7 High-Yield Monthly Dividend Stocks to Buy in 2021

 

Passive income is in fashion again, and these dividend stocks can provide a high monthly payout

 

Speculation is running rampant in the market, and while the future isn’t certain, chances are the phenomenon will end. It really comes down to the scarcity argument. If everyone’s bidding up real estate and cryptocurrencies, for instance, very few resources are left to support equities. That’s why investors ought to consider safer investments like dividend stocks.

 

More specifically, people should look into funds and companies that offer monthly payouts. Monthly dividend stocks are popular with the passive income crowd because society revolves around a 30-day schedule. Whether you’re talking payments for a car, utilities or other obligations, they’re more often than not on a monthly schedule.

 

Monthly dividend stocks are also generally stable. When bouts of volatility impact the broader markets, they hold their value better than growth names. Of course, that’s not to say that dividend payers are immune from red ink. But issuing companies are typically more mature and thus don’t attract extreme fluctuations in either direction.

 

Finally, monthly dividend stocks offer a balancing effect for retail investors. Almost always, you are at a disadvantage when you trade against Wall Street pros. The big hedge funds have seemingly unlimited resources (at least, relative to you) which they can deploy at will. Also, professional traders have the financial capital to absorb hefty initial losses to drive you out of the market.

 

 

But when you bet on funds and institutions that provide a regular payout, you’re guaranteed to win something in what is otherwise a zero-sum game. As the market gets frenetic, now is an excellent time to consider these monthly dividend stocks:

 

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Notable Analyst Upgrades and Downgrades for Week of June 21, 2021

 

Upgrades:

 

Eastman Chemical (NYSE:EMN) was upgraded by analysts at Scotiabank from a “sector perform” rating to a “sector outperform” rating in a research note issued to investors on Monday, The Fly reports. The firm presently has a $145.00 target price on the basic materials company’s stock. Scotiabank’s price objective indicates a potential upside of 27.03% from the stock’s current price.

Other analysts also recently issued research reports about the stock. KeyCorp lifted their price target on shares of Eastman Chemical from $126.00 to $135.00 and gave the company an “overweight” rating in a research note on Monday, May 3rd. The Goldman Sachs Group raised shares of Eastman Chemical from a “neutral” rating to a “buy” rating and set a $148.00 price objective for the company in a research note on Tuesday, May 11th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Eastman Chemical from $132.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, June 14th. Wolfe Research assumed coverage on Eastman Chemical in a research report on Wednesday, June 9th. They set an “outperform” rating on the stock. Finally, Tudor Pickering downgraded Eastman Chemical from a “buy” rating to a “hold” rating and set a $117.00 price target on the stock. in a research report on Monday, May 3rd. Four research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $110.31. Read more …

 

Accenture (NYSE:ACN) was upgraded by stock analysts at Exane BNP Paribas from a “neutral” rating to an “outperform” rating in a research report issued to clients and investors on Wednesday, The Fly reports.

A number of other research firms have also issued reports on ACN. Barclays lifted their target price on Accenture from $300.00 to $310.00 and gave the company an “overweight” rating in a report on Monday, March 22nd. BMO Capital Markets lifted their target price on Accenture from $292.00 to $302.00 and gave the company a “market perform” rating in a report on Friday, March 19th. They noted that the move was a valuation call. Susquehanna lifted their target price on Accenture from $290.00 to $325.00 and gave the company a “positive” rating in a report on Friday, March 19th. Societe Generale lifted their target price on Accenture from $313.00 to $329.00 and gave the company a “buy” rating in a report on Tuesday, June 15th. Finally, Royal Bank of Canada lifted their target price on Accenture from $278.00 to $301.00 in a report on Friday, March 19th. Six analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. Accenture presently has a consensus rating of “Buy” and a consensus target price of $288.52. Read more …

 

Welltower (NYSE:WELL) was upgraded by analysts at Scotiabank from a “sector underperform” rating to a “sector perform” rating in a report released on Wednesday, Analyst Price Targets reports. The brokerage currently has a $83.00 price target on the real estate investment trust’s stock, up from their prior price target of $68.00. Scotiabank’s price objective points to a potential upside of 0.95% from the company’s previous close.

A number of other brokerages also recently commented on WELL. Morgan Stanley raised their price objective on Welltower from $76.00 to $79.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 7th. Deutsche Bank Aktiengesellschaft raised their target price on Welltower from $76.00 to $80.00 and gave the stock a “buy” rating in a research report on Thursday, June 3rd. Evercore ISI upgraded Welltower from an “in-line” rating to an “outperform” rating and raised their target price for the stock from $77.00 to $86.00 in a research report on Monday, June 14th. Mizuho raised their target price on Welltower from $60.00 to $70.00 and gave the stock a “neutral” rating in a research report on Wednesday, April 28th. Finally, Raymond James upgraded Welltower from a “market perform” rating to a “strong-buy” rating and set a $92.00 target price for the company in a research report on Tuesday, June 15th. One research analyst has rated the stock with a sell rating, nine have given a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average target price of $73.59. Read more …

 

 

Magna International (NYSE:MGA) (TSE:MG) was upgraded by investment analysts at The Goldman Sachs Group from a "neutral" rating to a "buy" rating in a research note issued on Wednesday, The Fly reports.

Several other analysts also recently issued reports on MGA. Morgan Stanley raised Magna International from an "underweight" rating to an "equal weight" rating and lifted their price target for the company from $61.00 to $96.00 in a research note on Wednesday, April 14th. BMO Capital Markets lifted their price target on Magna International from $108.00 to $115.00 and gave the company an "outperform" rating in a research note on Monday, May 31st. Wells Fargo & Company initiated coverage on Magna International in a research note on Wednesday, March 31st. They issued an "equal weight" rating and a $96.00 price target on the stock. Zacks Investment Research downgraded Magna International from a "strong-buy" rating to a "hold" rating and set a $100.00 price target on the stock. in a research note on Friday, April 23rd. Finally, Barclays raised Magna International from an "equal weight" rating to an "overweight" rating in a research note on Thursday, April 15th. Four research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company. The stock presently has a consensus rating of "Buy" and a consensus target price of $89.47. Read more …

10 Best Dividend Stocks to Buy According to Billionaire Cliff Asness

In this article, we will take a look at the 10 best dividend stocks to buy according to billionaire Cliff Asness.

 

Cliff Asness, hedge fund manager and investment guru, is the manager and co-founder of AQR Capital Management, the hedge fund whose 13F holdings we will be going over in detail in this article. Asness graduated from the University of Pennsylvania with dual degrees in Economics and Engineering, and later enrolled in and graduated from the University of Chicago, for his MBA and Ph.D. in Finance. During his academic career, Asness worked as a research assistant for Eugene Fama, a theorist of efficient markets.

 

Before founding AQR Capital Management, Asness began working as a manager of Goldman Sachs Asset Management’s (GSAM) quantitative research desk when he was 24 and still a Ph.D. student. He, along with two friends from the University of Chicago, went on to develop “models to evaluate risk in currencies, bonds, and entire economies.” While he was working as a manager at GSAM, Asness pulled in a $10 million investment to employ computer-driven models developed by his team to invest in the market. This initial investment eventually reached $100 million, when Goldman Sachs opened the fund to the public under the name of the Goldman Sachs Global Alpha Fund. This new fund was what sped up Asness’s career. He managed the fund and aimed to make it rake in money regardless of the market’s direction, but the fund declined by 2011 and was shut down despite once having been “one of the biggest and best performing hedge funds in the world.”

 

 

AQR Capital Management is one of the hedge funds more prone towards diverse portfolios, and adopted factor-investing to boost the fund’s quantitative approach to investments. The hedge fund is also prone to alternative investment strategies, like risk parity strategies focusing on volatility instead of capital allocation. AQR Capital Management remains to this day, one of the giants in the financial world, and was managing around $140 billion as of the end of March. The fund’s portfolio value is currently over $61 billion.

 

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QUALCOMM Is A Stable Dividend Stock

 

QUALCOMM Incorporated ( NASDAQ:QCOM ) engages in the development and production of foundational electronics for mobile, wireless, network and other consumer devices. The company is also notably involved in the expansion of 5G infrastructure solutions and investors are looking at this as a path to growth.

 

As Qualcomm matures, we are going to look at how they are sustaining their profitability and returning earnings to shareholders.

 

It is important to note that Qualcomm has a history of reliable dividend payments going back to 2003 and has been steadily increasing their dividend per share ever since.

 

Qualcomm has announced that it will be increasing its dividend on the 24th of June to US$0.68. This makes the dividend yield 2.0%, which is above the industry average.

 

The company also returned around 1.6% of its market capitalization to shareholders in the form of stock buybacks over the past year.

 

QUALCOMM Covers Its Dividend By Earnings

Reliable dividend payments and stable yields build long-term trust for investors. Qualcomm is a reliable company, now with a kink for 5G market share participation.

 

 

The best kind of dividends are those that are well covered by the company’s profits.

 

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The 16 Best Value Stocks for the Rest of 2021

 

Value stocks have been en vogue this year. These names could see upside as the U.S. economy continues to recover from the COVID-19 pandemic.

 

Value stocks are not only staging a comeback in 2021, but also setting up to deliver higher returns even further down the road.

 

A revival for value stocks is due at least in part to the recovering U.S. economy. Many value stocks come from cyclical industries like energy, manufacturing and utilities that fared poorly during the COVID-related shutdown.

 

As demand for these services rise, company cash flows expand, which in turn leads to increased capital investment, accelerating growth and a higher share price. The Biden administration's $2.2 trillion infrastructure spending plan could also be a boon for value investors, as most infrastructure stocks fall into this category.

 

Although tech stocks like Amazon.com (AMZN) and Netflix (NFLX) have garnered strong media attention and outperformed other sectors over the past decade, a surprising fact is that value stocks have delivered much greater returns over the long haul. An analysis by Anchor Capital Advisors shows that since 1927, a dollar invested in value stocks would have grown nearly 18 times faster than the same dollar invested in growth.  

 

The downside to value investing is that sometimes investors must wait years for their value portfolio to become fully priced. One way to pass this time more pleasantly is to choose value stocks that pay generous dividends. This allows investors to collect quarterly income while waiting for capital gains to materialize. 

 

 

Here are 16 high-quality value stocks, all paying an above-average dividend and poised to benefit from a strengthening U.S. economy in 2021.  

 

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Notable Analyst Upgrades and Downgrades for Week of June 14, 2021

 

Upgrades:

 

Welltower (NYSE:WELL) was upgraded by equities researchers at Evercore ISI from an “in-line” rating to an “outperform” rating in a research note issued on Monday, The Fly reports. The brokerage currently has a $86.00 target price on the real estate investment trust’s stock, up from their previous target price of $77.00. Evercore ISI’s target price suggests a potential upside of 7.93% from the stock’s current price.

Several other brokerages also recently commented on WELL. KeyCorp increased their price objective on shares of Welltower from $75.00 to $80.00 and gave the company an “overweight” rating in a research report on Thursday, April 15th. Royal Bank of Canada raised shares of Welltower from a “sector perform” rating to an “outperform” rating and raised their price target for the company from $70.00 to $82.00 in a research report on Monday, May 3rd. Bank of America upgraded shares of Welltower from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $73.00 to $78.00 in a report on Tuesday, March 30th. Mizuho increased their target price on Welltower from $60.00 to $70.00 and gave the company a “neutral” rating in a research note on Wednesday, April 28th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on Welltower from $76.00 to $80.00 and gave the company a “buy” rating in a report on Thursday, June 3rd. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and ten have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $68.76. Read more …

 

W. P. Carey (NYSE:WPC) was upgraded by equities researchers at JPMorgan Chase & Co. from a "neutral" rating to an "overweight" rating in a report issued on Tuesday, The Fly reports. The brokerage currently has a $88.00 price target on the real estate investment trust's stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 13.20% from the stock's current price.

Other research analysts have also issued reports about the stock. Evercore ISI raised shares of W. P. Carey from an "in-line" rating to an "outperform" rating and raised their price target for the company from $77.00 to $80.00 in a research report on Monday, May 3rd. Bank of America reaffirmed an "underperform" rating on shares of W. P. Carey in a research report on Tuesday, April 13th. Finally, Zacks Investment Research raised shares of W. P. Carey from a "sell" rating to a "hold" rating in a research report on Tuesday, April 13th. One analyst has rated the stock with a sell rating, one has given a hold rating and three have issued a buy rating to the company. W. P. Carey presently has a consensus rating of "Hold" and a consensus target price of $81.00. Read more …

 

Nestlé (OTCMKTS:NSRGY) was upgraded by investment analysts at Exane BNP Paribas from an "underperform" rating to a "neutral" rating in a report issued on Tuesday, The Fly reports.

Several other equities analysts also recently issued reports on the stock. JPMorgan Chase & Co. reissued an "overweight" rating on shares of Nestlé in a research note on Tuesday, June 1st. Morgan Stanley reaffirmed an "overweight" rating on shares of Nestlé in a research note on Friday, April 23rd. Barclays reaffirmed an "overweight" rating on shares of Nestlé in a research note on Friday, April 23rd. Societe Generale reaffirmed a "buy" rating on shares of Nestlé in a research note on Wednesday, April 28th. Finally, Royal Bank of Canada reissued a "sector perform" rating on shares of Nestlé in a research note on Friday, April 23rd. Seven investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. The stock currently has an average rating of "Buy" and a consensus price target of $127.00.

Shares of NSRGY opened at $126.72 on Tuesday. The company has a quick ratio of 0.60, a current ratio of 0.86 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $364.96 billion, a P/E ratio of 28.22, a price-to-earnings-growth ratio of 3.53 and a beta of 0.37. The firm's 50 day moving average price is $120.91. Nestlé has a 1 year low of $104.50 and a 1 year high of $127.45. Read more …

 

 

AT&T (NYSE:T) was upgraded by equities research analysts at Scotiabank from a “sector underperform” rating to a “sector perform” rating in a note issued to investors on Wednesday, Briefing.com reports. The brokerage presently has a $31.00 price objective on the technology company’s stock, up from their previous price objective of $28.00. Scotiabank’s target price would suggest a potential upside of 6.53% from the company’s current price.

A number of other brokerages have also recently issued reports on T. Morgan Stanley cut their price objective on shares of AT&T from $34.00 to $32.00 and set an “equal weight” rating for the company in a research note on Monday, May 24th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of AT&T from $31.00 to $34.00 in a research note on Wednesday, April 28th. UBS Group raised shares of AT&T from a “neutral” rating to a “buy” rating and upped their price objective for the company from $32.00 to $35.00 in a research note on Friday, May 21st. New Street Research upgraded shares of AT&T from a “neutral” rating to a “buy” rating and set a $35.00 price target for the company in a report on Friday, May 21st. Finally, Oppenheimer reiterated a “hold” rating on shares of AT&T in a report on Monday, April 26th. Two analysts have rated the stock with a sell rating, six have issued a hold rating and eight have assigned a buy rating to the stock. AT&T has an average rating of “Hold” and an average price target of $31.81. Read more …

 

Why Chevron Is a Top Pick for Dividend Investors

 

The company is on track to generate billions of dollars in free cash flow

  

Chevron reported strong first-quarter results, becoming one of the few oil companies to return to profitability.

 

Management seems committed to rewarding shareholders in the long run.

 

Favorable macroeconomic outlook and recent investments make Chevron an attractive bet for value and income investors.

 

Chevron Corp. (CVX) is an American integrated energy company operating in more than 180 countries. The company is active in hydrocarbon exploration and development, chemical and mining activities, power generation, refining and fuel transportation. It has an active portfolio of renewable assets, including geothermal, solar, wind, biofuel, fuel cells and hydrogen.

 

The energy giant seems to be recovering strongly from the oil market turmoil created by the global recession, which is evident from its strong first-quarter financial performance. Chevron posted a profit for the first quarter of 2021 and increased its dividend by 4%, becoming one of the very few oil giants to return to profitability. Chevron reported a substantial improvement in cash flows as well, driven by higher oil prices. Warren Buffett, the investing legend, is bullish about the company's long-term success due to its solid balance sheet and ability to produce consistent cash flows. In the fourth quarter of 2020, Berkshire Hathaway Inc. (BRK.A) (BRK.B) purchased 48.5 million shares of Chevron.

 

 

The outlook is promising for dividend investors

 

Chevron pays a quarterly dividend of $1.34 per share, which converts into an annual dividend yield of 5% at the current stock price of around $108. Although this is a very attractive yield in a low-interest rate environment, investors need to evaluate many factors, including the company's future cash flow generation ability and the executives' commitment to maintaining or improving the dividend per share. Chevron ticks all these boxes.

 

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Notable Analyst Upgrades and Downgrades for Week of June 7, 2021

 

Upgrades:

 

C.H. Robinson Worldwide (NASDAQ:CHRW) was upgraded by analysts at The Goldman Sachs Group from a "sell" rating to a "buy" rating in a research report issued to clients and investors on Monday, Briefing.com reports. The firm currently has a $108.00 price target on the transportation company's stock. The Goldman Sachs Group's target price would suggest a potential upside of 12.10% from the stock's current price.

Other equities research analysts also recently issued reports about the company. Susquehanna Bancshares boosted their price target on C.H. Robinson Worldwide from $92.00 to $94.00 and gave the company a "neutral" rating in a research note on Monday, April 12th. Credit Suisse Group boosted their price objective on C.H. Robinson Worldwide from $90.00 to $93.00 and gave the company an "underperform" rating in a research note on Wednesday, April 28th. Morgan Stanley boosted their price objective on C.H. Robinson Worldwide from $55.00 to $58.00 and gave the company an "underweight" rating in a research note on Wednesday, April 28th. Vertical Research initiated coverage on C.H. Robinson Worldwide in a research note on Friday, March 26th. They set a "hold" rating for the company. Finally, Susquehanna boosted their price objective on C.H. Robinson Worldwide from $92.00 to $94.00 and gave the company a "neutral" rating in a research note on Tuesday, April 13th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the stock. The company currently has an average rating of "Hold" and a consensus target price of $97.89. Read more …

 

Visa (NYSE:V) was upgraded by research analysts at Piper Sandler from a “neutral” rating to an “overweight” rating in a report issued on Monday, Briefing.com reports. The brokerage currently has a $260.00 target price on the credit-card processor’s stock, up from their prior target price of $234.00. Piper Sandler’s price target would suggest a potential upside of 12.97% from the stock’s current price.

A number of other equities research analysts also recently weighed in on V. Royal Bank of Canada reissued a “buy” rating on shares of Visa in a research note on Wednesday, May 5th. Susquehanna Bancshares boosted their target price on Visa from $250.00 to $265.00 and gave the stock a “positive” rating in a research report on Wednesday, April 28th. Truist Securities increased their price target on shares of Visa from $230.00 to $250.00 in a research report on Wednesday, April 28th. Mizuho boosted their price objective on shares of Visa from $250.00 to $275.00 and gave the company a “buy” rating in a report on Wednesday, April 28th. Finally, Susquehanna upped their target price on shares of Visa from $250.00 to $265.00 and gave the stock a “positive” rating in a research note on Wednesday, April 28th. Twenty-four investment analysts have rated the stock with a buy rating, The stock presently has an average rating of “Buy” and an average target price of $253.27. Read more …

 

Johnson Controls International (NYSE:JCI) was upgraded by JPMorgan Chase & Co. from a "neutral" rating to an "overweight" rating in a research report issued on Tuesday, Analyst Ratings Network reports. The firm presently has a $75.00 target price on the stock, up from their previous target price of $50.00. JPMorgan Chase & Co.'s price objective indicates a potential upside of 11.86% from the stock's current price.

A number of other equities analysts have also issued reports on the stock. UBS Group raised shares of Johnson Controls International to a "buy" rating and raised their price target for the stock from $57.00 to $70.00 in a research report on Thursday, April 22nd. Credit Suisse Group lifted their target price on shares of Johnson Controls International from $66.00 to $75.00 and gave the company an "outperform" rating in a report on Monday. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Johnson Controls International from $62.00 to $68.00 and gave the company a "hold" rating in a report on Monday, May 3rd. OTR Global raised shares of Johnson Controls International from a "mixed" rating to a "positive" rating in a report on Tuesday, April 27th. Finally, Royal Bank of Canada lowered shares of Johnson Controls International from an "outperform" rating to a "sector perform" rating and set a $66.00 target price for the company. in a report on Wednesday, March 31st. Eight research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company's stock. The company has an average rating of "Buy" and a consensus price target of $57.94. Read more …

 

 

Target (NYSE:TGT) was upgraded by investment analysts at UBS Group from a “neutral” rating to a “buy” rating in a research note issued on Tuesday, Analyst Price Targets reports. The brokerage presently has a $265.00 price target on the retailer’s stock, up from their prior price target of $210.00. UBS Group’s price objective indicates a potential upside of 12.59% from the stock’s previous close. The analysts noted that the move was a valuation call.

A number of other equities analysts have also weighed in on TGT. Stifel Nicolaus upped their target price on Target from $220.00 to $230.00 and gave the stock a “buy” rating in a research report on Tuesday, March 30th. Morgan Stanley upped their target price on Target from $205.00 to $250.00 and gave the stock an “equal weight” rating in a research report on Monday, May 24th. Credit Suisse Group upped their target price on Target from $211.00 to $245.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 25th. BMO Capital Markets upped their target price on Target from $225.00 to $245.00 and gave the stock an “outperform” rating in a research report on Monday, May 24th. Finally, Raymond James upped their target price on Target from $215.00 to $252.00 and gave the stock a “strong-buy” rating in a research report on Thursday, May 20th. Five investment analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $231.06. Read more …

Pfizer Is Still One of the Healthcare Sector’s Best Dividend Yielders

 

PFE stock is trading at a reasonable valuation, and is still worth owning despite dividend-cut rumors

 

For many years, income-oriented investors have counted on healthcare giant Pfizer (NYSE:PFE) stock to provide reliable dividend distributions.

 

In fact, it’s not unreasonable to say that this is among the main benefits of holding PFE stock for the long term.

 

However, nothing in the markets is 100% reliable and some folks have been talking about a Pfizer dividend cut.

 

Is there a dividend payout reduction coming? In light of an important merger in the health-care sector, Pfizer’s stakeholders should know what to expect.

 

As we’ll see, there’s no need to lose faith in the company or the stock. Income and value investors alike should continue to rely on Pfizer as a premier business that consistently rewards its loyal shareholders.

 

 

A Closer Look at PFE Stock

Speaking of value investing, PFE stock’s trailing 12-month price-to-earnings ratio is currently 19.83.

 

That’s quite reasonable as it suggests that the stock’s price is justified by the company’s profits.

 

Continue reading …

 

 

A Tech Stock Combining Growth and Decent Yield

 

In a world where tech stocks often fail to offer both dividend yield and growth, here's a company that delivers that elusive combination.

 

When we think dividend tech stocks, we often think of popular companies such as Apple (AAPL), Microsoft (MSFT) or Nvidia (NVDA). Those companies have two things in common: They offer great growth potential, but also pay a ridiculously small yield.

 

Is it possible to find a tech stock that would give us both? A company like IBM (IBM) could come into mind as it offers a very generous yield in this sector (around 4.5%). The problem is that IBM’s core business is still slowing down. The shift towards the cloud business seems quite difficult and other players are just doing it better. IBM hopes its shipping blockchain based solutions will provide additional growth as it is hard to replicate. Your dividend is safe and will continue to increase, but do not expect much besides that from your investment in this aging monolith. I have a better pick for you.

 

Introducing Broadcom (AVGO)

 

Broadcom--the combined entity of Broadcom and Avago--boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio frequency filters and amplifiers used in high-end smartphones, such as the Apple iPhone and Samsung Galaxy devices, in addition to an assortment of solutions for wired infrastructure, enterprise storage, and industrial end markets. Legacy Broadcom targeted networking semiconductors, such as switch and physical layer chips, broadband products (such as television set-top box processors), and connectivity chips that handle standards such as Wi-Fi and Bluetooth. The company has acquired Brocade, CA Technologies, and Symantec's enterprise security business to bolster its offerings in infrastructure software.

 

 

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Costco's Growth Rates Are Driving the Valuation

 

A look at the company's most recent quarter, catalyst for growth and valuation.

 

Shares of Costco Wholesale Corp. are nearly flat since the beginning of the year compared to a return of 12% for the S&P 500 Index.

 

Part of this can be explained in that Costco's stocked gained more than 28% last year as consumers flocked to the company's stores to stock upon everyday items during the worst of the Covid-19 pandemic.

 

The stock now looks pricey on a historical valuation basis as well as its intrinsic value as determined by GuruFocus.

 

That being said, Costco, while not cheap, has a strong business model and impressive same-store sales that make the stock deserving of a high multiple.

 

A look at earnings results

 

Costco reported earnings results for the third quarter of fiscal 2021 on May 27. Revenue grew 21.7% to $45.3 billion, the highest year-over-year growth rate in at least five years and $971 million above what Wall Street analysts had expected. Net income of $1.22 billion, or $2.75 per share, compared very favorably to net income of $838 million, or $1.89 per share, for the same period of the prior year. The most recent quarter includes a 9 cent per share headwind from higher employee wages, but this won't be an issue in future quarters as the higher wage program has ended. Earnings per share was also 23 cents better than expected.

 

Year to date, revenue is up more than 15% while earnings per share have increased 27.5%.

 

 

For the third quarter, same-store sales grew 20.6%, which is higher than the growth rate so far for the fiscal year. Excluding the impact of gas and currency exchange, comparable sales improved 15.1%, topping consensus estimates of 12.7%.

 

Continue reading …

 

Notable Analyst Upgrades and Downgrades for Week of May 31, 2021

 

Upgrades:

 

Devon Energy (NYSE:DVN) was upgraded by Raymond James from an “outperform” rating to a “strong-buy” rating in a research report issued on Tuesday, Briefing.com reports. The firm currently has a $40.00 target price on the energy company’s stock, up from their prior target price of $34.00. Raymond James’ price target would suggest a potential upside of 50.60% from the stock’s previous close.

Several other equities analysts have also recently commented on DVN. Barclays upped their target price on shares of Devon Energy from $22.00 to $27.00 and gave the company an “overweight” rating in a research note on Wednesday, April 7th. JPMorgan Chase & Co. upped their target price on shares of Devon Energy from $22.00 to $30.00 in a research note on Thursday, March 18th. Morgan Stanley increased their price objective on shares of Devon Energy from $27.00 to $28.00 and gave the company an “overweight” rating in a research note on Wednesday, May 19th. Zacks Investment Research cut shares of Devon Energy from a “buy” rating to a “hold” rating and set a $29.00 price objective for the company. in a research note on Tuesday, May 18th. Finally, Citigroup increased their price objective on shares of Devon Energy from $24.00 to $29.00 in a research note on Tuesday, March 23rd. Three research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has given a strong buy rating to the stock. Devon Energy has an average rating of “Buy” and an average target price of $26.16. Read more …

 

Williams-Sonoma (NYSE:WSM) was upgraded by equities research analysts at Bank of America from an "underperform" rating to a "neutral" rating in a research report issued to clients and investors on Tuesday, Briefing.com reports. The firm currently has a $180.00 price target on the specialty retailer's stock, up from their prior price target of $100.00. Bank of America's target price suggests a potential upside of 6.17% from the company's previous close.

Other equities analysts have also issued reports about the stock. Barclays boosted their target price on shares of Williams-Sonoma from $144.00 to $187.00 and gave the company an "overweight" rating in a report on Wednesday, March 24th. William Blair reiterated a "market perform" rating on shares of Williams-Sonoma in a report on Tuesday, April 27th. Wells Fargo & Company boosted their target price on shares of Williams-Sonoma from $155.00 to $175.00 and gave the company an "equal weight" rating in a report on Tuesday, May 25th. Loop Capital boosted their target price on shares of Williams-Sonoma from $110.00 to $150.00 and gave the company a "hold" rating in a report on Thursday, March 18th. Finally, Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell assumed coverage on shares of Williams-Sonoma in a report on Monday, March 15th. They issued a "neutral" rating and a $127.00 target price on the stock. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and five have issued a buy rating to the stock. Williams-Sonoma currently has a consensus rating of "Hold" and an average target price of $161.28. Read more …

 

The Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) was upgraded by equities research analysts at Credit Suisse Group from an “underperform” rating to a “neutral” rating in a research report issued to clients and investors on Wednesday, The Fly reports.

A number of other equities analysts have also issued reports on the company. Canaccord Genuity raised their price target on The Bank of Nova Scotia from $77.00 to $81.00 and gave the stock a “hold” rating in a report on Wednesday, April 21st. BMO Capital Markets lifted their price objective on The Bank of Nova Scotia from $75.00 to $80.00 and gave the company an “outperform” rating in a report on Wednesday, February 24th. Barclays lifted their price objective on 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. Zacks Investment Research raised The Bank of Nova Scotia from a “hold” rating to a “buy” rating and set a $74.00 price objective on the stock in a report on Thursday, May 27th. Finally, Royal Bank of Canada lifted their price objective on The Bank of Nova Scotia from $77.00 to $84.00 and gave the company an “outperform” rating in a report on Wednesday, February 24th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and eight have assigned a buy rating to the company’s stock. The Bank of Nova Scotia has a consensus rating of “Buy” and a consensus target price of $76.46. Read more …

 

 

Federal Realty Investment Trust (NYSE:FRT) was upgraded by equities research analysts at Mizuho from a “neutral” rating to a “buy” rating in a research note issued on Thursday, Briefing.com reports. The firm presently has a $129.00 price target on the real estate investment trust’s stock, up from their previous price target of $102.00. Mizuho’s target price points to a potential upside of 8.38% from the stock’s current price.

A number of other equities research analysts have also recently commented on the stock. Piper Sandler raised shares of Federal Realty Investment Trust from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $95.00 to $125.00 in a report on Thursday, May 6th. Stifel Nicolaus cut shares of Federal Realty Investment Trust from a “buy” rating to a “hold” rating and boosted their target price for the company from $89.00 to $95.00 in a report on Wednesday, February 10th. Truist Securities boosted their target price on shares of Federal Realty Investment Trust from $88.00 to $96.00 and gave the company a “hold” rating in a report on Monday, March 22nd. Truist boosted their target price on shares of Federal Realty Investment Trust from $88.00 to $96.00 in a report on Monday, March 22nd. Finally, TheStreet cut shares of Federal Realty Investment Trust from a “b-” rating to a “c” rating in a report on Wednesday, May 5th. Twelve investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $96.12. Read more …

Philip Morris International Inc.: A Sin Stock Worth Getting Caught With

 

Philip Morris Stock Trading at Record Highs; Still Pays 4.9% Dividend

 

A perfect storm has made it possibly the perfect time for investors to embrace sin stocks. Interest rates are still near record lows and stocks are near record highs. That’s great for initial investments, but it means dividend yields are dropping hard.

 

Where are income-starved investors supposed to go to get safe, high yields?

 

The yields on traditional blue-chip stocks are reliable and tend to grow every year, but the payouts aren’t astronomical. That’s the risk/reward tradeoff. The average dividend yield of all Dow Jones Industrial Average stocks is 2.2%. The current yield on the S&P 500 is a paltry 1.4%, its lowest level since the new millennium and its second-lowest reading on record.

 

If you’re looking for a stock that provides investors with strong, long-term capital appreciation and a long history of raising its frothy dividends, then look no further than tobacco giant Philip Morris International Inc. (NYSE:PM).

 

Philip Morris operates 38 production facilities and produces more than 700 billion cigarettes each year. The company’s machines can produce up to 20,000 cigarettes every minute. (Source: “Making Cigarettes,” Philip Morris International Inc., last accessed May 19, 2021.)

 

Philip Morris International’s products are sold in more than 180 markets. In many of these markets, the company holds the No. 1 or No. 2 position by market size. Philip Morris has six of the top 15 international brands. (Source: “Building Leading Brands,” Philip Morris International Inc., last accessed May 19, 2021.)

 

 

Even if you’re not all that familiar with the name Philip Morris, I’m pretty sure you’ve heard of some of the company’s brands.

 

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