It was Groundhog’s Day for investors as this week started on more positive vaccine news. This time, the news was from Moderna (NASDAQ:MRNA). The company cited 95% effectiveness of the vaccine in their Phase-3 trial. Of course like the news from Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX) last week, there are still logistical hurdles to clear. But anything that offers genuine hope for investors is welcome.
The gains the market made on Monday were tested as many states began instituting more restrictive measures to combat the recent surge in virus cases. However, positive economic data on home sales and better-than-expected retail numbers are keeping the markets pointed higher.
Next week will be a short week for the markets that are closed Thursday and will have abbreviated trading hours on Friday. We at MarketBeat wish you health and happiness as we enter the holiday season. And now, here’s a look at some of the articles our staff picked to help make you a better investor.
Articles by Sean Sechler
Like many investors, Sean Sechler turned his eyes towards blue chip stocks. With so many variables still up in the air, Sechler pointed investors to three stocks that are delivering steady returns, and predictable cash flow through a dividend. Sechler was also steering investors towards NextEra Energy (NYSE:NEE). Renewable energy was gaining traction the last four years, and should get additional stimulus from a Biden administration. NextEra is a smart play because it offers investors in this sector a rare combination of a dividend and stable earnings. Another stock Sechler was informing investors about was Futu Holdings (NASDAQ:FUTU). Financial technology (or fintech) is one of the hottest sectors in the U.S. markets, and Futu is a Chinese fintech company that offers a fully digitized brokerage and wealth management platform.
Articles by Jea Yu
Electric vehicle (EV) stocks are sizzling in the United States. But with some of these newly public stocks looking overvalued, some investors are turning their attention to attractively priced Chinese EV stocks. Jea Yu was looking at one of those stocks, Kandi Technologies Group, Inc. (NASDAQ: KNDI). The company is drawing the attention of investors after announcing plans to enter the U.S. market with an EV that may sell for as low as $7,999 (after subsidies). Yu was also advising investors to use this recent pullback in e-commerce stocks to buy shares of Ecommerce facilitator BigCommerce Holdings (NASDAQ: BIGC) stock. Turning his attention to stocks that stand to benefit from a Covid-19 vaccine, Yu was looking at beauty products and fragrance maker Coty (NYSE:COTY). The company is in the middle of a turnaround effort that was hampered by the pandemic. But Yu says shares may have finally hit a bottom which means any positive news on seeing each other face-to-face should be a catalyst for the stock.
Articles by Thomas Hughes
Analyst ratings are an excellent source of information for investors. Thomas Hughes was advising investors about three 5G stocks that are benefiting from a bullish upgrade from Wells Fargo (NYSE:WFC). Hughes was also looking at the EV sector, specifically Nio (NYSE:NIO). The Chinese EV manufacturer was largely left for dead early this year but an infusion of capital from the Chinese government has righted the ship. And the stock looks ready to soar on news of growing demand and production. Retail stocks were also in focus this week with stronger than expected earnings reports. The TJX Companies (NYSE:TJX) were among them, and Hughes gave investors reasons to believe in the recovery narrative for this retail stock.
Articles by Nick Vasco
Nick Vasco was advising investors to buy the dip on Planet Fitness (NYSE:PLNT) stock. The company has made some savvy moves, such as the development of a mobile app, to survive the pandemic. And the fitness stock is poised to recover when a Covid-19 vaccine is widely available. However, Vasco was not as bullish on the fitness apparel retailer, Foot Locker (NYSE: FL). After being a pandemic winner, the company is facing some unsustainable trends. And as someone who brewed a pot of hot water by accident this morning, I can relate to Vasco’s bullish outlook on Starbucks (NASDAQ:SBUX). Americans want their daily buzz and once they had the opportunity to get their Starbucks fit, they did. And as Vasco notes, even if the company faces some short-term headwinds due to renewed mitigation efforts, the steps they took in the initial lockdown are now firmly in place.
Articles by Sam Quirke
Sam Quirke was giving investors a look at the Goldilocks side of the market. One stock Quirke wrote about, Boeing (NYSE:BA) has been a market laggard. But news that the FAA has rescinded its ban on commercial operations for Boeing’s beleaguered 737 MAX plane looks to be the catalyst the company needs. Quirke was also looking at a slow-and-steady performer. Caterpillar (NYSE:CAT) stock has continued to grow despite macro-economic conditions. And with the likelihood of increased attention on infrastructure, Caterpillar should continue to plow ahead. Quirke was also looking at a red-hot stock for this year, DocuSign (NASDAQ:DOCU). The simple fact is that the pandemic has given customers a reason to use DocuSign’s electronic signature services. And once they do, they’ll find there’s no reason to go back to business as usual because of convenience, not safety.
Articles by Steve Anderson
Steve Anderson put his attention on the semiconductor arena and gave investors a bullish report on Qualcomm (NASDAQ:QCOM). The company recently received permission to sell some smartphone processors in China which opens up a new line of business and should give the stock a boost. One stock that hasn’t needed much of a boost this year is Tesla (NASDAQ:TSLA). Still, Anderson points out recent developments including an “overweight” rating from Morgan Stanley that should propel the stock to new heights. And Anderson also had his eyes on retail stocks. In this case, he was looking at Kohl’s which as Anderson points out didn’t wow investors with its earnings report, but didn’t provide any reason to hate it either. A strong digital performance and a forecast to reinstate their quarterly dividend at some point in 2021 are acting as catalysts for the stock.
Additional Editor’s Picks
The last month has only accelerated the volatility in the market. And while the long-term outlook for stocks is improving, it’s not surprising that some investors have their eyes on value stocks. Our team took a look at three value stocks that you should consider adding to your portfolio. The year 2020 will be remembered for accelerating the push into e-commerce. And while that has caused some consumer stocks to look overheated, our staff took a look at three cheap consumer stocks that investors can pick up at a bargain right now.
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".