Displaying items by tag: income
Bonds have been in a bull market for the entire living memory of almost everyone in the financial industry. Yields are extremely low, prices are high, and stocks are peaking every week. Even if you are worried about bonds, the odds that they keep rising seem strong given some undeniably supportive factors. Those include a Fed that not only says it has no intention of hiking rates, but is actually undertaking a stealth form of QE by buying $60 bn of Treasury bills every month to make sure the financial system has adequate cash reserves.
FINSUM: Everything in the market is pointing to a repeat of the post-Crisis market paradigm—ultra-low rates, rising stocks. Should we expect a different outcome this time?
The market is at all time highs, multiples are huge, and earnings are trending the wrong way. If you are looking to buy into some downside protection, take a look at these 4 tech names. These stocks have big dividends which should offer some significant downside protection as tech shares with lower multiples and good dividend yields provide insulation. Here are the names: IBM (4.7% yield), Broadcom (4.2%), Hewlett Packard (3.2%), and Cisco Systems (2.9%).
FINSUM: IBM trailed the tech market last year but still had a respectable 16% gain. Seems like a good choice given the big dividend yield.
The stock market is a tough game right now. Valuations are sky high and earnings are trending the wrong way, which makes picking any stock difficult. Even buying popular high-priced stocks isn’t a good plan when earnings are falling, which makes it seem as though there are few good options. With that in mind, consider buying cash cows like Facebook, Google, and Ford. With such good earnings prowess and free cash flow, these kinds of companies have the money to keep buying back shares, which should drive their valuations over time.
FINSUM: Cash cows can feed their own market pricing even in really rich markets, so this seems like a smart call.
Are you looking for a group of high-paying and stable income stocks? We’ve got a great list for you. All five in this group yield over 5% and all seem to have a stable outlook—which is not typical once dividends get to this level. Take a look at AT&T (5.3%), Schlumberger (6.1%,) AbbVie (5.4%), Simon Property Group (5.6%), and Iron Mountain (7.5%).
FINSUM: This is a highly diversified group of picks, which makes it quite interesting. AT&T seems like a good bet. Some runners-up include Macy’s (10% (!)) and Victoria’s Secret (7.1%).
Most analysts and investors are quite bearish on the market at the moment despite the fact that the trade war is looking less worrying. That said, there is still a lot of indecision over where the market is headed. With that in mind, Barron’s is arguing that buying beat up but high-quality dividend stocks is a safe bet no matter which way the market heads. Here are five stocks to look at: UnitedHealth, food products company Ingredion, drug company Eli Lilly, Kohl’s, and Ralph Lauren.
FINSUM: There are a lot of different types of names here. We are most interested in Ralph Lauren, which is trading at a 25% discount to its historical valuation. The company is very healthy—easily covering its 3% dividend with earnings—and it it not facing the same headwinds as other retailers because it is mostly a wholesale business, meaning it is agnostic to the shift to online selling.