While it’s tempting to focus solely on your holiday shopping list during December, diligent investors should also be interested in adding shares of companies that could close out the year in a big way. With the potential for a “Santa Rally” and new market leaders emerging regularly, it’s safe to say that there are plenty of great companies to watch heading into the final month of the year.
We’ve put together a list of 3 stocks to consider buying in December so that you can potentially end the year with some great new companies in your portfolio. Each one of these stocks has something different to offer and could be in for a big December and beyond. Let’s take a deeper look at them below.
Advanced Micro Devices (NASDAQ:AMD)
While technology stocks have been relatively quiet lately, companies like Advanced Micro Devices could be in for a big December. The hottest Christmas gifts this year are the latest video game systems, Sony’s Playstation 5, and Microsoft’s Xbox Series X. It just so happens that AMD’s graphics cards power both of those systems, which means that the stock could see a nice boost as the holiday sales numbers for those gaming systems start to come in. Regardless of any short-term factors, AMD is absolutely a company that investors should hold on to for the long-run.
This stock has been a top-performer in the semiconductor space this year and is up over 76% year-to-date. The stock has been consolidating since September and seems to be picking up its momentum again. It’s a strong business that continues to take market share away from major competitors like Intel thanks to its cutting-edge GPUs (Graphics Processing Units). Third-quarter sales for AMD increased by 56% year-over-year and the company’s gross margins should continue to improve throughout 2021 thanks to increasing demand for its next-generation processors. It’s also great to see that AMD continues to make acquisitions that strengthen its market position, including the recent $35 billion all-stock transaction for Xilinx (NASDAQ:XLNX).
Costco Wholesale Corporation (NASDAQ:COST)
Nothing says the holidays quite like heading into a massive retailer such as Costco to stock up in bulk on all of the things that help to make this time of the year so special. The company reports its Q1 2021 earnings on December 10th and has a chance to rally into the release. It’s always difficult to find one of Costco’s 795 warehouses that isn’t busy, which tells investors a lot about how successful of a company it is. Sales for the membership warehouse retailer have been strong throughout the year as consumers purchased tons of essential items throughout the pandemic. Costco recently reported a net income of $4 billion for FY 2020, which was a 9% year-over-year increase.
This is a company that will undoubtedly put up big numbers throughout December and it continues to grow its membership base consistently. It’s a great stock to consider owning over the long-term as it has proven to be a business that shows resilience in any market environment. With over 16 consecutive years of dividend increases, a strong balance sheet, and robust e-commerce growth, this is one of the best major retailers to consider adding. There’s also the special cash dividend of $10 per share that is payable to shareholders of record as of the close of business on December 2nd, 2020 that makes Costco stock a strong option for investors to consider next month.
Slack Technologies (NYSE:WORK)
The remote work revolution has completely changed the way that the business world operates. Companies like Slack Technologies are at the forefront, as its team communication platform is helping millions of remote workers collaborate effectively. The platform offers a secure, enterprise-grade environment that can scale with even the largest companies in the world. Companies can connect all of their existing software tools and services to Slack and keep everyone on the same page so that no important task falls beneath the cracks.
Slack should see strong revenue growth in 2021 as more and more companies look to communication and collaboration tools in the wake of COVID-19. Back in September, Q2 revenue for the company was up 49% year-over-year to $215.9 million. Slack also added 8,000 new paid customers in Q2. The company will report its Q3 earnings on December 9th and it will be interesting to see just how much the company has grown over the last few months. This stock is also worth watching thanks to recent news that Salesforce (NYSE:CRM) is in advanced talks to acquire Slack. A deal could be announced as soon as next week, so keep an eye on Slack in the coming days for further confirmation. Regardless of whether or not the company is acquired by Salesforce, Slack stock is still worth a look for investors that are interested in a growing provider of remote work technology solutions.
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10 Rock-Solid Dividend Paying Stocks to Own
Historically low-interest rates have made it difficult over the last decade for income-oriented investors that want to generate safe cash flow for their retirements.
Dividend-paying stocks have become more appealing to income investors because of their competitive yields, the favorite tax treatment that dividends receive, and their ability to grow their payouts over time. While fixed interest rates from bond investments will lose purchasing power to inflation over time, the purchasing power of income from dividend growth stocks is more protected because companies tend to raise their dividend payments every year.
In this slideshow, we look at ten of the best high-dividend stocks that offer strong yields (above 3.5%), have consistent cash flow, and a strong track record of dividend growth. The companies in this slideshow have all raised their dividend every year for the last ten years.
These companies also have low payout ratios (below 75%), meaning that they will have the ability to continue to pay their dividend if their earnings have a temporary dip.
Stock prices will always fluctuate, but the dividends paid by these rock-solid dividend payers should remain secure with moderate earnings growth.
View the "10 Rock-Solid Dividend Paying Stocks to Own".