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Showing posts from February, 2021

9 Stocks With Surprisingly Reliable Special Dividends

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  Special dividends typically are one-time windfalls for investors. But a few companies regularly weave these payouts into their broader dividend strategy.   Regular dividends are the bread 'n' butter of income investing. But special dividends are the icing on the case.   Special dividends are one-time payouts that companies use in various situations. Some firms declare special distributions to share financial windfalls with investors after an asset sale or other unusual event. Such was the case during 2020 for Macquarie Infrastructure (MIC) and NortonLifeLock (NLOK). They're nice surprises for existing shareholders, but because the events triggering these payouts aren't likely to repeat, they're not a reason for new money to buy.   But some companies use special dividends much more frequently, using them as part of a conservative payout strategy that allows them to better reward shareholders during boom years without having to reduce regular payouts in

Notable Analyst Upgrades and Downgrades for Week of February 22, 2021

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  Upgrades:   The Charles Schwab (NYSE:SCHW) was upgraded by investment analysts at Wolfe Research from an "underperform" rating to a "market perform" rating in a research report issued on Monday, Price Targets.com reports. The firm presently has a $67.00 price objective on the financial services provider's stock. Wolfe Research's price target suggests a potential upside of 6.93% from the company's current price. SCHW has been the subject of a number of other reports. Wells Fargo & Company increased their price target on shares of The Charles Schwab from $60.00 to $70.00 and gave the stock an "overweight" rating in a research report on Wednesday, January 20th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised shares of The Charles Schwab from a "neutral" rating to a "buy" rating and increased their price target for the stock from $44.00 to $54.00 in a research report on Tuesday, Novembe

NextEra Energy Inc: A Boring Dividend Stock With Exciting Returns

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  Looking for Reliable Dividends? Read This   If you’re looking for reliable dividends, few sectors are worth checking out more than utilities. Known for its durable, recurring business model, the utilities sector has produced plenty of safe and rising income plays over the decades.   And sometimes investors get more than just dividend checks.   NextEra Energy Inc (NYSE:NEE), for instance, is an electric utility holding company headquartered in Juno Beach, FL. I featured the company in my paid advisory Income for Life back in April 2018. Since then, including automatic dividend reinvestment, NEE stock has delivered a total return of more than 100%.   NextEra Energy is the parent company of Florida Power & Light Company, which is the largest rate-regulated electric utility in the U.S. as measured by retail electricity produced and sold. Florida Power & Light serves more than 5.6 million customer accounts across Florida. (Source: “February/March 2021 Investor Pres

3 Hot Energy Stocks to Buy on the Dip

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  When it comes to energy stocks, it is important to choose the best opportunity   Wall Street has a tough time breaking old habits. Today we’re going to examine the opportunity with energy stocks.   Last year, major investors committed to being more Earth friendly and the concept of ESG investing took flight. Global shutdowns gave the environment a big break. Humans drastically reduced the use of fossil fuels. For one thing, air travel fell 90% and people stopped driving to work. Finally, telecommuting became a reality. Zoom (NASDAQ:ZM) is now a verb that we use often.   While the pandemic brought environmental relief, it decimated energy stocks. They are making a comeback, especially recently. From October lows, the sector rallied nonstop and as much as 50%.   My goal here is to restore some realism. Yes, energy’s breakout is real and shorting is not wise. But starting long now is getting in late. I’ve been bullish energy but only after corrections. When the experts h

Notable Analyst Upgrades and Downgrades for Week of February 15, 2021

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  Upgrades:   Albemarle (NYSE:ALB) was upgraded by investment analysts at Deutsche Bank Aktiengesellschaft from a "hold" rating to a "buy" rating in a research note issued to investors on Monday, The Fly reports. A number of other research analysts have also weighed in on the company. BMO Capital Markets raised their target price on Albemarle from $115.00 to $120.00 and gave the company an "outperform" rating in a report on Friday, November 6th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell lowered Albemarle from a "buy" rating to a "neutral" rating and raised their target price for the company from $132.00 to $175.00 in a report on Wednesday, January 6th. HSBC upgraded Albemarle from a "hold" rating to a "buy" rating and set a $121.00 target price on the stock in a report on Wednesday, October 21st. Argus raised their target price on Albemarle from $98.00 to $140.00 and gave the compa

CVS Stock Is Poised to Ride the Coming Managed Care Wave

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  With its pharmaceutical, diagnostic and insurance services, CVS stock will shine     Despite earnings that beat estimates, CVS Health (NYSE:CVS) remains in the market’s doghouse. Rich not, CVS stock is trading around $72. That’s a market cap of $92.5 billion on revenue of $268.7 billion.   Shares are selling for just over 6 times last year’s $15.9 billion in operating cash flow.   Investors are ignoring conservative guidance that it can keep up the pace.   The market is ignoring most value stocks like CVS, even with a 2.84% dividend Stocks: Understanding Their Benefits and Risks | InvestorPlace, because speculators believe all tech stocks are above average. It’s a fashion that will change as the marketplace separates winners from losers.   Meanwhile, I took profits in one of my favorite tech stocks and bought some CVS Health.   One thing the market is ignoring is America’s changing demographics. I’m the exact age of the average male baby boomer. I turned 66 last

The Best Dividend Stocks Today Could Also Double Your Money

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  There are two essential ways to make life-changing wealth from a stock.     You can profit in the long term as the company grows its bottom line and the stock price goes up. Or you can get that profit delivered right to your hand in the form of a quarterly check.     These are the best versions of growth and dividend investing. Many people think you have to choose whether to invest in growth or dividend stocks. But that’s a common “all or nothing” fallacy…   There are plenty of dividend stocks out there with growth prospects. And there are plenty of growth stocks that also pay nice dividends.     A great thing about the stock market is that you can own fast-growing companies that have dividend yields greater than the 10-year Treasury bond.   You can have the best of both worlds, and you do not have to sacrifice anything.     For example, today’s best dividend stocks are poised to capitalize on real estate and the budding renewable energy market.    

Is Cardinal Health Stock A Buy?

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  Cardinal Health Inc (NYSE:CAH) built a massive footprint through a series of mergers and acquisitions. It now sells medical products to nearly all U.S. hospitals. Despite its impressive growth, the company’s share price struggled to breakthrough, either before or after the pandemic hit.   It sold over $152.9 billion worth of products in the 2020 fiscal year, so as an investment opportunity is Cardinal Health stock a Buy?   What started as a food distribution business shifted to medical equipment and pharmaceuticals over the years. When the pandemic spread, management shifted priorities to invest in connected care and specialty business segments.   Healthcare isn’t a cheap business – everything the company sells must be approved by the Food and Drug Administration (FDA). Still, it manages to be one of the highest revenue-generating companies in the United States.   Can Cardinal Health continue generating those healthy revenues?   Cardinal Health Is A Drug & Dev

Notable Analyst Upgrades and Downgrades for Week of February 8, 2021

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  Upgrades:   Exxon Mobil (NYSE:XOM) was upgraded by analysts at Exane BNP Paribas from an "underperform" rating to a "neutral" rating in a report released on Monday, The Fly reports. Other equities research analysts have also recently issued research reports about the stock. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell increased their target price on shares of Exxon Mobil from $33.00 to $39.00 in a research note on Wednesday, December 9th. BNP Paribas raised shares of Exxon Mobil from an "underperform" rating to a "neutral" rating and set a $45.50 price target for the company in a research report on Monday. Mizuho assumed coverage on shares of Exxon Mobil in a research report on Tuesday, January 12th. They issued a "neutral" rating and a $49.00 price target for the company. Truist reissued a "hold" rating and issued a $39.00 price target (up previously from $36.00) on shares of Exxon Mobil in

3 Big Dividend Stocks Yielding at Least 9%; BTIG Says ‘Buy’

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  How important are dividends to a stock investor’s profits?   Speaking before the Financial Industry Regulatory Authority (FINRA) on October 15, 2007, investing guru John Bogle laid out the case:   “Over the past 81 years… reinvested dividend income accounted for approximately 95 percent of the compound long-term return earned by the companies in the S&P 500. These stunning figures would seem to demand that mutual funds highlight the importance of dividend income.”   So in other words, dividends are pretty important! Of course, right now the average stock on the S&P 500 is only paying about a 2% dividend yield, which isn’t a lot. If you want to do better than that, though, the REIT sector is a great place to begin your search for high-yield dividend stocks.   REITs are companies that acquire, own, operate, and manage real estate portfolios, usually some combination of residential or commercial real properties, or their associated mortgage loans and mortgage-bac

8 Dividend Stocks With a Decade of Dividend Increases

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  When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous strategy, as high-yield stocks almost always are higher-risk.   But the issue isn’t just the risk in high-yield stocks. It’s the opportunity cost of ignoring lower current yields from companies with better prospects to grow their profits – and their dividends.   After all, the best dividend stocks over time have been the ones that have posted years, and often decades, of dividend increases. One famous example is the investment by Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) into Coca-Cola (NYSE:KO). As Buffett pointed out in last year’s shareholder letter, Berkshire now receives just more than 50% of its original investment every year in Coke dividends.   But KO also shows a potential risk in dividend growth names: as the boilerplate investment disclaimer goes, past performance is not a guarantee of future results. General

ViacomCBS: Why Most Of The Easy Money Has Been Made

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  Almost a year ago, ViacomCBS (VIAC) stock collapsed to a 10-year low of $11 due to the coronavirus crisis. The market priced the stock for a disaster due to the impact of the pandemic on the advertising revenues and the movie business of the company. However, as ViacomCBS has exhibited fairly resilient business performance and has decent growth prospects ahead, its stock has nearly quintupled off its bottom.   It is also worth noting that ViacomCBS is a significant holding of Baupost Group, which is well-known for identifying undervalued stocks that have fallen out of favor in the investing community due to short-term headwinds. Nevertheless, due to the steep rally of the stock, investors should realize that most of the easy money has probably been made on the stock and hence they should wait for a more opportune entry point.   Business overview   ViacomCBS is an American multinational media conglomerate based in New York City. It was formed in late 2019 with the merger o

Notable Analyst Upgrades and Downgrades for Week of February 1, 2021

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  Upgrades:   Colgate-Palmolive (NYSE:CL) was upgraded by equities research analysts at Credit Suisse Group from an “underperform” rating to a “neutral” rating in a report released on Monday, Briefing.com reports. The firm currently has a $80.00 price target on the stock, up from their previous price target of $70.00. Credit Suisse Group’s price target suggests a potential upside of 2.56% from the stock’s current price. Other equities analysts have also issued reports about the stock. UBS Group lifted their price target on shares of Colgate-Palmolive from $85.00 to $90.00 and gave the stock a “buy” rating in a report on Monday, November 2nd. Stifel Nicolaus lowered shares of Colgate-Palmolive from a “buy” rating to a “hold” rating and set a $83.00 price target on the stock. in a report on Thursday. Royal Bank of Canada lowered shares of Colgate-Palmolive from an “outperform” rating to a “sector perform” rating and set a $90.00 price target on the stock. in a report on Monday, Jan

Disney Stock Has Some Upside With a Bigger Dividend

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  DIS stock is worth at 10% more than today's price, assuming its dividend comes back higher   Disney (NYSE:DIS) is likely to reach new highs once its earnings come out after the market closes on Feb. 11. DIS stock is down 3% year-to-date, but this downdraft could easily turn around after the earnings release.   The main reason is investors will see how powerful its over-the-top (OTT) streaming subscription services have become. For example, with 120 million subscribers the company is now the second-largest OTT subscription-based entertainment provide after Netflix (NASDAQ:NFLX). This includes Disney+ (which has been a huge success since it started last year, Hulu and ESPN).   Moreover, I believe Disney could announce a hike in their dividend per share. This is because it typically has jacked up the dividend more than once in 12 months.   Disney has not paid a dividend in the past year. The company previously cited Covid-19 (with little explanation as to why) and it

Four Dividend Kings to Buy and Hold – Forever

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  When I worked for Wall Street investment banks, friends would frequently ask me for stock tips, thinking I might have inside information they could trade on. I didn’t.   For my investments, I actually stayed with broad Index funds, because I had to report my holding regularly to an internal review committee   to make sure I wasn’t investing based on insider information.   Later I learned to focus on companies with a history of growing dividends. At least ten years of growing dividends was good (dividend champions). 25 years would be better (dividend aristocrats). But the most select list is that small set of quality stocks from companies that have paid a growing dividend for at least 50 years or longer, the Dividend Kings.   And for me, they must have a dividend reinvestment plan or DRIP that allows for a small monthly investment. That minimum investment could be as little as $10 a month, so anyone can get started.     Each of the stocks highlighted below fit the bill to

Is Aflac Inc. (AFL) A Buy?

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  An excellent dividend track record, solid balance sheet, nice operating model, good historical results, and bright forecasts for future growth makes the supplemental insurance giant worthy of your attention.   Aflac Inc. [NYSE: AFL] (American Family Life Assurance Company) is an American general business holding company. The company, through its subsidiaries, is involved in providing supplemental health and life insurance products to more than 50 million people in the United States and Japan.   Aflac is the leading provider of supplemental insurance at the worksite in the United States, selling voluntary supplemental insurance products for people who already have major medical or primary insurance coverage.   It is the largest foreign insurance company in Japan, insuring one in four households in Japan.   Aflac’s products include short-term disability, life insurance, critical illness, hospital indemnity, cancer expense, dental, accident, vision sickness and hospital