The summer is halfway over already, and all we mostly want to do is relax. But we also want to make money, right? Hey! There’s a secret that’s been going around for a while now: there’s an answer to this.
If you enjoy what we do here, you already know we love dividend stocks. How could you not?
The cool thing about dividend stocks is that, regardless of sectors or specific industries, they offer an exclusive financial measure that some stocks provide and others don’t. Even more remarkable, though, is that an entire stock category of its own has flourished around these passive income providers, and the dividend market itself is capitalized upon with complete sincerity by serious, long-term investors.
Dividends indicate shareholder commitment and reliability. Behold, three earnings crushers…
Johnson & Johnson (JNJ)
Johnson & Johnson (JNJ) is an appealing dividend stock for investors due to its thriving pharmaceutical division and focused drug discovery efforts. The recent strategic separation of its consumer health products segment has allowed JNJ to concentrate on its core operations. Despite a previous correction, JNJ has stabilized. With a remarkable track record of 61 consecutive years of dividend increases and recent positive earnings performance, JNJ offers stability and long-term value. Its relatively low pricing ratios make JNJ an excellent choice for a balanced portfolio alongside riskier growth stocks.
JNJ is presently down year-to-date by 3.52%, is trading near the middle of its 52-week range and has a safe 0.54 beta measure and a 1.48x PEG (price/earnings/growth) ratio. For its most recent earnings report, JNJ beat analysts’ EPS and revenue projections by 6.92% and 3.41%, respectively; it reported EPS of $2.80 per share vs. $2.62 as expected and revenue of $25.53 billion vs. the $24.67 billion forecast. JNJ has an annual dividend yield of 2.79%, a quarterly payout of $1.19 ($4.76/year) per share, and a 92.90% payout ratio. With a free cash flow of $13.63 billion, JNJ has a 10-day average volume of 7.93 million shares. JNJ’s analyst-assigned median price target is $180, with a high of $215 and a low of $165; this indicates the potential for a price leap higher than 26%. JNJ has nine buy ratings and 14 hold ratings.
Brookfield Renewable Partners LP (BEP)
Brookfield Renewable Partners (BEP) emerges as an appealing dividend payer due to its impressive track record of increasing distributions with annual revenue growth of 6% over more than 20 years and an attractive dividend. However, what truly sets BEP apart is its promising growth prospects. Anticipating average annual total returns ranging from 12% to 15%, BEP has the potential to double investors’ money in approximately six years. As a leading renewable energy provider, BEP is strategically positioned to
capitalize on the surge in demand for wind and solar power globally. With a development pipeline capacity over four times greater than its current capacity, BEP is well-equipped to seize the opportunities presented by the renewable energy sector’s clear growth trajectory.
BEP’s stock is doing well; it is currently up year-to-date by 18.55%, has a positive SMA (simple moving average), and has a safe 0.74 beta. BEP most recently beat analysts’ revenue projections by a 4.20% margin, also showing year-over-year growth in vital areas such as revenue (+17.17%), net income (+75%), EPS (+76.92%), and net profit margin (+78.6%). BEP has a 4.41% annual dividend yield with a quarterly payout
of 34 cents ($1.36/share). With a modest 10-day average trading volume of roughly 179 thousand shares, BEP has an average price target of $37.50, with a high of $45 and a low of $31; this suggests the potential for an almost 50% price bump. BEP has ten buy ratings and three hold ratings.
McDonald’s Corp (MCD)
With 63 million customers served daily worldwide, McDonald’s (MCD) proves to be a delightful dividend stock. Uniting affordability and convenience with unwavering brand loyalty, it has rewarded shareholders for 47 consecutive years. As MCD’s rewards program garners nearly 50 million active members, analysts predict a promising 8.4% compound annual earnings growth over the next five years. MCD is structured so
that investors enjoy a blend of immediate and future income. This leaves MCD ample room to enhance its payouts further, solidifying its position as an easy grab for income investors. With a 0.64 beta score keeping it safe from market volatility, MCD’s stock is up by 12.58% year-to-date and has a 200-day positive SMA. For its most recent earnings report, MCD flew right by the experts on both fronts, reporting EPS of $2.63 per share vs. $2.34 per share as expected (a 12.50% surprise) and revenue of $5.9 billion vs. the $5.58 billion estimate (a 5.70% surprise). MCD also shows robust year-over-year growth in the key spots: revenue (+4.10%), net income (+63.19%), EPS (+65.64%), and net profit margin (+56.8%). MCD has a 2.05% annual dividend yield, a quarterly payout of $1.52 ($6.08/year) per share, and a 62.37% payout ratio. With a 10-day average volume of 1.89 million shares, MCD comes with an average price target of $325, with a high of $346 and a low of $300; this shows that there is still room (potentially 16.6%) to grow from recent pricing. MCD has 28 buy ratings and 11 hold ratings.