Core Viewpoint - The article highlights three companies—Altria, Verizon, and Chubb Limited—that are considered insulated from the impact of tariffs proposed by the Trump administration, making them attractive investment options in an unpredictable market [1][2]. Group 1: Altria - Altria is the largest tobacco company in America, controlling 45.9% of the U.S. retail cigarette market in 2024, and has diversified into smokeless products [4][6]. - Despite declining adult smoking rates, Altria has managed to maintain profitability through price increases, cost-cutting, and share buybacks, with analysts projecting a 4% EPS growth in 2025 and 3% in 2026 [5][6]. - The stock trades at 11 times forward earnings and offers a forward dividend yield of 7.1%, having raised its payout annually since 2008, making it appealing to income-oriented investors [6][7]. Group 2: Verizon - Verizon is a major telecom company that generates most of its profits from domestic wireless and wireline services, making it less vulnerable to tariffs [8]. - In 2024, Verizon saw a significant recovery, more than doubling its postpaid phone net additions and reducing its total wireless churn rate to 1.62%, attributed to localized marketing and customizable plans [9]. - Analysts expect Verizon's adjusted EPS to grow by 2% in 2025 and 4% in 2026, with the stock trading at 9 times forward earnings and a forward yield of 6.1%, having raised its payout for 18 consecutive years [10]. Group 3: Chubb Limited - Chubb is the largest publicly traded provider of various insurance policies, which are not directly affected by tariffs, as insurance companies do not engage in import/export activities [11]. - Chubb's core operating income per share rose by 30% in 2023 and 13% in 2024, with consolidated net premiums increasing by 13.5% in 2023 and 8.7% in 2024 [12]. - The stock trades at 14 times forward earnings, offers a forward dividend yield of 1.2%, and has raised its payout for 32 consecutive years, making it a stable investment option [13].

Dividend stocks are a blessing to investors because they provide income and don't rely on stock price appreciation to reward shareholders. You can't go wrong with dividend payouts at any time, but they're especially helpful when there's a lot of uncertainty in the stock market. Or, more uncertainty than usual, at least. AT&T's free cash flow has reached a level ($17.6 billion in 2024) where it supports its dividend and debt obligations, with enough left over for the investments needed in its broadband and f ...

Core Viewpoint - The S&P 500 index has recently entered correction territory, prompting a focus on dividend stocks as a stable investment option amid economic and geopolitical concerns [1][2]. Group 1: NextEra Energy - NextEra Energy's shares have declined nearly 20% from their 52-week high, yet the company is a leader in the utility and renewable energy sectors, increasing its dividend by double-digit percentages annually [4][6]. - The company has commissioned 8.7 gigawatts (GW) of new renewable storage capacity in 2024 and has a backlog of over 25 GW, targeting 6% to 8% growth in adjusted earnings per share (EPS) through 2027 [8]. - NextEra Energy aims to increase dividends yielding 3.2% by at least 10% through 2026, making it a strong candidate for long-term investment [8]. Group 2: Devon Energy - Devon Energy introduced a variable-dividend policy, allowing for additional dividends based on excess free cash flow (FCF), but has seen a decline in variable dividends recently [9][10]. - The company is focusing on debt reduction, targeting a $2.5 billion decrease in debt over two years, while expanding its share-repurchase program by 67% to $5 billion [10]. - Devon's fixed dividend has increased by 9% and has more than doubled since 2021, with shares down nearly 33% from their 52-week high, presenting a buying opportunity [11]. Group 3: Caterpillar - Caterpillar has reported weak financial numbers for 2024 due to macroeconomic headwinds, yet its free cash flow has doubled in the past five years, providing a solid base for future dividend increases [12][13]. - The company has increased its dividend per share for 31 consecutive years, demonstrating resilience and capital efficiency despite being a cyclical stock [15]. - Caterpillar's shares have fallen almost 13% in six months and 20% from their 52-week high, making it an attractive option for long-term investment [15].

Core Viewpoint - FedEx Corporation reported mixed results for Q3 fiscal 2025, with earnings per share missing estimates while revenues exceeded expectations, leading to a lowered earnings outlook due to weak economic conditions [1][4][6]. Financial Performance - Q3 earnings per share were $4.51, missing the Zacks Consensus Estimate of $4.65, but improved 16.8% year over year due to cost-reduction benefits from the DRIVE program [4]. - Revenues reached $22.2 billion, surpassing the Zacks Consensus Estimate of $21.8 billion, and increased by 2.1% compared to the same quarter last year [4]. Economic Challenges - The quarterly performance was impacted by a shortened holiday season, adverse weather, an early Chinese New Year, and rising recession fears due to tariff-related tensions [5]. - FedEx now anticipates revenues to be flat to slightly down year over year, revising its adjusted earnings outlook to a range of $18-18.6 per share from the previous $19-20 per share [6]. Market Reaction - Following the earnings miss and lowered guidance, earnings per share estimates have declined for upcoming quarters [7]. - FedEx shares have experienced a double-digit decline over the past year, although the Zacks Transportation—Air Freight and Cargo industry and rival UPS have performed worse [9]. Strategic Initiatives - FedEx is focusing on cost reduction through its DRIVE program, which is expected to yield savings of $2.2 billion in fiscal 2025 by reducing flight frequencies, parking aircraft, and cutting staff [13]. - The company raised its quarterly dividend by 10% to $1.38 per share in June 2024, indicating a commitment to rewarding shareholders despite current challenges [14]. Valuation - FedEx shares are currently trading at lower levels compared to its industry and five-year median based on the forward 12-month price/earnings ratio, with a Value Score of B [15].

Group 1: Retirement Income and Dividend Stocks - The uncertainty surrounding Social Security's future has led investors to seek passive income through dividend stocks, as funds may run out by 2037, potentially reducing benefits to 76% of current levels [1] - Not all dividend stocks are suitable for retirement income, making careful selection essential [2] Group 2: AbbVie (ABBV) - AbbVie is recognized for its strong portfolio in immunology and oncology, successfully transitioning from its former blockbuster drug, Humira [3] - The company's newer immunology treatments, Skyrizi and Rinvoq, have shown significant growth, with combined sales increasing by 51% and 50% in 2024, and projected to reach $31 billion by 2027, indicating a compound annual growth rate exceeding 20% [4] - AbbVie offers a 3% dividend yield, which is 2.5 times higher than the S&P 500 average of 1.2%, supported by strong cash flow and projected 5% average annual revenue growth through 2029, despite a high payout ratio of 259% [5][6] Group 3: Pfizer (PFE) - Pfizer boasts one of the highest dividend yields among large-cap stocks at 6.6%, supported by a diversified portfolio and global distribution network [8] - The company has a solid foundation for future growth due to its extensive research capabilities and history of successful drug commercialization [9] - Analysts remain optimistic about Pfizer's long-term outlook despite political uncertainties, driven by innovation and an aging global population [10][11] Group 4: Chevron (CVX) - Chevron offers a generous 4.3% dividend yield and has recently increased its dividend by 5%, demonstrating commitment to shareholders [12] - The company's global infrastructure and extensive reserves position it well to benefit from rising energy demand, with a focus on capital discipline and returning cash to shareholders [13] - With a sustainable 67% payout ratio and projected production growth of 6% per year through 2026, Chevron provides a solid foundation for future dividend increases [14][15]

Market Overview - The S&P 500 has experienced a sell-off, dropping more than 10% from its peak, with many individual stocks declining even further [1] Dividend Stocks - Falling stock prices have increased dividend yields, making it an opportune time to invest in high-quality dividend stocks [2] - Kinder Morgan, NextEra Energy, and Prologis have all seen declines of over 13% from their recent peaks, making them attractive for dividend investors [2][10] Kinder Morgan - Kinder Morgan's stock has decreased just over 13%, raising its dividend yield to 4.3%, significantly higher than the S&P 500's 1.3% [3] - The company plans to increase its dividend by 2% this year, marking the eighth consecutive year of dividend growth [3] - Kinder Morgan generates substantial excess free cash flow after dividends, allowing for investments in expansion, including a recent $640 million acquisition in North Dakota and $5 billion in new pipeline projects [4] NextEra Energy - NextEra Energy's stock has fallen nearly 14%, resulting in a dividend yield of 3.1% [5] - The company has a strong track record of dividend growth, having increased its payout for 30 consecutive years at a 10% compound annual growth rate over the past 20 years [5] - NextEra Energy is heavily investing in renewable energy capacity, which is expected to support adjusted earnings growth within its 6% to 8% annual target range through 2027 [6] Prologis - Prologis' stock has declined 15.5%, increasing its dividend yield to 3.6% [7] - The company has achieved a 13% compound annual growth rate in dividends over the past five years, significantly outpacing the S&P 500 and average REIT growth rates [7] - Prologis benefits from strong demand for logistics real estate driven by e-commerce growth, allowing for rent increases and investment in new development projects, including data centers [8]

Core Viewpoint - Three major healthcare stocks, Johnson & Johnson, Novartis, and Pfizer, are identified as strong dividend investment opportunities due to their solid financials and growth prospects. Johnson & Johnson - Johnson & Johnson has a remarkable dividend history, having raised its payouts for 62 consecutive years, qualifying it as a Dividend King [2] - The company faces legal challenges related to its talc-based products, which have resulted in numerous lawsuits alleging cancer risks [2][3] - Despite these legal issues, Johnson & Johnson maintains a AAA credit rating, indicating strong financial health and the ability to meet obligations [4] - A proposed solution through a subsidiary aims to resolve over 99% of the lawsuits, suggesting progress in mitigating legal risks [5] - The company has a diversified business model, with a strong medical device unit that reduces reliance on pharmaceuticals [5] - Johnson & Johnson's underlying business remains robust, making it a solid choice for income-oriented investors [6] Novartis - Novartis offers a high dividend yield of 3.5%, significantly above the S&P 500 average of 1.3%, and has increased its payout for 28 consecutive years [7] - The company has a payout ratio of around 64%, indicating potential for future dividend increases as growth continues [7] - Novartis targets sustainable growth of approximately 5% per year through 2029, with a strong pipeline of over 100 projects across various therapeutic areas [8] - The stock is valued at just 13 times projected future earnings, providing a margin of safety for investors seeking high yields [9] - Novartis is considered an underrated buy due to its steady growth and reliable dividend payments [9] Pfizer - Pfizer boasts an ultra-high forward dividend yield of 6.5%, with management committed to maintaining and growing this payout [11] - The company has a strong track record of dividend payments, with 345 consecutive quarterly payments and 16 years of increasing dividends [12] - Despite a decline in COVID-19 sales and a looming patent cliff, Pfizer has strong growth drivers, including cancer drugs and migraine therapies [13] - The stock is trading at a forward price-to-earnings ratio of 9.07 and a low PEG ratio of 0.18, indicating it is undervalued [14] - Pfizer's ability to generate sufficient free cash flow supports its dividend commitments, making it an attractive investment [11][14]