TSLA, FRC, UBS, FL and more

Vehicles for sale at a Tesla store in Vallejo, California, US, on Thursday, March 2, 2023.

David Paul Morris | Bloomberg | Getty Images

Check out the companies making the biggest moves in premarket trading:

Tesla — The electric vehicle maker rose 2% after Moody’s assigned it a Baa3 rating and removed its junk-rated credit. Moody’s said the upgrade reflects Tesla’s prudent financial policy and management’s operational track record.

First Republic — The beleaguered bank jumped nearly 19% in premarket trading, following a 90% plunge so far this month as investors focused on its large amount of uninsured deposits. On Monday, CNBC’s David Faber reported JPMorgan Chase is giving advice on alternatives for First Republic.

New York Community Bancorp — The bank popped 7%, a day after surging 31.65%. The Federal Deposit Insurance Corporation has said New York Community Bancorp’s subsidiary, Flagstar Bank, will assume nearly all of Signature Bank’s deposits and some of its loan portfolios, as well as all 40 of its former branches.

Regional banks — Regional banks were also higher on the heels of First Republic’s rise and as investors continued to digest the likelihood of expanded federal insurance. PacWest rallied 8.3%, Fifth Third Bancorp rose 3.4% and KeyCorp gained 3.3%.

UBS — U.S.-listed shares of the Swiss-based bank were up 4%, a day after gaining 3.3% following its agreement to buy Credit Suisse for $3.2 billion. Credit Suisse was essentially flat in the premarket, after plummeting 52.99% on Monday.

Harley-Davidson — The motorcycle maker climbed 3.8% after Morgan Stanley upgraded the stock to overweight from equal weight, citing Harley’s focus on the core business and a better-off consumer. The firm’s price target of $50 implies a 33.2% upside from Monday’s close.

Foot Locker — Its shares rose more than 4% after Citi upgraded the retailer to “buy” from “neutral.” Citi said the company is moving in the right direction, turning attention away from malls and the Champs brand and instead focusing on offerings related to kids, loyalty and digital.

Meta Platforms — Shares of the Facebook parent climbed nearly 3% in premarket trading after Morgan Stanley upgraded Meta and said it has about 25% potential upside thanks to its Reels strategy and efficiency plans. The upgrade comes a week after Meta announced plans to layoff another 10,000 employees.

— CNBC’s Alex Harring and Tanaya Macheel contributed reporting.

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Reuters reveals Assa Abloy considers selling Yale and Emtek brands to win U.S. approval for Spectrum deal

Business & Finance

Reuters was first to report that Assa Abloy, the world’s leading lockmaker, is considering options including selling its Yale and Emtek locks brands as it seeks to overturn U.S. antitrust opposition to its planned purchase of Spectrum’s Hardware and Home Improvement. The news comes just weeks after the U.S. Department of Justice sued to block the company’s proposed $4.3 billion deal to buy a unit of Spectrum Brands Holdings that makes security, plumbing and builders’ hardware products.

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3 Growth Stocks That Have a Loyal Customer Base

One of the best ways to determine the customer loyalty of growth stocks is to look at their subscriber numbers. 

For example, Netflix (NASDAQ:NFLX) announced in April 2022 that it lost subscribers for the first quarter in more than a decade. Its shares plummeted more than 20% on the news, bottoming at $162.71 in mid-May. In the 10 and a half months since, the stock has nearly doubled in price as the company saw subscriber growth resume.

Higher share prices tend to follow subscriber growth. The trick is finding companies whose subscriber growth is consistently higher. They don’t have to be higher 100% of the time, but they should be up on a year-over-year basis and sequentially most of the time.

To help me choose three growth stocks with loyal customer bases, I’ll lean on the Fount Subscription Economy ETF (NYSEARCA:SUBS), a collection of approximately 50 stocks that benefit from the subscription economy. To be included in the fund, at least half of a company’s revenue must come from subscription-related services or products.

My selections are in the ETF’s top holdings, ranking 9th, 11th and 13th, respectively. They’re all large-capitalization growth stocks. 

TMUS T-Mobile $142.79
ADBE Adobe $373.40
INTU Intuit $419.33

T-Mobile (TMUS)

T-Mobile (NASDAQ:TMUS) made headlines recently when it announced that it would pay up to $1.35 billion in cash and stock for the parent company of Mint Mobile, the discount wireless brand that actor Ryan Reynolds invested in during 2019.

Lending his handsome face and charm to Mint Mobile’s ads, Reynolds helped grow its subscriber base. In the 12 months after Reynolds bought in, downloads of the Mint Mobile app increased by 34%, Fortune reports. The same analyst said the app’s monthly active users were up 82% year over year in February and 254% over February 2021.

Wisely, T-Mobile will continue to use Reynolds as a brand ambassador for Mint Mobile. The celebrity is expected to make as much as $300 million from the sale. 

T-Mobile is currently the third-largest mobile carrier in the United States after Verizon Communications (NYSE:VZ) and AT&T (NYSE:T). In April 2022, I argued that T-Mobile had the right stuff to take market share from the other major wireless carriers. The latest deal certainly accelerates the company’s efforts to do so.  

“Mint has built an incredibly successful digital direct-to-consumer business that continues to deliver for customers on the Un-carrier’s leading 5G network and now we are excited to use our scale and owners’ economics to help supercharge it — and Ultra Mobile — into the future,” said T-Mobile Chief Executive Officer (CEO) Mike Sievert.

T-Mobile added 6.4 million postpaid customers in 2022, its eighth consecutive year leading the industry in growth. With the purchase of Mint Mobile, T-Mobile is getting a business that provides discount pricing to its customer base while managing to generate profits. As it applies its marketing muscle to all three brands acquired, T-Mobile ought to be able to challenge AT&T and Verizon for the top carrier crown.

Adobe (ADBE)

Who knows how long Adobe (NASDAQ:ADBE) can go without laying off employees when it seems more tech companies are cutting their workforces every week. A recent article in Fortune shines some light on the situation: 

So, how did Adobe avoid mass layoffs? A pivot to remote and hybrid work environments during the pandemic created a “robust demand” for technology solutions and digital capabilities, [Chief Financial Officer (CFO) Dan] Durn explains. “But we didn’t get out over our skis in terms of hiring an unusual amount of people,” he says. So, in this now “true demand environment,” Adobe doesn’t have more talent than it ultimately needs, he says.

Adobe reported earnings in mid-March that beat analyst estimates and raised its full-year outlook, citing strong demand for digital content creation tools. In 2022, it grew its Creative Cloud subscribers by nearly 30 million, with a run rate of approximately 1 million new subscriptions per quarter. 

Of course, the hottest thing since sliced bread right now is artificial intelligence (AI) tools. To that end, the company recently released an AI beta version of its Firefly art generator. The editing software’s AI tools allow content creators to improve photos and videos more easily. 

Interestingly, a vital feature of the generative AI software is the “Do Not Train” tag that allows content creators to tag projects so Adobe can’t use the content for model training. The use of AI-generated images has been rife with copyright issues since AI art models appeared on the scene in recent years. 

Finally, Adobe continues to work with regulators to get approval for its $20 billion acquisition of Figma, which provides a collaborative prototype design tool. 

Intuit (INTU)

Intuit (NASDAQ:INTU) provides financial management and compliance products and services to more than 100 million customers worldwide. These include popular tax preparation software TurboTax and accounting software QuickBooks.

The company reported its latest quarterly results on Feb. 23. Revenue was up 14% year over year to $3.04 billion while operating income rose 40% to $856 million. In particular, Intuit’s small business and self-employed segment saw revenue jump 20% to $1.9 billion. This is Intuit’s largest segment, accounting for 62.5% of revenue and 68% of its operating profit.  For fiscal 2023, ending April 30, Intuit expects the small business and self-employed segment to see revenue growth of 19% to 20%, helping boost overall revenue by 8% to 9%.

Contributing to the company’s recent growth are its live versions of TurboTax and QuickBooks, which it developed to increase customer engagement. They allow consumers and small-business owners to connect with financial professionals immediately to get their questions answered. And on Feb. 23, Intuit launched live services for TurboTax’s Spanish-speaking customers, providing another avenue for growth. 

“The U.S. Latino population has become the largest growth minority group in the nation and there is no doubt of their influence on today’s economy,” said Cathleen Ryan, senior vice president of marketing for Intuit TurboTax. “TurboTax is committed to understanding their needs and providing in-language and in-culture products and resources that can guide Latino taxpayers through their tax filing experience with confidence and with the support they deserve.”

Given that Hispanic entrepreneurs are starting small businesses at a much faster rate than non-Hispanic entrepreneurs, Intuit is wise to focus on this demographic.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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3 Top Losers of 2022 That Will Sink AGAIN in 2023

It can be tempting to look for big winners by scraping the bottom of the barrel, but what’s left down there is typically a collection of stocks to avoid. Occasionally there’s a diamond in the rough, but the old adage “what goes down must come up” doesn’t always apply. There’s always a chance you might catch a falling knife, and in the case of these three stocks, I’d get the bandages ready.

There are some big considerations that make some of last year’s losers uninvestable again this year. The first, and most important, is the unwinding of lockdown-related tailwinds. Being stuck inside gave rise to a whole host of new habits, and the businesses that supported them were rolling in the dough. But those trends were short-lived and ultimately not strong enough to build a business on. The result has been a lack of direction at some of the pandemic’s biggest winners, which saw them plummet in 2022. Without any further clarity, these stocks look less like recovery plays and more like anchors in the choppy seas ahead. 

Another factor to account for is underlying financial strength. The current environment means even the strongest businesses are having to trim the fat. It’s a terrible time to be shoring up your finances, so for those companies already on shaky ground, 2023 doesn’t look promising. Here’s a look at three stocks to avoid again this year.

Peloton (PTON)

One of 2022’s biggest losers finds itself again on a list of stocks to avoid. Peloton (NASDAQ:PTON) is famous for its sleek, and arguably overpriced, bicycles and high-energy exercise classes. The pandemic saw the group grow its subscriber base and extend its product categories as demand for at-home fitness reached a fever pitch. But conditions for Peloton were at an all-time high during the pandemic — people had more money to spend on extravagant bikes and subscriptions thanks to stimulus checks and they couldn’t physically get to a gym.

Now that neither of those things are true, the company’s business model looks questionable to say the least. 

Under a new CEO, the group’s been working to cut costs and sharpen its proposition. To some degree, its efforts have been paying off. The group was finally free-cash positive in the second quarter. But the bottom line is still in the red and there’s a limit to how long you can continue to hemorrhage cash before the balance sheet starts to crumble.

Peloton is coming dangerously close to that limit. With a challenging year ahead likely to cause many customers to rethink their subscription costs, Peloton stock could find itself continuing to languish until the pressure eases.

First Republic Bank (FRC)

The banking sector is rife with opportunity for investors with strong stomachs, but there are also plenty of stocks to avoid.

Unless you’ve been living under a rock, you know that First Republic Bank (NYSE:FRC) is the latest in a series of high-profile banking sector shocks that have roiled markets. First Republic’s seen its uninsured depositors start to flee, and given that this makes up about two-thirds of the group’s deposits, that’s a big deal. Despite efforts to calm the markets, including a multi-bank lifeline, investors and depositors continue to snub First Republic. 

There are a few reasons for this. More broadly, there’s concern that the banking sector is on the ropes as issue after issue continues to crop up. Then there’s the worry that central banks’ fast and furious interest rate hikes haven’t had time to trickle through the economy, and we’re starting to see the impacts. But more specifically, First Republic isn’t in a position to withstand much more badgering. With the dividend suspended and many questioning whether the bank can continue to operate, it’s unlikely to make any sort of impressive recovery. 

Meta Platforms (META)

Meta Platforms (NASDAQ:META) is normally one of my favorite picks when it comes to turnaround stocks, but this year it’s made the list of stocks to avoid. The group’s share price has been beaten down after it missed growth expectations and warned that advertising spending had started to moderate. With the core business under stress, investors were skeptical of its freshly minted name and newfound commitment to the foggy idea of a metaverse. 

These concerns remain, and others have cropped up as well. On top of privacy concerns and content moderation issues, Meta’s also sitting on some very valuable real estate it appears to have no plans to leverage. WhatsApp and Messenger are the world’s largest messaging services and yet Meta’s done very little to monetize them. If there was some plan in the pipeline to draw on these parts of the business, investors may be able to forgive the shorter-term lack of advertising spending. Instead, we’re stuck in limbo as ad dollars dry up and Meta scrambles to find ways to harness the advertising power of its video functions. 

That’s not to say this is the beginning of the end for Meta — the group’s got so much cash to play with there’s some room to maneuver. However I wouldn’t be in a rush to buy as it looks like 2023 will bring more of the same for Meta stock. 

On the date of publication, Marie Brodbeck did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.

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5 High-Yield Stocks for March 2023

An old proverb states, “Mach comes in like a lion, out like a lamb.” It refers to the weather. But it can be applied to the stock market in March 2023.

The failure of two regional banks related to tech and cryptocurrency startups has caused turmoil. The government took over SVB Financial’s Silicon Valley Bank (SVB) when it could not raise capital to cover a balance sheet deficit. The firm had greater exposure to people working in startups and venture capital. They withdrew cash from accounts, and SVB sold bonds at a loss to cover the outflows. Signature Bank was also shuttered because of its exposure to cryptocurrencies and withdrawal of deposits.

Because of contagion fears, investors have sold bank stocks and bank exchange-traded funds (ETFs), especially regional banks. At the same time, they have sold the broader market. But the selling is probably overdone, and many companies do not have the same exposure to riskier assets. So this indiscriminate selling presents an opportunity for brave investors.

Below, we discuss five high-yield dividend growth stocks with solid dividend safety for March 2023.

Verizon (VZ)

Verizon store sign. VZ stock.

Source: Shutterstock

I have written about Verizon (NYSE:VZ) before, but market action has again driven the stock price down and dividend yield up over 7%. Few stocks offer this high dividend combined with dividend growth, safety and undervaluation. That said, Verizon has its challenges with retail cellular subscriber dividend growth.

But statements by the CEO imply the trend may have started to reverse the trend in 2023. In addition, Verizon is reducing capital spending and cutting expenses after two years of elevated levels.

Market action has caused the dividend yield to reach 7.1%, just shy of the highest in the past decade and about 2.5% more than the five-year average. Verizon is a Dividend Contender, with 19 years of increases. The growth is remarkably consistent at about 2% annually. The dividend is supported by a payout ratio of only about 50%. Moreover, it receives a dividend quality grade of B+ and a stable investment-grade credit rating.

Verizon is undervalued based on historical metrics. It trades at a price-to-earnings (P/E) ratio of only about 7.9x, well beneath the five-year and 10-year ranges. Hence, Verizon is an excellent choice for investors seeking income.

Best Buy (BBY)

The front view of a Bed Bath & Beyond (BBBY) retail location in Indianapolis, Indiana.

Source: Jonathan Weiss / Shutterstock.com

Best Buy (NYSE:BBY) earns an unlikely place on this list. But the stock is a dividend growth one with a nice yield and excellent dividend safety.

The company is one of North America’s largest electronics and services retailers. Best Buy sells consumer electronics, personal computers, software, mobile devices and appliances and provides services through its 1,100+ stores. In addition, the firm acquired YardBird, expanding into outdoor furniture. The company’s annual sales exceeded $46.3 billion in fiscal 2023.

Best Buy has increased its dividend for 20 years. The declining stock price has increased the dividend yield to nearly 5%. Moreover, dividend safety is excellent, with a payout ratio of about 50% and a net cash position on the balance sheet.

The company trades at a P/E ratio of around 8x, below the five-year range. In addition, investors expect little from the company because of the downturn in electronics spending after the pandemic. But we view Best Buy as an acceptable choice for investors seeking a retailer to add to their passive income portfolio.

Black Hills (BKH)

multiple powerline towers are shown against a sunset and a distant city skyline. AQN stock

Source: zhao jiankang / Shutterstock.com

Black Hills Corporation (NYSE:BKH) is a diversified utility. It transmits and distributes electricity to roughly 220,000 customers and natural gas to about 1,107,000 customers. The firm generates approximately 1,482 megawatts of power and has several natural gas storage sites. The utility company had revenue of about $2,552 million in 2022.

The company is a Dividend King and has raised the dividend for 53 years, making it only one of three electric and natural gas utilities on the list. The dividend yield is now over 4% and growing at about 5% annually. The dividend safety is excellent, with a payout ratio of only about 61%, low for a utility. Also, the dividend quality grade is an A, meaning it is in the 90th percentile.

The stock market decline has made Black Hills’ stock undervalued. The forward P/E ratio is now approximately 15x, below the five-year and 10-year ranges. Investors seeking a high-yield utility stock should consider Black Hills.

LyondellBasell Industries N.V. (LYB)

A LyondellBasell production plant in Wesseling, Germany is seen at dusk.

Source: Flagmania / Shutterstock.com

LyondellBasell Industries N.V. (NYSE:LYB) is a global chemical and refining company. It has six business units: Olefins and Polyolefins – Americas; Olefins and Polyolefins – Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology.

The company operates in a cyclical industry. But on average, revenue and earnings per share (EPS) have grown over the past decade. However, the firm now faces headwinds from higher input costs and lower demand.

That said, the firm is conservative, with its dividend payout at 38%. The balance sheet is strong, too, with a leverage ratio of about 1.7x and interest coverage of 17x. This safety combined with a dividend yield of nearly 5.5% makes the stock interesting for those seeking income. In addition, the dividend has been increased for 12 straight years at an annualized rate of about 5.8%.

LyndellBasell is probably fairly valued at the moment. But investors seeking to diversify their dividend growth stock portfolio with a higher-yielding stock should consider LyondellBasell.

Arrow Financial Corporation (AROW)

Piggy bank on a wooden table with stacks of coins next to it.

Source: FabrikaSimf / Shutterstock

The last stock on this list is Arrow Financial Corporation (NASDAQ:AROW), a small community bank founded in 1851. With a market capitalization of only $419 million, the bank is too small to be considered a regional bank. Furthermore, the bank operates in upstate New York and is not focused on tech startups and cryptocurrency.

Instead, Arrow Financial is a holding company providing consumer and commercial banking, insurance and wealth management.

Arrow Financial is a Dividend Champion with a 30-year streak of dividend increases. The almost 21% decline in the stock price has pushed the dividend yield to over 4%. The payout ratio is modest at about 36%. The bank increases the dividend at a mid-single-digit rate.

The bank is trading below its trailing five-year and 10-year P/E ratio range at about 8.5x. As a result, investors seeking some diversification may want to examine Arrow Financial.

On the date of publication, Prakash Kolli held a LONG position in VZ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The author is not a licensed or registered investment adviser or broker/dealer. He is not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money.

Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor and blogger on dividend growth stocks and financial independence. Some of his writings can be found on Seeking Alpha, InvestorPlace, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, FXMag, and leading financial blogs. He also works as a part-time freelance equity analyst with a leading newsletter on dividend stocks. He was recently in the top 1.0% and 100 (81 out of over 9,459) of financial bloggers as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

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U.S. stocks close lower Tuesday as Treasury yields climb

U.S. stocks ended modestly lower on Tuesday, as Treasury yields rose, keeping pressure on the rate-sensitive Nasdaq Composite Index. The Dow Jones Industrial Average DJIA shed about 37 points, or 0.1%, ending near 32,394, while the S&P 500 index SPX fell 0.2% and the Nasdaq COMP closed 0.5% lower, according to preliminary data from FactSet. Stocks fell, but ended off the session lows, as the 2-year Treasury rate BX:TMUBMUSD02Y climbed 10.5 basis points to 4.06%. Bond yields and prices move in the opposite direction. Tuesday also saw a raft of relatively upbeat economic data and increased expectations by traders in fed-funds…

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MU, PARA, MKC and more

Micron Technology headquarters in Boise, Idaho, March 28, 2021.

Jeremy Erickson | Bloomberg | Getty Images

Check out the companies making headlines in midday trading Tuesday.

PagSeguro — Shares popped 4.1% on Tuesday after Citi upgraded the Brazilian payment stock to buy from neutral. The firm called the company’s fourth-quarter earnings unsurprising and said it is still in rough waters, but shares were more attractive following recent underperformance. Stone, which was also upgraded by Citi to buy from neutral, edged higher as well on Tuesday.

Affirm — The pay-later service lost 7.3% after Apple announced a competing service. Apple shares were down about 0.9%.

Occidental Petroleum — The energy stock jumped 4.3% on Tuesday after a regulatory filing showed Warren Buffett’s Berkshire Hathaway purchased an additional 3.7 million shares for $216 million on Monday and last Thursday. TD Cowen upgraded Occidental to outperform from market perform following the news.

Micron Technology — The semiconductor stock dropped 0.85% ahead of its scheduled second-quarter earnings report after the bell on Tuesday. Analysts expect revenue of $3.71 billion and a loss per share of 67 cents, according to FactSet. Micron’s shares have gained more than 18.5% in the last six months. 

PVH — Shares soared 20% after the apparel company’s fourth-quarter adjusted earnings per share came in at $2.38, beating estimates of $1.67, per Refinitiv. Its revenue of $2.49 billion beat expectations of $2.37 billion. PVH’s guidance for the first quarter and full year also surpassed estimates.

Paramount — Shares of the media giant gained 3.1% during Tuesday’s trading session on a rating upgrade from Bank of America from neutral to buy. The bank highlighted Paramount’s strong lineup of assets that could help the business in the event it puts itself up for sale.

McCormick & Company — The spice maker’s stock price jumped 9.6% after reporting better-than-expected earnings for the first quarter. McCormick reported quarterly earnings of 59 cents per share, while analysts surveyed by FactSet expected 50 cents per share. 

Alibaba — Shares soared by nearly 14.3% after the e-commerce giant said it would split its company into six separate business groups, with each group having the potential to raise outside funding and go public.

Ciena — The technology company gained about 4.7% on Tuesday after Raymond James upgraded the stock to strong buy from outperform.

Walgreens Boots Alliance — Shares of the pharmacy giant rose more than 2.7% after the company reported an increase in its quarterly revenue despite seeing a sharp decline in demand for Covid tests and vaccines. Walgreens posted revenue of $34.86 billion for the most recent quarter, compared to analysts’ estimates of $33.53 billion, according to Refinitiv.

Carnival Corp — The cruise operator’s stock price rose 6.1% on Tuesday after Wells Fargo upgraded Carnival to equal weight from underweight. The firm said it sees a more balanced risk/reward for the company

— CNBC’s Alex Harring, Yun Li, Jesse Pound and Michelle Fox Theobald contributed reporting.

Correction: According to FactSet, Micron is expected to post a loss of 67 cents per share. A previous version misstated the estimate.

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Reuters reveals India demands nearly $250 million from Pernod for undervaluing imports

Government

Reuters was first to report Indian authorities have demanded $244 million from the local unit of French spirits giant Pernod Ricard for undervaluing concentrate imports for over a decade to avoid full payment of duties. 

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Countries: India

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7 Dividend Aristocrats to Buy for Consistent Income Growth

I’d argue there’s never been a better time to consider investing in dividend aristocrats. Volatility remains very high in the overall market, with a destabilized banking sector. Additionally, inflation has proven to be anything but transitory. In short, dividend aristocrats, with their larger size and liquidity requirements and 25+ years of successive increasing payments, are generally about as solid as investments can be.

Investors who buy into this group will receive consistent income growth, sure. But such investors will also tend to be exposed to the most dependable sectors as well. Consumer staples, industrials, and materials companies comprise the most significant number of dividend aristocrats. These are, unsurprisingly, the sectors that fare best throughout business cycles.

These dividend aristocrats have thus grown into steady giants that reward investors with regular income. A current list of the group can be found here.

Frankly-speaking, any of these shares represent reasonable investments. Below, I have highlighted seven that I feel are particularly compelling.

MMM 3M $101.41
JNJ Johnson & Johnson $153.78
ALB Albermarle $219.99
MKC McCormick $74.39
DOV Dover Corp. $142.90
BDX Becton Dickenson $243.07
SJM J.M. Smucker $157.02

3M (MMM)

3M (NYSE:MMM), like most other stocks on this list, engages in a relatively unsexy business. It manufactures and sells products spanning industrial, safety, and consumer goods. And while its products are arguably less-exciting than those offered by tech firms, MMM stock remains compelling to investors interested in securing a long-term and dependable income stream.

Currently, MMM stock provides investors with a juicy dividend yield of 5.9% right now. That’s relatively high, and would typically indicate substantial risk if 3M were an average dividend stock.

It isn’t. The company has been increasing its dividend since 1959. So, investors can pretty much lock in a 6% return, guaranteed.

MMM stock also has roughly 15% upside, based on the consensus analyst target price. Expecting 20% returns on 3M shares within a medium-term investment horizon isn’t hyperbolic. Thus, this is a stock long-term investors should take a good look at now.

Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) is a healthcare giant, and arguably the biggest household name on this list. Most of us grew up with its products, with its vaccine perhaps being the most recent breakthrough from the company.

From an income perspective, Johnson & Johnson is sort of middle-of-the-road. Its 3% dividend is neither high nor low. It is dependable, though, as are all the dividends on this list.

The other positive for JNJ stock is that its shares have fallen since the beginning of the year. In fact, JNJ stock has fallen from $180 to around $150 currently. Analysts expect shares to move toward that former figure, implying significant price appreciation upside.

JNJ stock carries a current price-to-earnings ratio similar to its median over the past ten years. That suggests that shares are priced right at the moment, but I think this stock could reach its analyst price target in short order.

Albemarle (ALB)

Dividend aristocrats generally aren’t brimming with growth potential like Albemarle (NYSE:ALB) is. Albemarle has immense growth upside, given the fact its core lithium mining business is the lifeblood of the EV boom.

Many consider Albermarle to currently be in the middle of a growth cycle. As the EV boom continues, more lithium will be demanded, driving up the valuation of companies like Albermarle. It’s really that simple.

Accordingly, investors shouldn’t be surprised that there’s still roughly $100 in upside for ALB shares, based on the consensus analyst target price. This price target is supposed by Albermarle’s booming fundamentals, including Q4 sales that increased by 193% to $2.6 billion and EBITDA that increased by 444% during the same period.

Albemarle just announced the location of its lithium Mega-Flex facility to be built in Chester County, South Carolina. Construction will begin in 2024, with the announcement further cementing the firm’s commitment to lithium production.

McCormick (MKC)

There’s reason to believe McCormick’s (NYSE:MKC) stock could soon increase in price. The spice maker announced price hikes earlier in the quarter. Although there was pushback on those price increases, they could translate to higher earnings for the firm, which has seen revenues decline slightly over the past few years.

If higher retail costs translate to better earnings, shareholders should expect MKC shares to rise. That’s perhaps not the primary concern for income investors who like MKC shares for their reliable, though lower-yield, dividend. Although the dividend yields a modest 2.2%, it has grown by 9.4% over the past 5-year period.

There’s another reason to believe McCormick could see improved earnings moving forward: a brand redesign of its core herbs and spices line. The redesign has the potential to capture better consumer attention in grocery aisles that are increasingly competitive for kicks. If that happens, MKC stock could logically increase in price.

Dover Corp. (DOV)

To be clear, Dover Corp. (NYSE:DOV) stock, with its 1.4% dividend yield, won’t provide spectacular income to investors. Indeed, the company’s dividend has only increased at an average rate of less than 2% over the past five years. That said, the company is about as consistent as they come, even when comparing this company to the other dividend aristocrats on this list.

Dover is more of a solid dividend stock with price appreciation potential than anything else. It trades at $140, but has a target price of $167. So, it provides reliable income and substantial price appreciation potential, which is an attractive combination overall.

Revenues grew by 8% in 2022 at the auto parts maker that also serves the energy, and engineered products sectors. However, earnings fell by 5% during the same period, as higher prices generally affected suppliers across all industries.

The company expects growth in 2023 in the 3-5% range, implying that the company’s dividend is nearly sure to remain safe moving forward.

Becton Dickinson (BDX)

Becton Dickinson (NYSE:BDX) provides the medical equipment and supplies that underpin our healthcare system. The necessity of those products means that Becton Dickinson enjoys relatively inelastic demand. That has provided stability to the company, allowing it to pay an increasing dividend since 1972. That dividend has also grown 3.5%, on average, over the past years.

Becton Dickinson hasn’t had a particularly strong 2023, to be sure. Shares have fallen by $15 to $241 currently. That’s partly due to a slight revenue decline in 2022 of 2.8%. That’s not a particularly positive way to entice investors leading into a new year. However, Q4 was better, with 1.7% revenue growth over Q4 ’21.

None of that is admittedly beautiful to potential investors overall. The real point of attraction for BDX stock is that the company raised full-year guidance from $18.6 to $18.8 billion up to $19.1 to $19.3 billion a few weeks ago.

J.M. Smucker (SJM)

Rounding out this list of dividend aristocrats to buy is none other than J.M. Smucker (NYSE:SJM). Indeed, there are plenty of reasons I think this is a dividend gem to consider right now.

For one, the company offers reasonably-priced food, coffee, and pet foods. It’s a consumer staple stock that should continue to do well as inflation runs rampant because it provides affordable necessities. That logically leads to sustainable demand across the business cycle, particularly in recessionary times.

The company’s most recent earnings reflect that idea. Sales increased by 8% to $159.2 million for the quarter that ended on 31 January. Those results were pretty much in line with what Wall Street expected. When earnings were released, the company also gave guidance for 6% sales growth in 2023. It’s reasonable to expect that sales could increase, as economic volatility increases.

Demand for lower-priced Jif peanut butter and Folgers coffee could increase throughout 2023 as the economy looks to weaken further and the likelihood of a recession rises.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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