5 Dividend Stocks Worth Keeping an Eye On
U.S. equities stumbled out of the gate on Wednesday, continuing their recent bout of weakness as a number of high-beta large-cap technology stocks suffered a round of selling pressure. Stocks in the periphery of the “FAANGs” such as semiconductor and cloud computing names also rolled over.
The catalyst is the ongoing Capitol Hill hearings with executives from Twitter (NYSE:TWTR) and Facebook (NASDAQ:FB) fielding questions from Congress about issued like Russian meddling and conservative censorship. The fear is that growing political pressure will lead to profit-limiting regulatory action.
Indeed, one senator warned that the “Wild West” era for social media was ending.
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In response, investors have rotated into more defensive areas of the market such as consumer staples and utilities. This is poised to boost a number of dividend-focused stocks which have been under some pressure lately on account of weakness in long-term Treasury bonds. So not only are yields looking more attractive in these names, but they look ready for some capital gains as well.
Here are five dividend-paying stocks to watch:
Dividend Stocks to Watch: Ford (F)
Ford Motor Company (NYSE:F) shares are working on building double-bottom support near the $9-a-share level after suffering a 25% decline from the levels seen in June.
Headwinds have been hitting the entire automaker space on fears over higher car loan rates, collapsing demand for passenger cars vs. trucks and SUVs, and worries that President Trump’s trade wars will disrupt both revenue growth and margins (higher metal prices). The stock carries a 6%+ dividend yield.
The company will next report result son Oct. 24 after the close. Analysts are looking for earnings of 32 cents per share on revenues of $34 billion. When the company last reported on July 25, earnings of 27 cents per share missed estimates by three cents on a 2.8% decline in revenues.
Dividend Stocks to Watch: CenturyLink (CTL)
Centurylink Inc (NYSE:CTL) shares look ready to resume the uptrend that has been in play since last November when prices found a low near $12.
A near doubling into the high set in August resulted in some profit taking and a return to the 20-day moving average as defensive sectors find favor. The stock carries a 10.1% dividend yield.
The company will next report results on Nov. 7 after the close. Analysts are looking for earnings of 29 cents per share on revenues of $5.9 billion. When the company last reported on Aug. 8, earnings of 27 cents per share matched estimates on a 44.3% rise in revenues.
Dividend Stocks to Watch: PPL Corp. (PPL)
Shares of PPL Corp (NYSE:PPL), an electric utility, are pushing up and out of their post-February bottoming pattern and have crossed up and over their 200-day moving average.
Retaking the level for the first time since late 2017. Merely a return to the late 2017 trading range would be worth a gain of roughly 15% from current levels. Analysts at Citigroup recently initiated coverage with a “neutral” rating.
The stock carries a 5.5% dividend yield. The company will next report results on Nov. 1 before the bell. Analysts are looking for earnings of 57 cents per share on revenues of $1.97 billion.
When the company last reported on Aug. 7, earnings of 55 cents per share beat estimates by a penny on a 7.1% rise in revenues.
Dividend Stocks to Watch: Southern Co. (SO)
Southern Co (NYSE:SO) shares have suffered a 10% drop from the highs seen in early August but looks ripe for a reversal here on a rotation into defensive sectors amid solid operating results.
Management raised forward guidance above Street estimates last month. But a wave of analyst downgrades followed on concerns over equity dilution to help fund the construction of two new nuclear power plants.
The stock carries a 5.5% dividend yield. The company will next report results on November 7 before the bell. Analysts are looking for earnings of $1.05 per share on revenues of $6.7 billion.
When the company last reported on Aug. 8, earnings of 80 cents per share beat estimates by 11 cents on a 3.6% rise in revenues.
Dividend Stocks to Watch: Altria Group (MO)
Altria (NYSE:MO) shares are rising up and off of support from their 50-day moving average heading for another breakout attempt above its 200-day moving average that was lost back in February.
Shares have been drifting lower since peaking in the summer of 2017 as investors grow concerned the company is being left behind by the trend towards vaping and the popular JUUL e-cigarette. But the company is fighting back with its heat-not-burn Marlboro Heatsticks — which have been popular in Japan.
The stock carries a 5.4% dividend yield. The company will next report results on Oct. 25 before the bell. Analysts are looking for earnings of $1.07 per share on revenues of $5.2 billion. When the company last reported on July 26, earnings of $1.01 beat estimates by a penny on a 3.7% decline in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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