Investors can earn attractive dividends with these high-quality stocks | Wilnesh News
Investors looking for dividend stocks in this market don’t have to sacrifice quality. In fact, according to a UBS report last week, there are several companies with strong balance sheets and good management, as well as stable dividends with growth potential. As the Federal Reserve begins to cut interest rates, these dividends may start to become more attractive to investors. Bond yields will also move lower, which could leave investors looking for income elsewhere. The central bank has said it will start cutting interest rates at some point this year. Additionally, the income generated by dividend-paying stocks helps protect a portfolio during periods of market volatility. UBS used its quantitative models along with fundamental analysts to compile a list of high-quality dividend stocks around the world. First, its machine learning algorithms screen out companies with high-quality dividend streams backed by profitability and balance sheets. The algorithm also evaluates the stock’s potential to outperform its industry. The company’s fundamental analysts then looked at subjective factors such as management quality and investor sentiment. The algorithm then allocates the best stocks, taking into account regions and industries to diversify revenue streams. Analyst Claire Jones said: “Throughout this process we have emphasized the stability and growth potential of dividend streams rather than current yields.” Here are some of the U.S. names that made the cut. Investors can earn a 2.69% dividend yield through Home Depot. The home improvement retailer has fallen more than 2% so far this year, reporting lower-than-expected first-quarter revenue. However, the company reiterated its full-year guidance, expecting total sales to rise 1% in fiscal 2024. Said in an interview with CNBC after the financial report was released. “So it’s not a case of inability to spend. What they’re telling us is they’re simply delaying these projects because interest rates are higher and now doesn’t seem like the right time to execute.” In energy, ExxonMobil is UBS One of the standout companies in the group. The oil giant’s dividend yields 3.35% and is up more than 11% year to date. In May, ExxonMobil acquired Pioneer Natural Resources for $59.5 billion. The company said the acquisition more than doubled its production in the Permian Basin. Meanwhile, oil market analysts predict the market will tighten in the third quarter. “Oil inventories are starting to fall amid strong demand and limited supply growth, and investors are starting to look again,” Giovanni Staunovo, commodities analyst at UBS, wrote in a note on Thursday. Adding oil exposure. He expects Brent crude to reach $90 a barrel this quarter. A number of financial companies are also on the list, including CME Group, which has a dividend yield of 2.34%, and JP Morgan, which has a dividend yield of 2.34%. The yield is 2.25%. In addition to regular dividends, CME has paid special dividends in the past, at the end of 2023 it paid a special dividend of $5.25 per share, and at the end of 2022 it paid a special dividend of $4.50 per share. CME Group shares are down 7% year to date, while JPMorgan is up 20% Although real estate is the only S&P sector to lose money this year (down more than 4%), real estate investment trusts are generally known for their dividends. Prologis, which yields 3.35%, is one of UBS’s favorite names, UBS analyst Jonathan Woloshin noted in a separate report in late June that Prologis is the world’s largest owner of industrial property. The segment remains strong. He said: “PLD has a four-pronged operating model that includes owned and operated real estate, development, profit potential from the underlying business, and strategic capital management that offers multiple value creation potentials. Shares of Prologis are down nearly 14% so far this year. Utilities are also known for their predictable dividends. While the industry has rallied this year, Sempra trades at a discount. The stock yields 3.26% , rising slightly this year. Sempra announced in late June that it had reached a non-binding agreement to supply liquefied natural gas to Saudi Arabia’s state-owned oil giant Aramco, Sempra CEO Jeffrey Martin told CNBC’s Jim Cramer in February. , the company also increased its capital plan to $48 billion to fund initiatives such as grid modernization: “The record $48 billion capital plan really sets a course for our future growth. Figure, and should support rate-based growth for our utilities in the 9% to 10% range.” — CNBC’s Melissa Repko and Spencer Kimball contributed. reported.
