Buy Verizon for Value and Income

 

The stock trades with a low price-earnings ratio and offers a yield over 4%. Total returns could reach almost 19% from the current price

 

 

The S&P 500 has surged nearly 18% over the past three months, approaching a new all-time high. This has caused the price-earnings ratio for the S&P 500 to cross north of 29 as I write this, which is more than twice the median average of the index since its inception. At the same time, the dividend yield has shrunk below 1.8%.

 

Finding value and income remains elusive in the current market, but there are stocks that offer the best of both worlds. One name that remains my favorite is Verizon Communications Inc. (NYSE:VZ).

 

Verizon, which remains the number one phone carrier in the country, trades with a price-earnings ratio that is below its 10-year average and with a yield of more than 4%. Let's look closer at the company to see why it is a solid buy for investors looking for value and income.

 

 

 

 

Quarterly highlights

 

Verizon reported second-quarter earnings results on July 24. Revenue declined slightly more than 5% to $30.5 billion, but came in $455 million ahead of what Wall Street analysts had been expecting. Adjusted earnings per share were lower by 5 cents, or 4.1%, to $1.18. Earnings per share results were 3 cents above estimates.

 

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Retirement Savers: 3 Dividend Stocks To Boost Fixed-Income

 

It's never too late to start saving for your retirement. But if you’re just starting to invest for your golden years, the biggest challenge you will face is how to build a portfolio that will help support you well enough when you do begin your post-work life.

 

During the past decade, interest rates have remained low, which has deprived savers of low-risk investment opportunities. The yield on the US 10-year Treasury note, for example, is less than 1% these days.

 

The reality in this perpetually low-interest-rate environment is that retirees need to have a good chunk of their portfolio tied to stocks to earn higher total returns. Conservative investors who don’t want to add too much risk to their portfolios will need to identify good quality stocks that have the ability to recover from downturns and still continue to provide regular income.

 

 

 

 

We've selected three dividend stocks worth reviewing which, in the past, have outpaced inflation and provided reasonable returns over the long term.

 

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7 Super Stable Dividend Stocks to Buy Now

 

Prepare for the next bear market with these super safe dividend stocks

 

 

It’s been a long few months for the market as COVID-19 worries have taken the main stage.

 

Before things tanked, the stock market, as measured by the S&P 500, was up 15% just since October. Some sectors of the economy, like software-as-a-service stocks, were up much more than that. However, those days are over and many investors are looking for a safe harbor.

 

Even as the markets make their way back, there are lots of people who are understandably gunshy.

 

One way to deal with this uncertainty is to move into safer dividend stocks. This way, you still have exposure to the stock market as prices begin to recover.

 

 

 

On the other hand, if the market takes another tumble, these defensive names should fall much less than the overall market. Regardless of whatever may come, they’ll kick out a steady income stream that helps buffer your portfolio from market volatility.

 

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7 Monthly Dividend Stocks That Will Support Your Retirement

 

These seven monthly dividend stocks are good values today

 

 

It’s no secret that interest rates are slumping. Many banks offer no return on savings accounts nowadays. Even certificates of deposits and government bonds often yield 1% or less in today’s environment. With that in mind, investors are looking to other types of assets to fill the income gap. Monthly dividend stocks are one appealing option. With a nice mix of them, income comes in regularly, offering an ideal paycheck substitute. And many generate yields far higher than fixed income.

 

Before loading up a portfolio full of monthly dividend stocks, however, do consider this. The dividend stock space tends to be full of small companies with more limited operating histories and less robust financial pictures. The March market collapse was difficult on monthly dividend companies; quite a few either cut or eliminated their dividends.

 

As such, a prospective investor should consider their investments in the monthly dividend arena closely. The good news, though, is that many monthly dividend companies have continued to prosper despite the novel coronavirus. These seven monthly dividend stocks offer investors a strong income stream today and the possibility of significant capital gains going forward:

 

 

 

 

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Why I’m Banking on Exxon Mobil Corporation’s 8.1% Dividend Yield

 

Can You Really Trust Exxon Mobil Corporation’s 8.1% Dividend?

  

The COVID-19 pandemic has hammered many businesses. But some businesses have suffered worse than others.

 

Case in point: Exxon Mobil Corporation (NYSE:XOM). Commodity prices plunged after government lockdowns ground economic activity to a halt. As a result, the energy giant just posted some of the worst financial results in its history.

 

The company’s drilling business? Profit warning. Exxon’s refining operations? Struggling. The chemicals division? In disarray.

 

So it’s no surprise to see some analysts questioning the sustainably of Exxon’s dividend. And with a yield approaching 8.1%, it’s clear that some investors on Wall Street don’t trust the payout. Let’s dive into the numbers.

 

At first glance, you might assume that Exxon Mobil Corporation’s dividend is toast.

 

 

 

 

The company reported a second-quarter earnings loss of $1.1 billion, the biggest earnings deficit in the firm’s history. The second-quarter release also presented Exxon’s first consecutive quarterly loss in more than 30 years. (Source: “ExxonMobil Reports Results for Second Quarter 2020,” Exxon Mobil Corporation, July 31, 2020.)

 

Even a rookie financial analyst can see the problem here.

 

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3 “Strong Buy” Dividend Stocks Yielding 5% — Or More

 

Wall Street pros have been taking a careful look of the stock markets in light of the recent gains. The S&P 500 was up 5.5% by the end of July, and the gains have continued into August.

 

CFRA strategist Sam Stovall sees conditions as overbought, and believes that investors are in for a shock between now and the end of September – in the form of a 5% to 10% sell-off.

 

Stovall cites a number of factors to support his contention that we’re on the verge of a market cliff, including “tech and large-cap dominance, the concerns surrounding soaring gold prices, the falling dollar, [and] historically low interest rates…” Stovall looks back at his 35 years’ experience on Wall Street, and notes that he typically sees the S&P average drop 1% in August. 2020 is hardly a typical year, however, and Stovall believes the downward pressures will be correspondingly greater.

 

The upshot is, while increased volatility is almost certainly going to stay with us for a while, it’s time to consider defensive stocks. And that will bring us to dividends. By providing a steady income stream, no matter what the market conditions, a reliable dividend stock provides a pad for your investment portfolio when the share stop appreciating.

 

 

 

 

With this in mind, we’ve used the TipRanks database to pull up three dividend stocks yielding 5% or more, with a Strong Buy consensus rating and over 20% upside potential.

 

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The Best Dividend Stocks to Buy in 9 Sectors

 

Get a mix of passive income and capital gains from these relevant companies

 

 

Although some folks on Wall Street may deny it, I believe there’s overwhelming evidence of a disconnect between investment market valuations and the real economy. Still, that doesn’t mean you can’t profit from the irrational enthusiasm. Better to go with the train than against it. However, at some point, the ride will likely end. When it does, you’ll be glad to have owned dividend stocks.

 

Sure, these investments aren’t as sexy as the growth names that have generated wild headlines and even wilder performance metrics. However, the mania is reminiscent of the late 1990s/early 2000s dot-com bubble. At the time, merely mentioning the word “internet” aroused intense buyer sentiment. However, the fundamentals came around and rudely ended the party. The same can happen here, which is why you should consider dividend stocks.

 

With scheduled payouts along with the possibility of capital gains, dividend stocks provide some measure of confidence in this uncertainty. As well, companies that pay dividends tend to be fiscally stable – after all, the passive income must come from somewhere. Therefore, should volatility impact the broader markets, these organizations usually mitigate the storm better than growth firms.

 

 

 

 

As you dive deeper into the details of this novel coronavirus-driven crisis, the case for dividends only gets stronger. With Congress deadlocked on another round of coronavirus relief, millions of Americans face a bleak future. For instance, eviction moratoriums have expired in several areas, possibly forcing countless shell-shocked households onto the streets.

 

Also, the expiration of the federal program designed to bolster state unemployment checks – the so-called “plus up” – puts millions of others in dire straits. For our elected officials, saving the American people should be a no-brainer. But because we’re going to play politics until everyone dies, here are nine dividend stocks to consider:

 

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20 Dividend Stocks to Fund 20 Years of Retirement

 

Each of these high-quality dividend stocks yields roughly 4%, and you can expect them to grow their payouts even more. That's a powerful 1-2 combo for retirement income.

 

The traditional retirement wisdom used to be the "4% rule." You would withdraw 4% of your savings in the first year of retirement, followed by "pay raises" in each subsequent year to account for inflation. The idea? If you're invested in a mix of dividend stocks, bonds and even a few growth equities, your money should last across a 30-year retirement.

 

But today's world is different. Interest rates and bond yields have been driven into the ground, reducing future expected returns. Exacerbating the problem: Americans are living longer than ever before.

 

If you're wondering how to retire without facing the uncomfortable decision of what securities to sell, or questioning whether you are at risk of outliving your savings, wonder no more. You can lean on the cash from dividend stocks to fund a substantial portion of your retirement. Indeed, Simply Safe Dividends has even provided an in-depth guide about living on dividends in retirement.

 

Many companies in the market yield 4% or more. And if you rely on solid dividend stocks for that 4% annually, you won't have to worry as much about the market’s unpredictable fluctuations. Better still, because you likely won't have to eat away at your nest egg as much, you'll have a better chance of leaving your heirs with a sizable portfolio when the time comes.

 

 

 

 

Here are 20 high-quality dividend stocks, yielding on average well above 4%, that should fund at least 20 years of retirement, if not more. Each has paid uninterrupted dividends for more than two decades, has a fundamentally secure payout and has the potential to collectively grow its dividends to protect investors' purchasing power over time.

 

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3 Big Dividend Stocks Yielding Over 8%; Raymond James Says ‘Buy’

Investment firm Raymond James has released its July performance recap, summing up the fourth month of the economic recovery. The firm notes that the early weeks of this recovery cycle showed a V-shaped turnaround for the economy, which has since slowed, taking a “treading water” patter. Raymond James sees defensive stock plays in a strong position, as they have somewhat outperformed since the second week of June.

 

Raymond James strategist Tavis McCourt sees the slowing pattern as predictable, and linked to the pace of Congressional action on recovery stimulus packages. McCourt writes, “With D.C. negotiating another package, it is likely that high frequency economic data will decelerate in early August before another round of stimulus is signed, but the market clearly believes the likelihood is that more direct support at similar scale is likely through the election.”

 

 

 

 

This makes defensive stocks part of a consistent strategy, to keep returns coming in for reinvestment. With this in mind, we used TipRanks database to pull up the stats on three stocks that Raymond James analysts have tapped as buying propositions. These are stocks with a specific set of clear attributes, that frequently indicate a strong defensive profile: a high dividend yield -- over 8%; and a considerable upside potential.

 

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The Kiplinger Dividend 15: Our Favorite Dividend-Paying Stocks

These 15 dividend stock picks, satisfying income investing needs of every kind, have so far kept their payouts intact while many big firms have cut back.

Income investors love dividend stocks for their regular payouts; any stock-price appreciation is just gravy. The Kiplinger Dividend 15, the list of our favorite dividend-paying stocks, delivers on the first front, yielding 3.7%, on average, compared with a 1.9% yield for Standard & Poor's 500-stock index and a paltry 0.7% yield for the 10-year Treasury bond.

However, after a long string of outperformance, our list has come up a little shy over the past 12 months. While several of our Kiplinger 15 components have put up double-digit returns despite the bear market, the overall 3.4% average total return is roughly 3 percentage points behind the S&P 500. Moreover, chaos in the energy patch has prompted us to jettison one member.

But there is some good news.

For one, none of the members of the Kiplinger Dividend 15 has cut or suspended its dividend this year. In most years, that wouldn't be news. But in response to the pandemic, more than 60 S&P 500 firms and dozens of other companies have shored up cash by cutting or suspending their dividends.

Also, many of our stocks – which were richly valued when we discussed them last fall – have lost some of their froth. And perhaps most salient for dividend investors looking for new holdings, drops in price help bolster a stock's yield; as a result, several yields in the Dividend 15 are well above 4%.

Let's take a look at the Dividend 15. We divide these payers into three categories: stocks with a long history of stable dividends, stocks with the potential for rapid growth in their payouts, and high yielders. Find a dividend stock that suits your needs, or select a mix.

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3 Dividend Stocks To Buy For Second Half Of 2020 For Coronavirus Safety

Stocks climbed in morning trading on the last day of the second quarter to finish off what has been a wild three-month stretch for the market. The tech-heavy Nasdaq has returned to new highs and the S&P 500 has come somewhat near its pre-coronavirus levels. Despite the impressive run for the market, fears about spikes in Covid-19 cases in the parts of the U.S. have some on Wall Street nervous.

Politicians in states such as California, Texas, Arizona, and elsewhere have reversed some reopening plans, as Disney (DIS - Free Report) postpones the reopening its California park and Apple (AAPL - Free Report) shuts down more stores. That said, stocks surged Monday on the back of better-than-expected pending home sales, which helped highlight May’s economic comeback from what appears to be rock-bottom in April.

The Dow, the S&P 500, and the Nasdaq are all finishing up their best quarter in years, but June marked a major slowdown and a return to some volatility. In fact, the S&P 500 has moved almost completely sideways in June but is still up over 37% since March 23.

It’s unclear where the market will go if the coronavirus spikes and constant negative headlines continue. However, the political will for a second broad-based lockdown likely isn’t there unless things get far worse. Plus, Wall Street is ready to remain in don’t fight the Fed mode.

With all this in mind, let’s dive into three stocks with solid dividend yields that appear ready to continue to weather the coronavirus economic downturn in the second half of 2020…  Continue reading …

Kimberly-Clark: Dividend Aristocrat With 5 Billion-Dollar Brands

The S&P 500 Index continues to recover off of its 52-week lows with an impressive rally over the past several weeks. For the year, the S&P 500 is (somewhat amazingly) down just 3%. But the investing climate is by no means clear. The U.S. officially entered a recession in February, and the coronavirus crisis is not yet over.

In times of economic uncertainty, high-quality dividend growth stocks become even more valuable. This is why we continue to favor the Dividend Aristocrats, a group of 65 stocks in the S&P 500 Index with 25+ consecutive years of dividend increases.

Kimberly-Clark (KMB) is a Dividend Aristocrat that has increased its dividend each year, for more than 40 years in a row. The company’s strong brand portfolio has had a very large impact on the company’s ability to grow its profits (and dividends) for so many years.

This article will delve more deeply into Kimberly-Clark’s 5 billion-dollar brands, as well as the company’s future growth outlook and whether the stock is a buy today.

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PepsiCo: Strong Brands Lead to Long-Term Dividend Growth

The Dividend Aristocrat has raised its dividend for over 40 consecutive years. A huge portfolio of billion-dollar brands is a major reason for its success

With the potential for a second coronavirus wave, as well as concerns over a recession amid an unprecedented macroeconomic outlook, many investors are looking for stocks with a consistent track record of delivering positive returns. One such stock is PepsiCo Inc. (NASDAQ:PEP).

The company has an outstanding track record of 48 years of consecutive dividend increases, displaying a resilient business that can withstand and even keep growing throughout adverse economic conditions.

PepsiCo is a global food and beverage company that generates around $70 billion in annual sales. The company’s products include well-known brands like Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods. It has 23 invidividual billion-dollar brands, which each generate $1 billion or more in annual sales.

With a proven strategy of managing its brands, we believe PepsiCo is a great stock to own for reliable, long-term returns.

Being a consumer staples company, PepsiCo’s sales are way less volatile than other sectors since households are likely to keep consuming the company’s products despite economic conditions. Everyday consumables like Quaker and Lipton are mostly recession-proof. As a result, the company has been able to grow its earnings consistently. Earnings per share has grown from $3.81 in fiscal 2010 to an estimated $5.64 for 2020. With such consistent profitability, PepsiCo has keep increasing its capital returns as well.

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