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Check out these three high-yield tech stocks we found using our Zacks Stock Screener that dividend investors might want to buy right now...
Achieving your retirement goals takes a much different investing approach than regular stock trading, from smartly managing risk to keeping emotions in check.
Zacks Investment Ideas feature highlights: Verizon, Qualcomm, Broadcom, Intel and Skyworks Solutions
Will chips still lead the market rally? Taiwan Semiconductor reported mixed earnings, but 5G guidance was bullish for the chip industry and key customers Apple, AMD and Nvidia.
The agreement comes two months after Broadcom acquired Symantec’s enterprise security business for $10.7 billion, and with it the patents underlying the Symantec lawsuits.
IBM's Q4 performance is likely to have gained from growing adoption of cloud solutions. However, currency rate fluctuations and declines in IBM Z product cycle may have been concerns.
Despite all the positivity, investors should think about adding a few large-cap stocks that pay a solid dividend to help anchor their portfolios in 2020...
Achieving your retirement goals takes a much different investing approach than regular stock trading, from smartly managing risk to keeping emotions in check.
Shoppers everywhere like to find the best value; that’s a given. And investors? Well, investors are just a special case of shoppers – in this case, shopping for stocks. So, how can we define a good value when it comes to stocks? In short, we’re looking for high upside and high dividend yields.TipRanks, a platform that tracks and measures the performance of analysts, offers a set of tools to search the raw data collected from 5,700 Wall Street financial experts and 6,500 publicly traded companies. The basic tool, the Stock Screener, gives investors a set of filters to screen the data and find the stocks that fit the desired profile.Setting the filters to show us stocks with a price target upside above 10% and a dividend yield above 2.5% brings the list down to a manageable 46 companies – that will offer investors a true value for their stock purchase. Let’s look at three of them that have a top spot in the S&P 500.Broadcom, Inc. (AVGO)We’ll start with Broadcom, a stand-by of the semiconductor chip industry. Broadcom’s 2019 sales numbers are not in yet, but it finished 2018 as the sixth largest chip maker by revenues, bringing in $18.46 billion. Riding high from that sales figure, Broadcom stock gained 28% in 2019, matching the broader stock market figures.In December’s fiscal Q4 earnings report, AVGO showed revenue and earnings both above the forecasts. The top-line sales figure was $5.78 billion, up 6.25% year-over-year and up 5% sequentially from Q3. Earnings showed a less impressive gain, but the annual EPS of $5.39 beat the expectation by a half-percent.AVGO shares are well positioned for price appreciation; they are also one of the market’s true dividend champions. The company raised the December dividend payment, to $3.25 per quarter, making the annual payment $13 and the yield 4.34%. That yield is well above the 2% average among S&P-listed companies, and the December increase caps a three-year run of consistent dividend increases.Top analysts see AVGO as a healthy investment. Writing from Morgan Stanley, 5-star analyst Craig Hettenbach says, “We think the stock is poised to outperform after meaningfully lagging the past 2 years… If Broadcom is able to execute in software it would add to what we view as a very compelling franchise in semis (66% weighted market share across 60% of revenue in duopoly structures), creating a diversified and highly profitable and cash generative business.”Hettenbach accordingly rates the stock a Buy, and puts a price target of $367 on the shares, indicating an upside potential of 23%. (To watch Hettenbach’s track record, click here)Mark Lipacis, the eighth-ranked analyst overall in the TipRanks database, agrees that AVGO is poised for gains. Noting that the “company's dividend policy is to return 50% of previous year's FCF to shareholders in the form of a dividend,” he goes on to add, “AVGO expects 6-8% growth in Core Semiconductor business over the next few years. Software business is becoming more predictable and expected to be $7bn in F2020.”In line with his optimism and Buy rating, Lipacis bumped his price target here up by 8%, to $350, implying a 17%. (To watch Lipacis’ track record, click here)Broadcom’s Strong Buy consensus rating is based on 21 analyst reviews, including 16 Buys and 5 Holds. Shares are not cheap, at $299.22, but the average price target suggests room for a 18% upside growth potential this year. (See Broadcom stock analysis at TipRanks)Chevron Corporation (CVX)Chevron, one of the world’s largest oil producers, with a market cap of $220 billion, is facing rough market conditions. Prices in the oil markets are low – 2H19 saw market bottoms near $52 for WTI – while overhead costs remain high. The combination pushed revenue down from ~$14 billion in 2018 to ~$12 billion in 2019.In CVX’s most recent earnings report, for Q3 2019, the company showed a 6% miss on EPS, with the bottom-line number at $1.36 for the quarter. Revenues were down by 4%, at $36.12 billion. During the quarter, the price of crude oil and natural gas liquids fell 24%, from $62 one year ago to $47 per barrel equivalent. A 3% increase in total production helped mitigate the losses.Even though revenues and EPS are down, CVX has been able to maintain its high dividend payout. Oil is an essential commodity, so there will always be a market for it, and cash flow for the oil companies. CVX uses those facts to back up a 4.09% dividend yield, with an annualized payment of $4.76. This yield is approximately double the S&P’s average dividend yield, and well over double the yield of the 2-year and 10-year US Treasury bonds.Piper Sandler analyst Ryan Todd sees the bottom line on CVX supporting a Buy rating. He writes, “Despite the well-telegraphed headwinds, we continue to see CVX’s peer-leading portfolio breakeven and attractive FCF outlook as supporting leading growth in dividends/shareholder returns amongst its peers.”Todd’s $143 price target on CVX shares implies room for a 23% upside. (To watch Todd’s track record, click here.)Roger Read, reviewing CVX for Well Fargo, lays out an upbeat track for the company in 2020: “Driven by its unconventional plays, deepwater assets and LNG projects, [we see CVX bringing in] modest, returns-focused production growth expectations, expanding margins from high-grading and cost controls, dividend growth, potential share repurchases and solid balance sheet.”Read gives CVX a Buy rating with a $142 price target, showing his confidence in 22% forward growth. (To watch Read’s track record, click here)The difficulties of the oil market can be seen in Chevron’s analyst consensus, a Moderate Buy rating based on 6 Buys, 3 Holds, and 1 Sell. The average price target of $137 implies an upside of 18% from the $116 current trading price. (See Chevron’s stock analysis at TipRanks)International Business Machines (IBM)The last stock on our list is an old-name blue-chip standard of the markets, and a long-time component of the Dow Jones index, IBM. It’s a name that everyone knows – IBM got its start in business tech when that meant gear-driven mechanical calculators and card-punch time clocks. After WWII, IBM was at the forefront of the electronic computer revolution, evolving from punch card machines to magnetic tape drives to the early floppy disks. The ubiquitous PC got its start with an IBM operating system. Today, business tech is moving toward the cloud, and IBM acquired cloud innovator Red Hat last year, to get a foothold in the cloud market. With a market cap of $121 billion and annual revenues in the neighborhood of $80 billion, IBM has plenty of resources to change direction.Staying at the top isn’t cheap, though. IBM had to spend $34 billion on the Red Had acquisition, and saw a major bookkeeping loss in its most recent reported quarter, Q3 of 2019. The quarterly revenue hit was heavy – the top line was down $190 million to, to $18.03 billion. On the positive side, Red Hat, in its first quarter as a subsidiary, saw revenues rise 20%, and EPS was in line with the forecasts, at $2.68.While closing the Red Hat deal, IBM management announced that it would freeze the dividend at current levels for at least the next year. While this forestalls growth, the actual payment remains high - $1.62 per quarter. Annually, this translates to $6.48 and a yield of 4.74%. IBM has, since 2011, committed to maintaining the dividend payment, as a boon to investors.Matthew Cabral, 4-star analyst with Credit Suisse, is upbeat on IBM. He notes the “solid start” of Red Hat as part of the IBM parent company, and then adds, “[W]e think that inflection starts in 4Q, with an early boost from mainframe before passing the baton to Red Hat and the related pull-through of “core” IBM in CY20. Indeed, early progress on Red Hat is encouraging and we continue to believe the acquisition significantly improves IBM’s standing in the rapid push toward hybrid cloud.”Cabral backs his outlook with a Buy rating and a $173 price target. His target suggests room for 26% share appreciation in 2020. (To watch Cabral’s track record, click here)IBM’s Moderate Buy consensus rating reflects the company’s recent mixed results on revenues, and debt from the Red Hat purchase. The stock has an even split – 4 Buy ratings and 4 Holds. Shares sell for $136, and the average price target of $162.67 implies an upside potential of 19%. (See IBM stock analysis at TipRanks)
The Trump administration has moved to exempt investors from the UK, Australia and Canada from some of its tough new restrictions on foreign investment, in final rules connected to the measures due to take effect next month. The Treasury department said on Monday that transactions involving buyers from the three US allies would avoid scrutiny from the inter-agency Committee on Foreign Investment for certain deals in the property sector and those involving non-controlling stakes. The reprieve from Cfius review for deals involving the UK, Australia and Canada was motivated by their “robust intelligence-sharing and defence industrial base integration mechanisms with the US”.
Broadcom Inc. (AVGO) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The state’s revenue department, which manages nearly $8 billion in U.S. stocks, trimmed positions in some big investments in the fourth quarter. Berkshire and Verizon were wrapping up disappointing years.
Longtime chip leader Nvidia offers a new buying opportunity, with caveats. Here is what fundamental and technical analysis says on buying shares now.
Pfizer (NYSE:PFE) has been working on its recovery over the past six months as it climbs from its August lows. Despite rallying more than 15% from those lows, Pfizer stock is still down more than 13% from its fourth quarter 2018 highs. Is it time to bet on Pfizer stock or throw in the towel?Source: Manuel Esteban / Shutterstock.com With a name like Pfizer, "throwing in the towel" makes it sound worse than it is. Because ultimately, Pfizer is a good company with a solid dividend and a long history. But I'm sorry to say that momentum is not on its side. * 8 of the Strangest Stocks Worth Your Time Some investors may read that as a technical takeaway. It's not -- at least, not entirely. While PFE stock has waning momentum on the charts, it's losing momentum in its business, too. With a stock market near its highs, why buy Pfizer stock?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Valuing Pfizer StockIf you're looking for a cheap stock with a hefty dividend, Pfizer stock has attractive qualities. Likewise, income-oriented investors who have held PFE stock for years and years may feel compelled to stick with it as well. That's fine.Here are the headline numbers: Pfizer stock trades at 13.1 times 2019 earnings expectations and pays out a 3.9% dividend yield. For all intents and purposes, it is a bond-equivalent stock.But those numbers mask some of the trouble under the hood. 2019 earnings are forecast to fall a nickel per share from 2018's full-year results, and are further forecast to fall in 2020, down to $2.86 per share. Revenue is forecast to fall 3.7% this year to $51.66 billion. Worse, in 2020, sales are expected to drop another 4.5%.Pfizer's 2019 fiscal year ended on Dec. 31, although the company has yet to report its final quarterly results for the year. Should estimates for the coming 12 months of business be even semi-accurate though, it shows a company that has clearly lost momentum.On the plus side, both gross and operating margins have been churning higher. On the downside, free cash flow has been in decline over the last 12 months.Yield-chasing isn't a crime in the investment world, but it's not worth sacrificing everything for. Broadcom (NASDAQ:AVGO) has been aggressively raising its dividend -- a 22.6% hike last month and 51% in December 2018 -- and now pays a 4.15% yield. It's got solid estimates for earnings and revenue this year and next year, with growth across the board.Qualcomm (NASDAQ:QCOM) pays a smaller yield, at 2.8%. But if we can get this name on a dip, that yield will be closer to 3%, while the company has accelerating double-digit revenue and earnings growth.My point? Pfizer stock isn't a bad company, but it doesn't have any momentum. Its yield is nice, but it's not the only dividend stock in the world. Trading PFE StockSource: Chart courtesy of StockCharts.com While the business lacks momentum, the charts were looking better. However, the Pfizer stock price is taking a turn for the worst.Shares had formed a rising wedge pattern (blue lines). That means that the stock is putting in a series of higher highs and higher lows -- which is good -- but that the range between these highs and lows is narrowing. When a stock breaks from this pattern, it may very well continue in the direction of the break.For PFE stock, the break happened to the downside, as wedge support gave way. Shares are roughly in the middle of its 15-month range, and while the break of wedge support is not necessarily the nail in the coffin, it's not exactly good news either.The $38.50 level has had mild significance over the past month. However, below that mark will mean that the Pfizer stock price also failed to hold the 20-day and 200-day moving averages. Below the 50-day moving average at $38.13 and shares can really start to flounder.You can see where this is going. Losing these marks continues to add checkmarks in the bearish column, technically speaking. It's another sign that momentum has waned and that PFE stock may be set for mediocre returns in the intermediate term.Of course, bulls can rectify the situation by holding the $38.50 level and 200-day moving average, and eventually reclaiming wedge support. But without the fundamental catalysts in place, it may be hard for the stock to find traction.In any regard, keep any eye on the stock price. Over former wedge support and the stock is OK.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AVGO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Pfizer Stock Has No Momentum in Its Business or on the Charts appeared first on InvestorPlace.
Accomplishing the financial cushion to retire early is a fantasy for most, but bringing that fantasy to reality is not as difficult as it sounds. If you are willing to make some serious lifestyle adjustments, it can be achievable.
Dividends are a wonderful thing for investors. These profit-sharing payments from companies to stock owners provide a steady income stream which can be reinvested in the shares, diverted to other endeavors, or even just pocketed. Payments are usually small – sometimes just a few cents per share, and provide an incentive for investors to buy up more blocks of stock.Dividend stocks are even more attractive in today’s climate of low interest rate. The US Federal Reserve dropped its key rate three times in 2019, brining it down to just 1.75%. Bond yields are consequently low, in the neighborhood of 1.5% to 2.25%. For stock dividends, however, there is no set ceiling, and yields can grow as far as the paying company’s profits will allow.Swiss banking titan UBS is getting into the January stock recommendations with three interesting dividend picks -- each with a dividend yield exceeding 4%. Considering the average yield among S&P-listed companies is just about 2%, these picks will bring in more than double that return."We have used our quantitative models to find stocks which are high quality compared to their peers, which pay a dividend and are unlikely to cut it. We have chosen names to be representative of different regions and sectors. Finally, we asked our UBS sector analysts to further scrutinize each name," UBS noted.Running each equity through the Stock Screener tool at TipRanks, we’ve confirmed that UBS is in the majority on Wall Street in recommending these shares. Here’s what you need to know about them.Broadcom, Inc. (AVGO)Broadcom is a major player in the semiconductor industry. It was the world’s sixth largest chip maker in 2018, by sales, with revenues of $18.46 billion. The stock gained a solid 28% last year, matching the S&P 500’s gains, despite volatility during the year.The company reported fiscal Q4 earnings in December, and continued its strong performance. Revenues and EPS both beat the expectations. Revenues were also up year-over-year; at the top line, the $5.78 billion reported was well ahead of last year’s $5.44 billion and was up $260 million sequentially. EPS, at $5.39, was a half-percent ahead of the forecast.The key point for this article, however, is the dividend. AVGO raised its payment in December to $3.25 quarterly, or $13 per year. The yield, at 4.16%, is well ahead of the market average. Broadcom has a long history of reliable dividend payments, and in recent years has increased the payout substantially. In the last three years, the AVGO dividend has risen to its current rate from $1.02.Timothy Arcuri, 5-star analyst, wrote up UBS’ review of AVGO shares. He stated, “[With] hyperscaler demand coming back, we view AVGO's decision to invest in the higher margin data center bizz favourably… Ultimately we think the stock will re-rate higher on 5G, margin accretion from software exposure & higher dividends w/ the raise serving as another milestone on the path to ~$15 in dividends (2021), meaning even at our PT of $360, this works out to be >4% yield.”Note that Arcuri sees AVGO’s dividend remaining at its current high-yield level. His stated price target, $360, indicates an upside for the stock of 15%. (To watch Arcuri’s track record, click here)Overall, Broadcom holds a Strong Buy analyst consensus rating. The rating is based on an impressive split of 16 Buys versus 5 Holds. Shares are not cheap, at $312, and they are likely to get even more expensive. The average price target, $359, suggests an upside of 14%. (See Broadcom’s stock analysis at TipRanks)Molson Coors Beverage (TAP)This giant of the brewing industry controls several household names familiar to beer drinkers everywhere – Coors and Molson, of course, but also Miller, Keystone, and, beloved of college students everywhere, Milwaukee’s Best. The company has a market cap of $11.8 billion, and saw total revenues of $10.77 billion in fiscal year 2018.While TAP stands on firm ground, and remains profitable, 2019 was a difficult year for the company. TAP is taking proactive moves toward reversing that trend, including partnering with Canadian cannabis producer HEXO to create marijuana-infused beverages. Combining an established beverage marketing and distribution network with a large cannabis grower offers a reasonable path for expansion.A sweetener for investors, however, is the company’s 12-year history of reliable dividend payments. After holding the quarterly payment steady for years, at 41 cents, TAP made a special payment in August 2019 of 57 cents. The annualized payout, $2.28, indicates that this may be the new normal for TAP dividends. And at the current share price, that puts the yield at a strong 4.35%.Writing from UBS, Sean King sees TAP as well positioned for gains in the coming year. He writes, “We acknowledge that the ongoing production improvements are intended to support greater portfolio complexity, we believe that this flexibility is targeted for growth brands of the future rather than the legacy tail brands… We see a challenging road ahead for TAP but we remain constructive on the favorable event-path and our confidence in the dividend / de-leverage commitments at deeply discounted valuation.”King places a $66 price target on the stock to support his Buy rating, indicating confidence in a 21% upside potential. (To watch King’s track record, click here)All in all, Molson Coors’ Moderate Buy consensus is based on 4 Buys, 5 Holds, and 1 Sell, reflecting the tough market conditions the company has faced in recent years. Shares are priced moderately, at $54.49, and the average price target of $56.30 suggests an upside of 3.32% – not large, but still considerable when combined with the high dividend yield and robust product portfolio. (See Molson Coors’ stock analysis at TipRanks)Oneok, Inc. (OKE)Oneok is a natural gas midstreaming company, owning and controlling the pipelines that transport gas and gas products from production sites to refiners to storage and finally to the customers. The company operates in the Permian, Mid-Continent, and Rocky Mountain regions of the American West. Oneok saw $12.6 billion in revenues and a net income exceeding $300 million in 2018.2019 numbers are not in yet for the company, but the Q3 numbers show reasons for optimism. While revenues missed the forecast by 4%, coming in at $2.26 billion, the 74 cent EPS was in line with expectations. And, despite a 12% drop in cash flow, the company reported a 19% increase in total assets, to $21.336 billion.All of that supports the company’s regular dividend payments. OKE has been steadily increasing the payment since 2011. The current quarterly payment, 91.5 cents, annualizes to $3.66 per share – a strong payout. The yield is handsome, at 4.99%. Combined with a 46% share appreciation in 2019, it’s clear why OKE is an attractive stock.4-star analyst Shneur Gershuni wrote up UBS’ stance on OKE. He put a Buy rating on the stock, and in his comments backed it up: “OKE reported an inline quarter; however, with this earnings season we expect the focus to be on capex. Since 1Q reporting season, OKE has been guiding the street to the upper end of the range despite an extremely wide range outlined in Feb... Overall OKE reaffirmed >20% earnings growth over ‘19 midpoint guide which is what investors were also probably looking for as well.”Gershuni set his $80 price target on OKE at the end of October – the stock has since gained value and approached that target, leaving room for just 1.5% additional upside. (To watch Gershuni’s track record, click here)OKE is another Moderate Buy stock, with the consensus rating based on 6 Buys, 2 Holds, and 1 Sell. As mentioned, the stock has gained recently, so the current share price of $76.89 is within a half percent of the $76.89 average price target. (See Oneok’s stock analysis at TipRanks)