Displaying items by tag: stocks

(New York)

The very public grudge match between JP Morgan and President Trump appears to be continuing, albeit in a more subtle way this week. Strategists at JP Morgan went on the record saying that one of the biggest risks to the market right now is that Trump overestimates the US economy and makes a major miscalculation in his trade war with China. The big worry is that Trump takes the trade war too far and sends China into a recession, which would then reverberate and cause a global reversal, shocking markets.

FINSUM: China experiencing a significant downturn could cause a chain reaction amongst EM and developed economies which could come back to sting the whole western world.

(New York)

Many investors may be looking for the best possible combination of high dividend yield and stability. Many companies with very high yields are not stable, so there is often a tradeoff between the two. With that in mind, here are three dividend stocks whose payouts should be reliable for decades to come. The first is a smaller REIT called CareTrust (4.6% yield), which is focused on growing its real estate footprint to handle the US’ aging population. Nike (1%) is another option. The dividend yield is not high, but it is hard to think of a more reliable payer. Finally, there is Canadian space stock, Maxar, which is growing strongly and offers a great dividend yield (considering how small and young it is) of 3.3%.

FINSUM: This is a serious mix of options from three entirely different sectors. Definitely some interesting choices to look into.

(Atlanta)

The airline market has not been doing very well this year. Fuel prices and expanding capacity have weighed on the stocks. United is up big, but the rest of the pack is either in the red or up single digit percentages. Recently, there has been clear winners and losers, with United Continental, Delta, and Spirit being outperformers, and American, Alaska, and Southwest being laggards.

FINSUM: Airlines are an interesting sector, as each has its own unique characteristics, but they are all subject to similar woes. American Airlines has been a big loser this year, but some analysts think it could be the biggest gainer in the medium term.

(Portland)

Nike’s stock has been cruising this year, easily outpacing the broader market thanks to good earnings, new products, and the continued strength of “athleisure”. Shares are up 35% this year, and now it looks like they might head much higher as today’s earnings release is expected to be very strong. Many analysts are boosting their target prices, especially because gross margins look likely to expand on the back of less discounting and a shift towards the higher-margin direct-to-consumer business.

FINSUM: About a year ago, when Nike was going through a rough patch and losing market share, we thought investors should stick around. That has paid off.

(New York)

Retirees are looking for dividend stocks that can pay them steadily and over the long term. The higher the yield, the better, but generally one wants stable underlying companies that are not going to spend too high a percentage of cash. With those factors in mind, here are three names to consider: Verizon (4.3% yield), master limited partnership MPLX (6.85%), and mining giant Rio Tinto (~6%).

FINSUM: Verizon seems like a good bet to us, and we expect they might raise the dividend given that it is at an all time low relative to AT&T.