February 28, 2021

9 Stocks With Surprisingly Reliable Special Dividends

 

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 leaner times.

 

Stocks that follow this pattern attract income investors with the potent one-two punch created by a regular (and often rising) dividend supplemented by frequent special dividends. And importantly, these kinds of dividend stocks typically fly under many investors' radar. That's because financial databases don't consider the contribution from special dividends when calculating dividend yield; a company with a 1% yield might actually deliver 3% or 4% in annual income when accounting for these frequent one-time payouts.

 

 

Here are nine great dividend stocks that have a tendency of paying special dividends. They're a rare breed indeed, and they're worthy of a bit more attention than they typically get. Each has paid multiple special dividends in recent years, and most have a history of frequently increasing their regular payouts, too.

 

Continue reading …

 

February 26, 2021

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

 


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, November 17th. Morgan Stanley increased their price target on shares of The Charles Schwab from $71.00 to $76.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 10th. Bank of America raised shares of The Charles Schwab from a "neutral" rating to a "buy" rating and increased their price target for the stock from $52.00 to $68.00 in a research report on Tuesday, January 12th. Finally, Smith Barney Citigroup 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, November 17th. Five equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The company presently has an average rating of "Buy" and a consensus price target of $55.77. Read more …

 


The Southern (NYSE:SO) was upgraded by equities research analysts at Credit Suisse Group from a “neutral” rating to an “outperform” rating in a research report issued to clients and investors on Monday, Briefing.com reports. The firm currently has a $68.00 price objective on the utilities provider’s stock, up from their previous price objective of $61.00. Credit Suisse Group’s target price would indicate a potential upside of 14.65% from the company’s current price.

Other equities research analysts have also recently issued research reports about the company. Scotiabank raised The Southern from a “sector perform” rating to an “outperform” rating and raised their price objective for the company from $66.00 to $75.00 in a research note on Tuesday, December 15th. Mizuho raised their price objective on The Southern from $48.00 to $53.00 in a research note on Wednesday, October 28th. Barclays raised their price objective on The Southern from $61.00 to $73.00 and gave the company an “overweight” rating in a research note on Wednesday, November 18th. BMO Capital Markets started coverage on The Southern in a research note on Tuesday, November 24th. They issued a “market perform” rating and a $67.00 price objective for the company. Finally, Morgan Stanley reduced their price objective on The Southern from $57.00 to $56.00 and set an “underweight” rating for the company in a research note on Wednesday, January 20th. Three investment analysts have rated the stock with a sell rating, three have assigned a hold rating and ten have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $64.33. Read more …

 


Parker-Hannifin (NYSE:PH) was upgraded by analysts at Vertical Research from a "hold" rating to a "buy" rating in a research note issued on Monday, The Fly reports.

Other research analysts have also recently issued research reports about the stock. Jefferies Financial Group upped their price target on shares of Parker-Hannifin from $280.00 to $330.00 and gave the company a "buy" rating in a report on Friday, January 15th. BMO Capital Markets increased their target price on shares of Parker-Hannifin from $320.00 to $350.00 and gave the stock an "outperform" rating in a report on Friday, February 5th. Stifel Nicolaus increased their target price on shares of Parker-Hannifin from $320.00 to $343.00 in a report on Friday, February 5th. Morgan Stanley increased their target price on shares of Parker-Hannifin from $308.00 to $317.00 and gave the stock an "overweight" rating in a report on Friday, February 5th. Finally, Argus increased their target price on shares of Parker-Hannifin from $210.00 to $280.00 and gave the stock a "buy" rating in a report on Tuesday, November 10th. One analyst has rated the stock with a hold rating and fourteen have given a buy rating to the company. The stock has a consensus rating of "Buy" and a consensus target price of $275.86. Read more …

 

 


Texas Instruments (NASDAQ:TXN) was upgraded by analysts at Raymond James from a "market perform" rating to an "outperform" rating in a report issued on Tuesday, Briefing.com reports. The firm presently has a $220.00 target price on the semiconductor company's stock. Raymond James' target price indicates a potential upside of 27.10% from the stock's previous close.

Other equities analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. reissued a "buy" rating and issued a $200.00 price target on shares of Texas Instruments in a research note on Friday, February 5th. Deutsche Bank Aktiengesellschaft upped their target price on Texas Instruments from $150.00 to $170.00 and gave the stock a "hold" rating in a report on Wednesday, January 27th. Mizuho raised their target price on Texas Instruments from $162.00 to $175.00 and gave the company a "neutral" rating in a research note on Wednesday, January 27th. Cascend Securities increased their price objective on Texas Instruments from $175.00 to $190.00 and gave the stock a "buy" rating in a report on Friday, January 22nd. Finally, Morgan Stanley boosted their target price on shares of Texas Instruments from $154.00 to $162.00 and gave the company an "underweight" rating in a report on Wednesday, January 27th. Four research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and fourteen have issued a buy rating to the company's stock. The company has a consensus rating of "Hold" and an average price target of $165.71. Read more …

February 25, 2021

NextEra Energy Inc: A Boring Dividend Stock With Exciting Returns

 

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 Presentation,” NextEra Energy Inc, last accessed February 23, 2021.)

 

 

The electric utility business is certainly a good one to be in for a dividend play, but the reason for the rise in NextEra Energy stock likely had something to do with the company’s clean energy endeavors. You see, NextEra Energy Inc also owns NextEra Energy Resources, LLC, which, along with its affiliates, is the world’s largest generator of renewable energy from wind and solar. It’s also a world leader in battery storage.

 

Of course, if you’ve been following the stock market, you’d know that, after a massive bull run for the past year or so, clean energy stocks are now experiencing a pullback.

 


NEE stock was affected by this downward move, too. Since reaching a high of $86.87 per share on January 25, NextEra Energy stock has fallen by about 13.5% to $75.10. This could be a result of some profit-taking, or perhaps sentiment has started to change toward the sector.

 

But here’s the thing: from a dividend investor’s perspective, NEE is still an attractive ticker.

 

Continue reading …


February 22, 2021

3 Hot Energy Stocks to Buy on the Dip

 

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 hate them, that’s when I like them most. Now we have the exact opposite and the chase is weeks old.

 

If we ignore last April’s ridiculous negative low mark, crude oil prices are up 218% in less than a year. To chase now means a very long-term commitment. Therein lies the problem. The world is committed to using up less oil. This doesn’t support an out-of-control oil price.

 

The main part of my prior strategy was to own energy stocks for the fixed income. Thanks to loose global economic policies there is no reward to parking cash. U.S. bonds are the only major instruments that still have some yield. For the last two months, those rallied about 150%. The 10-year and the 30-year bonds now pay 1.3% and 2.05% respectively.

 

 

But even that pales in comparison to what stock dividends offer. Energy stocks are at the upper echelon of that group. However, I dislike chasing them for capital expansion. I’d rather miss whatever incremental upside occurs and catch them on the next dip.

 

Smart money bought energy stocks on prior dips. Here are three that meet that criteria:

 

Continue reading …

 

February 19, 2021

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

 


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 company a "buy" rating in a report on Friday, November 13th. Finally, Morgan Stanley raised their target price on Albemarle from $40.00 to $50.00 and gave the company an "underweight" rating in a report on Friday, November 6th. Seven research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eight have assigned a buy rating to the company's stock. Albemarle presently has a consensus rating of "Hold" and an average price target of $110.75. Read more …

 


Eaton (NYSE:ETN) was upgraded by equities research analysts at HSBC from a “hold” rating to a “buy” rating in a research report issued on Tuesday, The Fly reports.

Several other analysts also recently issued reports on the stock. Argus upped their price objective on shares of Eaton from $120.00 to $130.00 in a report on Thursday, December 10th. Robert W. Baird upped their price objective on shares of Eaton from $119.00 to $120.00 and gave the stock a “neutral” rating in a report on Tuesday, February 2nd. Royal Bank of Canada upped their price objective on shares of Eaton from $112.00 to $119.00 and gave the stock a “sector perform” rating in a report on Wednesday, February 3rd. They noted that the move was a valuation call. Barclays upped their price objective on shares of Eaton from $95.00 to $105.00 in a report on Thursday, November 5th. Finally, Bank of America raised shares of Eaton from a “neutral” rating to a “buy” rating and set a $135.00 price objective for the company in a report on Wednesday, November 11th. Seven investment analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Eaton has an average rating of “Buy” and a consensus price target of $118.00. Read more …

 


Southern Copper (NYSE:SCCO) was upgraded by equities researchers at Citigroup from a "sell" rating to a "neutral" rating in a report issued on Tuesday, Price Targets.com reports. The brokerage presently has a $70.00 price objective on the basic materials company's stock. Citigroup's price target points to a potential downside of 3.39% from the company's current price.

Other equities research analysts have also issued reports about the stock. Barclays started coverage on shares of Southern Copper in a report on Wednesday, January 6th. They set an "underweight" rating and a $54.00 price objective on the stock. UBS Group lowered shares of Southern Copper from a "buy" rating to a "neutral" rating and upped their price target for the company from $49.00 to $60.00 in a report on Wednesday, December 9th. Finally, HSBC lowered shares of Southern Copper from a "hold" rating to a "reduce" rating and set a $48.50 target price on the stock in a research note on Tuesday, December 1st. Fife investment analysts have rated the stock with a sell rating and four have assigned a hold rating to the company's stock. The stock has a consensus rating of "Sell" and a consensus target price of $46.39. Read more …

 

 


Bank of Montreal (NYSE:BMO) (TSE:BMO) was upgraded by equities research analysts at Scotiabank from a “sector perform” rating to a “sector outperform” rating in a report issued on Wednesday, Briefing.com reports.

Several other equities analysts also recently issued reports on the stock. Zacks Investment Research downgraded shares of Bank of Montreal from a “buy” rating to a “hold” rating in a report on Wednesday, February 3rd. BMO Capital Markets lifted their price target on shares of Bank of Montreal from $93.00 to $102.00 and gave the company a “sector perform” rating in a report on Monday, January 11th. Canaccord Genuity reiterated a “buy” rating on shares of Bank of Montreal in a research report on Wednesday, December 2nd. Royal Bank of Canada restated a “market perform” rating on shares of Bank of Montreal in a report on Wednesday, December 2nd. Finally, Barclays boosted their price objective on shares of Bank of Montreal from $88.00 to $96.00 and gave the company an “underweight” rating in a report on Tuesday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company. Bank of Montreal presently has an average rating of “Hold” and a consensus price target of $86.11. Read more …

February 18, 2021

CVS Stock Is Poised to Ride the Coming Managed Care Wave

 

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 month. I still feel good. I plan to keep working. But Father Time remains undefeated. This is true for my generation as it will be for yours.

 

While I can still get by on good genetics, that won’t always be the case. CVS Health and the health care system are going to help me toward that long dirt nap.

 

 

CVS got a one-time boost last quarter from COVID-19 testing but it has a secret sauce, which investors aren’t crediting it with. That’s Aetna, the health insurer it bought in 2018.

 

Continue reading …

 

February 17, 2021

The Best Dividend Stocks Today Could Also Double Your Money

 


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.

 

 

We have an equity investor with a growing tech portfolio, a renewable energy company growing profits 40% annually, and an opportunity to collect rent in the form of a dividend. 

 

Here’s that first one…


February 15, 2021

Is Cardinal Health Stock A Buy?

 


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 & Device Giant

Cardinal Health started as Cardinal Foods in 1971. It was a food wholesaler that earned enough on its bottom line to buy Baily Drug Company, and thereafter expanded into drug distribution. That led to its 1983 public offering and a long history of mergers and acquisitions.

 

 

After selling off its food business, this vertically integrated company expanded horizontally. It bought over a dozen companies to expand its drug and device manufacturing and distribution capabilities.

 

Today, it offers logistics, products, technology, and business services to nearly 90 percent of all U.S. hospitals. It also provides products to labs, pharmacies, specialty offices and clinics, and home healthcare.

 

Continue reading …

 

February 12, 2021

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

 


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 a research report on Monday, November 16th. Finally, Smith Barney Citigroup increased their price target on shares of Exxon Mobil from $33.00 to $39.00 in a research report on Wednesday, December 9th. Four analysts have rated the stock with a sell rating, sixteen have issued a hold rating and eight have assigned a buy rating to the company. Exxon Mobil has an average rating of "Hold" and a consensus price target of $48.40. Read more …

 


Air Products and Chemicals (NYSE:APD) was upgraded by equities researchers at Bank of America from a “neutral” rating to a “buy” rating in a note issued to investors on Monday, Briefing.com reports. The firm presently has a $305.00 price target on the basic materials company’s stock. Bank of America‘s price target indicates a potential upside of 20.48% from the stock’s previous close.

A number of other analysts have also issued reports on the company. Jefferies Financial Group lowered Air Products and Chemicals from a “buy” rating to a “hold” rating and lifted their price target for the stock from $307.00 to $324.00 in a research note on Thursday, January 7th. Deutsche Bank Aktiengesellschaft lowered their price target on Air Products and Chemicals from $315.00 to $300.00 and set a “buy” rating on the stock in a research note on Friday. Wells Fargo & Company lowered their price target on Air Products and Chemicals from $340.00 to $320.00 and set an “overweight” rating on the stock in a research note on Thursday, November 12th. Citigroup lowered Air Products and Chemicals from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $325.00 to $277.00 in a research note on Friday. Finally, Barclays reaffirmed a “buy” rating on shares of Air Products and Chemicals in a research note on Sunday. Six investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. The company has an average rating of “Buy” and an average target price of $295.69. Read more …

 


The Hershey (NYSE:HSY) was upgraded by Royal Bank of Canada from a "sector perform" rating to an "outperform" rating in a research report issued on Monday, Briefing.com reports. The firm currently has a $170.00 target price on the stock, up from their previous target price of $157.00. Royal Bank of Canada's price target would suggest a potential upside of 15.96% from the company's previous close.

Several other research firms have also recently weighed in on HSY. Morgan Stanley increased their price target on shares of The Hershey from $148.00 to $152.00 and gave the company an "equal weight" rating in a report on Monday, November 9th. Wells Fargo & Company lowered their price target on shares of The Hershey from $155.00 to $149.00 and set an "equal weight" rating on the stock in a report on Monday, November 9th. Smith Barney Citigroup initiated coverage on shares of The Hershey in a report on Monday, October 19th. They issued a "buy" rating on the stock. Bank of America raised shares of The Hershey from a "neutral" rating to a "buy" rating and set a $168.00 price target on the stock in a report on Wednesday, January 6th. Finally, Credit Suisse Group increased their price target on shares of The Hershey from $172.00 to $175.00 and gave the company an "outperform" rating in a report on Friday. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and eight have given a buy rating to the stock. The Hershey presently has a consensus rating of "Hold" and an average price target of $154.60. Read more …

 

 


Target (NYSE:TGT) was upgraded by Stifel Nicolaus from a "hold" rating to a "buy" rating in a research note issued on Monday, The Fly reports. The firm currently has a $225.00 price objective on the retailer's stock, up from their previous price objective of $200.00. Stifel Nicolaus' target price points to a potential upside of 19.14% from the stock's previous close.

A number of other research firms have also weighed in on TGT. Raymond James increased their target price on Target from $180.00 to $200.00 and gave the stock a "strong-buy" rating in a research note on Thursday, November 19th. MKM Partners upgraded Target from a "sell" rating to a "neutral" rating and increased their target price for the stock from $127.00 to $156.00 in a research note on Thursday, November 19th. Cowen increased their price target on Target from $190.00 to $230.00 and gave the stock an "outperform" rating in a research report on Thursday, January 14th. Morgan Stanley increased their price target on Target from $180.00 to $195.00 and gave the stock an "equal weight" rating in a research report on Wednesday, January 20th. Finally, Telsey Advisory Group increased their price target on Target from $190.00 to $225.00 and gave the stock an "outperform" rating in a research report on Thursday, January 14th. Five equities research analysts have rated the stock with a hold rating, seventeen have given a buy rating and three have issued a strong buy rating to the stock. The stock has an average rating of "Buy" and a consensus target price of $166.48. Read more …

February 9, 2021

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

 

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-backed securities. Tax law requires that these companies return profits directly to shareholders, and most of them choose dividends as their vehicle of choice for compliance, resulting in frequent high dividend yields across the sector.

 

The slowly ebbing COVID pandemic was hard on real estate managers, as tenants had trouble making rents and owners had trouble leasing vacant space. However, BTIG analyst Tim Hayes believes there are reasons to stay bullish on CRE properties specifically.

 

"While we recognize the headwinds to commercial real estate (CRE) fundamentals and the potential risk to equity/earnings power, we believe there are several reasons to be constructive, especially with the sector trading at a discount to historical levels and offering attractive dividend yields at wide spreads to benchmark rates," Hayes commented.

 

 

Against this backdrop, we’ve opened up the TipRanks database to get the latest stats on Hayes’ CRE choices. These are stocks that the analyst initiated Buy ratings on, pointing out their high dividend yield. We are talking about at least 9% here.

 

Continue reading …

 

February 8, 2021

8 Dividend Stocks With a Decade of Dividend Increases

 


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 Electric (NYSE:GE) was a Dividend Aristocrat until 2017, when it halved its dividend. GE stock has fallen 63%, and its dividend was slashed again to just a penny per quarter.

 

Yield favorite AT&T (NYSE:T) last month held its dividend flat for a fifth consecutive quarter after years of minimal growth. Financials like Bank of America (NYSE:BAC) ended dividend growth streaks during the financial crisis. A track record of dividend growth helps a bull case. It doesn’t alone create a bull case.

 

 

These eight dividend stocks, however, have a solid history, and a strong outlook to match. They should be on the list of every dividend growth investor.

 

Continue reading …

 

 

February 7, 2021

ViacomCBS: Why Most Of The Easy Money Has Been Made

 


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 of Viacom and CBS. ViacomCBS has been facing a strong headwind in its flagship businesses, such as MTV and Nickelodeon, which used to generate most of its revenues. Streaming providers, such as Netflix (NFLX), have become so popular that the traditional content providers like ViacomCBS have fallen out of favor.

 

 

Fortunately, ViacomCBS has begun to adjust to the streaming era, and as a result, investors now view the stock more favorably. In the most recent quarter, revenues decreased 9% and adjusted earnings per share fell 17% due to the impact of the pandemic on advertising revenues and theatrical revenue. However, ViacomCBS enjoyed 72% growth in the domestic subscriber count of its streaming business and 56% growth in its streaming and digital video revenues. Thanks to the strong momentum of this division, ViacomCBS is expected to report just a 15% decrease in its earnings per share in the full year 2020, with hopes for a return to growth in the future.

 

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February 5, 2021

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

 


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, January 4th. Truist lifted their price target on shares of Colgate-Palmolive from $80.00 to $85.00 in a report on Monday, October 26th. Finally, Morgan Stanley boosted their price objective on shares of Colgate-Palmolive from $80.00 to $82.00 and gave the company an “equal weight” rating in a report on Monday, November 2nd. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of $81.58. Read more …

 


Nucor (NYSE:NUE) was upgraded by analysts at Credit Suisse Group from a “neutral” rating to an “outperform” rating in a report released on Wednesday, Briefing.com reports. The firm currently has a $63.00 price target on the basic materials company’s stock, up from their previous price target of $48.00. Credit Suisse Group’s target price suggests a potential upside of 24.83% from the company’s previous close.

Other equities research analysts have also recently issued reports about the company. TheStreet upgraded Nucor from a “c” rating to a “b-” rating in a research note on Thursday, October 22nd. BMO Capital Markets lifted their target price on shares of Nucor from $50.00 to $54.00 and gave the stock a “market perform” rating in a research report on Friday, October 23rd. Exane BNP Paribas downgraded Nucor from an “outperform” rating to a “neutral” rating and set a $48.00 price target on the stock. in a report on Thursday, October 15th. Morgan Stanley started coverage on shares of Nucor in a report on Wednesday, December 9th. They set an “equal weight” rating and a $60.00 price target for the company. Finally, BNP Paribas downgraded Nucor from an “outperform” rating to a “neutral” rating and set a $48.00 price objective on the stock. in a report on Thursday, October 15th. Seven equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $49.90. Read more …

 


Comcast (NASDAQ:CMCSA) was upgraded by equities researchers at Cowen from a “market perform” rating to an “outperform” rating in a research note issued on Wednesday, Briefing.com reports. The firm presently has a $60.00 target price on the cable giant’s stock, up from their previous target price of $56.00. Cowen’s price objective would suggest a potential upside of 17.23% from the company’s current price.

CMCSA has been the topic of several other reports. Smith Barney Citigroup increased their target price on shares of Comcast from $52.00 to $54.00 in a report on Tuesday, November 10th. Barclays boosted their target price on Comcast from $53.00 to $56.00 and gave the company an “overweight” rating in a research note on Monday. Macquarie raised their price target on Comcast from $53.00 to $58.00 in a research report on Thursday, January 14th. TD Securities boosted their target price on Comcast from $58.00 to $59.00 and gave the company a “buy” rating in a research note on Monday. Finally, Pivotal Research increased their price objective on shares of Comcast from $60.00 to $63.00 in a research note on Thursday, January 28th. Seven analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the stock. Comcast has an average rating of “Buy” and a consensus price target of $53.29. Read more …

 

 


3M (NYSE:MMM) was upgraded by research analysts at Argus from a “hold” rating to a “buy” rating in a research report issued on Wednesday, The Fly reports.

A number of other analysts have also commented on the stock. TheStreet raised shares of 3M from a “c+” rating to a “b” rating in a report on Tuesday, October 27th. Credit Suisse Group decreased their price target on shares of 3M from $208.00 to $197.00 and set an “outperform” rating for the company in a report on Wednesday, January 27th. Gordon Haskett raised shares of 3M from an “underperform” rating to a “hold” rating and set a $170.00 price target for the company in a report on Wednesday, October 7th. Royal Bank of Canada reissued a “hold” rating on shares of 3M in a report on Sunday, January 24th. Finally, Bank of America lowered shares of 3M from a “neutral” rating to an “underperform” rating and set a $170.00 price target for the company. in a report on Thursday, January 7th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company’s stock. 3M presently has an average rating of “Hold” and a consensus target price of $178.58. Read more …

Disney Stock Has Some Upside With a Bigger Dividend

 

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 its desire to focus on direct-to-consumer (DTC) initiatives.  I believe at some point during 2021 they will relinquish and decide to pay the dividend again.

 

 

Moreover, as one analyst points out in Seeking Alpha, the company’s theme parks, a quarter of their revenues, should begin to reopen and normalize over the next year. This will act as another positive catalyst for DIS stock as those revenues return. Its parks are the largest theme and experience parks in the world and are hard to replicate. In the past, they have attracted 155 million visitors, with high prices. This is two-and-half times the next highest similar park system.

 

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February 3, 2021

Four Dividend Kings to Buy and Hold – Forever

 


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 make it easy to get started using their dividend reinvestment plan.

 

Start with the Dividend Kings, short list of stocks (of only 31 stocks) and you will be selecting from quality companies that will pay you a growing income.

 

There is no easier way to pick out a winning stock to hold for the long term than the limited number of stocks on the list of dividend kings.

 

 

What is a Dividend King? Dividend kings are a select list of stocks with 50 or more consecutive years of dividend increases, making this a rather exclusive list of companies worth investigating. This list was Initially created in 2010 by the guy who runs the Dividend Growth Investor website and newsletter. You can also find a complete list with up-to-date analysis of each stock in the list at SureDividend.com.

 

Dividend Kings include both mega corporations and smaller lesser-known companies. For dividend payout longevity and a stream of increasing dividend income, it would be hard to find a better place to start.

 

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February 1, 2021

Is Aflac Inc. (AFL) A Buy?

 

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 intensive care, to mention a few.

 

The company pays cash benefits directly to the policyholders when they have covered accident or illness. The company was founded in 1955 and is headquartered in Columbus, Georgia.

 

 

The company’s stock is not known for extreme volatility though the pandemic obviously was an exception. However, the company’s performance during the contagion has been pretty decent.

 

Aflac’s employees have been allowed to work from home, the company has increased benefits, not only for employees, but policyholders as well, and has granted zero-interest loans to agents and agencies in the US and Japan.

 

The company has been promoting virtual and digital sales, and it has seen an upswing in demand for its products.

 

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