Altria Group Inc. has approved a 4.3% increase in its quarterly dividend, resulting in a new annualized dividend yield of 9.1%.
### Summary
Wall Street analysts recommend dividend stocks as a defensive move against potential economic downturns, highlighting Brookfield Renewable Partners and Diamondback Energy as appealing options with promising outlooks.
Altria (MO) and Highwoods Properties (HIW) are two undervalued stocks with high-quality attributes that income and bargain investors should consider for their high dividend yields and potential gains.
Altria, a market leader in the tobacco industry, is facing declining revenue due to factors such as inflation and lower cigarette volumes, but its management is implementing a growth plan through acquisitions and increased distribution, while also rewarding shareholders with dividends and stock buybacks.
The article mentions Iron Mountain Incorporated (NYSE:IRM) as the stock that the author believes has fortified their portfolio. The author's recommendation is to hold the stock.
The key information and data mentioned in the article about Iron Mountain Incorporated include the following:
- The company has lowered its leverage ratio over the past four years, indicating progress in repaying debt and becoming more competitive.
- Iron Mountain has frozen its quarterly dividend per share for the past four years but recently increased it by 5.1%.
- The company's adjusted funds from operations (AFFO) per share payout ratio has decreased from 81% in 2019 to 65.1% in 2022, and it is expected to be 63.4% in 2023, which is within the company's target payout ratio.
- Iron Mountain's total revenue increased by 5.3% year-over-year in the second quarter, with storage rental revenue growing at a double-digit rate.
- The company's AFFO per share increased by 1.1% in the second quarter, surpassing management's expectations.
- Risks to consider include the impact of a recession on rent collection and the competitive landscape in the data center industry.
- Two valuation models, the discounted cash flows (DCF) model and the dividend discount model (DDM), suggest that Iron Mountain's shares are trading slightly below fair value or at a premium, respectively.
The author suggests putting Iron Mountain Incorporated on the watchlist and rates the stock as a hold until it dips below $60 again.
Investing in Realty Income Corporation (NYSE:O) may not be rational from a fundamental level due to its relatively unattractive dividend yield and the potential damage caused by a higher interest rate environment.
Investors are urged to exercise caution when considering adding exposure to tobacco manufacturer Altria Group, as the market seems to be pricing in substantial execution risks, despite the company's improved adjusted EPS in the second quarter. While Altria's valuation metrics and forward dividend yield are attractive, its price action suggests a downtrend bias may emerge, warranting a Hold rating until there is more clarity on buyer support and improved performance in the second half.
The article mentions VICI Properties (NYSE:VICI) as the stock that is being discussed. The author's recommendation is to buy VICI Properties, as they believe it is an attractive income investment for retirement.
The author's core argument is that VICI Properties provides a reliable source of passive income through its increasing quarterly dividends. The author also highlights the company's focus on long-term leases, high-quality assets, and strong execution as factors that contribute to its potential for growth and stability. The article provides information about VICI's dividend history and projections, as well as its revenue growth and investment-grade balance sheet. The author also discusses a short strangle strategy involving covered calls and cash-secured puts to generate additional income with VICI shares.
Overall, the article presents VICI Properties as a solid choice for retirement portfolios, offering stability, income, and growth prospects. The author rates VICI as a buy.
This article mentions Johnson & Johnson (NYSE:JNJ) as the stock being discussed. The author's recommendation is to buy this stock for portfolios with a lower risk tolerance.
The author's core argument is that despite recent challenges, Johnson & Johnson is attractively valued and well-positioned for long-term growth and increasing shareholder returns. They highlight the company's AAA-rated balance sheet, its mix of growth and value, and its ability to protect investors from market turmoil.
Key information and data include the underperformance of JNJ shares compared to the S&P 500, the uncertainty surrounding baby powder lawsuits, the company's future growth opportunities in MedTech and Pharmaceuticals, its commitment to R&D and innovation, and its shareholder distribution strategy, including a 3.0% dividend yield. The article also discusses the company's valuation and suggests that it may be trading below its fair value.
High-dividend stocks can provide retirees with a source of income and potential appreciation, and historically, higher-yielding stocks have offered better returns than dividend growth and the broader market.
In this article, the author mentions several stocks including:
1. Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI)
2. Via Renewables preferred shares (VIASP)
3. NXG NextGen Infrastructure Income fund (NXG)
4. OFS Credit Company, Inc. (OCCI)
The author does not explicitly give a recommendation to buy, hold, or sell these stocks. However, they mention that they have a 5% position in USOI and do not plan to increase their holding unless oil prices dip below $80 again.
The author's core thesis is to hold high-yielding securities that offer regular monthly or quarterly dividends to grow their future income stream. They mention that they are accumulating wealth in their investment portfolio and reinvesting dividends to compound their income.
The key information and data in the article include the current TTM yield of USOI at about 27%, the high yield provided by VIASP (approximately 26% at the time of the article), the doubled dividend of NXG NextGen Infrastructure Income fund, and the high yield and potential price appreciation of OFS Credit Company, Inc.
The article mentions American States Water (NYSE:AWR) as the stock being discussed. The author gives a recommendation to buy the stock, stating that it is priced at a buyable valuation for dividend growth investors.
The author's core argument is that American States Water has a strong dividend growth streak, with the longest established dividend growth streak among the Dividend Kings. The company's fundamentals, such as its dividend growth rate and earnings per share, are highlighted as positive indicators. The author also mentions the company's strong operational performance in 2023.
Key information and data include the company's annual dividend growth rate of 8.2% over the last 10 years, its anticipated diluted EPS of $2.77 in 2023, and its projected annual earnings growth rate of 14% over the next three to five years. The article also discusses the risks associated with investing in American States Water, such as potential adverse decisions from regulators and the impact of interest rates on the stock's performance.
The author provides two valuation models, the discounted cash flows (DCF) model and the dividend discount model (DDM), to estimate the fair value of AWR's shares. According to these models, the stock is currently trading at a discount to its fair value and offers potential upside for investors.
Investors may want to consider increasing exposure to dividend stocks, such as those in the S&P Dividend Aristocrats, as rising long-term interest rates have the potential to push the broad stock market down again.
