Tired of stocks bouncing like a beach ball in a hurricane? Long-term investing is your lifeline, and dividend stocks are the sturdy boat you need to weather rough seas. With the Federal Reserve hinting at calmer waters in 2024, these income-generating powerhouses are poised for a comeback.
But which ones should you set sail with? We dug through the expertise of Wall Street's top analysts and checkout these 4 champions.
1. OneMain Holdings (OMF): Unleashing the Power of Data-Driven Credit (9% Yield)
Think of OMF as a champion for non-prime borrowers, providing access to credit with a smart twist – machine learning and alternative data fuel their underwriting, making it twice as accurate as traditional credit scores! That translates to steady profits, reflected in a whopping 9% dividend yield. Analyst Kenneth Lee is bullish, impressed by OMF's omnichannel presence and potential for $6/share in excess capital generation annually. This could be your ticket to both income and growth.
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2. CVS Health (CVS): A Retail Pharmacy Giant with Growth Momentum (3.5% Yield)
CVS isn't just your corner drugstore. They're a healthcare powerhouse expanding into areas like Signify and Oak Street, aiming to boost growth beyond traditional pharmacy services. While their long-term EPS growth may not be a sprint, analyst Ann Hynes sees an upside – strong market share gains and a new pharmacy reimbursement model could fuel a surprise. Plus, their commitment to a balanced capital deployment strategy means a steady 3.5% dividend stream for you.
3. Devon Energy (DVN): Riding the Oil Wave with a Juicy 6.5% Yield
Don't let 2023's challenges fool you - oil and gas giant DVN is poised for a comeback. They're shifting focus to the lucrative Delaware basin and plan to allocate 70% of their 2024 free cash flow towards cash returns, including a growing fixed dividend and potential share repurchases. Analyst Neil Mehta is optimistic, highlighting their potential for "mean reversion with favorable production/cost execution." With a hefty 6.5% yield, DVN could be your ticket to profiting from the energy sector's rebound.
4. Pfizer (PFE) - Rising from the Ashes (6.1% Yield): Can Pfizer's Dividend and Pipeline Ignite a Comeback?
Pfizer may have suffered a rough 2023, down nearly 40%, but Wall Street sees a phoenix rising from the ashes. Analysts predict a 24% surge over the next year, fueled by a potent mix of a healthy 6.1% dividend (four times the S&P 500 average!) and promising new growth avenues.
While the fading roar of COVID revenue might raise concerns, Pfizer's diverse portfolio boasts hidden gems ready to ignite a comeback. Take their recent $43 billion Seagen acquisition, for example.
Their star drug, Padcev, just stormed through FDA approval for first-line bladder cancer, unlocking a market of 82,000 patients. This chemotherapy-free option alongside Keytruda promises to be a blockbuster, adding firepower to Pfizer's arsenal.
And here's the kicker: Pfizer trades at a bargain-basement 14.6 times trailing earnings, far below its true potential. This undervalued gem doesn't seem to recognize Padcev's explosive growth trajectory, making now the perfect time to add more shares of this high-yield powerhouse to your portfolio.
Remember, this is just a starting point. Do your own research and due diligence before diving in. But with Wall Street's top minds pointing the way, these four dividend powerhouses could be the anchors for a thriving long-term portfolio. remember that the information you encounter here, including any discussion of ZTRADEZ, is for educational purposes only and should not be considered financial advice.
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