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This could be a better year for dividend stocks. Dividend-paying companies underperformed the market in 2023 as bond markets hit their highest yields in generations and many investors moved away from stocks in search of income. The Vanguard Dividend Appreciation Exchange Traded Fund was little changed at his 2023 end, rising just 0.3% compared to the S&P 500’s return of 24%. The Fed has said it will likely cut interest rates three times this year, which could bode well for dividend stocks. Investors may turn to the asset class in anticipation of lower bond yields and expect capital appreciation. “The pendulum is swinging and there is clearly a possibility of a rate cut.” [ahead]”Now is the time… to start buying dividend stocks,” Matt Powers, managing partner at Powers Advisory Group, said in a Dec. 27 interview on CNBC’s “Halftime Report.” With that in mind, CNBC Pro looked for high-dividend stocks in the Vanguard Dividend High Rated Index Fund ETF that Wall Street believes has room to rise. These stocks have at least 15% upside potential, as reflected in analyst consensus price targets. Each company has a market capitalization of at least $1 billion, at least 5 analysts cover the stock, and at least 60% of analysts rate it a Buy.Trinity Industries, a rail vehicle and services company has the highest dividend yield on the list at 4.2%, and about 60% of analysts covering the stock rate it a buy, giving it nearly 17% upside potential compared to analysts’ average price target. be. According to FactSet. TD Cowen named Trinity one of his best ideas for 2024 in his Dec. 8 memo. Analyst Matt Elcott said: “TRN’s erratic performance year-to-date despite clearly favorable supply dynamics as supply chain, workforce and border challenges ease. “In 2024, production should improve by 14% and operating leverage should increase accordingly.” Trinity’s stock price fell 10% in 2023. TRN 1Y Mountain Trinity’s 1-Year Performance His MetLife Life is JPMorgan’s Top Pick of his 2024. The company’s dividend yield is 3.1%, with an upside of 16% compared to analysts’ average price target. JPMorgan remains cautious about the long-term fundamental outlook for its life insurance business, but remains bullish on the company’s stock. “In our view, MET is the best risk in the sector given its expected healthy fundamentals, solid buybacks and depressed valuation,” analyst Jimmy Buller said in a note Wednesday.・We provide rewards.” In 2023, the stock price fell nearly 9%. Utilities are also known for paying dividends, and Essential Utilities is the only company in the sector to earn a dividend. The stock’s dividend yield is 3.3%, and there is 26% upside potential compared to the average price target. Almost 78% of analysts covering the name rate it a Buy. Essential Utilities’ stock price has fallen nearly 22% in the last year. —CNBC’s Michael Bloom contributed reporting.
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