an “overweight” rating and set a $60.00 price objective on the stock in a research note on Thursday. Citigroup upgraded U.S. Bancorp from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $53.00 to $55.00 in a report on Friday, January 22nd. Jefferies Financial Group lifted their target price on U.S. Bancorp from $55.00 to $66.00 and gave the stock a “buy” rating in a report on Friday. Finally, Odeon Capital Group upgraded U.S. Bancorp from a “hold” rating to a “buy” rating in a report on Wednesday, March 24th. Six investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus price target of $54.28. Read more …

 


Magellan Midstream Partners (NYSE:MMP) was upgraded by research analysts at Wolfe Research from an "underperform" rating to a "peer perform" rating in a report issued on Wednesday, Analyst Ratings Network reports. The firm currently has a $45.00 price objective on the pipeline company's stock. Wolfe Research's price target points to a potential upside of 0.56% from the stock's current price.

MMP has been the topic of several other research reports. Morgan Stanley raised their price objective on shares of Magellan Midstream Partners from $55.00 to $58.00 and gave the company an "overweight" rating in a research report on Monday, March 29th. TheStreet lowered Magellan Midstream Partners from a "b-" rating to a "c+" rating in a research note on Friday, March 12th. Truist cut Magellan Midstream Partners from a "buy" rating to a "hold" rating and set a $44.00 price objective for the company. in a report on Tuesday, February 16th. JPMorgan Chase & Co. reissued a "neutral" rating and set a $50.00 price objective on shares of Magellan Midstream Partners in a report on Thursday, March 18th. Finally, TD Securities cut their target price on Magellan Midstream Partners from $50.00 to $47.00 and set a "buy" rating for the company in a research note on Wednesday, February 3rd. Eleven research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company's stock. Magellan Midstream Partners currently has a consensus rating of "Hold" and a consensus target price of $48.68. Read more …

 

 


Lowe’s Companies (NYSE:LOW) was upgraded by equities researchers at Atlantic Securities from a “neutral” rating to an “overweight” rating in a note issued to investors on Wednesday, The Fly reports. The firm currently has a $240.00 price objective on the home improvement retailer’s stock. Atlantic Securities’ target price would indicate a potential upside of 20.17% from the company’s previous close.

LOW has been the topic of a number of other reports. Zelman & Associates raised Lowe’s Companies from a “hold” rating to a “buy” rating in a report on Friday, February 12th. Loop Capital upped their target price on Lowe’s Companies from $195.00 to $220.00 and gave the company a “buy” rating in a research report on Monday. Gordon Haskett upgraded Lowe’s Companies from an “accumulate” rating to a “buy” rating and set a $202.00 price objective on the stock in a research report on Wednesday, March 3rd. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell started coverage on Lowe’s Companies in a report on Monday, March 15th. They set a “buy” rating and a $195.00 target price for the company. Finally, Royal Bank of Canada lifted their target price on Lowe’s Companies from $203.00 to $206.00 in a report on Thursday, February 25th. Four analysts have rated the stock with a hold rating and thirty have issued a buy rating to the company. The stock has a consensus rating of “Buy” and an average price target of $181.65. Read more …

Enbridge Inc: The Best 7%+ Yielding Energy Stock on the Market?

 

A High-Yield Energy Stock to Think About

 


In this day and age, not every income investor feels comfortable putting their money in the energy sector. After all, the price of energy commodities often goes on a roller-coaster ride. And since income investors tend to be risk-averse, that kind of volatility isn’t exactly appealing.

 

Still, there are energy stocks worth considering, even for the risk-averse income investor.

 

For instance, in November 2020, I told readers to consider Enbridge Inc (NYSE:ENB). I wrote, “If an investor purchases Enbridge stock today, there’s a good chance they will earn higher yield on cost in the years ahead.”

 

As it turns out, investors didn’t have to wait very long to earn a higher yield on cost.

 

On December 8, Enbridge declared a quarterly cash dividend of CA$0.835 per share, representing a 3.1% increase from its prior quarterly payout of CA$0.81 per share. The new dividend rate went into effect on March 1, 2021. (Source: “Enbridge Announces 2021 Financial Guidance, Increases Dividend, and Provides Update on Strategic Priorities,” Enbridge Inc, December 8, 2020.)

 

Better yet, ENB stock also gained some upward momentum. When I told readers to consider the company, it was trading at $29.08 per share. As of this writing, Enbridge stock is at $36.70. That’s a gain of more than 26%! And investors have been collecting bigger dividend checks than before, too.

 

Of course, that means for investors who didn’t get on board earlier, the stock is more expensive than before. However, if you look at what the company has been doing, you’ll see that ENB stock remains one of the best high-yield energy stocks on the market.

 

 

As an energy infrastructure company, Enbridge Inc operates through four main segments: Liquids Pipelines, Gas Transmission, Gas Distribution & Storage, and Renewable Power Generation.

 

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Is Texas Instruments Stock A Buy?

 


Texas Instruments Incorporated [NASDAQ: TXN] is an American technology company, which designs, manufactures, tests and sells analog and embedded semiconductors in industrial, personal electronics, automotive, communications equipment and other markets.

 

It operates in two segments:

 

Analog and

Embedded Processing.

 

It is often said that the history of Texas Instruments (TI) is very closely associated with the American electronics industry.

 

TI produced the world’s first silicon transistor in 1954, and the first transistor radio the same year. It was a TI engineer Jack Kilby who invented the first semiconductor integrated circuit in 1958, and introduced the first single-chip microcontroller (an assembly of electronic components, fabricated as a single unit onto one piece of silicon) in 1970, which helped fuel the modern electronics revolution.

 

TI also invented the hand-held calculator in 1967. The company, which traces its roots to Geophysical Service, a petroleum-exploration firm founded in 1930, is based in Dallas, Texas.

 

Long-term investors in Texas Instruments [NASDAQ: TXN] have reaped rich returns over the years.

 

TXN has been a major beneficiary of increasing automation of factories and automobiles and the same is reflected in its ballooning stock price.

 

Despite the economic wreckage caused by the pandemic, TXN has returned more than 265 percent over the last five years, which is mainly made up of capital gains, but also dividends. The stock gained 28% in 2020, and is up 4.5% this year.

 

 

Texas Instruments derives a larger portion of its revenue from manufacturers of industrial equipment, and as such, its earnings and forecasts to a certain extent serve as a broader guide of how the economy is performing.

 

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The 2 Best High-Yield Stocks for a Low-Yield World

  

Interest rates may be up, but they’re still historically low. The best high-yield stocks are far better investments. Here are two that stand out.

  


The benchmark 10-year Treasury bond yield spiked 90% higher in just the first three months of this year. That stratospheric leap took the rate on the bellwether bond all the way to … 1.75%. And these higher rates are filtering through the bond and fixed income markets.

 

Now, you can get about 0.75% on a two-year CD. The iShares iBoxx Investment Grade Corporate Bond ETF (LQD) now yields a whopping 2.72%. The yield on a AAA-rate 20-year municipal bond is all the way up to 1.5%. And get this: Rates are likely to move even higher over the rest of the year.

 

Rates like this could keep you in beer money for a year if you invest enough. Sure, after taxes and inflation you’ll probably lose money. But that’s the brave new world. It looks like these pathetic low rates on traditional fixed income investments are here to stay.

 

Fortunately, there are other places to find a decent yield and income, even in this low-rate world—namely, in high-yield stocks. Yields on certain income-paying securities are higher than they have been in a decade. While the S&P 500 is near all-time highs, many income-paying stocks took a beating during the pandemic and are still priced well below pre-pandemic levels.

 

 

Solid companies have maintained their dividends through the tumult. And yields are still sky high at these low prices. At the same time, businesses are recovering strongly, and prospects are likely to greatly improve as the vaccines unleash a full economic recovery.

 

You can still get safe and juicy yields in a low-yield world if you know where to look. Here are two of the best high-yield stocks.

 

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