Should You Buy Enbridge (ENB) Stock for its 8% Dividend Yield?

 

Dividend stocks are popular among investors, as they provide a predictable stream of income as well as the opportunity to benefit via long-term gains. However, not every company that pays a dividend is a good investment. As dividend payments are not a guarantee, you need to analyze the financials of the company to deduce if it’s a good stock to hold.

 

One blue-chip Canadian stock is Enbridge (TSX:ENB) (NYSE:ENB) . This energy giant has a diversified base of cash-generating assets that has allowed it to increase dividends at an annual rate of 11% in the last 25 years.

 

In 2020, energy companies have been decimated due to COVID-19. This has meant Enbridge stock is trading 29% below its 52-week high, but it also provides investors with a tasty dividend yield of 8%. So, if you invest $5,000 in Enbridge stock today, you will generate $400 in annual dividend payments.

 

 

If the company increases these payouts at an annual rate of 5% over the next two decades, your dividends will increase to over $1,000 per year at the end of the forecast period. Further, you will also benefit from long-term capital gains, and we can see how quality dividend stocks can create substantial wealth for investors.

 

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Week's Most Significant Insider Trades: Week of November 23, 2020

 

Disposals:

 

Duke Energy Co. (NYSE:DUK) COO Dhiaa M. Jamil sold 3,500 shares of the business's stock in a transaction dated Friday, November 20th. The shares were sold at an average price of $92.63, for a total value of $324,205.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

Duke Energy stock traded up $0.75 during trading hours on Monday, hitting $93.33. The stock had a trading volume of 3,815,948 shares, compared to its average volume of 3,787,323. The company has a 50-day moving average of $93.03 and a two-hundred day moving average of $85.53. The company has a quick ratio of 0.33, a current ratio of 0.52 and a debt-to-equity ratio of 1.24. The company has a market cap of $68.14 billion, a PE ratio of 33.91, a price-to-earnings-growth ratio of 5.20 and a beta of 0.24. Duke Energy Co. has a fifty-two week low of $62.13 and a fifty-two week high of $103.79

Duke Energy (NYSE:DUK) last posted its quarterly earnings results on Thursday, November 5th. The utilities provider reported $1.87 EPS for the quarter, beating the consensus estimate of $1.79 by $0.08. The firm had revenue of $6.72 billion during the quarter, compared to analysts' expectations of $7.34 billion. Duke Energy had a return on equity of 8.28% and a net margin of 8.68%. The company's revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.79 EPS. As a group, analysts forecast that Duke Energy Co. will post 5.07 EPS for the current fiscal year. Read more ...

 

The TJX Companies, Inc. (NYSE:TJX) Chairman Carol Meyrowitz sold 77,892 shares of the business's stock in a transaction that occurred on Friday, November 20th. The stock was sold at an average price of $61.22, for a total value of $4,768,548.24. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

NYSE TJX traded up $1.12 on Monday, reaching $61.80. The company's stock had a trading volume of 8,248,813 shares, compared to its average volume of 8,232,387. The TJX Companies, Inc. has a 52 week low of $32.72 and a 52 week high of $65.14. The company has a current ratio of 1.51, a quick ratio of 1.02 and a debt-to-equity ratio of 1.17. The firm has a market cap of $74.10 billion, a PE ratio of 108.42, a price-to-earnings-growth ratio of 29.72 and a beta of 0.73. The business has a 50-day moving average price of $56.90 and a 200 day moving average price of $54.14.

The TJX Companies (NYSE:TJX) last released its quarterly earnings data on Tuesday, November 17th. The apparel and home fashions retailer reported $0.71 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.31. The TJX Companies had a return on equity of 13.62% and a net margin of 2.11%. During the same quarter in the prior year, the business earned $0.68 EPS. Analysts anticipate that The TJX Companies, Inc. will post 0.18 earnings per share for the current fiscal year. Read more ...

 

JPMorgan Chase & Co. (NYSE:JPM) EVP Marianne Lake sold 15,808 shares of JPMorgan Chase & Co. stock in a transaction that occurred on Tuesday, November 24th. The shares were sold at an average price of $120.01, for a total transaction of $1,897,118.08. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

JPM stock traded up $5.45 during midday trading on Tuesday, reaching $123.32. The stock had a trading volume of 18,847,579 shares, compared to its average volume of 19,997,709. The firm has a fifty day simple moving average of $105.22 and a two-hundred day simple moving average of $99.51. JPMorgan Chase & Co. has a 52-week low of $76.91 and a 52-week high of $141.10. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.88 and a current ratio of 0.88. The stock has a market cap of $375.90 billion, a PE ratio of 16.12, a P/E/G ratio of 2.68 and a beta of 1.15.

JPMorgan Chase & Co. (NYSE:JPM) last announced its quarterly earnings data on Monday, October 19th. The financial services provider reported $2.92 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.69. JPMorgan Chase & Co. had a return on equity of 10.85% and a net margin of 19.16%. The business had revenue of $29.90 billion for the quarter, compared to analyst estimates of $28.20 billion. During the same period in the prior year, the company earned $2.68 earnings per share. The company's revenue was up 4.0% on a year-over-year basis. On average, sell-side analysts predict that JPMorgan Chase & Co. will post 7.47 EPS for the current fiscal year. Read more …

 

 

Bristol-Myers Squibb (NYSE:BMY) EVP Rupert Vessey sold 13,421 shares of Bristol-Myers Squibb stock in a transaction on Monday, November 23rd. The stock was sold at an average price of $61.34, for a total transaction of $823,244.14. Following the sale, the executive vice president now owns 37,922 shares in the company, valued at $2,326,135.48. The sale was disclosed in a document filed with the SEC, which is available through this link.

BMY stock traded down $0.38 on Wednesday, hitting $62.84. 9,403,982 shares of the company were exchanged, compared to its average volume of 13,536,446. Bristol-Myers Squibb has a twelve month low of $45.76 and a twelve month high of $68.34. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.67 and a quick ratio of 1.58. The business’s fifty day moving average is $69.96 and its two-hundred day moving average is $80.55. The stock has a market capitalization of $143.05 billion, a price-to-earnings ratio of -574.68, a price-to-earnings-growth ratio of 1.07 and a beta of 0.67. Read more …

 

Notable Analyst Upgrades and Downgrades for Week of November 23, 2020

 

 

Upgrades: 

 

Rockwell Automation (NYSE:ROK) was upgraded by equities researchers at Morgan Stanley from an "equal weight" rating to an "overweight" rating in a report issued on Monday, The Fly reports. 

A number of other equities analysts also recently commented on the stock. Stephens initiated coverage on shares of Rockwell Automation in a research note on Thursday, October 15th. They issued an "equal weight" rating on the stock. William Blair reissued a "market perform" rating on shares of Rockwell Automation in a report on Wednesday, July 29th. Rosenblatt Securities lifted their target price on Rockwell Automation from $205.00 to $245.00 and gave the stock a "neutral" rating in a report on Wednesday, November 11th. Zacks Investment Research upgraded Rockwell Automation from a "hold" rating to a "buy" rating and set a $256.00 price target on the stock in a research report on Friday, November 13th. Finally, Berenberg Bank started coverage on Rockwell Automation in a research report on Thursday, August 20th. They issued a "buy" rating and a $270.00 target price on the stock. Four investment analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have issued a buy rating to the company. Rockwell Automation has a consensus rating of "Hold" and a consensus price target of $225.24. 

NYSE:ROK opened at $247.63 on Monday. Rockwell Automation has a 52 week low of $115.38 and a 52 week high of $267.48. The company has a quick ratio of 1.01, a current ratio of 1.31 and a debt-to-equity ratio of 1.81. The stock has a market capitalization of $28.77 billion, a PE ratio of 37.58, a price-to-earnings-growth ratio of 4.78 and a beta of 1.47. The stock's 50-day moving average price is $241.13 and its 200-day moving average price is $222.63. Read more ... 

 

American Electric Power (NASDAQ:AEP) was upgraded by equities researchers at Guggenheim from a “sell” rating to a “neutral” rating in a research report issued to clients and investors on Monday, Stock Target Advisor reports. 

Several other equities research analysts also recently issued reports on the company. Royal Bank of Canada lifted their price objective on American Electric Power from $94.00 to $98.00 and gave the stock an “outperform” rating in a report on Monday, October 26th. Wolfe Research lowered shares of American Electric Power from an “outperform” rating to a “peer perform” rating in a research note on Monday, November 16th. KeyCorp upped their price target on shares of American Electric Power from $96.00 to $97.00 and gave the company an “overweight” rating in a report on Monday, October 19th. BidaskClub lowered shares of American Electric Power from a “buy” rating to a “hold” rating in a report on Friday, November 6th. Finally, Morgan Stanley upped their target price on shares of American Electric Power from $106.00 to $108.00 and gave the company an “overweight” rating in a research note on Tuesday, November 17th. Two analysts have rated the stock with a hold rating and four have given a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $102.50. Read more ... 

 

Brookfield Infrastructure Partners (NYSE:BIP) (TSE:BIP.UN) was upgraded by investment analysts at Credit Suisse Group from an "underperform" rating to a "neutral" rating in a research note issued to investors on Monday, AR Network reports. The firm currently has a $50.00 price target on the utilities provider's stock, up from their previous price target of $43.00. Credit Suisse Group's price target points to a potential downside of 2.86% from the company's current price. 

BIP has been the topic of a number of other reports. Bank of America increased their price objective on shares of Brookfield Infrastructure Partners from $48.00 to $51.00 and gave the stock a "buy" rating in a research report on Friday, September 25th. Citigroup increased their price objective on shares of Brookfield Infrastructure Partners from $41.00 to $45.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 19th. Barclays upped their target price on shares of Brookfield Infrastructure Partners from $62.00 to $66.00 and gave the stock an "equal weight" rating in a research note on Monday, September 28th. BMO Capital Markets upped their target price on shares of Brookfield Infrastructure Partners from $47.00 to $48.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Finally, Zacks Investment Research downgraded shares of Brookfield Infrastructure Partners from a "buy" rating to a "hold" rating in a research note on Friday, November 13th. Five equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The stock currently has an average rating of "Buy" and a consensus target price of $53.83. Read more ... 

 

 

Chubb (NYSE:CB) was upgraded by equities researchers at Raymond James from an “outperform” rating to a “strong-buy” rating in a research note issued to investors on Tuesday, Analyst Ratings Network reports. The firm currently has a $180.00 price target on the financial services provider’s stock, up from their prior price target of $150.00. Raymond James’ price objective points to a potential upside of 20.78% from the stock’s current price. 

Several other equities analysts have also commented on CB. TheStreet upgraded shares of Chubb from a “c” rating to a “b-” rating in a research note on Thursday, October 29th. Bank of America upgraded shares of Chubb from an “underperform” rating to a “neutral” rating and increased their price target for the company from $123.00 to $132.00 in a research note on Thursday, October 29th. They noted that the move was a valuation call. The Goldman Sachs Group upgraded shares of Chubb from a “sell” rating to a “buy” rating and raised their target price for the stock from $120.00 to $163.00 in a research report on Tuesday, November 10th. Credit Suisse Group raised their target price on shares of Chubb from $144.00 to $152.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 3rd. Finally, Deutsche Bank Aktiengesellschaft raised their target price on shares of Chubb from $135.00 to $136.00 and gave the stock a “hold” rating in a research report on Thursday, October 29th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. Chubb presently has a consensus rating of “Buy” and an average price target of $149.29. Read more ... 

4 Big Dividends to Be Thankful For

 

Strong companies plus juicy payouts equals some great dividend stocks

 

Big dividends. And I mean really big dividends. Yields that are multiples of the average of the members of the S&P 500 Index. But big dividends are worthless if the companies behind them aren’t up to sustaining them, or if the dividend stocks aren’t working in the market. A dividend yield won’t be worth much to anything on dividend stocks that are lagging or tanking.

 

Investing for dividend income takes work researching companies — both their income statements and their balance sheets. As a former banker and bond guy — I have always been about balance sheets as just as important as income statements.

 

Income statements cover the revenues from products and services, and investors get all excited about growth expectations. But for me, it also comes down to operating margins. Sales are great, but not if a company loses more than what they generate in revenue. And of course, problems will happen. So, I look at what will happen to either impact sales or costs. And in turn, I work through how the company has or will cope.

 

 

Balance sheets are crucial, as without credit, even the best product idea won’t make for a great company that’s headed into receivership. And earlier this year with the Covid-19 mess including lockdowns, the status of companies — including their operations, their suppliers and customers — was critical to analyze. But so, too, was the debt and credit of the companies, so that they could power through even the worst parts of the Biblical plagues that might be striking their core businesses.

 

The following big dividend stocks have been vetted by me and I’ve been recommending them for some time. And that time includes both good and bad conditions — so the dividends are sustainable.

 

Continue reading …

 

2 Dividend Stocks To Buy Now To Build A Solid Income Stream For Retirement

 

If your investment goal is to build a solid cash stream for retirement, then holding some quality dividend stocks in your portfolio is a great idea.

 

In the dividend-paying segment of the market, one strategy worth focusing on is buying what some traders may view as boring, old-economy businesses, like consumer staples, key infrastructure providers, and banks and insurance companies.

 

Owning these stocks makes economic sense as well, especially for fixed-income investors looking ahead to the long-term. These publicly traded players pay dividends through thick and thin—whether markets are bullish or bearish and the economy is flourishing or struggling.

 

That's because their products and services are so crucial, consumers can’t imagine life without them. This key quality has turned these businesses into cash machines that never run out.

 

 

Here are our two top picks that offer great income potential for retirees:

 

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Aflac Looks Even More Attractive Following Massive Dividend Increase

 

Insurance company raised its dividend 18% and now offers a 3% dividend yield

  

Dividend Aristocrat Aflac Inc. (NYSE:AFL) recently increased its dividend by almost 18%. This is a massive increase, especially since the company has compounded its dividend at a rate of 6.6% over the last decade.

 

Shares of the company have increased 15.4% since I last looked at the company, but Aflac's stock continues to trade with a single-digit price-earnings multiple.

 

Let's dig deeper into the company to see why Aflac remains a buy following the most recent dividend increase.

 

Quarterly highlights

 

Aflac reported third-quarter earnings results on Oct. 27. Net earnings grew 217% to $2.46 billion. This included a $1.4 billion benefit resulting from deferred tax benefits due to U.S. tax regulations. Adjusting for this, earnings per share grew 23 cents, or 19.8%, from the previous year. This was also 25 cents ahead of Wall Street analysts' expectations. Revenue improved 2.3% year over year to $5.67 billion, which topped estimates by $162.8 million.

 

Aflac retired 10.9 million shares during the quarter at an average price of $36.70. Even accounting for this, adjusted earnings per share improved 15.2%. The company has another 110.9 million shares remaining on its repurchase authorization.

 

 

In U.S. dollars, Aflac Japan's net premiums decreased 2.3% to $3.2 billion as limited-pay products reached paid-up status. Total revenue was lower by 1.8% to $3.8 billion. Net investment income was higher by 0.6% and currency exchange improved results by 1%.

 

Continue reading …

 

Week's Most Significant Insider Trades: Week of November 16, 2020

 

Disposals:

 

Eastman Chemical (NYSE:EMN) CEO Mark J. Costa sold 7,938 shares of Eastman Chemical stock in a transaction on Monday, November 9th. The shares were sold at an average price of $90.23, for a total transaction of $716,245.74. Following the sale, the chief executive officer now directly owns 323,717 shares of the company’s stock, valued at approximately $29,208,984.91. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

NYSE:EMN traded up $2.94 on Tuesday, reaching $93.28. The stock had a trading volume of 23,112 shares, compared to its average volume of 1,234,278. Eastman Chemical has a 1-year low of $34.44 and a 1-year high of $93.10. The stock has a fifty day moving average price of $82.68 and a 200-day moving average price of $73.75. The company has a market capitalization of $12.24 billion, a P/E ratio of 26.11, a price-to-earnings-growth ratio of 5.00 and a beta of 1.50. The company has a quick ratio of 1.12, a current ratio of 1.98 and a debt-to-equity ratio of 0.89. Read more …

 

The Charles Schwab Co. (NYSE:SCHW) Chairman Charles R. Schwab sold 60,921 shares of The Charles Schwab stock in a transaction on Monday, November 16th. The shares were sold at an average price of $47.10, for a total value of $2,869,379.10. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.

Shares of The Charles Schwab stock traded up $0.30 during midday trading on Monday, hitting $46.30. The company’s stock had a trading volume of 577,279 shares, compared to its average volume of 11,941,968. The firm has a market capitalization of $59.28 billion, a P/E ratio of 21.30 and a beta of 1.13. The stock has a 50-day simple moving average of $39.23 and a 200-day simple moving average of $36.23. The company has a quick ratio of 0.30, a current ratio of 0.30 and a debt-to-equity ratio of 0.33. The Charles Schwab Co. has a 1-year low of $28.00 and a 1-year high of $51.65.  Read more …

 

Yum! Brands, Inc. (NYSE:YUM) insider Tracy L. Skeans sold 4,800 shares of the business’s stock in a transaction on Wednesday, November 18th. The stock was sold at an average price of $105.00, for a total transaction of $504,000.00. Following the transaction, the insider now owns 3,289 shares in the company, valued at $345,345. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Shares of YUM stock traded up $1.10 on Thursday, reaching $105.27. The company had a trading volume of 1,046,248 shares, compared to its average volume of 2,217,049. The stock has a market capitalization of $31.76 billion, a PE ratio of 31.61, a price-to-earnings-growth ratio of 2.49 and a beta of 0.93. Yum! Brands, Inc. has a one year low of $54.95 and a one year high of $107.62. The business’s 50-day moving average is $97.93 and its 200 day moving average is $92.47. Read more …

 

 

Archer-Daniels-Midland Company (NYSE:ADM) SVP Joseph D. Taets sold 30,000 shares of Archer-Daniels-Midland stock in a transaction on Monday, November 16th. The shares were sold at an average price of $50.15, for a total value of $1,504,500.00. Following the completion of the sale, the senior vice president now directly owns 190,554 shares of the company’s stock, valued at approximately $9,556,283.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

NYSE ADM traded down $0.39 during trading hours on Tuesday, hitting $50.02. The company had a trading volume of 26,867 shares, compared to its average volume of 3,123,858. The firm’s 50 day moving average is $48.83 and its 200 day moving average is $43.14. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.64 and a quick ratio of 1.01. Archer-Daniels-Midland Company has a fifty-two week low of $28.92 and a fifty-two week high of $52.05. The company has a market capitalization of $28.05 billion, a price-to-earnings ratio of 17.50 and a beta of 0.87. Read more …

 

Notable Analyst Upgrades and Downgrades for Week of November 16, 2020

 

Upgrades:

 

Bristol-Myers Squibb (NYSE:BMY) - Equities research analysts at William Blair cut their Q2 2021 earnings per share estimates for Bristol-Myers Squibb in a report released on Monday, November 16th. William Blair analyst M. Phipps now expects that the biopharmaceutical company will post earnings of $1.86 per share for the quarter, down from their prior estimate of $1.87.

Several other equities analysts also recently weighed in on the company. Sanford C. Bernstein reiterated a "market perform" rating and set a $72.00 target price on shares of Bristol-Myers Squibb in a research report on Tuesday, November 10th. Societe Generale upgraded Bristol-Myers Squibb from a "hold" rating to a "buy" rating and set a $76.00 target price on the stock in a research report on Monday. Raymond James reiterated a "buy" rating on shares of Bristol-Myers Squibb in a research report on Friday, September 25th. Cfra reiterated a "buy" rating and set a $70.00 target price on shares of Bristol-Myers Squibb in a research report on Sunday, July 26th. Finally, Morgan Stanley increased their target price on Bristol-Myers Squibb from $64.00 to $66.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 12th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have issued a buy rating to the company. Bristol-Myers Squibb has an average rating of "Buy" and a consensus target price of $73.69. Read more …

 

International Paper (NYSE:IP) was upgraded by research analysts at Smith Barney Citigroup from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Monday, The Fly reports.

Other analysts have also recently issued reports about the company. Argus cut International Paper from a “buy” rating to a “hold” rating in a report on Friday, August 21st. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised International Paper from a “neutral” rating to a “buy” rating in a report on Monday. BMO Capital Markets raised International Paper from a “market perform” rating to an “outperform” rating and lifted their price target for the stock from $40.00 to $53.00 in a report on Monday, October 12th. DA Davidson reaffirmed a “buy” rating on shares of International Paper in a report on Friday, July 31st. Finally, Morgan Stanley lifted their price objective on International Paper from $29.00 to $37.00 and gave the company an “underweight” rating in a report on Monday, October 26th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $45.42. Read more …

 

Chevron (NYSE:CVX)‘s stock had its “sector perform” rating reissued by research analysts at Royal Bank of Canada in a note issued to investors on Tuesday, Analyst Ratings Network reports. They currently have a $95.00 price target on the oil and gas company’s stock. Royal Bank of Canada’s price objective suggests a potential upside of 6.79% from the company’s previous close.

Other research analysts have also recently issued reports about the company. Piper Sandler cut Chevron from an “overweight” rating to a “neutral” rating and set a $108.00 target price for the company. in a research note on Monday, August 17th. Morgan Stanley decreased their price objective on Chevron from $108.00 to $105.00 and set an “overweight” rating for the company in a research report on Monday, October 19th. Scotia Howard Weill downgraded shares of Chevron from a “buy” rating to a “sector perform” rating and set a $121.00 target price on the stock. in a report on Thursday, September 24th. Credit Suisse Group reiterated an “outperform” rating and issued a $97.00 price target on shares of Chevron in a report on Tuesday, October 20th. Finally, Raymond James reiterated a “buy” rating on shares of Chevron in a report on Friday, October 30th. Eleven investment analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $107.28. Read more …

 

The Charles Schwab (NYSE:SCHW) was upgraded by analysts at Smith Barney Citigroup from a "neutral" rating to a "buy" rating in a note issued to investors on Tuesday, The Fly reports. The firm presently has a $54.00 price objective on the financial services provider's stock, up from their prior price objective of $44.00. Smith Barney Citigroup's target price would suggest a potential upside of 10.84% from the stock's previous close.

A number of other research firms have also commented on SCHW. Bank of America upped their price objective on shares of The Charles Schwab from $40.00 to $42.00 and gave the company a "neutral" rating in a research note on Friday, October 16th. Argus upped their price objective on shares of The Charles Schwab from $42.00 to $50.00 in a research note on Friday, October 16th. TheStreet raised shares of The Charles Schwab from a "c" rating to a "b-" rating in a research note on Thursday, October 8th. Deutsche Bank Aktiengesellschaft raised shares of The Charles Schwab from a "hold" rating to a "buy" rating and upped their price objective for the company from $43.00 to $53.00 in a research note on Wednesday, November 11th. Finally, Morgan Stanley upped their price objective on shares of The Charles Schwab from $51.00 to $65.00 and gave the company an "overweight" rating in a research note on Tuesday. Ten research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company's stock. The company has a consensus rating of "Hold" and an average target price of $46.75. Read more …

 

10 Stocks Warren Buffett Is Buying (And 11 He's Selling)

 

Berkshire Hathaway's chief continued his purge of bank stocks during the third quarter, but Warren Buffett also added six brand-new positions.

  

The stock market came roaring back during the third quarter, and Warren Buffett busied himself by adding and selling a number of stakes in Berkshire Hathaway's (BRK.B) portfolio.

 

The most notable theme of the three months ended Sept. 30 was the continuing saga of Berkshire's shrinking bank stocks. Buffett has been cutting the holding company's position in banks for multiple quarters, but he really doubled down in Q3. In just about every other case, the selling was just the trimming of a position, although Buffett did dump one stock in its entirety.

 

Most interesting, as always, is what Warren Buffett was buying. With the COVID-19 pandemic gripping the world, perhaps it shouldn't come as a surprise that Berkshire Hathaway added a handful of pharmaceutical stocks to its portfolio. Buffett also picked up a telecommunications company and a rare initial public offering (IPO).

 

We know what the greatest long-term investor of all time has been up to because the U.S. Securities and Exchange Commission requires all investment managers with more than $100 million in assets to file a Form 13F quarterly to disclose any changes in share ownership. These filings add an important level of transparency to the stock market and give Buffett-ologists a chance to get a bead on what he's thinking.

 

 

When Buffett starts a new stake in some company, or adds to an existing one, investors read into that as a vote of confidence. But if he pares his holdings in a stock, it can spark investors to rethink their own investments.

 

Here's the scorecard for what Warren Buffett was buying and selling during the third quarter of 2020, based on the most recent 13F that the company filed on Nov. 16. And remember: Not all "Warren Buffett stocks" are actually his picks. Some smaller positions are believed to be handled by lieutenants Ted Weschler and Todd Combs.

 

Continue reading …

 

5 Bank Stocks to Buy for the Covid-19 Vaccine Recovery

 

Thanks to favorable Covid-19 vaccine developments, the stage is set for bank stocks to rebound in a big way in 2021

 

 

Bank stocks popped big this week on the back of favorable Covid-19 vaccine news from Pfizer (NYSE:PFE). The general idea is that widespread distribution of a highly effective vaccine will spark a rapid economic recovery in 2021, and by extension, breathe life back into depressed bank stocks.

 

Over the past five days, the SPDR S&P Bank ETF (NYSEARCA:KBE) has rallied about 10%.

 

That’s a big move for the normally dormant and unexciting bank sector.

 

The analyst team over at Wells Fargo thinks that there is more to come. Much more.

 

“We advise getting aggressive on Banks despite Monday’s… run-up. In Banks we have historic valuations, significant scope for upside potential, an uncrowded opportunity, and catalysts in the form of fundamentally-driven reflation and near-term Covid solution(s),” analysts at Wells Fargo said in a recent research note.

 

I couldn’t agree more.

 

 

Bank stocks are dirt cheap today because the U.S. economy is in shambles. But that broken economy is recovering, with the recovery set to accelerate in 2021 thanks to an effective vaccine. As the economic recovery accelerates, dirt-cheap bank stocks will rally in a big way.

 

With that in mind, here are my five favorite bank stocks to buy to play the economic recovery:

 

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This “Forever Asset” Keeps Beating the Market

 

Norfolk Southern Corp. Is One Stock for the Next 100 Years

 

While tech names have stampeded ahead in the past few years, the best-performing stocks have been some of America’s oldest: “Forever Assets.”

 

Longtime readers have heard me use the term before. I coined it to describe an elite group of dividend stocks that have rewarded their shareholders not just for years or decades, but for generations.

 

You’ve probably heard of many of these companies: Coca-Cola Co (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and Procter & Gamble Co (NYSE:PG), to name a few. All these companies boast durable brand names and wide economic moats. As a result of their outsized competitive advantages, they’ve managed to consistently beat the broader market averages for years.

 

Their competitive advantages have also allowed these businesses to survive some of the worst economic downturns in living memory.  Thousands of businesses have shuttered since the turn of the century, but my collection of Forever Assets have managed to prosper through wars, depressions, crashes, inflation, and political turmoil.

 

And even during the current COVID-19 pandemic, most of these companies have carried on with business without so much as a hiccup in dividend payments to shareholders.

 

 

Case in point: Norfolk Southern Corp. (NYSE:NSC). Sure, railroads might seem like a 19th-century investment, but this industrial giant has a number of things going for it: a nearly irreplaceable asset, thick profit margins, and near-monopoly control over customers. Those inherent advantages have quietly made NSC stock one of the market’s best performers over the past decade. And investors have good reason to expect this Forever Asset to keep chugging along in the 21st century and beyond.

 

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High-Yield W.P. Carey Shows Its Strength

 

Quarterly results showed the trust is able to overcome Covid-19-related headwinds

 

Shares of W.P. Carey trade nearly 23% below their 52-week high. News that a vaccine for Covid-19 has shown promising results has given a lift to the entire market, but shares of W.P. Carey are higher by almost 10% since its quarterly results release, even beating the 7.5% gain of the S&P 500 index.

 

I continue to believe that W.P. Carey is one of the strongest REITs in the market place and can still be bought at a good valuation despite this return over the last two weeks. Let's look at the trust's most recent quarter to see why I believe the stock is an excellent candidate for purchase.

 

Recent results

 

W.P. Carey Inc. (NYSE:WPC) reported its most recent financial results on Oct. 30 for the period ending Sept. 30. The REIT's revenue fell 4.9% to $302.4 million, but this was $5.5 million better than Wall Street analysts had expected. Funds from operation improved 27 cents, or 24.8%, to $1.36, which was 26 cents above estimates.

 

While other REITs have seen their occupancy rates fall due to the ongoing pandemic, W.P. Carey has weathered the storm quite well. As of the end of September, 98.9% of the REIT's properties were occupied. This is higher than W.P. Carey's average occupancy rate of 98.4% since 2008.

 

 

The REIT's occupancy rates are likely to continue to remain high in the coming years as well. Only in two years this decade does W.P. Carey have leases set to expire that total more than 5% of its annual base rent (2024 and 2027). A majority of leases (54.3%) aren't scheduled to expire until after 2029.

 

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Notable Analyst Upgrades and Downgrades for Week of November 9, 2020

 

Upgrades:

 

C.H. Robinson Worldwide (NASDAQ:CHRW) was upgraded by research analysts at Smith Barney Citigroup from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Monday, The Fly reports. The brokerage presently has a $118.00 target price on the transportation company's stock, up from their prior target price of $100.00. Smith Barney Citigroup's target price indicates a potential upside of 26.00% from the company's previous close.

CHRW has been the subject of a number of other reports. Barclays raised C.H. Robinson Worldwide from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $95.00 to $115.00 in a research report on Friday, October 16th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised C.H. Robinson Worldwide from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $100.00 to $118.00 in a research report on Monday. Stifel Nicolaus downgraded C.H. Robinson Worldwide from a "buy" rating to a "hold" rating and boosted their price objective for the stock from $79.00 to $94.00 in a research report on Thursday, July 30th. They noted that the move was a valuation call. Stephens downgraded C.H. Robinson Worldwide from an "overweight" rating to an "equal weight" rating and lowered their price objective for the stock from $110.00 to $95.00 in a research report on Thursday, October 29th. Finally, Loop Capital downgraded C.H. Robinson Worldwide from a "buy" rating to a "hold" rating and set a $96.00 price objective for the company. in a research report on Thursday, July 30th. Four research analysts have rated the stock with a sell rating, eleven have issued a hold rating and six have assigned a buy rating to the company. The company presently has a consensus rating of "Hold" and a consensus target price of $90.67. Read more …

 

Albemarle (NYSE:ALB) was upgraded by equities research analysts at Smith Barney Citigroup from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Monday, The Fly reports. The firm presently has a $132.00 price objective on the specialty chemicals company’s stock, up from their prior price objective of $99.00. Smith Barney Citigroup’s target price would suggest a potential upside of 13.53% from the company’s current price.

Several other brokerages also recently weighed in on ALB. KeyCorp increased their target price on shares of Albemarle from $60.00 to $89.00 and gave the company an “underweight” rating in a research note on Friday. Berenberg Bank downgraded shares of Albemarle from a “hold” rating to a “sell” rating and increased their target price for the company from $65.00 to $68.00 in a research note on Monday, July 27th. Jefferies Financial Group increased their target price on shares of Albemarle from $81.00 to $100.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. BMO Capital Markets raised their price target on shares of Albemarle from $115.00 to $120.00 and gave the stock an “outperform” rating in a research note on Friday. Finally, Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised shares of Albemarle from a “neutral” rating to a “buy” rating and raised their price target for the stock from $99.00 to $132.00 in a research note on Monday. Six research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and eight have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $92.54. Read more …

 

Ventas (NYSE:VTR) was upgraded by stock analysts at Jefferies Financial Group from an “underperform” rating to a “hold” rating in a note issued to investors on Tuesday, Briefing.com reports. The brokerage presently has a $50.00 price target on the real estate investment trust’s stock. Jefferies Financial Group’s target price points to a potential upside of 6.72% from the company’s current price.

Several other equities analysts have also recently issued reports on the stock. Morgan Stanley upped their target price on shares of Ventas from $36.00 to $39.00 and gave the company an “equal weight” rating in a research note on Thursday, September 17th. Royal Bank of Canada upgraded shares of Ventas from a “sector perform” rating to an “outperform” rating and upped their target price for the company from $34.00 to $45.00 in a research note on Friday, August 14th. Barclays upped their target price on shares of Ventas from $37.00 to $42.00 and gave the company an “equal weight” rating in a research note on Wednesday, September 16th. Argus cut shares of Ventas from a “buy” rating to a “hold” rating in a research note on Tuesday, September 8th. Finally, Stifel Nicolaus restated a “hold” rating and set a $43.00 target price on shares of Ventas in a research note on Tuesday, September 1st. Five investment analysts have rated the stock with a sell rating, eleven have given a hold rating and two have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $39.31. Read more …

 

 

Chubb (NYSE:CB) was upgraded by The Goldman Sachs Group from a “sell” rating to a “buy” rating in a research note issued on Tuesday, Briefing.com reports. The brokerage presently has a $163.00 price target on the financial services provider’s stock, up from their previous price target of $120.00. The Goldman Sachs Group’s price objective would suggest a potential upside of 10.90% from the company’s current price.

Several other research firms also recently weighed in on CB. William Blair upgraded Chubb from an “underperform” rating to a “market perform” rating in a research report on Monday, July 20th. Bank of America upgraded Chubb from an “underperform” rating to a “neutral” rating and lifted their price objective for the company from $123.00 to $132.00 in a report on Thursday, October 29th. They noted that the move was a valuation call. Zacks Investment Research downgraded Chubb from a “hold” rating to a “strong sell” rating and set a $97.00 price objective for the company. in a report on Wednesday, September 30th. JPMorgan Chase & Co. upgraded Chubb from a “neutral” rating to an “overweight” rating and set a $152.00 price objective for the company in a report on Monday, October 12th. Finally, Deutsche Bank Aktiengesellschaft lifted their price objective on Chubb from $135.00 to $136.00 and gave the company a “hold” rating in a report on Thursday, October 29th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and ten have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $145.31. Read more …

 

7 High-Yield Dividend Companies to Invest in During the Pandemic

 

Following a crazy year, consider these sturdy high-yielding companies to invest in for some stability

 

It’s been a volatile year for investors in general. And nowhere has that been more true than in high yield dividend stocks.

 

In March and April, there was a massive number of companies that slashed or entirely suspended their dividends. This year has been a period of devastation for income-focused investors, particularly in sectors like real estate investment trusts (REITs). And while things have gotten better since this spring, we’re still seeing more dividend cuts and profit warnings even now.

 

That makes stock selection of the utmost importance. So, which current high-yield dividend stocks will be able to make it through the current downturn and come out stronger on the other side?

 

 

When looking for dividends of 5% a year or greater, you’re going to have to sort through a lot of value traps and low-quality companies. Fortunately, though, these seven companies have what it to takes to prosper as the economy comes back to life. Here are seven high yield companies to invest in now:

 

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7 Industrial Stocks to Reconstruct Your Portfolio for 2021

 

Although industrial stocks haven't gotten much love this year, that could change going into the new year

  

Industrial stocks continue to claw back their losses, although the sector has not been as robust as some other areas of the market. The sector is still 10.6% below its prior 2020 highs. Those were set in the first quarter of the year, before the novel coronavirus rattled the market.

 

For what it’s worth, that’s about average vs. the other industries and the overall market. The S&P 500 is down 7.3% from its highs, although it was able to set new highs even after the pandemic selloff.

 

When considering the other 10 S&P 500 sectors, the industrial sector is in the top six when it comes to how far off its highs it is. With five sectors below it, the Industrial Select Sector SPDR ETF (NYSEARCA:XLI) is in the middle of the pack.

 

When it comes to performance though, it’s in the bottom half.

 

Over the past year, industrial stocks have lost over 4%. That’s better than three other groups. However, it lags seven other sectors, three of which have generated double-digit returns in that time.

 

 

In the end, though, that doesn’t matter. Industrial stocks have been around for centuries and they will be around for centuries more. Let’s look at seven industrial stocks that are worth buying now.

 

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Week's Most Significant Insider Trades: Week of November 2, 2020

 

Disposals:

 

Dominion Energy, Inc. (NYSE:D) Chairman Thomas F. Farrell II sold 50,000 shares of the stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $81.49, for a total transaction of $4,074,500.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink.

NYSE:D traded up $1.32 during trading hours on Monday, hitting $81.66. 3,279,020 shares of the stock traded hands, compared to its average volume of 3,992,305. The company has a market cap of $68.61 billion, a price-to-earnings ratio of 110.35, a price-to-earnings-growth ratio of 6.14 and a beta of 0.36. Dominion Energy, Inc. has a 1 year low of $57.79 and a 1 year high of $90.89. The stock has a 50 day moving average price of $80.01 and a 200 day moving average price of $79.88. The company has a quick ratio of 0.46, a current ratio of 0.64 and a debt-to-equity ratio of 1.30. Read more …

 

Accenture plc (NYSE:ACN) Chairman David Rowland sold 8,723 shares of the company’s stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $220.42, for a total transaction of $1,922,723.66. Following the completion of the sale, the chairman now directly owns 13,903 shares in the company, valued at $3,064,499.26. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink.

David Rowland also recently made the following trade(s):

On Monday, October 19th, David Rowland sold 10,938 shares of Accenture stock. The shares were sold at an average price of $229.30, for a total transaction of $2,508,083.40.

ACN traded up $5.52 during midday trading on Tuesday, reaching $225.71. 1,544,034 shares of the company were exchanged, compared to its average volume of 2,391,294. The company’s fifty day moving average price is $226.70 and its 200 day moving average price is $214.34. The company has a market cap of $142.92 billion, a price-to-earnings ratio of 28.53, a price-to-earnings-growth ratio of 2.70 and a beta of 1.06. Accenture plc has a one year low of $137.15 and a one year high of $247.82. Read more …

 

Caterpillar Inc. (NYSE:CAT) General Counsel Suzette M. Long sold 3,687 shares of Caterpillar stock in a transaction dated Friday, October 30th. The shares were sold at an average price of $155.00, for a total value of $571,485.00. Following the transaction, the general counsel now directly owns 10,549 shares in the company, valued at approximately $1,635,095. The transaction was disclosed in a legal filing with the SEC, which is available through this link.

Shares of Caterpillar stock opened at $155.23 on Thursday. The stock has a market capitalization of $84.06 billion, a P/E ratio of 25.83, a PEG ratio of 2.42 and a beta of 0.99. The company has a quick ratio of 1.08, a current ratio of 1.54 and a debt-to-equity ratio of 1.74. The stock has a 50 day moving average price of $156.65 and a two-hundred day moving average price of $135.76. Caterpillar Inc. has a 12-month low of $87.50 and a 12-month high of $171.26. Read more …

 

 

Dover Co. (NYSE:DOV) VP Anthony K. Kosinski sold 4,203 shares of Dover stock in a transaction on Tuesday, November 3rd. The shares were sold at an average price of $116.31, for a total value of $488,850.93. Following the completion of the transaction, the vice president now owns 986 shares in the company, valued at approximately $114,681.66. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Shares of NYSE:DOV traded up $2.29 during trading on Tuesday, hitting $117.16. The company’s stock had a trading volume of 624,569 shares, compared to its average volume of 930,578. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.00 and a current ratio of 1.47. Dover Co. has a fifty-two week low of $62.95 and a fifty-two week high of $120.26. The stock’s 50-day moving average price is $111.79 and its two-hundred day moving average price is $102.49. The company has a market capitalization of $16.55 billion, a PE ratio of 25.47, a PEG ratio of 1.73 and a beta of 1.38. Read more …

 

Notable Analyst Upgrades and Downgrades for Week of November 2, 2020

 

Upgrades:

 

Cardinal Health (NYSE:CAH) was upgraded by investment analysts at Barclays from an “equal weight” rating to an “overweight” rating in a note issued to investors on Monday, Anlyst Ratings reports. The brokerage presently has a $57.00 price target on the stock. Barclays‘s price objective suggests a potential upside of 24.48% from the company’s current price.

Other research analysts have also issued reports about the company. Morgan Stanley upped their price objective on Cardinal Health from $59.00 to $61.00 and gave the company an “equal weight” rating in a report on Friday, August 7th. UBS Group reduced their target price on Cardinal Health from $65.00 to $64.00 and set a “buy” rating on the stock in a report on Monday, August 10th. Bank of America increased their target price on Cardinal Health from $61.00 to $63.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. Guggenheim raised Cardinal Health from a “neutral” rating to a “buy” rating in a report on Monday, July 20th. Finally, Zacks Investment Research raised Cardinal Health from a “hold” rating to a “buy” rating and set a $48.00 target price on the stock in a report on Thursday. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and seven have given a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $58.90. Read more …

 

McKesson (NYSE:MCK) was upgraded by stock analysts at Barclays from an “equal weight” rating to an “overweight” rating in a research report issued on Monday, AnalystRatings.net reports. The firm currently has a $166.00 price objective on the stock. Barclays‘s price objective would indicate a potential upside of 12.55% from the stock’s previous close.

Several other equities research analysts have also commented on the stock. ValuEngine upgraded shares of McKesson from a “strong sell” rating to a “sell” rating in a research note on Monday, October 19th. Zacks Investment Research downgraded shares of McKesson from a “hold” rating to a “sell” rating and set a $161.00 price objective on the stock. in a research report on Thursday, July 16th. Credit Suisse Group raised their price objective on shares of McKesson from $160.00 to $162.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 4th. JPMorgan Chase & Co. raised their price objective on shares of McKesson from $187.00 to $198.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 4th. Finally, Guggenheim raised their price objective on shares of McKesson from $168.00 to $175.00 and gave the stock a “buy” rating in a research report on Wednesday, July 8th. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and eleven have issued a buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $178.00. Read more …

 

GlaxoSmithKline (NYSE:GSK) was upgraded by Liberum Capital from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, The Fly reports.

Several other brokerages also recently issued reports on GSK. Societe Generale reiterated a “buy” rating on shares of GlaxoSmithKline in a research report on Friday, September 18th. Berenberg Bank began coverage on GlaxoSmithKline in a research note on Tuesday, September 29th. They issued a “buy” rating for the company. AlphaValue raised shares of GlaxoSmithKline to a “buy” rating in a report on Tuesday, September 1st. JPMorgan Chase & Co. reiterated a “neutral” rating on shares of GlaxoSmithKline in a research report on Wednesday, October 21st. Finally, Morgan Stanley reaffirmed an “underweight” rating on shares of GlaxoSmithKline in a research note on Friday, October 9th. Four equities research analysts have rated the stock with a sell rating, three have issued a hold rating and seven have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus target price of $41.00. Read more …

 

 

 

Intel (NASDAQ:INTC) was upgraded by stock analysts at The Goldman Sachs Group from a “sell” rating to a “neutral” rating in a research note issued to investors on Wednesday, The Fly reports. The firm presently has a $38.00 target price on the chip maker’s stock, down from their prior target price of $46.00. The Goldman Sachs Group’s price target would indicate a potential downside of 16.04% from the company’s previous close.

Several other equities analysts also recently commented on the stock. Needham & Company LLC reissued a “hold” rating on shares of Intel in a research report on Tuesday, July 7th. Bank of America downgraded shares of Intel from a “neutral” rating to an “underperform” rating and lowered their target price for the stock from $60.00 to $45.00 in a research report on Friday, October 23rd. SVB Leerink initiated coverage on shares of Intel in a research report on Friday, July 24th. They set a “hold” rating on the stock. Northland Securities raised shares of Intel from an “under perform” rating to a “market perform” rating and set a $46.00 target price on the stock in a research report on Monday. Finally, Roth Capital lowered their target price on shares of Intel from $55.00 to $50.00 and set a “neutral” rating on the stock in a research report on Friday, October 23rd. Eleven analysts have rated the stock with a sell rating, eighteen have issued a hold rating and sixteen have assigned a buy rating to the company. The stock has an average rating of “Hold” and an average price target of $57.69. Read more …