Ryan’s commentary in this video series is typically focused on growth and income, and this week’s featured stocks—Lockheed Martin LMT and Innovative Industrial Properties IIPR—are certainly two dividend-paying stocks with great earnings expansion prospects.
But this week’s conversation tells deeper stories about both companies, starting with a recap of the momentum Lockheed Martin (LMT) has generated over the past few weeks. The defense behemoth has seen orders ramp up, and with Congress passing a record-breaking military spending bill, it could be in store for more business.
Lockheed shares started the month of September near the $320 level, and just yesterday, the stock touched $345. LMT has since started to sell off, but its valuation remains in check and shares have more room to run before reaching new 52-week highs.
To help think about whether Lockheed will shrug off today’s volatility and move higher once again, Ryan pointed out the company’s earnings growth outlook. Positive estimate revisions for the current fiscal year have bottom-line growth pegged at nearly 30%, and that is expected to continue with double-digit growth again next year.
Lockheed also pays out an annualized dividend of $8.00 per share, which represents a yield of about 2.4%. As Ryan points out, investors are rarely able to find blue chip, income-producing stocks with such optimistic earnings growth potential.
Exciting in a different way is Innovative Industrial Properties (IIPR), the other company Ryan highlights in this week’s video.
Innovative Industrial Properties is a REIT focused on the acquisition, ownership and management of specialized industrial properties for medical-use cannabis facilities, so this is a unique opportunity for investors to play the booming marijuana industry through a dividend-paying stock.
Zacks’ coverage of IIPR is limited because very few analysts track the company, which IPO’d in late 2016. Still, shares have taken off like a rocket in recent months as investors pile on the marijuana stocks and target growing companies with solid earnings growth stories.
Limited estimates have IIPR posting earnings growth of 75% and then seeing its bottom line expand in the triple-digit percentages in 2019, so there’s certainly a compelling growth picture here. What’s more, this is going to be shielded a bit from the speculative trading affecting Canadian marijuana producers, as the business model is much different.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
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