Displaying items by tag: safety

(New York)

With markets at elevated levels, investors may be looking for a safety stock. How about one outside the usual suspects? Here is a suggestion—Goldman Sachs. Yes, we know, that sounds odd considering that investment banks tend to have wildly unpredictable earnings because of fluctuations in trading revenue. However, the bank has just made a big dividend boost from 85 cents to $1.25 per share, which is likely to significantly elevate its status with dividend-seeking investors. Goldman is also diversifying away from its highest risk businesses and smoothing out its revenue by focusing on a more steady Main Street-oriented suite of products.

FINSUM: We think the jury is still out on Goldman’s success at retail banking products. That said, the prevailing narrative about its transformation and the dividend boost will help it be less volatile.

(New York)

Safe and stable income is the name of the game for many investors, especially as the country ages. That means many advisors are on the look out for stocks that can offer that combination. With that in mind, here is a list of ten safe dividend stocks. The “safe” in this context means stable dividends. It should be noted that the S&P 500 is only current yielding around 2% as a whole, but there are many stocks with over 3% yields. Here is the list: AbbVie, Broadcom, SL Green Realty, Regions Financial, Phillips 66, Marathon Petroleum, T. Rowe Price Group, PNC Financial Services, JPMorgan Chase, Comerica.

FINSUM: This is a nice diversified group. One thing we like in S&P 500 dividend stocks is that they tend to be value picks as well, since higher dividends are often a buy-product of previous share price declines.

(New York)

In a sign that is setting off alarm bells on Wall Street, the market’s safest stocks have been surging of late. Investors are increasingly demanding “quality” stocks as a buffer against a potential downturn in the market. “Quality” stocks usually refers to to companies with a range of positive characteristics like high profitability and low debt. However, market strategists point out that such stocks are so well bought that they might not have their intended effect, “Quality factors are well bid so may not be as defensive as people expect”. ETFs that track “quality” stocks have been surging.

FINSUM: One can understand the flight to quality given very high valuations and the hawkish Fed, but it is still a worrying sign that so many feel the need to take cover.