|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||85.26 - 86.84|
|52 Week Range||65.14 - 104.97|
|Beta (5Y Monthly)||0.39|
|PE Ratio (TTM)||23.11|
|Forward Dividend & Yield||2.80 (3.25%)|
|Ex-Dividend Date||May 07, 2020|
|1y Target Est||N/A|
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]
[Editor's note: "5 Stable Dividend Stocks to Buy as Fixed Income Vanishes" was previously published in January 2020. It has since been updated to include the most relevant information available.]Income in the bond market is rapidly disappearing, and that's a weird concept to try and wrap your head around.For decades -- centuries, even -- investors around the world have bought fixed-income instruments for relatively risk-free income. The concept is simple. You give money to a government or corporate entity who turns around and pays you interest for lending that money to compensate for risk and time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut this simple concept has been flipped on its head recently. Specifically, the "interest" part of the above fixed-income equation has gone out the window. Consider the following: * The 10-year Treasury yield is around 0.63%. * The 30-year Treasury yield has plunged to all-time lows around 1.3%.In other words, across the world, the income part of the fixed-income equation is rapidly disappearing. Weird, right?Despite this, U.S. equities are still giving investors income. That is, the S&P 500's dividend yield presently hovers around 2% -- significantly above all-time low levels (roughly 1% in 2000) and also on the upper end of where the S&P 500 dividend yield has hovered over the past 20 years.Big picture, then, while the fixed income market is suffering from disappearing income, some stocks are still paying good income. * 7 Stocks to Buy That Have Nothing But Upside In Their Future The implication? Buy stable dividend stocks that pay more than any other relatively risk-free bond in the world will. As investors grow tired of not even beating inflation by buying a 10-year Treasury note, they will inevitably pile into stocks which: 1) have much higher yields, and 2) have a history of steady and consistent dividend hikes.Without further ado, let's take a look at five dividend stocks that fit this description. AT&T (T)Source: Jonathan Weiss / Shutterstock.com Dividend Yield: 7.28%Dividend History: The dividend has consistently increased over the past 34 years.At the top of this list, we have a stock that many consider the blue-chip dividend king: telecom giant AT&T (NYSE:T).AT&T has everything investors are looking for in a stable, income-paying stock. Big yield? Check. The stock yields 5.37%. History of dividend hikes? Check. AT&T has consistently hiked its dividend over the past three decades.Stable operations? Check. AT&T provides telecom services that U.S. consumers have become exceptionally dependent on -- indeed, the internet and wireless services which AT&T provides may be the most important utilities outside of water, food and electricity. Healthy catalysts on the horizon? Also, check.AT&T's streaming services should help offset cord-cutting weakness, and the company benefits from the mainstream and widespread deployment of 5G infrastructure and devices.AT&T stock is the quintessential stable dividend stock to buy at the current moment. American Electric Power (AEP)Source: Casimiro PT / Shutterstock.com Dividend Yield: 3.59%Dividend History: The dividend has consistently increased over the past six years.Next up, we have a utility giant that is best known for its stability and resiliency: electricity services provider American Electric Power (NYSE:AEP).Relative to other "big dividend stocks," AEP's yield isn't that big. It sits at just 2.98%. But, there are three things to note here.First, that yield still smashes the 10-year Treasury yield.Second, American Electric Power has a long track record of consistent dividend hikes that dates back at least six years, a stretch during which the dividend increased 100%. * 7 Dividend Stocks That You Can Still Bank On Third, American Electric Power has an equally long track record of consistent and stable revenue and profit growth, which has powered consistent gains in AEP stock over the past decade.As such, what AEP lacks in yield, it makes up for in operational consistency and stability. Consequently, the best way to look at AEP stock is as the best "stable" stock to buy. It just so happens to yield almost 3%, too, which is an added bonus. Qualcomm (QCOM)Source: JHVEPhoto / Shutterstock.com Dividend Yield: 3.26%Dividend History: The dividend has consistently increased over the past eight years.Third, we have a global chip giant that appears to be on the verge of finding its winning stride again -- Qualcomm (NASDAQ:QCOM).Unlike AT&T and American Electric Power, Qualcomm is not traditionally seen as an icon of stability. Just look at a five-year chart of QCOM stock to see why. But, most of the turbulence in QCOM stock over the past five years has been driven by operational noise, namely, a big legal battle with their largest customer, Apple (NASDAQ:AAPL). That legal battle is now over, and it ended in a favorable outcome for Qualcomm.Consequently, looking in the rear-view mirror here is the wrong way to look at QCOM stock. It's not about what has happened. It's about what will happen. What will happen is good stuff. Qualcomm has locked in Apple as a customer for the next several years.At the same time, 5G phones are launching next year, and it appears pretty much every smartphone provider is leaning into Qualcomm to provide the infrastructure for those 5G phones. As such, Qualcomm will find itself as a big beneficiary of the 5G tailwind. This tailwind should last for several years, meaning that Qualcomm should be in winning stride for the foreseeable future.Ahead of the company regaining its winning stride, the stock still yields an impressive 2.75%. Thus, not only does QCOM stock have a compelling multi-year bull thesis, but the stock is also paying investors to buy into that compelling bull thesis. It's a win-win situation that ultimately gives QCOM the nod as a stable dividend stock to buy here and now. CVS (CVS)Source: Roman Tiraspolsky / Shutterstock.com Dividend Yield: 3.21%Dividend History: CVS last increased its dividend payout in 2017.Fourth, we have an undervalued, stable stock that is in the midst of a potentially huge breakout -- retail pharmacy giant CVS (NYSE:CVS).It's been a rough few years for CVS stock. On the retail pharmacy side, increased competition has simultaneously pressured current sales trends and depressed investor sentiment regarding future sales trends. On the pharmacy benefit manager side, legislation has similarly pressured sales and profits.Consequently, by mid-2019, CVS stock had dropped to $50 -- the stock's lowest level since early 2013 -- and was trading at under 8x forward earnings.Since then, retail sales trends have improved as CVS has refreshed stores and expanded omnichannel capabilities to overstep the competition. Such improvements should persist as the company expands a local healthcare program which has the potential to dramatically improve core operational performance trends. * 7 of the Best Consumer Stocks to Buy Right Now At the same time, the White House has scrapped a bill that would've been disastrous for PBMs. And now the outlook on that side of the business is also improving significantly.In response to these positive developments, CVS stock has rallied well past $70 since it's mid-2019 plunge. This rally is just getting started. The stock is still cheap, the yield is still big, the outlook is still improving and the upward momentum is very real. As such, CVS stock appears to be in the first few innings of a huge breakout. Target (TGT)Source: jejim / Shutterstock.com Yield: 2.20%Dividend History: The dividend has consistently increased over the past 51 years.Last, but not least, we have a blue-chip retail giant that is absolutely on fire today: Target (NYSE:TGT).The story at Target is pretty simple. A few years back, the mainstream emergence and adoption of e-commerce caused a traffic exodus out of Target stores. For a short period of time, Target struggled. Then, Target adapted. It built out a big e-commerce operation, refreshed stores to be more tech-savvy, built out omnichannel capabilities, expanded in-store and online offerings and much more.In a nutshell, Target became the quintessential, modern omnichannel retailer that leveraged technology to optimize customer convenience in every way possible.It worked. Over the past few years, Target has fired off its best numbers in a decade. We are talking decade-best sales growth, comparable sales growth, online sales growth and traffic growth. At the same time, margins have been largely stable, so profit growth has been equally robust. TGT stock has naturally rallied big in response to this operational excellence.This rally is far from over. Target has optimally positioned itself so that -- so long as the U.S. consumer remains healthy -- Target will continue to report impressive numbers. The stock isn't terribly expensive at all (17-times forward earnings), the yield remains big (2.12%) and TGT stock has very healthy upward momentum.TGT stock is a stable dividend stock that should stay in rally mode for the foreseeable future.As of this writing, Luke Lango was long T, QCOM, and CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 5 Stable Dividend Stocks to Buy as Fixed Income Vanishes appeared first on InvestorPlace.
The utility industry appears poorly insulated from the Covid-19 shutdowns and lockdowns, and shares of AEP could weaken more, according to the charts.
American Electric Power Company, Inc. (NYSE:AEP) just released its latest quarterly report and things are not looking...
Image source: The Motley Fool. American Electric Power Inc (NYSE: AEP)Q1 2020 Earnings CallMay 6, 2020, 5:30 p.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorLadies and gentlemen, thank you very much for standing by, and welcome to the American Electric Power First Quarter 2020 Earnings Call.
AEP (AEP) delivered earnings and revenue surprises of -6.42% and -13.33%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Utility sector players' results are likely to reflect solid contributions from cost management initiatives, near-zero interest rate and improved residential sales volume
American Electric's (AEP) Q1 results are likely to reflect favorable weather conditions and base rate outcomes. However, storm activities might have pushed up its O&M costs.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it...
Moody's Investors Service ("Moody's") revised the outlook for Public Service Company of Oklahoma (PSO, A3) to negative from stable and affirmed its existing ratings. In addition, Moody's expects the company's continuing capital program will maintain negative pressure on credit metrics such that the ratio of cash flow from operations excluding working capital changes (CFO pre-WC) to debt will remain below the 19% threshold we have established for PSO's A3 rating.
Dividend paying stocks like American Electric Power Company, Inc. (NYSE:AEP) tend to be popular with investors, and...
S&P 500 dividends will fall by 25% this year as the coronavirus crisis drives companies across many sectors to conserve cash, Goldman Sachs said in note Monday.
Moody's Investors Service, ("Moody's") downgraded the Issuer Rating of Electric Transmission Texas, LLC (ETT) to Baa2 from Baa1 and revised the outlook to stable from negative. "ETT's debt coverage metrics have deteriorated over the last two years because of a 2017 rate reduction settlement and the negative impact of federal tax reform" stated Nana Hamilton, Assistant Vice President. Recent rate reductions have driven a decline in ETT's operating cash flow.
It’s becoming clearer by the hour that the coronavirus pandemic represents an unprecedented global threat to both public health and global economies. The speed of the crisis and the change to our everyday existence, as well as the threat to our most vulnerable, is astonishing and has all of us reflecting on our values and investments. The virtual freezing of air travel and shutdowns of factories has dramatically reduced air pollution in China and Italy, and will likely result in a significant drop in energy demand and, thus, carbon emissions, at least for a time.
Thursday wiped out virtually all of the stock market's gains from 2019 as the third of four days this week with a decisive market rout.
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
In 2011 Nick Akins was appointed CEO of American Electric Power Company, Inc. (NYSE:AEP). This analysis aims first to...
For his final "Executive Decision" segment of Mad Money Friday evening, Jim Cramer checked back in with Nick Akins, chairman, president and CEO of American Electric Power , the utility that yields nearly 2.9%. Akins said that AEP remains a strong, consistent company that continues to invest and added that as our economy continues to electrify, they're seeing growth across the board from transportation and manufacturing, oil and gas, hospitals, education and more. When asked whether demand would fall if everyone worked from home due to the coronavirus, Akins said that since margins are higher for residential usage, they'd actually do better if that were to happen.
Moody's Investors Service ("Moody's") revised the outlook for Ohio Power Company (Ohio Power, A2) to negative from stable and affirmed its existing ratings. Ohio Power is a transmission and distribution utility subsidiary of American Electric Power Company, Inc. ("AEP", Baa1 negative). "The negative outlook for Ohio Power is driven by Moody's view that the company's financial profile is weakening as it executes an elevated capital expenditure program while its cash flows are no longer being supplemented by commission approved transition riders" said Laura Schumacher, Vice President - Senior Credit Officer.
Issuers sold 5.25 billion euros on Europe's debt capital markets on Tuesday, a day after stocks rallied strongly on hopes of central bank support. UK analytics company Relx raised 2 billion euros of four, eight and 12-year bonds, while U.S. industrial conglomerate Honeywell International, which recently saw a surge in demand for its protective face masks, priced 1 billion euros of four and 12-year bonds.