5 analysts’ top picks of stocks with solid purchase value that also pay big reliable dividends – 24/7 Wall St.
For years, analysts and portfolio managers anticipated the return of value stocks as the market rose, and for years they continued to underperform growth stocks. However, that seems to be changing. Nearly every metric, from valuations to earnings for the growth arena, has started to tumble, especially in key tech earnings this week.
Value stocks are generally defined as stocks of a company with strong fundamentals that are priced below those of its peers, based on an analysis of price-earnings ratio, yield and other factors. The BofA Securities Value 10 Portfolio is quantitatively generated and is based on BofA Securities’ proprietary measurements of the company against the Consensus Earnings Surprise Model plus three additional selection criteria. The universe used by analysts is the Standard & Poor’s 500.
We selected the Value 10 portfolio for the five stocks with the highest dividends. We’ve found five top picks that could be big winners in the second half of 2022. While all are rated Buy at BofA Securities, it’s important to remember that no analyst’s report should be used as the sole basis for any decision. buying or selling.
This top-tier utility stock now makes sense for conservative accounts. Exelon Corporation (NYSE: EXC), a utility holding company, is engaged in the generation, delivery and marketing of energy in the United States and Canada. It has nuclear, fossil, wind, hydroelectric, biomass and solar power plants.
The company also sells electricity to wholesale and retail customers; and sells natural gas, renewable energy and other energy-related products and services. In addition, it is involved in the purchase and regulated retail sale of electricity and natural gas; and the transmission and distribution of electricity, and the distribution of natural gas to retail customers.
Exelon provides support services, including legal, human resources, information technology, finance, supply management, accounting, engineering, customer operations, distribution and transmission planning, asset management, system operations and power supply services. It serves distribution utilities, municipalities, cooperatives and financial institutions, as well as commercial, industrial, government and residential customers.
Investors receive a strong dividend of 3.04%. BofA Securities has a target price of $53. The consensus target is posted at $49.29. The stock was last seen Wednesday at $44.46.
Despite Oil’s huge rally, this mega-cap energy leader is trading at levels printed in 2019 and offers investors a great entry point. Exxon Mobil Corporation (NYSE: XOM) is the world’s largest integrated international oil and gas company, exploring for and producing crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia and Australia/Oceania.
Exxon Mobil also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; transports and sells crude oil, natural gas and petroleum products.
Top Wall Street analysts expect the company to remain a key beneficiary in this rising oil price environment. Most remain very positive about the company’s strong positive inflection in capital allocation strategy, upstream portfolio and leverage for further demand recovery. They believe that ExxonMobil offers greater downstream/chemicals exposure compared to its peers.
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The company is paying investors a solid 3.84% dividend, which will continue to be defended. BofA Securities has a buy rating and a massive price target of $120 for the stock. The Wall Street consensus is set much lower at $103.36. Exxon closed trading Wednesday at $91.57.
Hartford Financial Services
This insurance giant is a dependable idea for conservative investors and offers incredible value at current trading levels. The Hartford Financial Service Group, Inc. (NYSE: HIG) provides insurance and financial services to individuals and businesses in the United States, United Kingdom and other countries.
Its commercial insurance segment offers workers’ compensation, property, auto, liability, umbrella insurance, bond, marine, livestock and reinsurance; and customized insurance products and risk management services. These include professional liability, bond, surety and specialty coverages. These are offered through regional offices, branches, policyholder sales and service centers, independent retail agents and brokers, wholesale agents and reinsurance brokers.
The Company’s Personal Lines segment provides automobile, homeowners and personal insurance coverage through direct-to-consumer channels and independent agents. Its Other Property and Casualty Operations unit provides coverage for asbestos and environmental exposures. The Company’s Group Insurance segment provides group life, disability and other insurance coverage to members of employer groups, associations and affinity groups. These are offered through direct insurance policies; reinsurance to other insurance companies; employer-paid and voluntary product coverages; the underwriting, administration and processing of disability claims for self-funded employer plans; and a single-company leave management solution. This unit distributes its group insurance products and services through brokers, consultants, third-party administrators, professional associations and private exchanges.
The Hartford Funds segment offers investment products for retail and retirement accounts; exchange-traded products through brokerage organizations, independent financial advisers, defined contribution plans, financial consultants, banking trust groups and registered investment advisers; and investment management and administrative services, such as product design, implementation and monitoring.
Shareholders receive a decent dividend of 2.38%. BofA Securities has a target price of $90 against the consensus price target of $84.71. Wednesday’s latest trade was posted at $64.34.
It is an extremely diversified energy company that has a long and successful operating history and has supported investors looking for strong entry points well. Phillips 66 (NYSE:PSX) operates through four segments: midstream, chemicals, refining and marketing and specialties (M&S). Phillips 66 holds many of these assets within its master limited partnership Phillips 66 Partners.
The company is able to benefit from the tax-efficient structure while continuing to run a more diversified operating business that also contains many assets that are not ideal MLP assets. These include its fast-growing chemical manufacturing business and its extremely profitable refined products marketing business.
Phillips 66 remains a hot idea in Wall Street banks with refining hedging, and many continue to see scope for additional returns on company capital this year, and are very constructive on a rate of change. positive to refining in 2022. Additionally, most analysts continue to see attractive non-refining value in midstream, marketing and chemicals.
Investors receive a very solid dividend of 4.51%. BofA Securities analysts have a price target for the stock at $123, which compares to the lower consensus target posted lower at $115.46. The stock closed Wednesday at $88.34.
This hard drive giant posted lackluster results for the quarter, but offers an incredible entry point at current trading levels. Seagate Technology Holdings plc (NASDAQ: STX) provides data storage technology and solutions in the United States, Singapore, the Netherlands and other countries.
The company offers hard drives and solid-state drives, including advanced technology serial connection products, serial attached SCSI and non-volatile memory express products; hybrid solid-state drives; and storage subsystems. Its products are used in enterprise servers and storage systems; and advanced computing and non-computing applications.
Seagate also offers a portfolio of enterprise data solutions including storage subsystems and mass-capacity-optimized private cloud storage solutions for enterprises, cloud service providers, scale-out storage servers, and manufacturers. original equipment (OEM). Additionally, Seagate offers external storage solutions under the Seagate Backup Plus and Expansion product lines, as well as the LaCie and Maxtor brands in capacities up to 16 terabytes.
The company posted mixed results in the second quarter due to customer inventory accumulation, some delayed projects and slowing demand from the company’s traditional customers and consumer markets.
Shareholders benefit from a large dividend of 3.66%. BofA Securities reiterated a buy rating on the shares while lowering their target price from $120 to $110. The consensus target was not available. The last trade on Wednesday hit the band at $78.68 up almost 4%.
Five quality blue chip companies that look poised to hold their ground when the market sell-off returns and all five are all paying reliable dividends. All of these companies are leaders in their respective sectors and offer worried investors a good place to move capital from higher beta names, especially with the opportunity to sell in what is likely a big bear market rally.
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