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1 Magnificent S&P 500 Dividend Stock Down 40% to Buy and Hold Forever
The Motley Fool· 2025-05-24 08:42
Group 1: Market Performance - The S&P 500 index gained 9.8% over the last year through May 21, despite recent volatility due to higher tariffs [1] - Target's share price lost more than 40% during the same period, indicating underperformance compared to the index [1] Group 2: Dividend Commitment - Target has maintained a dividend payout since 1967 and has raised its quarterly payout for 53 consecutive years, qualifying it as a Dividend King [4] - The company has a payout ratio of 50%, which supports its ability to continue paying dividends even with a reduced earnings outlook of $7 to $9 per share for the year [10] Group 3: Sales Performance - Target's fiscal fourth-quarter same-store sales increased by 1.5%, but the first-quarter comps dropped by 3.8%, affected by decreased traffic and spending [6][7] - The company is facing challenges from higher tariffs and boycotts related to management decisions, which have impacted sales and traffic [8][9] Group 4: Valuation Metrics - Target's stock price decline has resulted in a compelling valuation, with a price-to-earnings (P/E) ratio of 11, down from 18 a year ago, compared to the S&P 500's P/E of 28 [11] - The dividend yield for shareholders is 4.8%, significantly higher than the S&P 500's yield of 1.3% [10] Group 5: Future Outlook - Despite current challenges, there is optimism that the economy will stabilize, leading to a return of consumers to Target [8] - The company is expected to see earnings growth and an increase in share price as market conditions improve [12][13]
Could Investing in These American-Made High Yielders Pay Dividends for Your Portfolio?
The Motley Fool· 2025-05-24 08:24
Core Viewpoint - U.S. utilities present attractive investment opportunities for dividend-seeking investors, with NextEra Energy, Black Hills, and American Electric Power being notable examples of companies with distinct strengths in dividend growth, reliability, and growth potential respectively [1][13]. Group 1: NextEra Energy - NextEra Energy offers a dividend yield of approximately 3% and has achieved a 10% annualized dividend growth over the past decade, with expectations to maintain this growth rate for the next few years [2][4]. - The company's business is primarily supported by regulated utility assets in Florida, benefiting from population growth and a strong renewable energy operation [3][4]. - NextEra is a leader in the clean energy sector, being one of the largest solar and wind companies globally, positioning itself well for future growth as the world shifts towards lower carbon energy options [4]. Group 2: Black Hills - Black Hills boasts a remarkable 55-year streak of increasing dividends, qualifying it as a Dividend King, with a current yield of 4.6% [6][7]. - The company operates in markets that are growing at approximately three times the rate of the U.S. population, projecting earnings growth of 4% to 6% annually [8]. - While Black Hills may not offer rapid growth like NextEra, its high yield and steady dividend increases make it appealing for conservative investors focused on income generation [9]. Group 3: American Electric Power (AEP) - AEP has a dividend yield of around 3.6% and is in a growth phase with a five-year capital investment plan of approximately $54 billion, which could increase by another $10 billion [10][11]. - The company anticipates a 55% rise in electricity demand by the end of the decade, which could drive significant earnings growth [11][12]. - AEP's regulated spending is expected to provide more reliable growth compared to NextEra's unregulated clean energy initiatives, with projected earnings growth of 6% to 8% [12].
Avoid These Dividend Disasters Before It's Too Late
Seeking Alpha· 2025-05-23 12:15
Group 1 - The approach has received over 180 five-star reviews from members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities [1] - The current environment is challenging for dividend investors, indicating a potential lack of preparedness [1] Group 2 - Samuel Smith has extensive experience as a lead analyst and Vice President at dividend stock research firms [2] - The High Yield Investor group focuses on balancing safety, growth, yield, and value in investment strategies [2] - The services offered include real-money portfolios, trade alerts, educational content, and an active investor chat room [2]
Why Sonic Automotive (SAH) is a Great Dividend Stock Right Now
ZACKS· 2025-05-22 16:51
Company Overview - Sonic Automotive (SAH) is headquartered in Charlotte and operates in the Retail-Wholesale sector [3] - The stock has experienced a price change of 5.57% since the beginning of the year [3] Dividend Information - Sonic Automotive currently pays a dividend of $0.35 per share, resulting in a dividend yield of 2.09% [3] - This yield is significantly higher than the Automotive - Retail and Wholesale industry's yield of 0.23% and the S&P 500's yield of 1.57% [3] - The company's annualized dividend of $1.40 has increased by 12% from the previous year [4] - Over the last 5 years, Sonic Automotive has raised its dividend 4 times, averaging an annual increase of 35.72% [4] - The current payout ratio is 24%, indicating that the company pays out 24% of its trailing 12-month EPS as dividends [4] Earnings Growth - Earnings growth for Sonic Automotive appears strong, with the Zacks Consensus Estimate for 2025 at $6.43 per share, reflecting a 14.82% increase from the previous year [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - High-yielding stocks may face challenges during periods of rising interest rates, but Sonic Automotive presents a compelling investment opportunity as a strong dividend play [7] - The stock currently holds a Zacks Rank of 3 (Hold) [7]
5 Reasons You Will Be Glad You Bought Target in 2025
MarketBeat· 2025-05-22 11:32
Core Viewpoint - Target Corporation is currently facing challenges in 2025 but remains profitable, indicating a potential turnaround and presenting a deep-value, high-yielding investment opportunity at a generational low price [1] Group 1: Stock Performance and Valuation - Target's stock is trading at $93.01, down 5.21%, with a 52-week range of $87.35 to $167.40 [1] - The stock has a dividend yield of 4.82% and a P/E ratio of 9.86, with a price target of $127.29 [1] - The stock is trading at less than 12 times its current year forecast and approximately 6 times the 2035 outlook, suggesting a potential 300% increase in stock price while still being cheap compared to competitors like Walmart, which trades at 37 times earnings in 2025 [4] Group 2: Technical Analysis - Technical indicators suggest that the market reached its bottom in April and is confirming it in May, marked by a capitulation sell-off and subsequent consolidation [1][2] - A price dip in late May, following Q1 earnings results, was seen as a buying opportunity, with indicators showing that buyers are overtaking sellers at these low prices [2] Group 3: Financial Health - Target reported a negative cash flow in Q1, but the operation remains profitable, with cash reduction linked to debt reduction and increased inventory [7] - The balance sheet shows reduced cash but increased current and total assets, along with an 8% gain in shareholder equity [8] - Leverage remains low at less than 1 times equity, and share buybacks have reduced the count by an average of 1.6% diluted in Q1, with sufficient capital for continued buybacks [9] Group 4: Sales and Growth Prospects - In Q1, Target experienced a 3% contraction in revenue and a 3.8% decline in comparable store sales, but this was offset by growth in digital channels and seasonal sales [10] - The company is establishing an acceleration office to enhance decision-making and strategy implementation [10] - Institutional activity has ramped to multi-year highs, with institutions owning about 75% of the stock, indicating confidence in the stock's recovery [11][12]
2 Stress-Free High Yields For Retirement And Significant Upside Potential
Seeking Alpha· 2025-05-20 18:03
Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at several firms, and also runs a dividend investing YouTube channel [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] - The High Yield Investor service provides real-money portfolios for core, retirement, and international investments, along with trade alerts, educational content, and a community chat room for investors [2]
Buy These 2 Beaten Down Stocks Now Before They Rally
Seeking Alpha· 2025-05-19 17:00
Core Viewpoint - The article emphasizes the importance of dividend investing in quality blue-chip stocks, Business Development Companies (BDCs), and Real Estate Investment Trusts (REITs) for building a sustainable retirement income [1]. Group 1: Investment Strategy - The company focuses on a buy-and-hold investment strategy, prioritizing quality over quantity in its portfolio [1]. - The aim is to help lower and middle-class workers build investment portfolios that consist of high-quality, dividend-paying companies [1]. Group 2: Personal Background - The analyst is a Navy veteran with a decade of experience in investment banking, specializing in industry and company research [1]. - The analyst plans to supplement retirement income through dividends within the next 5-7 years [1].
This is Why Hanover Insurance Group (THG) is a Great Dividend Stock
ZACKS· 2025-05-19 16:51
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a m ...
First Bancorp (FBP) is a Top Dividend Stock Right Now: Should You Buy?
ZACKS· 2025-05-19 16:51
Company Overview - First Bancorp (FBP) is headquartered in San Juan and operates in the Finance sector [3] - The stock has experienced a price change of 12.69% since the beginning of the year [3] Dividend Information - First Bancorp currently pays a dividend of $0.18 per share, resulting in a dividend yield of 3.44% [3] - The yield of the Banks - Southeast industry is 2.35%, while the S&P 500's yield is 1.52% [3] - The company's annualized dividend of $0.72 has increased by 12.5% from the previous year [4] - Over the past five years, First Bancorp has raised its dividend five times, averaging an annual increase of 31.93% [4] - The current payout ratio is 39%, indicating that 39% of its trailing 12-month EPS is paid out as dividends [4] Earnings Growth Expectations - For the fiscal year, First Bancorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $1.93 per share, reflecting a year-over-year growth rate of 6.63% [5] Investment Appeal - First Bancorp is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]
Tech Is Crushing Dividends - And I Love It
Seeking Alpha· 2025-05-17 13:42
Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content for investors [2] - The service includes an active chat room for like-minded investors to share insights and strategies [2]