You Need Dividend Stocks Now. Here's Why – and Here Are 3
Portfolio Pulse from Benzinga Contributor
The article discusses the importance of investing in dividend stocks and suggests three dividend stocks to consider: iShares Select Dividend ETF (DVY), Diageo (DEO), and Unilever (UL). The author believes that a conservative allocation to dividend stocks can create a nice counterweight in portfolios dominated by growth stocks.
June 01, 2023 | 2:13 am
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Diageo (DEO) has a 2% yield and strong premium alcohol brands, with revenue from its super-premium segment growing by more than 20% per year. Its ROIC is consistently in the mid-teens, and operating profits are projected to grow by 6% to 9% per year through 2025.
The article highlights DEO's strong fundamentals and growth prospects, but it does not provide any specific short-term catalysts or events that would drive the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
iShares Select Dividend ETF (DVY) has a reasonable 0.38% expense ratio, 107 holdings, a trailing yield of almost 4%, a P/E of 11, and a beta of 0.74, making it a potential investment for those seeking dividend exposure.
The article suggests DVY as a potential investment for those seeking dividend exposure. However, the short-term impact on the stock price is uncertain, as the author does not provide any specific catalysts or events that would drive the price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Unilever (UL) has a 3.4% yield and a diverse portfolio of brands. The company's stock price has been languishing, but the addition of activist investor Nelson Peltz to the board and the upcoming retirement of CEO Alan Jope could potentially lead to a turnaround similar to Procter & Gamble (PG).
The article suggests that UL could experience a turnaround similar to PG due to changes in the board and CEO retirement. However, the short-term impact on the stock price is uncertain, as the author does not provide any specific catalysts or events that would drive the price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80