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Showing posts from June, 2020

AT&T: A Higher-Than-Average Yield With Relative Safety

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For investors who want more than a bond yield, but without taking much risk AT&T Inc. (NYSE:T) is now among the stocks on the High-Yield Dividend Screener & High-Dividend Yield Stocks in Guru's Portfolios. This GuruFocus screener identifies stocks owned by the investing gurus and with a dividend yield of at least 4%. AT&T makes the cut on guru portfolios because it was owned by 20 of the investing giants at the end of the first quarter of 2020, and because its current yield is 6.97%. In its most recent 10-K, filed on Feb. 20, the company described its origins this way: “AT&T, formerly known as SBC Communications Inc. (SBC), was formed as one of several regional holding companies created to hold AT&T Corp.’s (ATTC) local telephone companies. On Jan. 1, 1984, we were spun-off from ATTC pursuant to an anti-trust consent decree, becoming an independent publicly-traded telecommunications services provider. At formation, we primarily operated in f

Coca-Cola’s 20 Billion Dollar Brands & Future Growth

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Coca-Cola (KO) has long been a favorite of income investors, due to its impressive history of dividend growth. Coca-Cola has increased its dividend for 58 consecutive years. It has one of the longest active streaks of annual dividend increases in the entire S&P 500 Index. Coca-Cola’s dividend history places it in rare territory. It is on the list of Dividend Aristocrats, an exclusive group of stocks in the S&P 500 Index with 25+ consecutive years of dividend increases. Coca-Cola is also a member of the Dividend Kings, an even more exclusive group of stocks that have raised their dividends for 50+ years in a row. The company maintains a positive outlook of future growth and possesses durable competitive advantages. Combined with its solid dividend yield and long track record of rising dividends over time, Coca-Cola is understandably held in high regard among income investors. When investors think of Coca-Cola, they often think of the company’s ubiquitous soda

3 Stocks to Bankroll Your Retirement

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When planning for retirement, many investors stock their portfolio with companies that offer a growing and generous dividend yield, but whose growth prospects fall somewhere between slim and none at all. People are living longer, increasing the threat that investors will outlast their retirement savings. In recent years, in fact, life expectancy has made a sizable leap forward, increasing by 5.5 years between 2000 and 2016, the fastest increase since the 1960s, according to the World Health Organization (WHO). As a result, what was once a perfectly acceptable investing approach may no longer be enough to fund your golden years. To offset the prospects of living longer and potentially running out of money, it's not a bad idea to layer an element of growth into your portfolio, helping to ensure that your nest egg will last as long as you do. With that in mind, investors would do well to consider adding these three stocks to help bankroll their retirement.

If You’ve Been Waiting, It’s Time To Buy AbbVie

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High-Growth Dividend Stock With Tailwinds, Does It Have Tailwinds I’m not going to lie. I like AbbVie (NYSE:ABBV). I like this stock very much. This is not the first time I have written about AbbVie it and I am sure it won’t be the last. For those who don’t know, AbbVie is a bio-pharma stock spun off of parent Abbot Laboratories (NYSE:ABT) about seven years ago. Abbott Laboratories is a best-in-breed play in the health care space and a prince of dividend payers, its offspring AbbVie is the same. If you’ve been waiting to buy this stock, for whatever reason, today is probably the day you should start pulling the trigger. Today’s news includes an upgrade for AbbVie from Atlantic Equities, not the first this month. Over the past three weeks, AbbVie has received 3 upgrades, 2 increased price targets, 1 bullish reiteration, and 1 new analyst initiated at BUY. Atlantic Equities raised the rating from neutral to overweight, a two-notch upgrade I might add, citing factors l

Hedge Funds' 25 Top Blue-Chip Stocks to Buy Now

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2020 has been a wild year for everyone: even blue-chip stocks and the "smart money" investors that hold them. Hedge funds ended 2019 with a record $3.32 trillion in assets under management (AUM). However, in 2020, volatility and a stock market led by only a narrow range of equities have damaged hedge fund returns and forced a number of investors to head for the exits. Just have a look at industry statistics. Hedge funds' collective assets under management fell 11% to $2.96 trillion in the quarter ended March 31, according to Hedge Fund Research. That's the first time AUM has fallen below $3 trillion since the third quarter of 2016. More than $333 billion in assets was wiped out by performance losses, while net outflows claimed another $33.3 billion. And yet hedge funds are still worth keeping tabs on. They command a vast pool of assets and have unparalleled resources for research. Heck, the best of the best can make a billion dollars in a single trade.

Walgreens: Ridiculously Cheap at Current Levels

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Just over a week ago, I highlighted several stocks I thought looked attractive based on their valuations and dividend yields relative to their historical averages. Of these names, Walgreens Boots Alliance (NASDAQ:WBA) was trading the furthest below its 10-year average valuation. The stock also offers a 4%+ dividend yield at the moment, which is nearly double the stock's average yield since 2010. A year-to-date share price decline of 28% has aided in realizing these figures. Quarterly highlights While I've already stated I am interested in the stock because of its valuation and dividend, Walgreens' most recent quarter was solid. Revenue grew 3.7% to $35.8 billion for the second quarter of fiscal 2020, beating analysts' estimates by $575 million. Excluding the impact of currency translation, revenue was higher by 4.1%. Adjusted earnings per share decreased 7.3% to $1.52, though this was 6 cents higher than Wall Street analysts were looking for. Earnings

5 Consumer Staple Dividend Stocks To Enrich Your Portfolio

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The novel coronavirus and the resultant social distancing have messed up the economy, thanks to travel restrictions, business shutdowns and major supply-chain bottlenecks. These hurdles weighed on corporate results of companies across several sectors in the recently-reported first-quarter earnings cycle. As the pandemic started hurting businesses around mid-March, the second quarter stands in an even worse position, with the results of many companies expected to be under pressure. Although bans are being lifted and businesses are gradually reopening, the constant rise in the number of cases has set in fears of a second wave of the crisis. And with no vaccine discovered yet, there is a lot of uncertainty surrounding the duration and severity of the virus. With so many qualms plaguing investors’ minds, dividend-paying stocks seem like a tempting option at the moment. Dividend Stocks From the Defensive Zone: A Win-Win Situation? Although companies across many sectors s

5 Cheap Growth Stocks With Attractive Dividend Yields

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These cheap growth-at-a-reasonable-price (GARP) stocks have huge upside potential with attractive yields When considering stocks to highlight today, I wanted to find five growth stocks that not only pay attractive dividends but also have above-average upside prospects. But to be interesting for this list, these growth stocks also have to be reasonably cheap using fundamental metrics. The idea is that you get the best of both worlds — a cheap purchase points and high expected returns. For example, the stocks I’ve honed in on here have expected earnings and/or free cash flow for the next year but still sell for less than sixteen to seventeen times earnings. In addition, the dividend yields are higher than average at 3% to 5%. So, in a sense, you get both a growth stock and a relatively cheap stock.   In fact, there is a term for this: GARP stocks (Growth At a Reasonable Price). You can Google the term “GARP stocks” and see what I mean. GARP Stocks, Their Price Tar

Grab 4 Solid Dividend Growth Stocks at a Bargain Price

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Dividend investing has been in vogue amid market volatility and near-zero interest rates. This is because dividend-paying securities are a major source of consistent income for investors to create wealth when returns from the equity market are at risk. Additionally, investors’ drive for income has raised demand for dividend stocks. In particular, the Fed has turned super dovish and hinted at no rate hikes through 2022. While there are several dividend stocks that could provide capital appreciation, honing in on stocks with a history of dividend growth leads to a healthy portfolio, with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields. Why Dividend Growth Investing Is Better? Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volati

Top Dividend Stocks For June

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The more you follow stocks, the harder it becomes to avoid the belief that you have an instinctive read on how the market will move next. The trouble is, everyone gets that feeling, but not everyone is a billionaire with a near-bottomless bank account – which means you need more than gut feelings to make money on your investments.   So much of the way that stocks are covered concerns the daily ups and downs of share prices, but that’s not the only way to make money in the market. In fact, unless you have the time to be a day trader, it’s entirely impractical – and potentially very costly – to trade solely based on daily share prices.   If you want to avoid chasing trends but also want to make money this year instead of a decade from now, dividends might be just what you’re looking for. However, there’s more to dividends than just finding the biggest payoff – you want to be sure that the companies you invest in will be paying dividends in the long term.   That’s

7 Dividend Stocks On the Highway to the Danger Zone

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Investors are scrambling for income now that savings rates have evaporated; just be careful where you look for it. Some dividends aren’t what they appear. Back in the late 1990s when the dotcom boom was in full bull mode, a common refrain among brokers asserted “growth is the new income.” These days, you could say that income is the new income. People are looking for growth and income for either some security over the long term — rather than pure growth stocks — or, they’re looking to move some cash out of bank accounts and CDs that barely have yields at this point. Either way, there are some solid dividend paying stocks out there; I’m finding plenty of exciting contenders for my Growth Investor Buy List. But these are not those stocks. These are stocks that face significant fights to stay afloat in some cases and to save their dividends in others. The outbreak of novel coronavirus has many companies stuck between their shareholders and a hard place. “Rese

8 Dividend Aristocrat Stocks to Buy Now

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Here are the best dividend stocks to buy in a risky environment After the big shock in March, many investors are still looking for defensive stocks to buy now. Of course, in the most extreme example, you can elect to go all into cash. However, history has proven that to be the worst thing to do. Instead, this is a good time to consider dividend aristocrats. First, market uncertainty incentivizes stable dividend stocks to buy now. How so? Passive-income generating companies typically perform better than high-flying growth names during bearish phases. For one thing, investors can still collect their payouts even if their portfolio isn’t doing too well. Moreover, organizations that have a history of consistent payouts tend to be levered toward secular or otherwise steady industries. And there’s no better paragon of stability than dividend aristocrats. For those who are unfamiliar with the term, dividend aristocrats have three main requirements: they must be equities

UPS Is Undervalued Based on Its Above-Average Yield

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The company's yield is much higher than its long-term average. With no dividend cut likely, this could mean the stock offers an opportunity for a strong return Aside from reviewing a company’s most recent earnings report, one item I like to consider before making an investment is how the current dividend yield compares to the long-term historical average. I often use both the five and 10-year averages to see if shares are over- or undervalued based on the yield. If the company can’t provide earnings per share guidance, then using the dividend yield can be another way to value a stock. One company that is trading with a dividend yield above both its five and 10-year averages is United Parcel Services Inc. (NYSE:UPS). On April 28, UPS, which is the largest integrated air and ground package delivery carrier in the world and trades with a market capitalization of nearly $93 billion, reported mixed first-quarter earnings results. Revenue grew 5.1% to $18 billion, bea

Is It Time to Buy Altria Stock?

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With the COVID-19 pandemic turning everyone’s routines inside out and demonstrators taking to the streets day after day to protest racism and police violence, the stress levels in the United States are surging. If there was ever a time a person might want to light up a cigarette, this is it. Does that mean this might also be the time to invest in tobacco stocks? It seems that the answer is maybe not, if you look at the price trends for Altria Group Inc. (NYSE: MO). Shares dropped to $30.54 on March 23, when the stock market plunged because of the COVID-19 pandemic. Like many stocks, the price has come back but has not regained its levels from earlier this year. After trading close to $50 a share throughout January, Altria is now in the low 40s, closing at $42.72 on Friday. Instead of spiking upward since March, the stock has risen somewhat then stayed fairly stable. This has drawn the attention of Stifel analyst Christopher Growe, who points out that Altria, based i

AbbVie Is A Buy For High-Yield Dividend Growth

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There’s More Than One Reason To Love This Stock AbbVie (ABBV) keeps popping up on my radar and for good reason. The company is a rapidly growing dividend payer with robust dividend growth in the outlook. With the Allergan takeover recently completed and a pipeline flush with new treatments, growth in both revenue and dividends should range in the double digits over the next few years. Based on the charts, I’d have to say the market agrees with me. Up roughly 50% from its correction low, it looks like AbbVie shares are poised to retest and set a new all-time. AbbVie made headlines this morning that bode well for the future, the company announced a new collaborative effort in the search for COVID-19 treatments. The company will be working with Harbor Biomed, Utrecht University, and Erasmus Medical Center to develop an antibody treatment based on the fully-human COVID-19 antibody 47D11. The terms of the agreement obligate AbbVie to aid in the preclinical preparations for cl

Week's Most Significant Insider Trades: Week of June 1, 2020

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Disposals: Medtronic PLC (NYSE:MDT) SVP Carol A. Surface sold 2,000 shares of the stock in a transaction on Friday, May 29th. The shares were sold at an average price of $97.72, for a total value of $195,440.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through  this link . Shares of NYSE:MDT opened at $97.10 on Thursday. The company has a market cap of $130.33 billion, a P/E ratio of 21.19, a PEG ratio of 3.58 and a beta of 0.68. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.72 and a current ratio of 2.13. Medtronic PLC has a one year low of $72.13 and a one year high of $122.15. The business’s 50-day simple moving average is $97.48 and its 200 day simple moving average is $105.15. Read more … Southwest Airlines Co (NYSE:LUV) EVP Andrew M. Watterson sold 8,275 shares of the business’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $31.85, for a total value

Notable Analyst Upgrades and Downgrades for Week of June 1, 2020

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Upgrades: W W Grainger (NYSE:GWW) was upgraded by stock analysts at Longbow Research from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Tuesday, The Fly reports. Other equities analysts also recently issued research reports about the company. Robert W. Baird raised W W Grainger from a “neutral” rating to an “outperform” rating and cut their price objective for the company from $340.00 to $300.00 in a research report on Friday, March 27th. Morgan Stanley increased their price target on W W Grainger from $259.00 to $282.00 and gave the stock an “equal weight” rating in a research report on Wednesday, April 15th. Gordon Haskett downgraded W W Grainger from a “hold” rating to an “underperform” rating and dropped their price target for the stock from $313.00 to $278.00 in a research report on Tuesday, April 7th. Royal Bank of Canada dropped their price target on W W Grainger from $194.00 to $191.00 and set an “underperform” rati

7 High-Dividend Stocks With Durable Distributions

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The market's violent rebound since the March 23 lows has been a welcome relief for long-term shareholders and a boon for dip buyers. But one group of investors has actually been put out by the rally: income investors looking to put dry powder to work in high-dividend stocks. As the S&P 500 has crashed and recovered, its yield has whipsawed. The blue-chip index yielded roughly 1.8% to start 2020, jumped all the way to 2.3% as of March, and has dipped back below 2%. That might not sound like much, but remember: That's the average among 500 large-cap companies. The swings across the broader stock market have been much more pronounced, and several high-yield dividend opportunities have disappeared as a result. Several … but not all. Hundreds of high-dividend stocks still deliver payouts of more than 5%. The problem is that some of those dividends belong to distressed companies that might not be able to continue funding their ample cash distributions. One way

9 Best Dividend Stocks to Buy for Every Investor

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Dividend stocks can offer another tool for investment success Given the historic disruption that the novel coronavirus has imposed and now the nationwide protests for social equality, it’s admittedly difficult not to panic and dramatically change our investment strategies. First, what has inflamed tensions the most is the destruction of the labor market, with more than 40 million Americans losing their jobs since the pandemic shuttered the economy. Sadly, communities of color have disproportionately bore the brunt of this economic fallout. Later, the horrific killing of George Floyd, who was under police custody at the time, sparked nationwide protests. Nor was this an isolated incident as several racially charged events led up to Floyd’s death. It goes without saying that investors need to be selective with their funds. And that was a relevant sentiment prior to this crisis. Fortunately, with dividend stocks, investors have more margin of error due to their general

Looking For Dividend Growth? Here Are 5 Solid Picks

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Investors are once again in search for consistent and safe income in a near-zero interest environment, a series of drastic dividend cuts and rising U.S.-China tension. Nothing is better than dividend investing at this time. This is because investors can enjoy rising current income while anticipating capital appreciation irrespective of market conditions. While there are several dividend stocks that could provide capital appreciation, honing in on stocks with a history of dividend growth leads to a healthy portfolio, with greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields. Strong Dividend Growth Indicates Further Dividend Hike Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection wi