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【XM Decision Analysis】--The Best Dividend Stocks to Buy Now
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Hello everyone, today XM Forex will bring you "【XM Decision Analysis】--The Best Dividend Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
What Are Dividend Stocks?
Dividend stocks refer to publicly listed xmyoume.companies that pay pidends to existing shareholders. Most US-based pidend xmyoume.companies pay an identical quarterly pidend throughout the fiscal year.
Here is an example:
- xmyoume.company Y2Z declares a quarterly pidend of $1.25 per share
- Therefore, the xmyoume.company will pay $1.25 per share for each quarter of the fiscal year (for example, in January, April, July, and October)
- An investor with 1,000 shares would receive four payments of $1,250
Why Should You Consider Buying Dividend Stocks?
While the pidend yield stands out, investors should look beyond the yield and analyze the underlying xmyoume.companies on other metrics. Dividend stocks are not short-term trades, but long-term passive income-generating investments.
Here are a few things to consider when evaluating pidend stocks:
- Investors should favor pidend durability to ensure the xmyoume.company can sustain the pidend, even during times of economic uncertainty
- Favor pidend stocks with a well-established pidend history
- Undervalued pidend stocks can provide an additional portfolio boost
- Focus on xmyoume.companies with a business model that does not struggle during economic difficulties
- Invest in pidend stocks that have consistently grown their pidend
What Are the Downsides of Dividend Stocks?
Investors who chase pidend yields could find themselves holding troubled investments. High-yield pidend stocks look good on paper, and the math is appealing, but they xmyoume.come with risks. For example, Two Harbors Investment Corporation (TWO) has a pidend yield above 16.5%, but faces tremendous operating issues and balance sheet woes.
Here is a shortlist of pidend stocks investors could consider as their next investments:
- Pfizer (PFE)
- Chevron (CVX)
- Amcor (AMCR)
- Realty Income (O)
- First xmyoume.community Bankshares (FCBC)
- Merck (MRK)
- PepsiCo (PEP)
- ExxonMobil (XOM)
- UnitedHealth Group (UNH)
- US Bancorp (USB)
- Medtronic (MDT)
- Verizon xmyoume.communications (VZ)
- EOG Resources (EOG)
- Schlumberger (SLB)
- Lockheed Martin (LMT)
First xmyoume.community Bankshares Fundamental Analysis
First xmyoume.community Bankshares (FCBC) is a bank holding xmyoume.company and the parent xmyoume.company of First xmyoume.community Bank. It has 53 branches and over $3.2 billion in consolidated assets. Its subsidiary, First xmyoume.community Wealth Management, offers trust management, estate administration, and investment advisory services with over $1.5 billion of xmyoume.combined assets. First xmyoume.community Bankshares is also a member of the Russell 2000.
So, why am I bullish on First xmyoume.community Bankshares despite its recent sell-off?
The yield could be better, but valuations and the P/B ratio indicate an undervalued pidend stock. I like the payout ratio, which is 45.3% covered by earnings. The latest earnings release was reasonable, and its forecasted growth rate of 7.6% matched the expected industry growth rate. Investors will receive a quarterly pidend of $0.31 per share. First xmyoume.community Bankshares has paid pidends for 40 consecutive years, and last year’s pidend hike marked the 15th consecutive pidend increase.
First xmyoume.community Bankshares Fundamental Analysis Snapshot
Metric
Value
Verdict
P/E Ratio
13.25
Bullish
P/B Ratio
1.31
Bullish
PEG Ratio
Unavailable
Bearish
Current Ratio
Unavailable
Bearish
Return on Assets
1.57%
Bullish
Return on Equity
10.19%
Bullish
Profit Margin
30.56%
Bullish
ROIC-WACC Ratio
Unavailable
Bearish
Dividend Yield
3.36%
Bullish
The price-to-earnings (P/E) ratio of 13.25 makes FCBC an inexpensive stock. By xmyoume.comparison, the P/E ratio for the Russell 2000 is 33.65.
The average analyst price target for First xmyoume.community Bankshares is 41.00. It suggests moderate upside potential from current levels.
First xmyoume.community Bankshares Technical Analysis
- The FCBC D1 chart shows price action between its descending 0.0% and 38.2% Fibonacci Retracement Fan.
- It also shows First xmyoume.community Bankshares trading inside a horizontal support zone.
- The Bull Bear Power Indicator is bearish but has been trending higher since August with an ascending trendline, and the potential for a sustained bullish crossover.
My Call
I am taking a long position in First xmyoume.community Bankshares between 35.64 and 37.39. The valuation and the P/B ratio indicate unlocked value. FCBC has an excellent pidend history, and I like its growth strategy of small but strategic acquisitions. I will buy the dip in FCBC.
Realty Income Fundamental Analysis
Realty Income (O) is a real estate investment trust (REIT) and one of the few pidend stocks that pays monthly pidends. It has registered the trademark “The Monthly Dividend xmyoume.company.” It invests in free-standing, single-tenant xmyoume.commercial properties subject to NNN Leases. O is also a xmyoume.component of the S&P 500.
So, why am I bullish on O despite price action trending sideways since May?
With 15,450 properties totaling approximately 335.3 million leasable square feet, and Dollar General, Walgreens, and Dollar Tree as its three largest tenants, I am confident in O and its strategy. It has over 1,600 clients across 91 industries with a portfolio occupancy of 98.5%. Realty Income has paid a pidend for 662 consecutive months. The NNN Leases shift maintenance and insurance costs to tenants, creating predictable cash flow. O announced a $0.269 per share monthly pidend.
Realty Income Fundamental Analysis Snapshot
Metric
Value
Verdict
P/E Ratio
56.78
Bearish
P/B Ratio
1.37
Bullish
PEG Ratio
5.75
Bearish
Current Ratio
1.47
Bearish
Return on Assets
1.27%
Bearish
Return on Equity
2.32%
Bearish
Profit Margin
16.63%
Bullish
ROIC-WACC Ratio
Negative
Bearish
Dividend Yield
5.58%
Bullish
The price-to-earnings (P/E) ratio of 56.78 makes O an expensive stock. By xmyoume.comparison, the P/E ratio for the S&P 500 is 29.85.
The average analyst price target for O is 62.39. It suggests decent upside potential for this monthly pidend stock.
Realty Income Technical Analysis
- The O D1 chart shows price action between its descending 0.0% and 38.2% Fibonacci Retracement Fan.
- It also shows Realty Income inside of a horizontal support zone with a pending breakout.
- The Bull Bear Power Indicator is bullish and has been improving over the past trading week.
My Call
I am taking a long position in O between 57.82 and 58.98. I appreciate its acquisition and investment strategy. O has just announced its 662nd consecutive monthly pidend. Valuations are high, but the P/B ratio suggests an undervalued pidend stock. It is one of the top pidend stocks in my portfolio.
The above content is all about "【XM Decision Analysis】--The Best Dividend Stocks to Buy Now", which is carefully xmyoume.compiled and edited by XM Forex editor. I hope it will be helpful for your trading! Thank you for your support!
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