Latest news with #NigelTupper
CNBC
29-07-2025
- Business
- CNBC
These 'steady compounders' have delivered superior earnings growth for the past decade, Bank of America says
A slate of companies that have posted "consistent and superior" earnings growth over the past 10 years could be poised for strong performances and are worth watching, according to Bank of America. "Since data began in 1998, the Global Steady Compounders have annualized 5.2% outperformance versus the MSCI AC World Index and have outperformed in more months than most strategies we monitor," strategist Nigel Tupper wrote in a Tuesday note. "Stocks screening as Steady Compounders tend to outperform for extended periods." There are circumstances in which "steady compounders" don't fare well. Tupper wrote that the names tend to underperform when bond yields rise with inflation and in "significant" risk-on market periods, given that the stocks reflect earnings stability. The strategist screened for stocks that have an average score of above 95 out of 100 based on 10-year earnings growth, "stable" earnings growth, the stock's two-year earnings per share growth forecast, earnings revisions and its 12-month return. The current earnings season has been solid thus far, which has helped send the market to new highs . Of the 199 S & P 500 companies that have reported earnings, nearly 82% have beaten expectations, per FactSet. Here are some of the names that popped up in the U.S. "steady compounders" screen. Global payments technology company Visa was among the names tied for the highest score on the list, with a score of 100 in the steady compounders rank. Shares have outperformed the S & P 500 in 2025, rising nearly 12%, versus the broad market index's roughly 8% gain during the period. Visa is scheduled to report its quarterly results for the fiscal third quarter after the bell Tuesday. Analysts surveyed by LSEG are expecting the company to post double-digit-percentage earnings and revenue growth compared to the prior-year period. Most analysts on Wall Street are bullish on Visa, as 32 out of 40 total analysts have a strong buy or buy rating on the name, per LSEG data. Microsoft , which reports after the bell on Wednesday, had a score of 100 as well. Analysts expect the "Magnificent Seven" company to post around 14% earnings and revenue growth year over year. The stock has similarly outpaced the broader market, seeing a meaningful advance in 2025 of more than 21%. Like Visa, a majority of the Street is optimistic on the stock's trajectory over the next several months, with 56 among the 62 analysts covering it having a strong buy or buy rating. Financial technology platform Intuit also made the cut at 100 in the steady compounders rank. The stock has soared more than 27% in 2025 and around 35% over the past six months, outperforming the broader market. The company is slated to post its earnings results in late August.
CNBC
27-05-2025
- Business
- CNBC
These strong stocks are under-owned and have momentum, Bank of America says
Charter Communications and Toast are among a handful of overlooked stocks in the market that could see gains ahead, according to Bank of America. Stocks have been ripping higher as President Donald Trump reverses or delays many tariffs laid out in early April. The S & P 500 has surged more than 20% since hitting an intraday low on April 7. Traders continue to hunt for good bargains, however, as volatility persists amid on ongoing policy changes. In a recent note to clients, Bank of America highlighted stocks that are under-owned by funds and have catalysts for upward momentum. Specifically, the firm screened for stocks that meet three criteria: Low fund ownership Funds that do own the stock have an overweight allocation relative to their benchmark Have a high "triple momentum rank": This metric combines earnings, price, and news momentum to determine when a stock is in vogue or not "Our analysis shows that stocks that have high ownership and are overweight can outperform for years if a stock's fundamentals remain relatively attractive. Therefore, we believe the challenge for investors is to differentiate between crowded trades with a positive catalyst and crowded trades with a negative catalyst," analyst Nigel Tupper said in a note to clients, outlining his methodology for the stock screen. "Similarly, there is an opportunity to identify under-owned stocks which have a positive catalyst," he added. Take a look below for the group of U.S.-listed companies that made the screen, which uses data as of April 30. Charter Communications has low fund ownership of 17%, while having one of the higher "triple momentum" ranks at 93. Shares of the telecommunications giant, which owns Spectrum, have jumped 20% this year. Charter on May 16 announced an agreement to merge with privately held rival Cox Communications in a deal worth $21.9 billion — one of the biggest global deal transactions this year that combines two of the largest U.S. cable and broadband operators. Other stocks on the list outperforming the broader market include Howmet Aerospace and Toast . Howmet, which supplies parts for planes built by Boeing, has been on a monster run over the past year, gaining roughly 54% year to date and hitting a new 52-week high on Tuesday. Howmet has benefited from growth in the defense and commercial aerospace market and boasted strong first-quarter earnings results posted earlier this month. According to Bank of America's screener, however, the company has just 23% fund ownership. Shares of Toast are similarly overlooked with 18% fund ownership, according to the screener. The stock has rallied 18% this year.
Yahoo
06-05-2025
- Business
- Yahoo
EOG Resources, Inc. (EOG): One of the Top Dividend Challengers in 2025
Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA's quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market's choppy period. According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns. Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends. Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income. We recently published a list of Dividend Challengers 2025: Top 25 . In this article, we are going to take a look at where EOG Resources, Inc. (NYSE:EOG) stands against other dividend challenger stocks. Story Continues 'In March, as global equities fell -4.1% on concerns tariffs could increase and slow growth, the best performing global styles were Value and Dividends.' As investor interest in dividend-paying stocks continues to climb, many companies have responded by steadily boosting their payouts. According to a report from Janus Henderson, global dividend distributions hit a record $1.75 trillion in 2024, marking a 6.6% increase on an underlying basis. The total headline growth stood at 5.2%, slightly tempered by a decline in special one-time dividends and the impact of a stronger US dollar. Of the 49 countries tracked in the report, 17—including key markets like the US, Canada, France, Japan, and China—achieved new highs in dividend payments. Overall, 88% of companies either raised or maintained their dividends during the year. Looking ahead, Janus Henderson expects global dividend payouts to grow by 5.0% on a headline basis in the coming year, reaching another record of $1.83 trillion. Despite ongoing currency pressures from a strong dollar, the firm projects underlying growth to edge slightly higher to about 5.1%. EOG Resources, Inc. (EOG): One of the Top Dividend Challengers in 2025 An oil rig in action in a vast desert, drilling for natural gas. Our Methodology For this list, we looked at a group of dividend challengers, recognized for consistently increasing dividends for 5 consecutive years, but for less than 10 years. From this list, we chose companies with the highest dividend yields as of April 29 and arranged them in order from lowest to highest yield. At Insider Monkey, we are obsessed with hedge funds. 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 (see more details here). EOG Resources, Inc. (NYSE:EOG) Dividend Yield as of April 29: 3.45% EOG Resources, Inc. (NYSE:EOG) is a Texas-based energy company that is engaged in the exploration of hydrocarbons. While the company does hold assets in Australia and the Caribbean, the bulk of EOG's oil production comes from its US operations, particularly in the Rocky Mountains, the Permian Basin, and South Texas. Its significant inventory of undeveloped resources is expected to support ongoing production in the future. One of the most attractive features of EOG Resources, Inc. (NYSE:EOG) is its strong and well-managed balance sheet. In the first quarter of 2025, the company posted an operating cash flow of $2.2 billion. It ended the quarter with $6.6 billion available in cash and cash equivalents, compared with $5.3 billion in the prior-year period. In addition, it generated $1.3 billion in free cash flow, which also showed growth from $1.2 billion in Q1 2024. EOG Resources, Inc. (NYSE:EOG) reported cash operating costs of $10.31 per barrel of oil equivalent per day (boe/d) and total production of 1,090 thousand boe/d. In the first quarter of 2025, the company spent approximately $800 million on share buybacks, returning 98% of its available free cash flow to shareholders. For the year, management trimmed its capital spending budget by $200 million, bringing it down to $6 billion. On May 1, EOG Resources, Inc. (NYSE:EOG) declared a quarterly dividend of $0.975 per share, which was in line with its previous dividend. Overall, the company has been raising its payouts for nine consecutive years. In addition, it also has a history of paying special dividends to shareholders, which makes EOG one of the best dividend stocks on our dividend challengers list. The stock supports a dividend yield of 3.45%, as of April 29. Overall, EOG ranks 9th on our dividend challengers list. While we acknowledge the potential of EOG as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than EOG but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
06-05-2025
- Business
- Yahoo
Community Healthcare Trust Incorporated (CHCT): A Top Dividend Challenger in 2025
Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA's quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market's choppy period. According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns. Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends. Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income. We recently published a list of Dividend Challengers 2025: Top 25 . In this article, we are going to take a look at where Community Healthcare Trust Incorporated (NYSE:CHCT) stands against other dividend challenger stocks. Story Continues 'In March, as global equities fell -4.1% on concerns tariffs could increase and slow growth, the best performing global styles were Value and Dividends.' As investor interest in dividend-paying stocks continues to climb, many companies have responded by steadily boosting their payouts. According to a report from Janus Henderson, global dividend distributions hit a record $1.75 trillion in 2024, marking a 6.6% increase on an underlying basis. The total headline growth stood at 5.2%, slightly tempered by a decline in special one-time dividends and the impact of a stronger US dollar. Of the 49 countries tracked in the report, 17—including key markets like the US, Canada, France, Japan, and China—achieved new highs in dividend payments. Overall, 88% of companies either raised or maintained their dividends during the year. Looking ahead, Janus Henderson expects global dividend payouts to grow by 5.0% on a headline basis in the coming year, reaching another record of $1.83 trillion. Despite ongoing currency pressures from a strong dollar, the firm projects underlying growth to edge slightly higher to about 5.1%. Community Healthcare Trust Incorporated (CHCT): A Top Dividend Challenger in 2025 An exterior view of a major healthcare facility, showcasing the multiple services provided. Our Methodology For this list, we looked at a group of dividend challengers, recognized for consistently increasing dividends for 5 consecutive years, but for less than 10 years. From this list, we chose companies with the highest dividend yields as of April 29 and arranged them in order from lowest to highest yield. At Insider Monkey, we are obsessed with hedge funds. 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 (see more details here). Community Healthcare Trust Incorporated (NYSE:CHCT) Dividend Yield as of April 29: 11.47% Community Healthcare Trust Incorporated (NYSE:CHCT) is a self-managed and fully integrated real estate company focused on the healthcare sector. It acquires, owns, or finances properties that are leased to hospitals, physicians, healthcare systems, and other medical service providers, mainly in regions outside major urban areas. In the first quarter of 2025, Community Healthcare Trust Incorporated (NYSE:CHCT) reported revenue of $30.08 million, which showed a nearly 3% growth from the same period last year. The company's net income came in at $1.6 million, and its EPS was $0.03. During the quarter, the company acquired a property through a sale-leaseback transaction for about $9.7 million in cash, with the lease set to begin after roughly $1.4 million in tenant improvements are completed and run through 2040. This purchase was financed using funds from its Revolving Credit Facility. In addition, in April 2025, the company sold a building in Ohio, generating net proceeds of approximately $0.6 million from the transaction. In addition to generating strong earnings, Community Healthcare Trust Incorporated (NYSE:CHCT) is also a solid dividend payer. On April 25, the company declared a quarterly dividend of $0.47 per share, growing it by 0.5%. The company has been growing its dividends every quarter since 2015, which makes it one of the best stocks on our dividend challengers list. The stock offers an attractive dividend yield of 11.47%, as of April 29. Overall, CHCT ranks 2nd on our dividend challengers list. While we acknowledge the potential of CHCT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CHCT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
06-05-2025
- Business
- Yahoo
Clearway Energy, Inc. (CWEN): A Top Dividend Challenger in 2025
Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA's quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market's choppy period. According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns. Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends. Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income. We recently published a list of Dividend Challengers 2025: Top 25 . In this article, we are going to take a look at where Clearway Energy, Inc. (NYSE:CWEN) stands against other dividend challenger stocks. Story Continues 'In March, as global equities fell -4.1% on concerns tariffs could increase and slow growth, the best performing global styles were Value and Dividends.' As investor interest in dividend-paying stocks continues to climb, many companies have responded by steadily boosting their payouts. According to a report from Janus Henderson, global dividend distributions hit a record $1.75 trillion in 2024, marking a 6.6% increase on an underlying basis. The total headline growth stood at 5.2%, slightly tempered by a decline in special one-time dividends and the impact of a stronger US dollar. Of the 49 countries tracked in the report, 17—including key markets like the US, Canada, France, Japan, and China—achieved new highs in dividend payments. Overall, 88% of companies either raised or maintained their dividends during the year. Looking ahead, Janus Henderson expects global dividend payouts to grow by 5.0% on a headline basis in the coming year, reaching another record of $1.83 trillion. Despite ongoing currency pressures from a strong dollar, the firm projects underlying growth to edge slightly higher to about 5.1%. Clearway Energy, Inc. (CWEN): A Top Dividend Challenger in 2025 A wind farm in motion, its many turbines spinning in the breeze. Our Methodology For this list, we looked at a group of dividend challengers, recognized for consistently increasing dividends for 5 consecutive years, but for less than 10 years. From this list, we chose companies with the highest dividend yields as of April 29 and arranged them in order from lowest to highest yield. At Insider Monkey, we are obsessed with hedge funds. 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 (see more details here). Clearway Energy, Inc. (NYSE:CWEN) Dividend Yield as of April 29: 5.81% Clearway Energy, Inc. (NYSE:CWEN) is a prominent integrated clean energy provider. The company holds one of the nation's largest clean energy power generation portfolios, which includes assets in solar, wind, energy storage, and natural gas. It sells the electricity it generates through long-term, fixed-rate power purchase agreements (PPAs). The stock is generating strong returns this year, surging by over 9% since the start of 2025. Clearway Energy, Inc. (NYSE:CWEN) reported revenue of $298 million in the first quarter of 2025, which grew by 13.3% on a YoY basis. However, the revenue fell short of analysts' consensus by $8.03 million. The EPS of $0.02 beat estimates by $0.16. The Flexible Generation segment saw improved availability compared to the same period in 2024, largely due to differences in the timing and length of spring outages. Meanwhile, output from the Renewables & Storage segment rose by 13% year-over-year, driven mainly by the impact of recent growth-focused investments. Clearway Energy, Inc. (NYSE:CWEN) reported a solid cash position, with $95 million in cash generated from operating activities and $77 million in cash available for distribution (CAFD). Recently, the company declared a 1.7% hike in its quarterly dividend to $0.4384 per share. It is one of the best dividend stocks on our dividend challengers list as the company has raised its payouts every quarter since 2020. The stock has a dividend yield of 5.81%, as recorded on April 29. Overall, CWEN ranks 5th on our dividend challengers list. While we acknowledge the potential of CWEN as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CWEN but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
