Although not mentioned together often, growth and EPS are critical to successful dividend choices. One promising sign is that the dividend has increased by at least 5% over the last five years. Combine that with having EPS growth of more than 10% annually, and you not only get that passive income, but you stand to see healthy returns too— which, in turn, then gives the business at hand the ability to take more of their assets and capitalize on raising yields and payouts. Given recent unforeseen circumstances, exceptions can undoubtedly be made. Regardless, let’s stay careful with our decisions.
These high yielders can also behave in tune with growth stocks, seemingly operating on a similar wavelength as its sector. Analysts expect EPS to grow by at least 5% per year over the next five years.
The maximum decline a stock price can have, given the last ten years, is 45%, which helps exclude more volatile stocks. Over 50% of stocks in the U.S. have had at least one 50% drop or greater over that time frame. The metrics in each of these stocks will adequately demonstrate their timeliness.
After proper consideration, I’ve searched many dividend stocks and picked these three tickers from different market sectors. If for no other deciding factor than that when these are the kinds of portfolio likes the analysts love to get behind: buy and hold now, they say:
Genco Shipping & Trading Ltd (GNK)
Genco Shipping & Trade Ltd (GNK) is a drybulk shipowner. The logistics businesses and GNK’s commercial side of the program are combined to significant effect, and he just doesn’t want to do it anymore…. With its drybulk carrier boats, GNK ships iron ore, steel, grain, coal, and other drybulk commodities globally. GNK‘s fully-owned Capesize, Ultramax, and Supramax dry cargo boats can all handle a variety of goods and are undoubtedly impressive. GNK’s fleet includes approximately 44 drybulk carriers, 17 Capesize, 15 Ultramax, and 12 Supramax, with a total carrying capacity of roughly 4,750,000. GNK was founded here in the U.S. in 2004.
GNK, priced reasonably and at the bottom of its 52-week range, leaves the stock in an excellent position for dividend investors who want to see severe returns with their quarterly checks. GNK, with a volatility-safe beta figure of 1,11, is forecasted to show sales of $55.9 billion at 18 cents per share in its following earnings report. Over its TTM period, it has a market cap of $692 million, revenue of $5,37 million, EPS at $3.69 per share (with 5-year EPS growth of +87.88%), and a free cash flow of $103.2 million. GNK has a P/E of 4.4x and a forward P/E of 7.44x. GNK has a dividend yield of 12.22%, with a quarterly payout of 50 cents ($2.00/yr) per share. Analysts who assign yearly pricing projections give GNK a median price target of $23, with a high of $28 and a low of $17.70. If GNK hits its high mark, that will bring about a 71% increase over current pricing. Analysts say investors should buy and hold.
Home Depot Inc (HD)
Home Depot Inc (HD) essentially acts as a retail location for home builders and DIY homeowners in somewhat relative measure. HD offers services including home improvement installation, tool and equipment rental, supplies for building from scratch, remodeling goods, landscaping tools, décor items, and additional supplies. HD operates approx 2,319 stores throughout the continental U, S, the District of Columbia, Guam, Puerto Rico, and Mexico. HD‘s primary clientele are do-it-yourselfers and professionals (Pros). DIY homeowners shop for and do their installations. Renovators/remodelers, construction firms, handypersons, building managers, janitors, and electricians/plumbers/painters are all examples of experts in their field who, in service for nothing less than success, are proud HD consumers.
HD’s stock is in an exciting position to start 2023; it’s presently down by 9.29% YTD and is nearing the low end of its 52-week range. HD shows, for the current quarter, sales of $38.7 billion at $3.88 per share. More impressive, maybe, are HD’s TTM (trailing twelve-month) figures: A market cap of $292 billion, revenue at $157.4 billion, a profit margin of 33.53%, and EPS (ttm) of $16.68 per share. HD has a P/E of 17.17x, a forward P/E of 17.71x, and a P/S of 1.29x. HD shows a 10-day average trading volume of around 4.28 million, a safe beta measure of 0.94, and a free cash flow of $7.8 billion. HD has a dividend yield of 2.92%, with a quarterly shareholder payout of $2.09 ($8.36/yr) per share. Analysts that provide annual pricing estimates give HD a median price target of $335, with a high of $400 and a low of $275. This leaves HD with a potential price upside of about 40%; buy and hold now, right analysts? Yep.
JPMorgan Chase & Co (JPM)
Investment banking, financial services, and asset management as a full-service financial institution. JPM operates in four business segments: Retail Banking, Business Banking, Commercial Banking, and Asset Management. JPM’s Corporate & Investment sector provides investigations, prime brokerage, and treasury and securities services to corporations, individual investors, financial institutions, and public and private sector entities. Lending, treasury services, and asset management are all part of JPM‘s offerings. JPM was founded in New York, NY, on December 31st, 2000.
JPM is undoubtedly a premium stock, although some experts on Wall Street would tell you to stay away from the banks. Well, our country’s GDP has improved annually, and a bright future appears to be around the corner. JPM is down slightly over 2% YTD while wielding an impressive market cap of over $386 billion. JPM’s performance shows a P/E of 10,8x, a forward P/E of 10.17x, and $92.8 billion in revenue, with an EPS of $12.09. Last year, JPM profited $37,5 billion and had a running free cash flow of around $107 million. JPM has a dividend yield of 3.05%, with a quarterly payout of $1.00 ($4.00/yr) per quarter. The analysts who weigh in yearly on stock price estimates give JPM a median price target of $157, with a high of $189 and a low of $137. For JPM, this means a potential upside of over 44%. The analysts and numbers have been ringing in my ears, and they’re in sync: buy and hold JPM now.
Read Next – No 1 Stock of the Decade
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