Displaying items by tag: dividends

Monday, 11 June 2018 10:33

Where to Get Some Great Yields

(New York)

While Treasury yields, especially at the short end of the curve, have improved a great deal recently. Many investors may still be interested in adding some stocks with good dividends to their portfolios. With that in mind, pharma may be a great place to look. The sector is having a tough time this year—down over 6% to-date—but that means dividend yields are looking strong. The sector is averaging 2.9%, but the best payers are near 4%, including some big names. For instance, AbbVie and Pfizer are both yielding 3.7% or over, and both seem to have rock solid outlooks where that dividend is not going to shrink.


FINSUM: These seem to be some great choices. The risk here does not appear to be in the fundamentals, but more related to interest rates.

Published in Eq: Large Cap

(New York)

If you are worried that much higher rates will cause an exodus from the stock market, you are not alone. Many advisors across the country are closely watching the markets to see signs of a mass departure. The big worry is that even three-year Treasury bills now have yields which exceed the dividend yield of the S&P 500. So while for the last several years the theme was “there is no alternative”, now there are some very good ones, which could scuttle the market.


FINSUM: The good news here is that the so-called “Great Rotation” into stocks never really materialized, so there is not going to be a great rotation the other way, or at least everyone hopes so.

Published in Eq: Large Cap
Friday, 25 May 2018 09:47

The Best Dividend Stocks

(New York)

Now might be a good time to buy dividend stocks, especially if you think rates and the economy are likely to stagnate. But even if not, having solid income stocks is always a key feature of a portfolio. With that in mind Barron’s has come up with a list of 12 income stocks with good cash flow and very solid fundamentals, all of whom are supposed to see growing cash flow in 2019. Some of the names cited include: Kraft Heinz, Target, Merck, Johnson & Johnson, 3M, Eli Lilly, and Omnicom.


FINSUM: This is a diverse list from across different sectors which includes a lot of companies with strong profiles. All of the stocks have of a dividend yield of at least 2.5%.

Published in Eq: Large Cap
Monday, 21 May 2018 11:42

Three Blue Chip Bargains

(New York)

While markets have been doing a little better of late, investors may be looking for safe stocks that could perform well. Well, if that is the case, look no further than three old-time consumer goods companies that look ripe for outperformance. Coca-cola, PepsiCo, and P&G all look set to thrive and are available at a bargain. On the back of a slew of industry factors, consumer goods stocks are down by over 12% this year. However, the three stocks mentioned are solid dividend producers and seem likely to provide strong earnings growth, making a 10% total return for the year look likely.


FINSUM: 4% dividend yields with good top-line revenue growth for rock solid stocks seems like a pretty attractive proposition to us.

Published in Eq: Large Cap
Tuesday, 15 May 2018 09:53

All Signs Point to Recession

(New York)

We might have just reached an inflection point in the market-economy mechanism. For the first time since 2008, short-term Treasury yields have just reached the same level as equity dividend yields. It is not even the two-year Treasury we are talking about, but rather the three-month, whose yield is now about 1.9%, the same as equities’. The convergence of a number of different yield rates is a strong warning sign of a pending recession. JP Morgan comments that “What has been surprising this year has been the degree to which cross-asset performance has behaved as if the late cycle had already arrived, despite little material change in the growth outlook”.


FINSUM: This is an important indicator. Both bond and stock investors are moving ahead of the economy itself, but their actions seem likely to create the reality they fear.

Published in Macro
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