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Why Target Is an Excellent "High-Risk" Stock for Risk-Averse Investors
The Motley Fool· 2025-05-21 10:09
Risk-averse investors often avoid individual stocks, even those of well-established, slow-growth companies like Target (TGT 0.33%). Indeed, no stock is risk-free, and even the top retailers cannot completely rule out the possibility of failure, even in the case of an established company like Target. However, investors have several options for mitigating the worst effects of such possibilities, and with that, may have some incentive to take a chance on Target. Here's why investors should buy shares regardles ...
Up 97% in 2 years, Is Walmart a No-Brainer Dividend King Stock to Buy Now?
The Motley Fool· 2025-05-20 08:20
Walmart (WMT -0.20%) stock nearly doubled in the last two years while the S&P 500 (^GSPC 0.09%) gained 43.3%. In addition to the impressive gains in the share price, Walmart has been making some monster dividend raises. Its latest boost increased the dividend by 13% -- marking the 52nd consecutive year that Walmart has bumped its payout. That streak makes Walmart one of 55 companies that have raised their payouts for at least 50 consecutive years -- known as Dividend Kings. Let's dive into Walmart's latest ...
2 Monster Stocks to Hold for the Next 10 Years
The Motley Fool· 2025-05-19 13:30
Group 1: Industry Overview - Consumer staples companies are considered safe-haven investments due to their consistent demand regardless of economic conditions [1] - The average consumer staples stock yields around 2.5% today, with PepsiCo and Hershey offering higher yields [13] Group 2: PepsiCo Analysis - PepsiCo is the leading company in salty snacks with its Frito-Lay brand and has a significant presence in packaged foods through Quaker Oats [2] - Currently, PepsiCo is experiencing cooling top-line growth after inflation-driven growth post-pandemic, and is facing changing snacking trends [4] - The company has a strong history of increasing dividends for 53 years, demonstrating resilience through adversity [5] - PepsiCo is actively working on cost-cutting, improving efficiencies, and adjusting product offerings, including acquisitions of on-trend brands like Siete and Poppi [6] - The company offers a historically high dividend yield of 4.4%, providing investors with compensation while waiting for recovery [7] Group 3: Hershey Analysis - Hershey is the U.S. leader in the confections space, known for its iconic brand and the Reese's franchise, with a dividend yield of approximately 3.4% [8] - The company is currently facing significant challenges due to rising cocoa prices, which are expected to impact margins [9] - Despite the cocoa price challenges, Hershey maintains a dominant market position and plans to grow through acquisitions in non-chocolate confection and salty snack sectors [10] - The Hershey Trust's control allows the company to focus on long-term growth and reliable dividends, aligning with investor interests for sustainable income [11] - Investors may consider waiting for Hershey to navigate current cocoa market challenges while benefiting from its dividend yield [12]
Farmers & Merchants Bancorp (FMCB) Increases Cash Dividend for the 60th Consecutive Year
Globenewswire· 2025-05-14 13:00
LODI, Calif., May 14, 2025 (GLOBE NEWSWIRE) -- Farmers & Merchants Bancorp (OTCQX: FMCB) (the “Company” or “FMCB”), the parent company of Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”), the Board of Directors declared a mid-year cash dividend of $9.30 per share, an increase of 5.7% over the $8.80 per share paid in July of 2024. The cash dividend is payable on July 1, 2025, to shareholders of record on June 10, 2025. Net income over the trailing twelve months was $88.7 million comp ...
In June, PepsiCo Will Do Something That It's Done Every Year Since Richard Nixon Was President -- and It's Something That Investors Today Should Appreciate
The Motley Fool· 2025-05-05 09:02
Core Viewpoint - PepsiCo is recognized as a Dividend King, having raised its dividend for 53 consecutive years, making it one of the best dividend stocks historically [2][4] Group 1: Dividend History and Current Yield - PepsiCo announced a 5% increase in its quarterly dividend payment, continuing its long-standing commitment to dividend payments since 1965 [2] - The current dividend yield for PepsiCo is over 4%, the highest in approximately 40 years, indicating low investor demand [8][10] Group 2: Economic Considerations - PepsiCo generates 60% of its revenue in North America, with significant operations outside the U.S., leading to uncertainty in financial forecasts due to global economic conditions [6] - The company sources raw materials from multiple countries, adding complexity to its cost structure amid economic uncertainty [7] Group 3: Future Prospects and Stability - Despite current challenges, PepsiCo has a diverse portfolio beyond beverages, providing greater stability compared to other beverage companies [11] - The company plans to allocate $7.6 billion for dividends in 2025, supported by $12.5 billion in net cash from operations in 2024, indicating a strong cash flow position [13] - PepsiCo's ability to acquire emerging brands, as demonstrated by its acquisition of Poppi, positions it for growth even in a challenging economy [12][14]
Here Are All the Dividend Kings Beating the S&P 500 in 2025 -- and the 2 That Are the Best Stocks to Buy Now
The Motley Fool· 2025-05-05 08:50
Core Insights - The S&P 500 has rebounded slightly after a significant drop but remains in negative territory for the year, while Dividend Kings are outperforming the index [1][3] - There are currently 55 Dividend Kings, with 31 of them beating the S&P 500 year to date as of May 1, 2025 [3] - Some Dividend Kings have shown remarkable performance, such as Consolidated Edison with a 25% increase and National Fuel Gas with over 30% gain year to date [4] Dividend Kings Performance - Not all Dividend Kings are performing well; for instance, Genuine Parts is barely positive, and Cincinnati Financial is down year to date but still better than the S&P 500 [4] - Income investors may find Altria and Universal Corporation appealing due to their high forward dividend yields of 6.88% and 5.57% respectively, despite potential reluctance due to their tobacco products [5] - Consumer defensive stocks like Coca-Cola and Wal-Mart are considered safe havens, with Coca-Cola's shares increasing nearly 15% [6] Sector Analysis - Healthcare stocks such as Abbott Labs and Kenvue have also shown double-digit percentage increases year to date, although they may face risks from potential tariffs [7] - The utilities sector is performing exceptionally well, with several Dividend Kings like Consolidated Edison and National Fuel Gas continuing to outperform the market [8] Top Picks - Coca-Cola and National Fuel Gas are highlighted as the best Dividend Kings to buy currently [9] - Coca-Cola is recognized as a strong blue-chip stock with a robust brand and a resilient business model [10] - National Fuel Gas is noted for its integrated energy operations and projected compound annual growth rate of over 10% through 2027, driven by the growing demand for natural gas in AI data centers [11][12]
Coca-Cola Company Stock Can Bubble to New Highs This Year
MarketBeat· 2025-04-29 15:46
Core Viewpoint - Coca-Cola's stock is poised for potential new highs in 2025 due to its effective local business strategy and international growth agenda, despite facing macroeconomic headwinds [1][2]. Financial Performance - Coca-Cola's Q1 results showed a 2% contraction in reported revenue, slightly below consensus, but organic revenue grew by 6%, driven by a 5% increase in price and mix, and a 1% increase in concentrate sales [4]. - The company's global unit case volume grew by 2%, indicating strong demand and market share growth expected to continue [4]. - FX-neutral operating income increased by 10%, and the comparable operating margin improved by 140 basis points, with adjusted EPS of $0.73, up 1% year-over-year [5]. Growth Outlook - The company expects organic growth of 5% to 6% for the year, with a slightly faster growth rate on the bottom line [3]. - Coca-Cola updated its 2025 outlook to account for FX headwinds and macroeconomic factors but reaffirmed its growth and earnings targets, stating the impacts are manageable [2]. Dividend and Shareholder Returns - Coca-Cola maintains a reliable dividend growth track record, with a dividend yield of 2.82% and an annual dividend of $2.04, supported by a 64-year history of dividend increases [6][7]. - The company has a manageable debt level at 1.55x equity, with equity increasing by 5% [8]. Analyst Sentiment - Analysts maintain a strong bullish outlook on Coca-Cola, with a consensus rating of Buy and an increasing number of Strong Buy ratings, reflecting positive sentiment and upward price target revisions [9][10]. - The consensus price target has increased by 10% over the past 12 months, indicating potential for significant price appreciation [10]. Market Position - Coca-Cola's localized approach to bottling and delivery, along with operational quality improvements, has helped mitigate headwinds, positioning the company for leveraged top-line growth when macroeconomic conditions improve [5]. - The stock showed initial weakness post-results but quickly regained support, indicating potential for a sustained rally and movement towards new highs [11][12].
Even This Elite Dividend King Stock Is Feeling the Effects of Tariff Turmoil. Is It a Buy Anyway?
The Motley Fool· 2025-04-29 11:05
Core Insights - Procter & Gamble (P&G) has a strong reputation for consistent results and dividend growth, having raised its dividend for 69 consecutive years, placing it among the elite "Dividend Kings" [1] - Following the release of its third-quarter fiscal 2025 earnings report, P&G's stock fell by 3.7%, prompting a review of whether this decline is justified or presents a buying opportunity [2] Financial Performance - P&G's second-quarter fiscal 2025 guidance included expectations for full-year sales growth of 2% to 4%, diluted EPS growth of 10% to 12%, core EPS growth of 5% to 7%, $10 billion in dividend payments, and $6 billion to $7 billion in stock buybacks [4] - The latest quarterly results showed a 1% decline in volumes, a 1% increase in price, and a 2% overall decline in net sales, leading to a downward revision in EPS guidance to 6% to 8% for diluted EPS and 2% to 4% for core EPS [5] Consumer Demand and Market Conditions - Consumer demand is under pressure due to various economic factors, including market volatility, job market uncertainty, and rising mortgage rates, leading to decreased retail traffic [7] - P&G's management noted a decline in value consumption in both the U.S. and Europe, with tariffs expected to impact the business by $1 billion to $1.5 billion annually, approximately 3% of the cost of goods sold [8] Competitive Positioning - P&G is better positioned than its competitors to handle tariff pressures due to superior operating margins and a diverse brand portfolio, which helps retain customers even during spending pullbacks [10] - The company continues to innovate with new products across its brands, such as the launch of OxyBoost Power Pods and Gain Odor Defense, allowing it to maintain customer loyalty [11][12] Dividend and Capital Return - Despite the challenges, P&G's dividend remains secure, with a yield of 2.6% and plans to return $6 billion to $7 billion to shareholders in fiscal 2025, reflecting the strength of its capital return program [14] - The stock is currently trading just 3.3% above its 52-week low, resulting in a price-to-earnings (P/E) ratio of 25.6, which is close to its 10-year median P/E of 25.7, presenting a potentially better value for investors [15] Long-term Outlook - While P&G's stock may face near-term pressure due to tariff uncertainties, the long-term investment thesis remains intact, making it a solid option for risk-averse investors seeking reliable passive income [16][17]
Collect Dividends Like Warren Buffett -- With a High-Yield Utility Stock He Can't Buy
The Motley Fool· 2025-04-28 11:15
Warren Buffett uses Berkshire Hathaway as his investment vehicle, with the conglomerate buying and selling stocks and entire companies. Investors can get ideas by examining Berkshire's portfolio of investments, both public and private. One big investment area for Buffett is utilities. You can easily invest in well-run utilities, too, and here's a particularly attractive option for doing that right now. Black Hills is a Dividend King What sets Black Hills (BKH -0.53%) apart from most of its peers is its impr ...
Tariff Troubles Are No Match for This Dividend King's Rock-Solid High-Yield Payout
The Motley Fool· 2025-04-27 22:00
Core Viewpoint - The earnings season is particularly significant this year due to recent changes that may affect companies' near-term guidance [1] Company Overview - Kimberly-Clark reported weaker-than-expected results and has cut its full-year outlook [2] - The company has a diverse portfolio of everyday-use brands and professional products centered on paper [2] Financial Performance - Kimberly-Clark has maintained steady demand for its products, allowing it to raise its dividend for 53 consecutive years, earning it a place among Dividend Kings [3] - The stock currently yields 3.8%, making it an attractive source of passive income [3] - The company has lowered its 2025 organic sales growth guidance from an expected outperformance of 2% to a range of 1.5% to 2% [6] - Adjusted earnings per share (EPS) guidance has been revised to flat to positive on a constant currency basis, down from mid-to-high single-digit growth [6] - Free cash flow (FCF) is now expected to be $2 billion, compared to an earlier forecast of more than $2 billion [7] Historical Context - Kimberly-Clark's stock price has stagnated over the last decade, with operating margins consistently in the mid-teens and modest revenue growth in recent years [8] - The company has been underperforming its peer group for several years [10] Strategic Initiatives - The company launched its Powering Care strategy to reorganize into three segments, aiming to streamline operations and enhance flexibility [11] - The impact of this strategy is expected to take time to reflect in the company's results [11] Investment Appeal - Despite recent challenges, Kimberly-Clark's reliable dividend and improved balance sheet, with total net long-term debt at $6.7 billion, make it appealing to risk-averse investors [12][13] - The stock trades at a price-to-earnings (P/E) ratio of 18.3, below its 10-year median of 23.1, suggesting it may be undervalued [13] - The stock is considered a good buy for income investors, offering a higher yield compared to peers like Procter & Gamble, which has a lower yield of 2.7% and a higher P/E of 26.7 [14][15] Future Outlook - With lowered growth projections, Kimberly-Clark has more potential for positive surprises [16] - The sizable 3.8% yield provides a strong incentive for income investors to hold the stock [16]