It gets harder every day to find quality yield in a world where most people are thinking that the “lower for longer” mantra is starting to become a reality.
They have good reason to think that, because U.S. Treasury rates are among the highest investment grade sovereign debt yields in the world, and the 30-year bond is at a pathetic 2.26%.
Not a very fair return for loaning the government money for 30 years. On this blog we are constantly on the lookout for stocks that pay good dividends, are not horribly overbought and are rated reasonably high by some of the top firms we cover. This week we found four companies that pay at least a 5% yield and are rated Buy.
These are the results...
Today I am sharing with you a few companies, which I believe are attractively valued.
These companies have managed to boost dividends for at least a decade, have a P/E ratio below 20, and a current yield above 2% which is covered by earnings.
These are companies which are good candidates for further research.
Here are the results from the screen...
Only a few types of companies can survive in essential perpetuity, and the ones who can have stocks you'll want to hold for the rest of your life.
Now, granted, the Dow is now 120 years old, and a lot can happen in that amount of time. But it’s worth noting that the S&P 500 — which is less than 60 years old — only has 86 or the original 500 companies still in the index.
That means that 83% of the companies have either gone bankrupt, merged or simply become too small or irrelevant to be included.
Some companies stand the test of time … but most don’t. Today, I’m going to recommend five stocks to buy for the next 50 years.
These are the kinds of stocks you can buy for a secure retirement, because you know that, barring a zombie apocalypse, they’re still going to be around.
Here are five stocks that may be good investments for the next 30 years....
The Dogs of the Dow is an investment strategy that gained popularity in the 1990’s which proposes that an investor buy and hold the 10 stocks from the 30 in the Dow Jones Industrial Average with the highest dividend yields each year.
The reasoning is that because the dividends of Dow stocks don’t vary with the price of the stock and if we believe that a company’s dividend is a good measure of the value of a company then by buying companies with a high dividend yield, we’re systematically buying those companies that are at the bottom of their business cycle and are more likely to see the stock price increase faster than their lower yielding counterparts.
The Dogs of the Dow for July 2016 are :
While the post-Brexit rally has been outstanding, the market looks very overbought and ready to digest some of the big gains we have seen.
The good thing for investors is there is absolutely nothing wrong with that, and taking profits now makes very good sense. The question is what to do with the proceeds.
Cash is useless from a dividend standpoint, and the Treasury market is more overbought than the stock market.
However, good blue chips trading way off the highs may be a good answer.
While the rising tide lifts all boats metaphor is usually correct, there are plenty of solid companies, some that reported great earnings, that are trading way below 52-week highs.
Today we screened our database and found four stocks rated Buy with dividends of at least 4% that fit in the not-overbought club, and they have solid upside to the current price targets.
These are the results in detail...
