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Showing posts from September, 2020

Despite Problems, Count on Kinder Morgan to Remain a Dividend Darling

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  An unyielding commitment to yield means that income seekers should hold KMI stock   Midstream energy player Kinder Morgan (NYSE:KMI) has a massive presence among North American natural gas pipeline operators. Because of the company’s size, there’s a safety factor that weighs in favor of long-term KMI stock holders.   Income seekers might view KMI stock as a fairly safe way to generate yield because of the stock’s generous dividend payouts.   On the other hand, the onset of the novel coronavirus created problems for the energy market.   Like other North American energy-sector firms, Kinder Morgan has been subject to the negative impact of Covid-19. In particular, reduced energy demand has weighed on the company as well as the KMI stock price.         With this in mind, prospective investors have every right to ask whether this energy infrastructure giant has been able to maintain its healthy dividend payouts. Plus, there’s the question of whether KMI stock

3 Big Dividend Stocks Yielding 7% — or More; Evercore Says ‘Buy

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  In the first half of 2020, many companies have cut back on their dividend payments, slashing or suspending them to conserve cash against the downturn. That trend appeared to reverse itself – or at least, to start to reverse itself – in August, when 13 companies announced dividend increases while only 2 announced cuts. Is this a signal that Q3 will show rebounding sentiment toward dividend and buyback policies? The recessionary pressure is easing; and dividends are a powerful attractor for cautious investors.   Looking at the current situation from Evercore ISI, market strategist Dennis DeBusschere believes the worse is over, saying, “[A] sharp drop in cash returns is unlikely [in 2h20.]” He believes that companies will continue, albeit slowly, to restore both dividends and buyback policies – but cautions that investors should not expect a return to pre-pandemic levels for until at least 2022.   “Though a recovery back to pre-pandemic levels is not likely for at least two year

Honeywell: An Industrial Stock Pivoting to New Opportunities

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  A proxy for the coming Internet of Things and software used in industrial settings     Just a few weeks ago, on Aug. 31, Honeywell International Inc. (NYSE:HON) joined the ranks of the Dow Jones Industrial Average (DJI), the index that is supposed to reflect the broader market of all stocks traded in the United States.   It's a prestigious move, but one that doesn't necessarily mean much to the share price. Three-month price chart, the stock got an immediate boost after Aug. 31 and then promptly got back to normal.   Honeywell describes itself in its 10-K for 2019 as a diversified technology and manufacturing company that "invents and commercializes technologies that address some of the world's most critical challenges around energy, safety, security, air travel, productivity and global urbanization."   Further, it states it is committed to becoming one of the world's top software-industrial companies. To that end, it has undergone some trans

15 Cheap Dividend Stocks Under $15

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  Many investors look at expensive stocks like Amazon.com (AMZN) or Google parent Alphabet (GOOGL), and they wonder why they should bother with an investment so pricey they can only buy one or two shares. Instead, they target cheap stocks they can buy for just $20, $15, $10 … or even less.   However, it's important to remember that one share worth $1,000 is really the same as 1,000 shares at $1 – it's just sliced up differently.   Still, it's undeniable that many investors simply aren't interested in shares that trade for hundreds or even thousands of dollars. That's particularly true for income-oriented investors, who see plenty of high-priced stocks like Amazon that don't even pay a penny in dividends.         If you're looking for cheap dividend stocks and frustrated by the lack of options, check out the following list of 15 picks under $15. All are cheap dividend stocks that offer 3% yields or better at current prices, and have a dece

Wall Street’s best performing analysts have a strong buy rating on these 6 dividend stocks

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  Dividend stocks are a critical part of an investor’s portfolio. They are also perfect for market volatility — because investors can reap returns even with choppy stock performance. However, knowing which dividend stocks to choose means taking note of both the company’s dividend yield and payout, as well as checking whether the stock itself represents a compelling investing opportunity. This is important because a healthy company is less likely to slash, or even suspend, its dividend payments.   One way to find quality dividend stocks is to see which stocks the analysts with the strongest stock picking skills are betting on.   TipRanks analyst forecasting service attempts to pinpoint Wall Street’s best-performing analysts. These are the analysts with the highest success rate and average return measured on a one-year basis — factoring in the number of ratings made by each analyst. This means you can pinpoint dividend stocks with the most bullish outlook, based on the latest rec

5 High Yield Dividend Stocks Selling Below Their Tangible Book Value

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  These 5 dividend stocks have average upside of 79% along with 7.7% yields, or 40% annual total returns over 2 years     Today I wanted to highlight five high-yield dividend stocks that also have a very cheap price. They sell well below the company’s tangible book value per share. In addition, the companies have low price-earnings (P/E) multiples.   Selling below tangible book value means that the stock is below shareholders’ equity after deducting intangible assets. Typically these assets are things like the value of patents and written up technology assets. It also includes things like goodwill (overpayments of fair value from prior acquisitions), as well as deferred expenses or charges.   This means that the value left is only tangible assets like real estate, cash, securities, loans, etc. Values can be put on these kinds of assets more easily than intangibles. In addition, all liabilities are deducted to determine the net tangible book value.   Therefore, if the hi

3 Big Dividend Stocks Yielding Over 8%; JMP Says ‘Buy’

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  From the end of March through the end of August, stocks had a tremendous runup to record high levels. The gains completely wiped out the losses from the mid-winter ‘coronavirus collapse,’ and it looked like we were in for a sustained run of good days. But all of that changed as September rang in. The market hit a bump, and has been undergoing a correction. The Nasdaq is down nearly 7%, and volatility has been high so far this month.   A new report from Canaccord's Tony Dwyer puts the situation into perspective by pointing out the major source of uncertainty: “In a true statement of the obvious,” he writes, “this is the most complicated election-year setup we could possibly have.” He goes on to note the four most important ‘unknown’ factors: how the voting will actually happen this year, and avoiding vote fraud; who will win the White House; if the Democrats will sweep the Federal level elections; and, if the loser will concede the contest without a dragged-out legal battle. T

Why Pfizer Is Seriously Mispriced

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  Pfizer trades with a valuation well off of its 10-year average     Shares of Pfizer (NYSE:PFE) have declined almost 7% since I last looked at the company in depth. Despite this weakness, I believe that the company has strong prospects for growth. The stock continues to offer a dividend yield that is superior to its long-term average while trading with a very low price-earnings multiple.   This article will examine why I think Pfizer remains a strong buy for investors looking for exposure to the health care sector.   Quarterly highlights   Pfizer reported second quarter earnings results on July 28. The company's revenue fell 11% year-over-year to $11.8 billion, but managed to top Wall Street analysts' estimates by almost $250 million. Adjusted earnings per share decreased by 2 cents, or 2.5%, to 78 cents. Analysts had expected lower numbers, as EPS was 12 cents higher than estimated. Currency was a 2% headwind to revenue and lowered adjusted EPS by 3%.   Le

3 Stocks To Buy Now For Growth & Dividends To Counter Low Bond Yields

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  The Nasdaq jumped through afternoon trading Tuesday, as it tries to fight its way back after it tumbled 10% in just three sessions. Many of the tech names that helped drive the Nasdaq to new records appeared ready for a breather, from Tesla (TSLA - Free Report) to Apple (AAPL - Free Report), and the ultra-fast sell-off could help things look less volatile as we head into election uncertainty.     The pullback wasn’t a total move out of tech. Instead, the institutions took home some profits on positions. Meanwhile, valuation worries and speculation about a bubble popping carry less weight when taking into account the current interest rate environment.   Don’t fight the Fed might come off as cliché. But it’s one of the primary reasons that the market has soared from its coronavirus lows in March. The Fed lowered its target rate to between 0 and 25 basis points in March, with Fed data putting the rate at 9 basis points right now, down from 160 bps or 1.60% in February and 2.3% i

3 “Perfect 10” Dividend Stocks Yielding at Least 5%

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  Assessing where the markets will go can sometimes seem like more art than science, and an arcane art at that. But the data is out there to make sense of the stock movements.   The TipRanks Smart Score is a perfect example. Scanning through the whole of the database, and assembling the information for every stock according to 8 categories known to predict future share performance, the Smart Score combines those categories into a single score that allows investors to see at a glance how the stock is likely to move in the coming year.   That score is given on a scale from 1 to 10, with low scores indicating likely underperformance of the broader market, and higher scores indicating overperformance. A perfect score, a 10, is a rare gift for a stock. It doesn’t necessarily mean that every factor aligns perfectly – but it does indicate a potentially bright future for the stock in question.         Today, we’ve pulled up three ‘Perfect 10’ stocks, which are also fine def

Is Philip Morris a Buy Following Another Dividend Increase?

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  Philip Morris gave investors another dividend increase, but is the stock a buy following a solid 3-month rally?   Philip Morris International (NYSE:PM) recently raised its dividend. This already high yielding stock has now given shareholders a dividend increase for more than a decade following its spinoff from Altria Group Inc. (NYSE:MO). Including when it was part of Altria, the dividend growth streak expands to more than five decades.   Does this increase and the income the stock provides make Philip Morris a buy, even following a 15% gain over the last three months? In this article, we will examine the company's most recent quarter, dividend and valuation to determine the answer.   Quarterly highlights   Philip Morris reported its second quarter earnings results on July 21. Revenue declined 13.6% year-over-year to $6.7 billion, but this wasn't as bad as feared as results were $110 million better than what was expected by Wall Street analysts. Earnings per s

10 Safe Hyper-Growth Blue-Chips For A Rich Retirement

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  Tech stocks have fallen into a correction that prudent investors new was inevitable. The most popular market darlings of recent months are now falling hard and fast.   While the S&P 500 and many tech giants remain extremely overvalued, blue-chips fitting any goal are always reasonably to attractively priced.   Today AMZN, OLED, TCEHY, ANTM, CSL, LCII, NSP, PBCT, LHX, and AVGO represent the 10 safest hyper-growth blue-chips retirees can trust.   AMZN and TCEHY are my highest conviction ideas, for reasons I explain in their deeper look videos.   These 10 hyper-growth blue-chips collectively yield 2.6%, are 14% undervalued, have long-term analyst growth forecasts of 19% CAGR and risk-adjusted expected returns of 17% CAGR, 5X that of the S&P 500. In a video I show exactly how to construct a sleep well at night retirement portfolio based on various risk profiles, that can withstand anything the pandemic, economy, or stock market can likely thow at us in the future.

4 High-Quality Bargains in an Uncertain Market

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  These undervalued wide-moat stocks earn low uncertainty ratings.   Stock investors have experienced quite the roller-coaster ride during the past week or so. Technology stocks took it on the chin. Tesla (TSLA) plummeted. And the Nasdaq sank 10% in just three trading days, putting it in correction territory.   Buckle up, investors: Market uncertainty will likely persist in the coming weeks, thanks to the pandemic, economic downturn, and upcoming election.   Given the uncertainty in the market, we went looking for stocks that we felt relatively certain about--they're high-quality and we expect them to remain so, we have high confidence in our fair value estimates of these names, and they're undervalued.   Specifically we screened for the following:   Wide moats: Firms with wide Morningstar Economic Moat Ratings have unmatched advantages that should allow them to fend off their competitors and outearn their costs of capital for the next 20 years. By their v

11 Top-Rated Utility Stocks to Buy Now

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  Utility stocks rarely thrill, but they're typically a source of generous income and more even-keeled returns. Consider these 11 picks.     While perhaps not as thrilling as the tech startups that make next-generation consumer electronics or fancy cloud computing tools, utility stocks still play a very important role in any well-rounded investment portfolio.   After all, the most dynamic technologies aren't worth anything if there isn't electricity to power them. In 2020, power is nearly as crucial as food and shelter to consumers – and in a digital economy, it's even more important for businesses.   That adds up to a strong baseline of reliable revenue, regardless of the ups and downs of the unemployment rate or consumer spending. And as a result, many low-risk investors find themselves drawn to utility stocks for the stability as well as the dividends typically paid out by this sector.         If you're interested in utilities for any of t

10 Blue-Chip Stocks Ideal for Any Investor

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  The large caps aren’t just safer but they can also provide surprisingly robust upside     Even in the best of circumstances, blue-chip stocks hardly inspire much enthusiastic attention, particularly among younger investors. Sure, they make up core holdings of our retirement funds. But as an individual play, many if not most people are angling for hot growth names, not necessarily industry giants. After all, you’re probably not going to get rich by betting on companies everyone knows about.   That sentiment is multiplied ten-fold during this novel coronavirus pandemic. Initially, virtually everything crashed at the onset of the crisis. But as Wall Street digested the dynamics of the new normal, the usual suspects – as in, the sexy high-fliers – stole most of the limelight. Not too many were excited about gambling on blue-chip stocks.   And that’s largely because electing blue chips is hardly what you call gambling. If you want to have your hundred-bagger potential, you can

Aflac: Buy This Undervalued, Accidently High Yielder

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  Even after a 64% rally off of its March lows, Aflac still offers a valuation and yield that compare very favorably to its historical averages     Whenever the market has a temper tantrum and decides to sell everything, it often throws out good stocks along with the bad. This can lead to a situation where the dividend yield is considerably higher than usual. This is what investors refer to as an accidently high yielder.   One excellent example of this is Aflac Inc. (NYSE:AFL). Shares of Aflac sold off along with the rest of the market in March as the Covid-19 pandemic spooked the market and resulted in dramatic selloffs in nearly every industry. Shares of Aflac have recovered somewhat from the lows, but the stock sits more than 30% off of the 52-week high.   While making a new 52-week high might not occur for sometime due to the uncertainty that remains in the market, Aflac's current yield is more than 50 basis points above its 10-year average.   This may not sound

Home Depot Inc: A Surprisingly Strong Dividend Stock

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  Up 20% Already…More to Come?     “Home Depot Inc Is Now a Top Pick for Dividend Investors”—that’s the title of an Income Investors article I wrote back in March. In that piece, I explained why Home Depot Inc (NYSE:HD) could be “a solid income opportunity.”   I hope you took advantage of that piece. Even though the U.S. economy took a major hit due to the COVID-19 pandemic—and the stock market had a major sell-off in March—Home Depot’s business has actually been firing on all cylinders. In fact, since that article was published on March 5, HD stock has surged 20.5%.   The best part is, the opportunity might not be over just yet. Although Home Depot stock is now more expensive than when I last wrote about it, its dividend growth potential remains as strong as ever.   You see, Home Depot’s founders started the business back in 1978 with the goal of building home improvement superstores larger than any of the competitors’ facilities. And they’ve indeed accomplished that,

Automatic Data Processing Could Be an Excellent Long-Term Buy

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  The company's most recent quarter was negatively impacted by Covid-19, but the stock offers a solid, safe yield     Automatic Data Processing Inc. (NASDAQ:ADP), the largest provider of business outsourcing solutions in the U.S., held up well during its most recent quarter. Given the number of jobs that have been lost over the last quarter to the Covid-19 pandemic, this is a surprising result. At the same time, Automatic Data Processing offers a yield higher than its historical average that is well protected by free cash flow.   Let's look closer at Automatic Data Processing to see why long-term investors should consider buying shares of the company now.   Company background, quarterly highlights and analysis   Automatic Data Processing is composed of two segments: Employer Services, which provides payroll and tax services, and Professional Employer Organization Services, which supplies all-inclusive human resources services to smaller companies. Employer Servi

5 Stable Dividend Stocks to Buy as Fixed Income Vanishes

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  Bond yields are at all-time lows, but these dividend stocks are stable alternatives   Income in the bond market is rapidly disappearing, and that’s a weird concept to try and wrap your head around.   For decades — centuries, even — investors around the world have bought fixed-income instruments for relatively risk-free income. The concept is simple. You give money to a government or corporate entity who turns around and pays you interest for lending that money to compensate for risk and time.   But this simple concept has been flipped on its head recently. Specifically, the “interest” part of the above fixed-income equation has gone out the window. Consider the following:   -The 10-year Treasury yield is around 0.6%. -The 30-year Treasury yield has plunged to all-time lows around 1.3%.   In other words, across the world, the income part of the fixed-income equation is rapidly disappearing. Weird, right?   Despite this, U.S. equities are still giving investor

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 e