Latest news with #DividendAristocrat
Globe and Mail
21-07-2025
- Business
- Globe and Mail
Why Abbott Laboratories Is a Q2 2025 Buy: Growth & Yield
If you wonder whether Abbott Laboratories (NYSE: ABT) is a good buy in Q2 2025, the answer is yes. The company's management, portfolio, cash flow, capital return, and pipeline are why. The stock price came under pressure in July because the Q3 guidance update wasn't better than what the market expected. Sound crazy, but it's true: the robust outlook wasn't enough to keep speculators interested, but it isn't the speculators that matter in the long term. What matters in the long term is that the company's growth trajectory is positive, supporting a robust capital outlook that includes dividends and share repurchases. The combination of business growth, dividend distribution growth, and share repurchases serves as a lever for shareholder value that will propel the stock price to new highs. And the capital return is significant. The dividend is worth approximately 1.8% as of mid-July, is less than 50% of the earnings outlook, and has grown at a robust 10% CAGR over the past few years. Those are robust metrics for a Dividend Aristocrat, especially for a Dividend King like Abbott, which has increased its payout for over 50 years. That is a testament to management's foresight and execution, qualities that will continue to benefit investors in the long term. Abbott's share repurchases are also significant, as they reduce the share count quarterly. The company reduced its share count incrementally in the first half of the year and is expected to continue reducing it through the end of the year. Abbott Punished for Good Results, Solid Guidance Abbott Laboratories had a solid quarter, with revenue growth topping 7.4%, reported, about 70 basis points better than expected, driven by strength in all regions and reporting segments. Organically, growth was reported at 6.9% and 7.5% excluding COVID-19 testing supplies. Regionally, the U.S. was strongest at 8.7%, but the International Market was also solid at 6.6%. Segmentally, Diagnostics was the only weak point but was impacted by COVID, declining on a reported basis but rising incrementally organically. Other segments grew by at least 3%, led by a strong, industry-leading 12% gain in Medical Devices. The margin news is also good. Revenue leverage and operational quality offset macroeconomic pressures, resulting in a 100-basis-point improvement in adjusted gross and operating margins. The net result is $1.26 in adjusted earnings, only as expected, but up a leveraged 10.5% compared to the slower 7.4% top-line growth. The critical takeaway is that the cash flow is sufficient to sustain the capital return outlook, balance sheet health, and pipeline advancement, which support the stock price action over time. Regarding the pipeline, the company reported advancement of several key studies and one major approval for the quarter. Guidance is the sticking point for market action in July. The company narrowed its revenue growth range, indicating solid growth of 7.5% to 8%, with earnings in line with the consensus figure. However, a stronger catalyst was needed to lift the share prices. Investors should focus on growth, earnings, cash flow, and the pipeline, which promises to sustain them all. Analysts' Trends Provide Support for Abbott Laboratories in 2025 The analysts' trends are supportive of Abbott's stock price. The group issued a steady string of upgrades and price target revisions up to the day of the release, resulting in increasing coverage, firming sentiment, and a rising consensus price target. The group has the stock pegged at Moderate Buy with a bullish bias, forecasting a 10% increase relative to the pre-release closing price. That is sufficient to put this market at a new all-time high when reached. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
Yahoo
15-07-2025
- Business
- Yahoo
Retirement Ready: 3 Dividend Stocks to Set and Forget
A retirement-ready portfolio consists of reliable, income-generating stocks that quietly compound over time. Realty Income (O), Verizon Communications (VZ), and Pfizer (PFE) are all solid dividend stocks designed for long-term wealth. These are stocks that provide a strong balance of stability, income, and growth. Seeking Passive Income? This 'Strong Buy' Dividend Stock Yields 8.6%. Forget Chasing Yields: These 3 Dividend Stocks Are Built to Last Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Few dividend stocks can match Realty Income's (O) long-term resilience, consistent dividend growth, and dependable cash flow. The company's most appealing feature for retirement investors is its consistent and growing monthly dividend, which is supported by long-term rental income from a well-diversified portfolio. Realty Income has been paying dividends for 661 consecutive months. It has increased its dividend for more than 30 years in a row, earning the title of Dividend Aristocrat. Unlike most companies that pay quarterly dividends, Realty Income pays monthly dividends, a unique feature that perfectly fits retirees' regular income requirements. It provides an attractive yield of 5.64%, which is higher than the real estate sector's average of 4.46%. Known as The Monthly Dividend Company, it is a real estate investment trust (REIT) that owns and manages a large portfolio of commercial properties leased to high-quality tenants under long-term net lease agreements. These leases are typically longer than nine years and are structured as 'triple net leases,' which means the tenant is responsible for property taxes, insurance, and maintenance, reducing cost volatility for Realty Income and increasing predictable cash flows. Adjusted funds from operations (AFFO) is the primary earnings metric for REITs. It reflects actual, recurring cash available to pay out for dividends. While its forward AFFO dividend payout ratio is high at 75.4%, the company has seen consistent AFFO per share growth in recent years. Overall, Wall Street has rated Realty Income stock a 'Moderate Buy.' Of the 23 analysts that cover the stock, five recommend a 'Strong Buy,' one rates it a 'Moderate Buy,' and 17 say it is a 'Hold.' The mean target price for the stock is $60.97, which is 5% above current levels. The Street-high estimate of $68 implies upside of 19% over the next 12 months. Verizon Communications (VZ) is one of the largest telecommunications companies in the U.S. Its revenue comes primarily from wireless service plans, data usage, and broadband subscriptions. These are recurring revenues that are not impacted by cyclical fluctuations. This allows the company to pay out generous and consistent dividends. The company pays an attractive dividend yield of around 6.5%. In addition, it has increased its dividend for the past 20 years. Unlike some high-yield stocks that are volatile, Verizon's dividend is supported by consistent free cash flow generated by a customer base that continues to renew its mobile and broadband services. Verizon maintains a reasonable dividend payout ratio of 56% of earnings, allowing for continued reinvestment in the business and potential hikes. Overall, on Wall Street, Verizon stock is rated a 'Moderate Buy.' Out of the 28 analysts who cover Verizon stock, nine rate it a 'Strong Buy,' three suggest it's a 'Moderate Buy,' and 16 rate it a "Hold.' Its average price target of $47.70 suggests that the stock can increase by 15% over current levels. However, its high target price of $58 implies upside potential of 40% over the next 12 months. Pfizer (PFE), valued at $146.6 billion, is one of the world's largest pharmaceutical companies. While Pfizer is well-known for its COVID-19 vaccine, its portfolio includes essential medications and vaccines in oncology, cardiology, immunology, endocrinology, and neurology. With hundreds of millions of people relying on its therapies, Pfizer generates consistent revenue across economic cycles, allowing it to pay consistent dividends. Adjusted earnings increased by a staggering 69% in 2024. Even as COVID-19-related revenues return to earth, Pfizer's long-term outlook remains positive, thanks to a robust pipeline of candidates, many of which are in late-stage development. Some of its most well-known products include Eliquis (a blood thinner), the Vyndaqel family of treatments, and Ibrance (oncology), all of which generated significant revenue in the most recent first quarter of 2025. Pfizer's dividend yield hovers around 6.7%, which is significantly higher than the healthcare sector average of 1.6%. Additionally, its forward payout ratio is a manageable 55.7%, allowing for future increases and financial flexibility. Despite near-term headwinds, the company has consistently increased its dividend over the last 16 years, making it a reliable dividend stock. On Wall Street, overall, Pfizer stock is rated a 'Moderate Buy.' Out of the 22 analysts who cover PFE stock, six rate it a 'Strong Buy,' one rates it a 'Moderate Buy,' 14 say it is a 'Hold,' and one suggests a 'Strong Sell.' Its average price target of $27.71 suggests that the stock can increase by 8% over current levels. However, its high target price of $33 implies upside potential of 32% over the next 12 months. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Up Nearly 20% in a Month, Is This Turnaround Dividend Stock Still a Buy in July?
Usually, corporate dividends and high dividends don't make a good combo, as one of the ways companies try to 'turn around' their business is by cutting costs, and at times, this means cutting dividends as they try to lower their cash outflows. Additionally, the reason the company needs to 'turn around' in the first place is that it is not performing well financially, which implies that the dividend might be at risk of being cut or suspended altogether. 2 ETFs Offering Juicy Dividend Yields of 20% or Higher Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. However, I believe Nike is one stock that fits into the category of a turnaround dividend stock. The stock has a dividend yield of over 2%, and while that has come down from the 2025 highs amid the nearly 20% rise in NKE shares over the last month, it still looks like a buy. Let's discuss this in perspective, starting with the company's dividend. While some companies have a well-documented dividend policy, Nike does not have a stated policy on payouts. However, it has increased its dividends for 23 consecutive years and appears to be on track to become a Dividend Aristocrat. The company increased its dividends even during the 2008 Global Financial Crisis and the COVID-19 pandemic in 2020. Despite its earnings taking a blow in recent quarters, the company increased its quarterly dividend by 8% to $0.40 in December 2024. The dividends have grown at a compound annual growth rate (CAGR) of 10.3% over the last five years, while the CAGR for the past 10 years is slightly above 11%. That looks like pretty decent growth, and I have no reason to believe that the company will cut its dividend anytime soon. Nike's current dividend yield is around 2.1%, which, while not mouthwatering, is well ahead of the 1.3% that an average S&P 500 Index ($SPX) constituent pays. Meanwhile, while Nike has a healthy dividend yield, the payout should not be the only reason for buying the stock, as it's the bulk of its returns doesn't come from dividends. Nike investors should expect the bulk of their returns from capital appreciation, so it is prudent to look at the stock's forecast. While multiple brokerages, including Goldman Sachs, Piper Sandler, Citigroup, HSBC, Barclays, and Baird, raised Nike's target price following the company's fiscal Q4 2025 earnings last month, the stock trades at almost the mean target price of $76.63. However, the Street-high target price of $120 is 56.8% higher than the July 7 closing price. The stock has a consensus rating of 'Moderate Buy' from the 36 analysts covering the stock, but over the last two weeks, it has earned upgrades from HSBC and Argus. Nike is an iconic brand. However, it has lost some of its sheen due to its relative lack of innovation. Moreover, the company lost out to established brands like Adidas (ADDYY), as well as newer brands like New Balance, Hoka (DECK), and On Running (ONON), as the decision to cut down on wholesale sales backfired and only helped competitors gain shelf space, which eventually ensured a higher share of customer wallets. Nike is reversing some of its policies and has now doubled down on third-party sellers. It has also started selling on Amazon (AMZN) after quitting the e-commerce platform in 2019. Here, it is worth noting that Nike pivoted away from third-party sellers for a reason. Having its own channels gives the company more control and helps better connect with customers. Moreover, the pivot helped Nike expand its gross margins. However, soon enough, the strategy took a toll on Nike's sales as its products were not stocked by many third-party sellers. As Nike starts focusing on third-party sellers, it might not be able to enjoy the kind of margins it did at its peak in early 2022. However, the company now has a two-pronged strategy where it intends to use its direct channel for premium products, which will be higher-margin. The company's turnaround is showing results, and it should soon return to top-line growth with stable margins. Turnaround-related costs have been a headwind for the last couple of quarters, but during the fiscal Q4 2025 earnings call, CFO Matt Friend said that the quarter 'reflected the largest financial impact' from its Win Now turnaround plan. The company expects the pressure on the top line and margins to start moderating, but sees another 75-basis point of margin impact this fiscal year. China, meanwhile, remains a structural headwind for Nike as not only is that market not growing as fast as it once used to, but Chinese consumers have increasingly been preferring domestic brands against U.S. rivals. All said, I believe Nike's turnaround is progressing in the right direction, and the stock might fit into portfolios of dividend investors who crave a mix of both dividend growth and capital appreciation over the medium to long term. On the date of publication, Mohit Oberoi had a position in: NKE, AMZN. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Up Nearly 20% in a Month, Is This Turnaround Dividend Stock Still a Buy in July?
Usually, corporate dividends and high dividends don't make a good combo, as one of the ways companies try to 'turn around' their business is by cutting costs, and at times, this means cutting dividends as they try to lower their cash outflows. Additionally, the reason the company needs to 'turn around' in the first place is that it is not performing well financially, which implies that the dividend might be at risk of being cut or suspended altogether. 2 ETFs Offering Juicy Dividend Yields of 20% or Higher Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! However, I believe Nike is one stock that fits into the category of a turnaround dividend stock. The stock has a dividend yield of over 2%, and while that has come down from the 2025 highs amid the nearly 20% rise in NKE shares over the last month, it still looks like a buy. Let's discuss this in perspective, starting with the company's dividend. While some companies have a well-documented dividend policy, Nike does not have a stated policy on payouts. However, it has increased its dividends for 23 consecutive years and appears to be on track to become a Dividend Aristocrat. The company increased its dividends even during the 2008 Global Financial Crisis and the COVID-19 pandemic in 2020. Despite its earnings taking a blow in recent quarters, the company increased its quarterly dividend by 8% to $0.40 in December 2024. The dividends have grown at a compound annual growth rate (CAGR) of 10.3% over the last five years, while the CAGR for the past 10 years is slightly above 11%. That looks like pretty decent growth, and I have no reason to believe that the company will cut its dividend anytime soon. Nike's current dividend yield is around 2.1%, which, while not mouthwatering, is well ahead of the 1.3% that an average S&P 500 Index ($SPX) constituent pays. Meanwhile, while Nike has a healthy dividend yield, the payout should not be the only reason for buying the stock, as it's the bulk of its returns doesn't come from dividends. Nike investors should expect the bulk of their returns from capital appreciation, so it is prudent to look at the stock's forecast. While multiple brokerages, including Goldman Sachs, Piper Sandler, Citigroup, HSBC, Barclays, and Baird, raised Nike's target price following the company's fiscal Q4 2025 earnings last month, the stock trades at almost the mean target price of $76.63. However, the Street-high target price of $120 is 56.8% higher than the July 7 closing price. The stock has a consensus rating of 'Moderate Buy' from the 36 analysts covering the stock, but over the last two weeks, it has earned upgrades from HSBC and Argus. Nike is an iconic brand. However, it has lost some of its sheen due to its relative lack of innovation. Moreover, the company lost out to established brands like Adidas (ADDYY), as well as newer brands like New Balance, Hoka (DECK), and On Running (ONON), as the decision to cut down on wholesale sales backfired and only helped competitors gain shelf space, which eventually ensured a higher share of customer wallets. Nike is reversing some of its policies and has now doubled down on third-party sellers. It has also started selling on Amazon (AMZN) after quitting the e-commerce platform in 2019. Here, it is worth noting that Nike pivoted away from third-party sellers for a reason. Having its own channels gives the company more control and helps better connect with customers. Moreover, the pivot helped Nike expand its gross margins. However, soon enough, the strategy took a toll on Nike's sales as its products were not stocked by many third-party sellers. As Nike starts focusing on third-party sellers, it might not be able to enjoy the kind of margins it did at its peak in early 2022. However, the company now has a two-pronged strategy where it intends to use its direct channel for premium products, which will be higher-margin. The company's turnaround is showing results, and it should soon return to top-line growth with stable margins. Turnaround-related costs have been a headwind for the last couple of quarters, but during the fiscal Q4 2025 earnings call, CFO Matt Friend said that the quarter 'reflected the largest financial impact' from its Win Now turnaround plan. The company expects the pressure on the top line and margins to start moderating, but sees another 75-basis point of margin impact this fiscal year. China, meanwhile, remains a structural headwind for Nike as not only is that market not growing as fast as it once used to, but Chinese consumers have increasingly been preferring domestic brands against U.S. rivals. All said, I believe Nike's turnaround is progressing in the right direction, and the stock might fit into portfolios of dividend investors who crave a mix of both dividend growth and capital appreciation over the medium to long term. On the date of publication, Mohit Oberoi had a position in: NKE, AMZN. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
02-07-2025
- Business
- Yahoo
Walmart (WMT) Holds Title as Largest Employer in the Dividend Aristocrats Index
Walmart Inc. (NYSE:WMT) is included among the 11 Best Dividend Aristocrat Stocks to Invest in Now. A manager standing in a hypermarket, pointing out items available for wholesale. The S&P Dividend Aristocrat Index includes companies with a wide range of workforce sizes, and Walmart Inc. (NYSE:WMT) stands out as the largest private employer in the US, with around 2.1 million employees. It also leads the index in revenue, having generated approximately $674 billion in the 12 months ending December 31, 2024, with a market capitalization of about $800 billion as of March 31, 2025. Walmart Inc. (NYSE:WMT)'s global store count declined from 11,501 at the end of fiscal 2020 to 10,593 by the end of fiscal 2022, mainly due to divestments in international markets. However, the company has since reversed that trend, closing fiscal 2025 with 10,711 stores worldwide. This steady growth in physical locations is expected to reinforce its competitive position and help it maintain an edge over smaller retail competitors. Walmart Inc. (NYSE:WMT) has been consistently raising its dividends for the past 52 years, which makes it one of the best dividend aristocrat stocks. The company's quarterly dividend comes in at $0.235 per share and has a dividend yield of 0.97%, as of June 27. While we acknowledge the potential of WMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
