Latest news with #DanLefkovitz
Globe and Mail
19-03-2025
- Business
- Globe and Mail
The Best Vanguard ETF to Invest $1,000 in Right Now
What to invest in now -- that may seem like a tough decision, given the current economic uncertainty in the U.S. including ongoing tariff-related concerns. Investors are worried about inflation, about stock market declines, and even a potential recession. Let's say you have $1,000 to invest right now. The Vanguard International Dividend Appreciation ETF (NASDAQ: VIGI) is a strong option to consider investing in with that amount -- or any other amount. (Remember that an exchange-traded fund (ETF) is a fund that trades like a stock.) Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Dividend appreciation First off, the "dividend appreciation" in the title likely refers to the fund's goal of focusing on stocks that not only pay dividends, but that pay growing (i.e., appreciating) dividends. But let's take a moment to simply appreciate dividends. Per S&P Global: Numerous academic studies have shown that dividend-paying stocks have historically outperformed non-dividend payers. However, much of the available dividend research focuses on the U.S. and other developed markets. A study published by Morgan Stanley Research showed that there is a strong relationship between dividend yield and total return in developed and emerging markets, with this link being the strongest in emerging markets. And per Dan Lefkovitz at Morningstar in February: Both the Morningstar Global Markets ex-US High Dividend Yield Index and the Morningstar Global ex-US Dividend Growth Index have outperformed the broad market for developed- and emerging-markets stocks outside the US. Whereas their US counterparts have failed to keep up, the international dividend benchmarks have been on top for the past five years. This is great news for anyone worried about the U.S. market and looking into deploying dollars abroad. Note that one reason dividend payers outperform is that they have generally grown to a meaningful size and are generating fairly reliable income before they commit to paying a dividend. Meet the Vanguard International Dividend Appreciation ETF The ETF "seeks to track the performance of the S&P Global Ex-U.S. Dividend Growers Index." Its primary focus is on large-cap stocks from both developed and emerging markets that have been hiking their dividend payouts regularly. It excludes U.S. stocks, so any portion of your portfolio that you devote to this ETF will fully expose you to foreign companies. How has the fund performed over time? Well, as of this writing, it's up 4.5% year to date, and up 5.57% over the past year. Its three-year and five-year average annual returns are 4.18% and 7.83%, respectively. The ETF's expense ratio (annual fee) is a very modest 0.1, meaning that you'll pay $10 annually per $10,000 you have invested in it. (Vanguard is known for ultra-low fees.) The Vanguard International Dividend Appreciation ETF recently held about 327 stocks, with between 16% and 20% of its assets in healthcare, industrial, and technology stocks. Nearly half of its assets were recently in European companies, with 30% in Pacific companies, close to 9% in emerging markets, and 12.6% in North America -- excluding the U.S., of course. Here are its recent top holdings: Stock Percent of ETF SAP SE 5.85% Roche Holding AG 4.56% Novartis AG 3.85% Nestle 3.16% Sony Group 3.13% Data source: as of Jan. 31, 2025. So what's this Vanguard ETF's dividend yield? Well, it's 1.85%. That's not huge, but it's not paltry, either. It's actually well above the S&P 500 's recent yield of 1.23%. Better still, it's designed to grow. The S&P 500, for example, encompasses dividend payers and non-payers, and payers that are growing their payouts regularly along with those that are increasing their dividends minimally or not at all. So give this fund some consideration -- especially if you're worried about the state of the U.S. economy and/or you think that companies based outside the U.S. have a lot to offer. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $315,521!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,476!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $495,070!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. Continue » *Stock Advisor returns as of March 17, 2025 Selena Maranjian has positions in Novartis Ag and Roche Holding AG. The Motley Fool has positions in and recommends S&P Global. The Motley Fool recommends Nestlé and Roche Holding AG. The Motley Fool has a disclosure policy.
Yahoo
04-03-2025
- Business
- Yahoo
Johnson & Johnson (JNJ): Among the Best S&P 500 Dividend Stocks to Buy Now
We recently compiled a list of the . In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against the other stocks. Stock market investors have enjoyed strong annual returns over the past two years, but analysts caution that 2025 may not deliver a repeat performance. In 2024, the broader market posted a 23% gain, following a 24% increase in 2023. When factoring in dividends, total returns for those years reached 25% and 26%, respectively. However, such sustained high returns are uncommon. According to Scott Wren, senior global market strategist at the Wells Fargo Investment Institute, US stocks have only recorded three consecutive years of 20%-plus total returns once since 1928, during the late 1990s. Analysts do not expect the market's strong run to persist this year. A report from Morgan Stanley points out that while the third year of a bull market tends to deliver only modest returns on average, it is usually not negative. READ ALSO: The report mentioned that one possible scenario for 2025 is that earnings-per-share growth outpaces market gains, leading to a decline in overall price-to-earnings valuations. Factors such as prolonged high interest rates and geopolitical uncertainties could contribute to a lackluster year, causing some of the recent optimism to fade. However, if this happens, the market could regain momentum in 2026, making 2025 more of a temporary pause rather than a deeper downturn. Dividends are a key component of the investment market, with nearly 80% of companies in the broader market distributing payments to shareholders. However, maintaining steady dividend increases is a difficult achievement. Only about 13% of companies in the index qualify for the Dividend Aristocrats Index, which includes corporations that have raised their dividends for at least 25 consecutive years. Investors are often drawn to dividend growth stocks, as they have demonstrated strong long-term performance, especially during times of elevated interest rates. According to data from Abrdn, it was noted that between December 2002 and December 2022, companies that either increased or initiated dividends achieved a compounded return of 10.68%. In contrast, firms that reduced or discontinued their dividends saw a significantly lower return of 2.70%. In addition, it was highlighted that companies not paying dividends also lagged behind dividend growers, generating a return of 9.25% over the same timeframe. When assessing the reliability of dividend stocks, analysts suggest that investors should emphasize dividend growth rather than being lured by high yields that may not be sustainable. Dan Lefkovitz, a strategist with Morningstar's Index team, underscored the significance of dividend growth as a strategy distinct from high-yield investing. He pointed out that companies with consistent dividend growth often have strong competitive advantages and promising future outlooks. A portfolio focused on dividend growth generally mirrors the broader market in terms of sector allocation and the balance between growth and value characteristics, including price-to-earnings ratios. While it leans toward a value-driven approach, it remains more balanced and core-oriented compared to portfolios concentrated on high-yield stocks. Although dividend stocks did not experience the same level of gains as tech stocks in 2024, they still delivered impressive returns. That year, companies across the broader market that distributed dividends returned approximately 35% of their net income and 45% of their free cash flow to shareholders, according to Bloomberg. On average, these companies had a dividend yield of around 2.3%, while the market capitalization-weighted yield was about 1.5%. Given this, we will take a look at some of the best dividend stocks in the broader market. For this list, we scanned the list of the companies in the broader market and picked dividend stocks with dividend yields of about 2%, as of February 27. From that list, we picked 15 dividend stocks with the highest number of hedge fund investors, according to Insider Monkey's database of over 1,000 hedge funds, as of Q4 20234. The stocks are ranked in ascending order of the number of hedge funds having stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A smiling baby with an array of baby care products in the foreground. Number of Hedge Fund Holders: 98 Johnson & Johnson (NYSE:JNJ) is a New Jersey-based pharmaceutical company that operates through its subsidiaries to develop, manufacture, and market a wide range of healthcare products. Its diverse portfolio includes more than 10 high-performing drugs across various therapeutic areas, such as infectious diseases and oncology. Beyond pharmaceuticals, the company is also a key player in the medical device sector, providing additional diversification. Its financial performance has remained stable and consistent over time. The stock has surged by more than 14% in the past 12 months. In the fourth quarter of 2024, Johnson & Johnson (NYSE:JNJ) reported revenue of $22.5 billion, reflecting a 5.2% increase year-over-year. As a leading healthcare company, it continues to focus on addressing diseases with significant unmet medical needs, including multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure. The MedTech segment saw global operational sales rise by 6.2%, with acquisitions and divestitures accounting for 1.5% of this growth. Increased demand for electrophysiology products and Abiomed contributed to growth in the Cardiovascular division, while sales of wound closure products supported gains in the General Surgery segment. Johnson & Johnson (NYSE:JNJ)'s quarterly dividend stands at $1.24 per share, offering a dividend yield of 3.01%, as of February 26. With a 62-year track record of consecutive dividend increases, the company remains one of the most consistent dividend payers in the market. Overall JNJ ranks 3rd on our list of the best S&P 500 dividend stocks to buy now. While we acknowledge the potential for JNJ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Medtronic plc (MDT): Among the Best S&P 500 Dividend Stocks to Buy Now
We recently compiled a list of the . In this article, we are going to take a look at where Medtronic plc (NYSE:MDT) stands against the other stocks. Stock market investors have enjoyed strong annual returns over the past two years, but analysts caution that 2025 may not deliver a repeat performance. In 2024, the broader market posted a 23% gain, following a 24% increase in 2023. When factoring in dividends, total returns for those years reached 25% and 26%, respectively. However, such sustained high returns are uncommon. According to Scott Wren, senior global market strategist at the Wells Fargo Investment Institute, US stocks have only recorded three consecutive years of 20%-plus total returns once since 1928, during the late 1990s. Analysts do not expect the market's strong run to persist this year. A report from Morgan Stanley points out that while the third year of a bull market tends to deliver only modest returns on average, it is usually not negative. READ ALSO: The report mentioned that one possible scenario for 2025 is that earnings-per-share growth outpaces market gains, leading to a decline in overall price-to-earnings valuations. Factors such as prolonged high interest rates and geopolitical uncertainties could contribute to a lackluster year, causing some of the recent optimism to fade. However, if this happens, the market could regain momentum in 2026, making 2025 more of a temporary pause rather than a deeper downturn. Dividends are a key component of the investment market, with nearly 80% of companies in the broader market distributing payments to shareholders. However, maintaining steady dividend increases is a difficult achievement. Only about 13% of companies in the index qualify for the Dividend Aristocrats Index, which includes corporations that have raised their dividends for at least 25 consecutive years. Investors are often drawn to dividend growth stocks, as they have demonstrated strong long-term performance, especially during times of elevated interest rates. According to data from Abrdn, it was noted that between December 2002 and December 2022, companies that either increased or initiated dividends achieved a compounded return of 10.68%. In contrast, firms that reduced or discontinued their dividends saw a significantly lower return of 2.70%. In addition, it was highlighted that companies not paying dividends also lagged behind dividend growers, generating a return of 9.25% over the same timeframe. When assessing the reliability of dividend stocks, analysts suggest that investors should emphasize dividend growth rather than being lured by high yields that may not be sustainable. Dan Lefkovitz, a strategist with Morningstar's Index team, underscored the significance of dividend growth as a strategy distinct from high-yield investing. He pointed out that companies with consistent dividend growth often have strong competitive advantages and promising future outlooks. A portfolio focused on dividend growth generally mirrors the broader market in terms of sector allocation and the balance between growth and value characteristics, including price-to-earnings ratios. While it leans toward a value-driven approach, it remains more balanced and core-oriented compared to portfolios concentrated on high-yield stocks. Although dividend stocks did not experience the same level of gains as tech stocks in 2024, they still delivered impressive returns. That year, companies across the broader market that distributed dividends returned approximately 35% of their net income and 45% of their free cash flow to shareholders, according to Bloomberg. On average, these companies had a dividend yield of around 2.3%, while the market capitalization-weighted yield was about 1.5%. Given this, we will take a look at some of the best dividend stocks in the broader market. For this list, we scanned the list of the companies in the broader market and picked dividend stocks with dividend yields of about 2%, as of February 27. From that list, we picked 15 dividend stocks with the highest number of hedge fund investors, according to Insider Monkey's database of over 1,000 hedge funds, as of Q4 20234. The stocks are ranked in ascending order of the number of hedge funds having stakes in them. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A surgeon in a modern operating room holding advanced medical devices with a sense of purpose and accuracy. Number of Hedge Fund Holders: 67 Medtronic plc (NYSE:MDT) ranks tenth on our list of the best dividend stocks in the broader market. The global medical device company operates across four key segments: medical-surgical, neuroscience, cardiovascular, and diabetes, offering a diverse portfolio of products. In fiscal Q3 2025, Medtronic plc (NYSE:MDT) reported revenue of $8.3 billion, marking a 2.5% increase from the previous year, though slightly below Wall Street's estimate of $8.33 billion. The company posted GAAP diluted earnings per share (EPS) of $1.01, while adjusted EPS rose 7% year over year to $1.39, exceeding analysts' projections of $1.35. Roughly half of Medtronic plc (NYSE:MDT)'s revenue comes from the US, the world's most profitable healthcare market, while the remainder is derived from international markets, including high-growth emerging economies. The company's core revenue is driven by its cardiovascular, neuroscience, and surgical divisions, while the diabetes segment represents a smaller portion. This diversified model enhances financial stability. Notably, the company experienced a rare decline in trailing 12-month sales of 10% during the early pandemic years when medical procedures were postponed or canceled—an event not seen since the mid-1980s. Medtronic plc (NYSE:MDT) demonstrated a strong financial position in its latest earnings report. Over the first nine months of the fiscal year, the company generated more than $4.5 billion in operating cash flow and reported free cash flow of $3.1 billion. This solid cash position has enabled the company to increase its dividend payments for 47 consecutive years. The company's quarterly dividend comes in at $0.70 per share and has a dividend yield of 3.09%, as of February 27. Overall MDT ranks 10th on our list of the best S&P 500 dividend stocks to buy now. While we acknowledge the potential for MDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
