March 31, 2021

Altria Group Inc: Safe 7% Dividend Yield & Rising Payouts

 

Altria Stock Has Raised its Dividends for 51 Consecutive Years

 


Some investors don’t like so-called sin stocks. The idea of investing in companies that make money from things like gambling, weapons, or alcohol is off-putting for some. But those who don’t mind that aspect and want to see a share price that rises and a high-yield dividend that grows quarter-after-quarter might want to put tobacco giant Altria Group Inc (NYSE:MO) on their radar.

 

Altria is the holding company behind venerable brands including “Marlboro,” “Copenhagen,” and “Skoal.” It also owns a 35% stake in JUUL Labs, Inc., the country’s leading e-vapor company, and an 80% interest in Helix Innovations LLC, the maker of an oral tobacco-derived nicotine pouch. (Source: “Corporate Profile,” Altria Group Inc, last accessed March 29, 2021.)

 

Altria Group is about more than just tobacco, though. The company has complemented its tobacco business with the ownership of Michelle Wine Estates and a 10.2% stake in beer company Anheuser Busch InBev SA (NYSE:BUD). Altria also made a $1.8-billion strategic investment in Cronos Group (NASDAQ:CRON), giving it a foothold in the legal cannabis industry.

 

That said, the vast majority of Altria Group Inc’s earnings come from U.S. tobacco sales. Following the breakup of Phillip Morris International Inc. (NYSE:PM) in 2008, Altria’s operations are based solely in the U.S. while Phillip Morris owns the rights to brands elsewhere.

 

 

Wine sales have been contributing more and more to Altria’s bottom line, and analysts believe the company’s recent acquisitions in the vaping and cannabis sectors will lead to increased earnings in the not-to-distant future.

 

Continue reading …

 

March 30, 2021

Digital Realty: Almost Time to Buy

 

A look at the company's recent quarterly results, dividend history and valuation

 


Shares of Digital Realty Trust Inc. (NYSE:DLR) have fallen more than 19% from the 52-week high, placing the stock on the doorstep of bear market territory. Digital Realty's results throughout last year were weaker in terms of funds from operation compared to the previous year, but not so much to warrant such a steep decline in a short period of time. In fact, the year-over-year declines were due to a much larger share count then any weakness in the trust's business.

 

Let's look at Digital Realty's most recent quarter and valuation to see why I find the stock more attractive as it declines.

 

Recent earnings results

 

Digital Realty reported fourth-quarter and full-year results on Feb. 11. The company produced revenue growth of 35% to $1.06 billion, which was $35.1 million ahead of Wall Street analysts' estimates. Much of the year-over-year growth was due to the acquisition of European cloud data center company Interxion that was completed on March 13, 2020. On a sequential basis, revenue improved 3.7%. Core funds from operations totaled $465 million, or $1.61 per share, compared to $355 million, or $1.62 per share, in the previous year. A 32% increase in the share count resulting from acquisitions was the reason behind the decline in funds from operations per share from the prior year. Funds from operations was 8 cents better than analysts had expected. The trust's portfolio occupancy rate improved 40 basis points to just over 90%, with all three regions showing at least 90% occupancy rates.

 

 

For 2020, revenue improved almost 22% to $3.9 billion. Core funds from operations totaled $1.7 billion, or $6.22 per share. This topped Digital Realty's guidance, but was a 6.5% decrease from the prior year. Once again, a higher share count was the culprit for the decrease.

 

Continue reading …

 

March 28, 2021

Week's Most Significant Insider Trades: Week of March 22, 2021

 


Disposals:

 


Visa Inc. (NYSE:V) Director Robert W. Matschullat sold 29,956 shares of the firm’s stock in a transaction that occurred on Thursday, March 18th. The stock was sold at an average price of $223.02, for a total transaction of $6,680,787.12. The transaction was disclosed in a document filed with the SEC, which is accessible through this link.

V opened at $208.00 on Tuesday. The company has a quick ratio of 1.91, a current ratio of 1.91 and a debt-to-equity ratio of 0.68. The stock’s 50 day moving average price is $212.23 and its two-hundred day moving average price is $206.40. The firm has a market capitalization of $406.08 billion, a P/E ratio of 42.62, a price-to-earnings-growth ratio of 3.80 and a beta of 0.96. Visa Inc. has a 12-month low of $133.93 and a 12-month high of $228.23.

Visa (NYSE:V) last posted its quarterly earnings data on Thursday, January 28th. The credit-card processor reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.14. Visa had a return on equity of 37.22% and a net margin of 49.74%. The company had revenue of $5.69 billion during the quarter, compared to analysts’ expectations of $5.52 billion. During the same period in the prior year, the business earned $1.46 earnings per share. Visa’s revenue for the quarter was down 6.1% compared to the same quarter last year. As a group, analysts anticipate that Visa Inc. will post 5.45 earnings per share for the current year. Read more …

 


Best Buy Co., Inc. (NYSE:BBY) CEO Corie S. Barry sold 10,855 shares of the stock in a transaction that occurred on Tuesday, March 23rd. The stock was sold at an average price of $119.03, for a total transaction of $1,292,070.65. Following the sale, the chief executive officer now owns 194,516 shares in the company, valued at $23,153,239.48. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.

 

Best Buy Co., Inc. (NYSE:BBY) COO Rajendra M. Mohan sold 8,640 shares of the business’s stock in a transaction on Tuesday, March 23rd. The shares were sold at an average price of $119.03, for a total transaction of $1,028,419.20. Following the sale, the chief operating officer now directly owns 147,329 shares of the company’s stock, valued at $17,536,570.87. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Rajendra M. Mohan also recently made the following trade(s):

On Tuesday, March 16th, Rajendra M. Mohan sold 4,261 shares of Best Buy stock. The shares were sold at an average price of $113.88, for a total transaction of $485,242.68.

Shares of Best Buy stock traded up $1.86 on Thursday, hitting $116.18. The company had a trading volume of 2,250,583 shares, compared to its average volume of 2,961,744. The business has a 50-day simple moving average of $112.27 and a 200-day simple moving average of $111.02. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.12 and a quick ratio of 0.55. The company has a market cap of $29.05 billion, a PE ratio of 17.37, a PEG ratio of 1.40 and a beta of 1.52. Best Buy Co., Inc. has a 52 week low of $51.71 and a 52 week high of $124.89. Read more …

 


Costco Wholesale Co. (NASDAQ:COST) VP Roland Michael Vachris sold 4,300 shares of the company’s stock in a transaction on Monday, March 22nd. The shares were sold at an average price of $334.30, for a total value of $1,437,490.00. Following the completion of the transaction, the vice president now owns 15,602 shares of the company’s stock, valued at $5,215,748.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

COST stock traded up $5.85 during mid-day trading on Tuesday, reaching $340.34. The company had a trading volume of 3,604,902 shares, compared to its average volume of 3,088,433. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.98 and a quick ratio of 0.53. The stock has a 50 day simple moving average of $339.90 and a two-hundred day simple moving average of $359.73. The company has a market capitalization of $150.61 billion, a price-to-earnings ratio of 34.94, a PEG ratio of 4.17 and a beta of 0.66. Costco Wholesale Co. has a 52 week low of $279.21 and a 52 week high of $393.15. Read more …

 

 


FedEx Co. (NYSE:FDX) VP John L. Merino sold 10,000 shares of the company's stock in a transaction that occurred on Monday, March 22nd. The stock was sold at an average price of $273.30, for a total value of $2,733,000.00. The sale was disclosed in a filing with the SEC, which can be accessed through this link.

NYSE:FDX traded down $7.21 during trading hours on Tuesday, reaching $266.81. 2,268,258 shares of the company's stock were exchanged, compared to its average volume of 2,691,275. The firm has a market capitalization of $70.80 billion, a price-to-earnings ratio of 29.47, a P/E/G ratio of 1.22 and a beta of 1.30. The company has a quick ratio of 1.71, a current ratio of 1.76 and a debt-to-equity ratio of 1.10. FedEx Co. has a 1-year low of $103.40 and a 1-year high of $305.66. The company has a 50-day moving average of $258.53 and a 200 day moving average of $263.05.

FedEx (NYSE:FDX) last posted its quarterly earnings results on Wednesday, March 17th. The shipping service provider reported $3.47 EPS for the quarter, beating the Thomson Reuters' consensus estimate of $3.21 by $0.26. The firm had revenue of $21.51 billion for the quarter, compared to analyst estimates of $19.90 billion. FedEx had a net margin of 3.28% and a return on equity of 18.65%. FedEx's revenue for the quarter was up 23.0% compared to the same quarter last year. During the same quarter last year, the firm posted $1.41 earnings per share. Research analysts forecast that FedEx Co. will post 17.24 EPS for the current fiscal year. Read more …

March 26, 2021

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

 


Upgrades:

 


Kansas City Southern (NYSE:KSU) was upgraded by equities researchers at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating in a research note issued to investors on Monday, Briefing.com reports. The firm presently has a $275.00 price objective on the transportation company’s stock. JPMorgan Chase & Co.‘s target price would indicate a potential upside of 22.68% from the company’s previous close.

A number of other brokerages have also weighed in on KSU. Morgan Stanley raised their price objective on Kansas City Southern from $142.00 to $200.00 and gave the company a “positive” rating in a research note on Monday, January 25th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell raised their price target on shares of Kansas City Southern from $220.00 to $250.00 in a research report on Monday, January 11th. Smith Barney Citigroup upped their price target on shares of Kansas City Southern from $220.00 to $250.00 in a report on Monday, January 11th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Kansas City Southern from $197.00 to $212.00 and gave the company a “hold” rating in a research note on Thursday, January 28th. Finally, BMO Capital Markets boosted their target price on shares of Kansas City Southern from $215.00 to $240.00 and gave the stock an “outperform” rating in a research report on Monday, January 25th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has an average rating of “Buy” and an average target price of $208.10. Read more …

 


Dollar General (NYSE:DG) was upgraded by research analysts at Atlantic Securities from a “neutral” rating to an “overweight” rating in a research note issued on Monday, Benzinga reports. The brokerage presently has a $243.00 price target on the stock. Atlantic Securities’ price target would suggest a potential upside of 29.41% from the stock’s previous close.

A number of other equities research analysts have also commented on DG. Deutsche Bank Aktiengesellschaft upgraded Dollar General from a “hold” rating to a “buy” rating and increased their price target for the stock from $214.00 to $241.00 in a research report on Tuesday, February 9th. Smith Barney Citigroup increased their price target on Dollar General from $235.00 to $250.00 in a research report on Friday, December 4th. KeyCorp decreased their price target on Dollar General from $235.00 to $220.00 and set an “overweight” rating on the stock in a research report on Friday. Royal Bank of Canada decreased their price objective on Dollar General from $239.00 to $206.00 and set an “outperform” rating on the stock in a research report on Friday. Finally, Morgan Stanley increased their price objective on Dollar General from $240.00 to $245.00 and gave the company an “overweight” rating in a research report on Monday, December 7th. Three research analysts have rated the stock with a hold rating, twenty have assigned a buy rating and two have issued a strong buy rating to the company. Dollar General presently has a consensus rating of “Buy” and a consensus price target of $228.16. Read more …

 


PepsiCo (NASDAQ:PEP) was upgraded by Barclays from an “equal weight” rating to an “overweight” rating in a note issued to investors on Monday, Briefing.com reports. The firm presently has a $151.00 price objective on the stock. Barclays‘s price objective would suggest a potential upside of 12.27% from the stock’s current price.

PEP has been the subject of a number of other reports. Deutsche Bank Aktiengesellschaft raised their price target on shares of PepsiCo from $143.00 to $148.00 and gave the stock a “hold” rating in a report on Wednesday, February 3rd. Wells Fargo & Company assumed coverage on shares of PepsiCo in a report on Monday, December 7th. They set an “equal weight” rating and a $157.00 price objective on the stock. Sanford C. Bernstein assumed coverage on shares of PepsiCo in a report on Tuesday, January 19th. They set an “underperform” rating and a $136.00 price objective for the company. Zacks Investment Research upgraded PepsiCo from a “hold” rating to a “buy” rating and set a $142.00 target price on the stock in a report on Friday, February 12th. Finally, Royal Bank of Canada cut shares of PepsiCo from an “outperform” rating to a “sector perform” rating and set a $153.00 price target on the stock. in a report on Monday, January 4th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, five have issued a hold rating, eight have given a buy rating and two have given a strong buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $146.53. Read more …

 

 


Texas Instruments (NASDAQ:TXN) was upgraded by equities researchers at Longbow Research from a "neutral" rating to a "buy" rating in a research note issued to investors on Tuesday, Briefing.com reports.

TXN has been the topic of a number of other research reports. Summit Insights upgraded Texas Instruments from a "hold" rating to a "buy" rating in a research report on Wednesday, January 27th. Jefferies Financial Group lifted their price target on Texas Instruments from $185.00 to $206.00 and gave the stock a "buy" rating in a research report on Wednesday, January 27th. Barclays boosted their price objective on Texas Instruments from $140.00 to $155.00 and gave the company an "underweight" rating in a research note on Tuesday, January 26th. They noted that the move was a valuation call. Royal Bank of Canada raised their target price on shares of Texas Instruments from $155.00 to $180.00 and gave the stock a "sector perform" rating in a research report on Wednesday, January 27th. Finally, Rosenblatt Securities upped their price target on shares of Texas Instruments from $175.00 to $200.00 and gave the company a "buy" rating in a research report on Wednesday, January 27th. Four investment analysts have rated the stock with a sell rating, nine have issued a hold rating and fifteen have given a buy rating to the company's stock. The stock presently has an average rating of "Hold" and a consensus target price of $167.78. Read more …

March 22, 2021

Walt Disney Co: Will Disney Stock Bring Back Its Dividend?

 

Don’t Ignore DIS Stock

 


 

Some income investors may have dropped Walt Disney Co (NYSE:DIS) from their radar. The reason seemed obvious: in May 2020, the company announced that it would not be paying the semiannual cash dividend for the first half of 2020. And in November, management decided not to pay a dividend for the second half of the year, either.

 

In other words, by itself, Disney no longer produces income for investors. But I believe the company still deserves attention. In fact, Disney stock remains one of the holdings in the model portfolio in my paid advisory Income for Life. I featured DIS stock in the newsletter back in 2015, and the model portfolio has not trimmed a single share.

 

There are several reasons why I’ve kept Disney stock in the model portfolio and don’t plan to change that anytime soon.

 

First, selling blue-chip stocks in a panic is usually not a good idea. Walt Disney Co’s dividend suspension was announced last May, when the market was yet to make a full recovery and DIS stock was trading well below its pre-COVID-19 levels. As it turned out, not panicking during a market panic pays off. Disney stock not only bounced back, but actually went on to soar to new heights.

 

 

Second—and long-term readers would know this—DIS stock wasn’t exactly a high-dividend stock to begin with. The company was paying semiannual dividends when every other stock in the Income for Life model portfolio was paying quarterly or monthly dividends. Its last semiannual payout of $0.88 per share did not translate to a high yield even when its stock price was lower—and it certainly wouldn’t be a high-yield stock at today’s prices. The model portfolio was well diversified, with plenty of higher-yielding companies with more frequent payouts, so we didn’t need to worry about Disney stock’s two missed payments a year.

 

Continue reading …

 

March 21, 2021

Four Dividend-Paying Retail Technology Stocks to Buy, Based on BoA Analysis

 


Four dividend-paying retail technology stocks to buy feature the best investment opportunities that emerged after BoA Global Research recently hosted virtual meetings and fireside chats with the leaders of 18 public companies in that sector.

 

The four dividend-paying   retail technology stocks to buy towered over the rest at a BoA Global Research Consumer & Retail Technology Conference on March 9-11 with companies gaining strength after thriving during the pandemic planning to keep growing market share. Rivals that struggled in 2020 due to macro trends expressed optimism about the economic recovery boosting their prospects, according to BoA.

 

Among the points of discussion at the event were the implications of reopening, the risk of inflation and a potential new investment cycle to spur transformation. Companies engaged in home-related categories seemed destined to become COVID-19 beneficiaries that likely would gain from increased consumer demand in early 2021.

 

Favorable tailwinds that could lift retail technology stocks include the $1.9 trillion federal stimulus recently passed by Congress, economic improvement and strong housing trends that could propel spending for home upgrades at higher-than-average levels in the medium term, according to BoA. The companies tend to have strong cash positions after “unprecedented sales growth” and are investing in areas to boost market share.

 

Company leaders in categories such as auto parts retailers that survived weak 2020 demand spoke positively about economic growth due to the improving pace of COVID-19 vaccine rollout, according to BoA. The investment firm forecast that some consumer spending would shift from goods to services in the second half of 2021.

 

 

Retail technology executives at the event addressed the prospect of inflation, with those from larger, well-capitalized companies emphasizing that pricing power comes with purchasing power. Thus, they can access product in categories where there are supply constraints and pass along the higher cost of freight and raw materials to the customer, according to BoA.

 

Continue reading …

 

March 19, 2021

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

 


Upgrades:

 


Dollar General (NYSE:DG) was upgraded by analysts at Atlantic Securities from a “neutral” rating to an “overweight” rating in a research note issued on Monday, Briefing.com reports. The firm presently has a $243.00 price objective on the stock. Atlantic Securities’ price target would suggest a potential upside of 26.59% from the stock’s current price.

A number of other analysts have also issued reports on the company. Barclays raised their target price on Dollar General from $220.00 to $245.00 and gave the company an “overweight” rating in a report on Friday, December 4th. Loop Capital raised shares of Dollar General from a “hold” rating to a “buy” rating and set a $260.00 target price on the stock in a research report on Tuesday, January 26th. Zacks Investment Research raised shares of Dollar General from a “hold” rating to a “buy” rating and set a $213.00 price target for the company in a report on Monday, February 22nd. Bank of America lowered shares of Dollar General from a “buy” rating to a “neutral” rating and set a $215.00 price target on the stock. in a research report on Thursday, February 25th. Finally, Raymond James upped their price objective on shares of Dollar General from $235.00 to $250.00 and gave the company a “strong-buy” rating in a research report on Friday, December 4th. Three equities research analysts have rated the stock with a hold rating, eighteen have issued a buy rating and two have given a strong buy rating to the company’s stock. Dollar General currently has a consensus rating of “Buy” and a consensus target price of $230.38. Read more …

 


Starbucks (NASDAQ:SBUX) was upgraded by BTIG Research from a “neutral” rating to a “buy” rating in a research report issued on Tuesday, Briefing.com reports. The brokerage currently has a $130.00 price objective on the coffee company’s stock. BTIG Research’s price target suggests a potential upside of 19.38% from the stock’s current price.

SBUX has been the subject of several other research reports. Telsey Advisory Group upped their price target on Starbucks from $102.00 to $108.00 and gave the stock a “market perform” rating in a research note on Wednesday, January 27th. Morgan Stanley increased their price target on Starbucks from $106.00 to $110.00 and gave the company an “equal weight” rating in a report on Wednesday, January 27th. Royal Bank of Canada boosted their price objective on shares of Starbucks from $109.00 to $115.00 and gave the stock an “outperform” rating in a research note on Thursday, December 10th. Credit Suisse Group raised their target price on shares of Starbucks from $114.00 to $116.00 and gave the company an “outperform” rating in a research note on Wednesday, January 27th. Finally, Wells Fargo & Company boosted their target price on shares of Starbucks from $116.00 to $120.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 27th. Eleven investment analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $103.25. Read more …

 


The Hershey (NYSE:HSY) was upgraded by equities research analysts at Piper Sandler from a "neutral" rating to an "overweight" rating in a note issued to investors on Wednesday, Briefing.com reports. The brokerage presently has a $175.00 price target on the stock, up from their prior price target of $147.00. Piper Sandler's target price suggests a potential upside of 14.01% from the stock's previous close.

A number of other research analysts also recently weighed in on the company. Jefferies Financial Group upped their target price on The Hershey from $157.00 to $162.00 and gave the stock a "hold" rating in a report on Tuesday, January 12th. Credit Suisse Group increased their price target on shares of The Hershey from $172.00 to $175.00 and gave the stock an "outperform" rating in a research note on Friday, February 5th. Royal Bank of Canada raised shares of The Hershey from a "sector perform" rating to an "outperform" rating and raised their target price for the company from $157.00 to $170.00 in a research note on Monday, February 8th. Finally, Bank of America raised The Hershey from a "neutral" rating to a "buy" rating and set a $168.00 price target on the stock in a research report on Wednesday, January 6th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and nine have assigned a buy rating to the stock. The company currently has a consensus rating of "Hold" and an average price target of $157.07. Read more …

 

 


McDonald's (NYSE:MCD) was upgraded by equities research analysts at Deutsche Bank Aktiengesellschaft from a "hold" rating to a "buy" rating in a note issued to investors on Wednesday, Briefing.com reports. The firm currently has a $244.00 target price on the fast-food giant's stock. Deutsche Bank Aktiengesellschaft's target price points to a potential upside of 10.98% from the company's previous close.

MCD has been the subject of a number of other research reports. UBS Group raised McDonald's from a "neutral" rating to a "buy" rating and boosted their price objective for the stock from $230.00 to $240.00 in a report on Monday, December 14th. Wedbush initiated coverage on McDonald's in a research note on Monday, January 4th. They issued an "outperform" rating and a $240.00 target price on the stock. Zacks Investment Research upgraded McDonald's from a "sell" rating to a "hold" rating and set a $218.00 price target on the stock in a report on Tuesday, February 2nd. Credit Suisse Group upped their price objective on McDonald's from $230.00 to $238.00 and gave the company an "outperform" rating in a research note on Friday, January 29th. Finally, Oppenheimer raised shares of McDonald's from a "market perform" rating to an "outperform" rating and set a $240.00 price target on the stock in a report on Thursday, January 7th. Seven research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the stock. McDonald's presently has an average rating of "Buy" and an average price target of $232.55. Read more …

March 18, 2021

7 Of The Best Tech Dividend Stocks

 

Here're seven robust dividend stocks from the tech space

 


Seasoned investors realize dividend investing is a time-tested strategy that might be appropriate for most buy-and-hold retail portfolios.  They are not interested in timing highly volatile momentum. Instead their investment strategy is, at least in part, to buy shares in high quality dividend-paying companies and then reinvest those dividends over a long period of time, such as until retirement years. Then they begin collecting this passive income stream. Today’s article, therefore, introduces seven of the best tech dividend stocks.

 

When companies are profitable, they make a decision as to whether to distribute the profits as dividends or keep as retained earnings. Management usually never wants to decrease or axe the dividend. Such a cut would potentially signal financial stress, reducing confidence in the firms. Most investors regard dividend distribution as a positive signal regarding future income (or cash flows).

 

Shares of dividend-paying businesses tend to keep their most of their value even in market declines. Investors, especially those who rely on that passive income, often never sell their shares. After all, regardless of any short-term volatility in the stock market that might affect share prices, the dividend is a definite return on investment.

 

In investing, the aim is achieving an acceptable total return that is consistent with an investor’s objectives. Tech stocks are mostly regarded as growth shares. In other words, individuals may not necessarily associate them with dividends. However, there are a number of tech darlings of Wall Street that also pay dividends. They tend to be more mature technology businesses with predictable revenues and cash flows. Thus they might be offering investors the best of both worlds with potential share price growth as well as passive income.

 

 

Recent research led by Greg Filbeck of the Black School of Business at Penn State Behrend in Erie, PA highlights, “Dividend-yield strategies generate investor interest because they have historically offered better risk-adjusted performance.” Put another way, the case for investing in dividend-paying companies remains strong, and over time, buy-and-hold investors are likely to be well rewarded.

 

Most investors like to include technology shares in their portfolios. With that information, here are seven tech dividend stocks for long-term portfolios:

 

Continue reading …

 

March 14, 2021

Is Archer-Daniels-Midland a Buy at Its All-Time High?

 


I have found the risk-reward for Archer-Daniels-Midland Co. (NYSE:ADM) very attractive for some time now. In addition, the company also has an incredibly long dividend growth streak and boasts a market-beating yield.

 

But after hitting an all-time high, is Archer-Daniels-Midland still a buy today? Let's examine the company's recent quarter and the stock valuation to determine that answer.

 

Earnings highlights

 

Archer-Daniels-Midland reported fourth-quarter and full-year earnings results on Jan. 26. For the quarter, revenue grew 10.1% to $18 billion. This was $1.5 billion above Wall Street analysts' estimates. Adjusted earnings per share declined 14.8% to $1.21, but was 12 cents better than expected.

 

For the year, revenue fell 0.5% to $64.4 billion, while adjusted earnings per share increased 10.8% to $3.59, a new record.

 

All reportable business segments demonstrated operating profit growth in the fourth quarter.

 

Agricultural Services and Oilseeds grew nearly 13% to $1.1 billion. Ag Services remains strong, especially in North America, which benefited from higher global demand, especially in China. Ag Services had higher export volumes and an improvement in margins. South America was lower year over year, but this is primarily due to advanced sales in the first half of 2020 as countries accelerated orders as a result of the Covid-19 pandemic.

 

 

The Crushing business experienced a near triple in operating profit as it benefited from higher demand for meal and vegetable oils. A lower global supply of soybeans was also a tailwind. Margins were up in all regions. Excluding a retroactive biodiesel tax credit in the fourth quarter of 2019, profit for Refined Products was up year over year due to gains in South American markets.

 

Continue reading …

 

March 12, 2021

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

 


Upgrades:

 


Bank of Montreal (BMO.TO) (TSE:BMO) (NYSE:BMO) was upgraded by equities researchers at National Bank Financial from a "sector perform" rating to an "outperform" rating in a research note issued to investors on Monday, BayStreet.CA reports. The brokerage currently has a C$121.00 price objective on the bank's stock, up from their prior price objective of C$113.00. National Bank Financial's target price points to a potential upside of 11.18% from the company's current price.

A number of other brokerages have also recently issued reports on BMO. CSFB increased their price objective on Bank of Montreal (BMO.TO) from C$108.00 to C$113.00 in a report on Wednesday, March 3rd. CIBC upped their target price on Bank of Montreal (BMO.TO) from C$120.00 to C$122.00 in a research note on Tuesday, March 2nd. Scotiabank upped their target price on Bank of Montreal (BMO.TO) from C$111.00 to C$126.00 in a research note on Wednesday, February 24th. Royal Bank of Canada upped their target price on Bank of Montreal (BMO.TO) from C$110.00 to C$125.00 and gave the stock a "sector perform" rating in a research note on Wednesday, February 24th. Finally, Cormark upped their target price on Bank of Montreal (BMO.TO) from C$104.00 to C$110.00 and gave the stock a "na" rating in a research note on Thursday, February 25th. Three research analysts have rated the stock with a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. Bank of Montreal (BMO.TO) currently has an average rating of "Buy" and a consensus price target of C$110.51. Read more …

 


V.F. (NYSE:VFC) was upgraded by investment analysts at Pivotal Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, Briefing.com reports. The firm currently has a $94.00 price objective on the textile maker’s stock, up from their prior price objective of $86.00. Pivotal Research’s price target indicates a potential upside of 19.33% from the company’s previous close.

VFC has been the subject of a number of other research reports. JPMorgan Chase & Co. boosted their price target on V.F. from $88.00 to $100.00 and gave the company an “overweight” rating in a research note on Thursday, January 7th. Piper Sandler upgraded V.F. from a “neutral” rating to an “overweight” rating and boosted their price target for the stock from $73.00 to $106.00 in a report on Monday, January 4th. Cowen boosted their price target on V.F. from $91.00 to $99.00 and gave the stock an “outperform” rating in a report on Monday, January 25th. They noted that the move was a valuation call. Robert W. Baird boosted their price target on V.F. from $85.00 to $92.00 and gave the stock an “outperform” rating in a report on Tuesday, November 10th. Finally, OTR Global upgraded V.F. to a “positive” rating in a report on Monday, January 11th. One analyst has rated the stock with a sell rating, four have issued a hold rating and fifteen have assigned a buy rating to the stock. The company has an average rating of “Buy” and an average price target of $88.65. Read more …

 


The Coca-Cola (NYSE:KO) was upgraded by equities research analysts at Royal Bank of Canada from a "sector perform" rating to an "outperform" rating in a research note issued on Monday, Briefing.com reports. The firm currently has a $60.00 price objective on the stock, up from their prior price objective of $55.00. Royal Bank of Canada's price target points to a potential upside of 18.13% from the stock's previous close.

A number of other brokerages also recently commented on KO. Morgan Stanley dropped their price objective on shares of The Coca-Cola from $59.00 to $55.00 and set an "overweight" rating on the stock in a research report on Thursday, January 14th. Sanford C. Bernstein started coverage on shares of The Coca-Cola in a research report on Tuesday, January 19th. They issued an "outperform" rating and a $58.00 price objective on the stock. Wells Fargo & Company started coverage on shares of The Coca-Cola in a research report on Monday, December 7th. They issued an "overweight" rating and a $62.00 price objective on the stock. Guggenheim downgraded shares of The Coca-Cola from a "buy" rating to a "neutral" rating in a research report on Tuesday, January 5th. Finally, JPMorgan Chase & Co. cut shares of The Coca-Cola from an "overweight" rating to a "neutral" rating and set a $55.00 target price for the company. in a report on Thursday, January 7th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. The stock currently has an average rating of "Buy" and a consensus target price of $54.06. Read more …

 

 


Eaton (NYSE:ETN) was upgraded by stock analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a report issued on Tuesday, Benzinga reports. The firm presently has a $155.00 target price on the industrial products company’s stock, up from their prior target price of $130.00. Morgan Stanley’s target price indicates a potential upside of 11.16% from the company’s current price.

A number of other equities research analysts have also weighed in on ETN. HSBC upgraded shares of Eaton from a “hold” rating to a “buy” rating and raised their price objective for the company from $103.00 to $140.00 in a report on Tuesday, February 16th. Jefferies Financial Group lifted their price target on shares of Eaton from $130.00 to $150.00 and gave the stock a “buy” rating in a research note on Friday, January 15th. Berenberg Bank upgraded shares of Eaton from a “hold” rating to a “buy” rating and lifted their price target for the stock from $110.00 to $160.00 in a research note on Monday. Oppenheimer lifted their price target on shares of Eaton from $133.00 to $145.00 in a research note on Tuesday, March 2nd. Finally, Bank of America upgraded shares of Eaton from a “neutral” rating to a “buy” rating and set a $135.00 price target on the stock in a research note on Wednesday, November 11th. Five investment analysts have rated the stock with a hold rating and twelve have given a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus price target of $125.17. Read more …

March 11, 2021

7 Top Stocks to Buy and Hold for the Next Decade and Beyond

 


Hundreds of thousands of people search for terms like “stocks to buy today” or “best stocks to buy” or “top stocks for 2021” every single month.

 

The appeal is understandable, but most of the articles that pop up are ones quickly written by freelancers that often don’t even invest in the stocks they pitch. They’re just writing for one-time clicks and pageviews rather than doing serious research to provide value and establish long-term relationships with their readers.

 

The truth is, investing is hard, and building a portfolio of top stocks to buy that beat the market is something that even financial professionals have trouble doing consistently.

 

In fact, after fees, only about 15% of actively-managed funds outperform the S&P 500 over any lengthy period of time.

 

For the average non-professional investor, it’s even worse. As calculated by Dalbar Inc, and charted here by JP Morgan, the average investor barely beats inflation, and vastly underperforms the S&P 500.

 

That’s mainly because investors tend to buy stocks or funds during market tops when they are expensive and all the news is good, and then sell stocks and funds after they crash, when they are cheap. They keep doing that over years and the returns end up being quite bad.

 

Meanwhile, value investors like Warren Buffett are building up cash during euphoric bull markets, because everything is expensive and very few stocks meet their strict investment criteria. Then when a stock market crash eventually occurs and top stocks are on sale everywhere, they deploy their cash hoard and snatch up the bargains of a decade.

 

 

However, there are plenty of independent, disciplined investors that build serious wealth in the market over the long term by following similar methods. It’s simple, but not easy, to stay focused and buy high-quality companies at reasonable prices on a consistent basis.

 

Continue reading …

 

 

 

March 9, 2021

9 Great Dividend Stocks with 3%+ Yields

 

Interest rates are near record lows so take advantage of these high yields

 


 

Interest rates may be on the rise right now, but they are still near historic lows. So, as it continues to be a near-zero interest rate environment, dividend stocks have become even more important to investors searching for yield.

 

The problem? Unlike bonds, there’s a lot more risk in depending on equities for income. Bond interest payments are mandatory. Dividend payments? They can be cut at any time. However, that doesn’t mean you should skip dividend stocks entirely if you’re searching for yield. There are still scores of high-quality stocks out there, both with great yields as well as the potential for long-term gains.

 

Spanning across all sectors, these less-cyclical names could also be a safe harbor in a stock-market downturn. While it’s nearly impossible to time the market, with stocks generally still overheated, it may be wise to consider names that could hold up in a market correction.

 

 

So, which dividend stocks should you consider buying for 3%+ yields and possible appreciation? These nine names come to mind:

 

Continue reading …

 

March 7, 2021

Dividend Aristocrats In Focus: Johnson & Johnson

 


Johnson & Johnson (JNJ) is a company that many investors are likely familiar with. J&J has been in operation for more than 130 years, and has raised its dividend for 58 years in a row. It has one of the longest and most impressive histories of any dividend growth stock.

 

J&J is a long-standing member of the Dividend Aristocrats.

 

Not only is Johnson & Johnson a Dividend Aristocrat, it is a Dividend King as well. The Dividend Kings are an even more exclusive group of stocks, with 50+ years of consecutive dividend increases. There are just 31 companies that have achieved this accomplishment.

 

J&J has all of the qualities of a great dividend growth stock. It has a dividend yield above the S&P 500 average, backed by a strong brand and highly profitable business model, with potential for long-term growth.

 

This article will discuss the quintessential Dividend Aristocrat that is Johnson & Johnson.

 

J&J is one of the largest companies in the world, but it started from very humble beginnings. It was founded all the way back in 1886 by three brothers, Robert, James, and Edward Johnson. In 1888, the three brothers published a healthcare manuscript titled “Modern Methods of Antiseptic Wound Treatment”, which would quickly become the leading standard for antiseptic surgery techniques.

 

Over the following decades, the company steadily brought new products to market. Soon, the company was the leading manufacturer across several healthcare categories, including baby powder, sanitary napkins, dental floss, and more.

 

 

Today, J&J is a global healthcare giant. It has a market capitalization of $410 billion, and generates annual revenue of more than $81 billion. J&J is a mega-cap stock, a term to describe stocks with market caps above $200 billion.

 

Continue reading …

 

March 5, 2021

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

 


Upgrades:

 


Morgan Stanley (NYSE:MS) was upgraded by equities research analysts at Daiwa Capital Markets from a "neutral" rating to an "outperform" rating in a report released on Tuesday, Briefing.com reports. The brokerage presently has a $86.00 price target on the financial services provider's stock. Daiwa Capital Markets' target price points to a potential upside of 8.64% from the stock's current price.

A number of other brokerages also recently commented on MS. Barclays boosted their price objective on shares of Morgan Stanley from $88.00 to $95.00 and gave the company an "overweight" rating in a research report on Thursday, January 21st. Credit Suisse Group boosted their target price on shares of Morgan Stanley from $74.00 to $84.00 and gave the stock an "outperform" rating in a research report on Monday, January 25th. Piper Sandler upped their price objective on shares of Morgan Stanley from $54.00 to $76.00 and gave the stock a "neutral" rating in a report on Monday, January 11th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Morgan Stanley from $53.00 to $68.00 and gave the stock a "hold" rating in a report on Wednesday, January 6th. Finally, DA Davidson upped their price objective on shares of Morgan Stanley from $80.00 to $90.00 and gave the stock a "buy" rating in a report on Thursday, January 21st. Seven equities research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of "Buy" and a consensus target price of $66.73. Read more …

 


Nestlé (OTCMKTS:NSRGY) was upgraded by analysts at AlphaValue to a “buy” rating in a research note issued on Tuesday, The Fly reports.

A number of other analysts have also commented on NSRGY. Royal Bank of Canada raised Nestlé from an “underperform” rating to a “sector perform” rating in a research note on Wednesday, January 13th. Credit Suisse Group reaffirmed a “neutral” rating on shares of Nestlé in a research note on Wednesday, December 9th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of Nestlé in a research note on Friday, February 19th. Zacks Investment Research raised Nestlé from a “hold” rating to a “buy” rating and set a $127.00 price target on the stock in a research note on Friday, February 5th. Finally, JPMorgan Chase & Co. reissued an “overweight” rating on shares of Nestlé in a research note on Thursday, December 3rd. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and eleven have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average target price of $127.00. Read more …

 


Bank of Montreal (NYSE:BMO) (TSE:BMO) was upgraded by stock analysts at Bank of America from a “neutral” rating to a “buy” rating in a report released on Tuesday, Briefing.com reports.

A number of other research analysts also recently commented on BMO. Canaccord Genuity reiterated a “buy” rating and set a $112.50 target price (up from $106.50) on shares of Bank of Montreal in a research report on Wednesday, February 24th. Barclays increased their target price on Bank of Montreal from $88.00 to $96.00 and gave the company an “underweight” rating in a research report on Tuesday, February 16th. CIBC upgraded Bank of Montreal to an “outperformer” rating and increased their target price for the company from $95.00 to $108.00 in a research report on Thursday, November 19th. Credit Suisse Group upgraded Bank of Montreal from a “neutral” rating to an “outperform” rating and increased their target price for the company from $97.00 to $108.00 in a research report on Wednesday, February 24th. Finally, Zacks Investment Research upgraded Bank of Montreal from a “hold” rating to a “buy” rating and set a $87.00 target price for the company in a research report on Wednesday, February 17th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and six have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average price target of $93.39. Read more …

 

 


The Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) was upgraded by analysts at CIBC from a "neutral" rating to an "outperform" rating in a report issued on Tuesday, Analyst Price Targets reports. The brokerage currently has a $86.00 price target on the bank's stock, up from their previous price target of $83.00. CIBC's price objective indicates a potential upside of 41.49% from the company's current price.

A number of other analysts have also weighed in on BNS. Barclays raised their price target on shares of The Bank of Nova Scotia from $60.00 to $69.00 and gave the company an "underweight" rating in a report on Tuesday, February 16th. BMO Capital Markets lifted their target price on shares of The Bank of Nova Scotia from $75.00 to $80.00 and gave the stock an "outperform" rating in a report on Wednesday, February 24th. TD Securities lifted their target price on shares of The Bank of Nova Scotia from $79.00 to $83.00 and gave the stock a "buy" rating in a report on Wednesday, February 24th. Royal Bank of Canada lifted their target price on shares of The Bank of Nova Scotia from $77.00 to $84.00 and gave the stock an "outperform" rating in a report on Wednesday, February 24th. Finally, Desjardins lifted their target price on shares of The Bank of Nova Scotia from $72.00 to $79.00 and gave the stock a "buy" rating in a report on Thursday, February 25th. Two research analysts have rated the stock with a sell rating and ten have assigned a buy rating to the stock. The company currently has an average rating of "Buy" and a consensus target price of $72.75. Read more …

March 1, 2021

9 Great Dividend Stocks with 3%+ Yields

 

Interest rates are near record lows so take advantage of these high yields

 


Interest rates may be on the rise right now, but they are still near historic lows. So, as it continues to be a near-zero interest rate environment, dividend stocks have become even more important to investors searching for yield.

 

The problem? Unlike bonds, there’s a lot more risk in depending on equities for income. Bond interest payments are mandatory. Dividend payments? They can be cut at any time. However, that doesn’t mean you should skip dividend stocks entirely if you’re searching for yield. There are still scores of high-quality stocks out there, both with great yields as well as the potential for long-term gains.

 

Spanning across all sectors, these less-cyclical names could also be a safe harbor in a stock-market downturn. While it’s nearly impossible to time the market, with stocks generally still overheated, it may be wise to consider names that could hold up in a market correction.

 

 

So, which dividend stocks should you consider buying for 3%+ yields and possible appreciation? These nine names come to mind:

 

Continue reading...