The Zacks Analyst Blog Highlights: Abengoa Yield, DuPont Fabros Technology, Artisan Partners Asset Management, Calumet Specialty Products Partners and Colony Capital
For Immediate Release
Chicago, IL – January 06, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Abengoa Yield plc (ABY), DuPont Fabros Technology, Inc. (DFT), Artisan Partners Asset Management Inc. (APAM), Calumet Specialty Products Partners LP (CLMT) and Colony Capital, Inc. ( CLNY).
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Here are highlights from Tuesday’s Analyst Blog:
Maximize Income in 2016 with These Dividend Stocks
The U.S. stock market is now in a bull-bear tug of war, running the risk of high volatility in the near future. While a series of mergers and acquisitions strengthened market potential, the unknown effect of the interest rate hike, an aging bull market, a strong dollar, lower oil prices and global growth concerns like the Greece crisis and China slowdown are testing the patience of investors.
The chance of generating income from an investment is always tied to market risks. The aforementioned perils are raising discomfort among investors as their income is indirectly proportional to market volatility. Such a situation makes shares expensive, compelling one to think twice before investing.
But this in turn is lowering the income-generating capacity of investors. Yet investors can always avoid risks and opt for stocks that are relatively safe bets.
Extra caution is being exercised while making investments as investors seek optimum returns from their portfolio of stocks. So when looking for income, what should investors seek in an uncertain market like this? Well, many investment managers advocate dividend over capital gains. This ensures a steady stream of income.
Why Dividend Investment?
If we count the numerous benefits of dividend investing, the first is the high and regular income that it brings. Naturally, a dividend paying stock is always a preferred and lucrative option. In fact, investors are more fascinated with those stocks that boast not just consistent but also incremental dividend payments.
Second, dividend paying stocks not only assure a steady stream of income but also cushion shareholders during economic uncertainties and are hence relatively safe for creating wealth.
Third, dividend investing is a cost-effective mode of investment. Fourth, such investments avoid speculative plays and are thus reliable for long-term growth. Fifth, investors can choose to reinvest dividends to purchase more shares and thereby enhance their portfolio. And finally, if we go by historical numbers, dividend paying stocks have clearly outperformed the market, vouching for their popularity among investors.
Stocks Worth Adding to Your Portfolio
If you are an investor seeking steady returns, here we aim at compounding your investments by combining three parameters. We first used the Zacks Screener to find companies that offer a dividend yield of minimum 5%. Then we added the criteria of a market cap of at least $1 billion and a Zacks Rank #1 (Strong Buy) or #2 (Buy) to pick seven stocks that hold maximum promise for 2016.
Abengoa Yield plc (ABY) – Abengoa Yield, a subsidiary of Abengoa Concessions Investment Limited, is a Brentford, UK-based company that owns a portfolio of renewable energy, conventional power and electric transmission line contracted assets in North America, South America and some markets of EMEA.
Zacks Rank: #1
Dividend Yield: 9.24%
Market Cap: $1.9 billion
DuPont Fabros Technology, Inc. (DFT) – This Washington-based real estate investment trust (REIT) company engages in the ownership, acquisition, development, operation, management, and lease of large-scale data center facilities in the United States.
Zacks Rank: #2
Dividend Yield: 6.1%
Market Cap: $2.0 billion
Artisan Partners Asset Management Inc. (APAM) – This investment manager provides services to pension and profit sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds and non-U.S. funds, as well as mutual funds, non-U.S. funds and collective trusts. The company is based in Milwaukee with additional offices in Atlanta, New York City, San Francisco, Leawood, KS and London, UK.
Zacks Rank: #2
Dividend Yield: 6.81%
Market Cap: $2.6 billion
Calumet Specialty Products Partners LP (CLMT) – Based in Indianapolis, IN, Calumet Specialty produces and sells specialty hydrocarbon products in North America.
Zacks Rank: #2
Dividend Yield: 13.82%
Market Cap: $1.5 billion
Colony Capital, Inc. (CLNY) – This real estate investment trust with a global reach owns and manages a diversified portfolio of primarily real estate equity and debt-related investments and is headquartered in Los Angeles, CA.
Zacks Rank: #2
Dividend Yield: 8.3%
Market Cap: $2.2 billion
Bottom Line
In an unruly and volatile market, opting for safe bets is the most prudent strategy -- and what could be better than a dividend paying portfolio that generates steady income? A dividend represents the distribution of part of the company’s profits to its shareholders on a quarterly, semi-annual or annual basis.
Regular dividend payouts and hikes from time to time reflect a sound financial structure and robust underlying fundamentals. Dividend payment combined with a favorable Zacks Rank and significant market cap should not only boost a portfolio, these also help in tiding over market uncertainties. Investing in the aforementioned stocks should ensure a steady stream of income that is likely to grow over time.
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ABENGOA YIELD (ABY): Free Stock Analysis Report
DUPONT FABROS (DFT): Free Stock Analysis Report
ARTISAN PTNR AM (APAM): Free Stock Analysis Report
CALUMET SPECLTY (CLMT): Free Stock Analysis Report
COLONY CAPITAL (CLNY): Free Stock Analysis Report
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