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3 Large-Cap Stocks for Income Investors to Buy Right Now

Benjamin Rains

The S&P 500 has climbed over 15% in 2019, driven by comebacks from tech giants such as Netflix NFLX, Facebook FB, and other big names. With that said, no matter how long the current rally lasts, it is always a solid investment strategy to search for stocks that provide income.

Therefore, we have highlighted three well-known large-cap stocks that present solid dividend yields and earn a Zacks Rank #2 (Buy) or better at the moment.

Coca-Cola (KO)

Coca-Cola’s first-quarter 2019 adjusted earnings popped 2% to reach $0.48 per share to top our Zacks Consensus Estimate. Meanwhile, the company’s revenue jumped 5% to $8.02 billion. The company saw double-digit growth for its Coca-Cola Zero Sugar brand globally for the sixth consecutive quarter. Going forward, Coca-Cola will continue to try to build its portfolio to feature more non-sugary drinks. This expansion includes a major investment in sports drink upstart and potential Gatorade PEP rival BodyArmor.

Plus, Coca-Cola officially completed its purchase of UK coffee giant Costa for $5 billion in January to help it try to compete against Starbucks SBUX, Dunkin' DNKN, and others. Looking ahead, our Zacks Consensus Estimate calls for the Atlanta-based company’s current full-year revenue to jump 9% to hit $34.75 billion, with sales expected to come in 4.3% higher than our 2019 estimate in 2020. Meanwhile, the beverage powerhouse’s full-year EPS figure is projected to pop roughly 1% this year and 7.7% in the following year.

KO shares have surged 15% over the last 12 months to outpace the Beverages Market’s 2% average climb. Despite the climb, KO is currently trading at 22.6X forward 12-month Zacks Consensus EPS estimates, which falls roughly in line with its industry’s average. Coca-Cola is a Zacks Rank #2 (Buy) right now, with a 3.29% dividend yield.

Las Vegas Sands Corp. (LVS)        

Las Vegas Sands owns The Venetian and The Palazzo resorts in Las Vegas, along with a property in Singapore and multiple properties on the Cotai Strip in Macau. The company has continued to invest in all of its markets and remains positive about its opportunities in Macau, where, like in Las Vegas, it also operates retail businesses and entertainment attractions. The company is coming off a first quarter of fiscal 2019 that saw it post better-than-expected earnings and revenues, after missing the Zacks Consensus Estimate in the trailing two quarters.

Las Vegas Sands’ adjusted earnings did fall 12.5% from the year-ago period but easily surpassed our estimate at $0.91 per share. The company’s revenues popped 1.9% to reach $3.65 billion. The company’s solid quarter has helped shares of LVS climb 30% in 2019 to outpace its industry’s 23% average. Despite the strong performance, Las Vegas Sands stock rests 18% below its 52-week highs.

The company’s current-quarter earnings are projected to jump 5.4% on 2.6% revenue growth. LVS has also seen its earnings estimate revision activity trend heavily in the right direction recently to help it earn a Zack Rank #2 (Buy). On top of that, the company pays a quarterly dividend of $0.77 per common share for an impressive 4.54% yield. LVS is also trading right around its five-year median of 19.5X forward 12-month Zacks Consensus EPS estimates, which is well below its 25.5X high.

Target (TGT)

The Minneapolis-based retailer has bolstered its digital business, introduced delivery options, —alongside rivals Walmart WMT, Costco COST, and Kroger KR—redesigned stores, opened smaller locations in college towns and urban areas, and rolled out trendy new lines in an effort to fight off Amazon’s AMZN encroachment. Target is coming off a fiscal year that saw it post its strongest comparable sales growth since 2005, up 5%. More specifically, Target’s digital comps surged 36%. Clearly, some of its moves have paid off.

With that said, Target is a dividend payer that recently announced a $0.64 a share quarterly payout, for an annualized dividend of $2.56. On top of that, the company’s current dividend yield rests at 3.38%. Meanwhile, TGT stock is trading at 12.9X forward 12-month Zacks Consensus. This represents a discount against the S&P 500’s 17X, its industry’s 27.7X average, and its own five-year high of 20.1X and 14.3X median. Plus, Target’s price/sales ratio of 0.52 comes in below its industry’s 0.65 average.

Looking ahead, Target’s adjusted Q1 2019 earnings, which are set be released on May 22, are projected to pop 7.6% on the back of 4.5% revenue growth, based on our current Zacks Consensus Estimates. TGT has seen a ton of positive longer-term earnings estimate revision activity for 2019 and 2020 to help Target earn a Zacks Rank #2 (Buy). Target also sports “A” grades for Value, Growth, and Momentum in our Style Scores system. Shares of TGT closed regular trading Thursday at $76.42, down 16% from their 52-week intraday highs.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

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Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Pepsico, Inc. (PEP) : Free Stock Analysis Report
Coca-Cola Company (The) (KO) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
Dunkin' Brands Group, Inc. (DNKN) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
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