Displaying items by tag: Growth

(New York)
High dividend yields are almost always a welcome feature for investors. For retirees, they are often an economic lifeline as they help cover everyday expenses. But rising rates pose a risk for such stocks as their value tends to suffer as fixed income becomes more attractive. One way to combat that is with stocks with quick dividend growth. Two such examples are pipeline giants Williams Company (4.8%) and ONEOK (5%). Both have dividend rates double that of the average S&P 500 stock, but they are also expected to grow those dividends (and their cash flow) at double digit annual rates. The two companies expect to grow their dividends by 12.5% and 10% respectively (from already high levels).

FINSUM: Given how high these dividends are already, the growth rate on them should be enough to offset any rate rise-related losses.

(New York)

Sometimes balancing good dividends with strong growth is hard. The best dividends tend to come from mature and stable companies, but they often don’t have the best growth prospects. This is usually fine, but it does make them vulnerable in rising rate periods. According, here are ten stocks with strong dividends and good growth potential: SAP, Motorola, NetApp, Logitech, Garmin, Verizon, AT&T, Vodafone, Centurylink, and Consolidated Communications.

FINSUM: This list is very tech and telecoms heavy, but that seems a good balance if you are looing for both growth and strong dividends.

(New York)

For a long time, Walmart was one of the greatest growth stocks in history, growing from a small regional company to the largest retail chain in the nation. However, growth has evaded it for some time, and its quick expansion ended about 20 years ago. That may all be about to change, however. Walmart’s ecommerce operation is really taking off, growing at a 40% clip, at the same time as its in-store sales are rising at their fastest pace in a decade. Walmart is already the fourth largest online retailer in the US, but the stock has not given full credit to how well the company is doing, creating an opportunity for investors.

FINSUM: Walmart’s acquisition of Jet in 2016 was a smart one, and it has shown good leadership in ecommerce. We suspect the stock has a few years of good growth coming.

(New York)

Are you a growth investor or value investor? This has long been a bifurcating question, and has taken on increased importance in the last decade, as the former strategy has outperformed the latter by a wide margin. However, there are some occasions where a stock can be both. Using a simple screen, here are some companies priced like value stocks, but with the core expansion characteristics of growth companies. These include: Micron Technology, Energen Corp., Callon Petroleum, Cal-Maine Foods, Valero Energy, TimkenSteel Corp, and TRI Pointe Group.

FINSUM: Many of these might not be familiar names, but the selection is an interesting methodology and we think they are worth a look.

(New York)

The S&P 500 and most major indexes have been fairing poorly very recently. However, that presents a major opportunity, says Morgan Stanley strategist Michael Wilson. Morgan Stanley says that as the market declines, now is a great time to shift out of growth stocks and into value. Growth stocks’ forward earnings multiples versus value stocks do not merit further outperformance, so its seems likely that value stocks may start to shine. Energy, industrials, and financials value stocks seem a smart choice, says MS.

FINSUM: This makes sense to us. As economic growth starts to taper, the big valuation gap between growth and value stocks seems likely to fade, meaning the latter should outperform. But then again, that would go against a decade of momentum, so it is a dicey bet at best.