Many conservative investors gravitate toward blue-chip dividend stocks with healthy yields well above what the overall market pays. Right now, the market average of about 2% isn’t all that much for income-hungry investors, especially as bond rates start to rise more sharply.
Fortunately, you can find a number of solid investment choices within the Dow Jones Industrials (DJINDICES:^DJI) that yield 3% or more. Among them are these stocks. Each of them faces challenges that could present difficulties in the short run, but they’ve demonstrated an ability to overcome adversity and produce long-term growth.
Best China Stocks To Buy Right Now: Apple Inc.(AAPL)
Apple Inc. (NASDAQ:AAPL) appeared to be the showstopper on Friday as it sprung to a record high of $184.25 during Friday on news that Warren Buffett’s Berkshire Hathaway Inc had beefed up its stake in the iPhone maker. Apple shares jumped more than 3.9% on May 4, 2018, marking the largest weekly percentage gain since October 2011.
Apple’s ascent eradicates fears about subdued iPhone demand which clouded the tech and semiconductor market a few days back. The technology giant topped the earnings and revenue estimates in the most-recent earnings report. Apple beefed up its plan to return cash to its shareholders through dividend hikes and additional buybacks.
Best China Stocks To Buy Right Now: Quanta Services, Inc.(PWR)
Quanta Services Inc (NYSE:PWR) is a leading national provider of specialty contracting services and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. Quanta Services has operations in the United States., Canada, Australia and other selected international markets. This Zacks Rank #2 company has a Value Score of A. The 3-5 year EPS growth rate for the stock is estimated at 8%.
Best China Stocks To Buy Right Now: Ulta Salon, Cosmetics & Fragrance, Inc.(ULTA)
Ulta Beauty, which sells cosmetic products and uses in-store salons to generate foot traffic at its stores, opened 100 new stores in 2017 and finished the year with 1,074 locations. It plans to open another 100 stores this year.
Ulta Beauty is confidently expanding because it consistently grows its comparable-store sales, revenue, and earnings at impressive rates. The retailer’s comps rose 11% last year as its revenue and adjusted diluted EPS grew 21% and 25%, respectively. Those are solid growth rates for a stock that trades at 24 times this year’s earnings.
However, two factors caused Ulta’s shares to slide 14% over the past 12 months. First, Ulta expects just 6% to 8% comps growth this year, with revenue growth in the "low teens." This indicates that Ulta could rely more on new store openings than comps growth to fuel its revenue expansion.
Second, some investors fear that Sephora’s advance into J.C. Penney stores, Amazon’s partnerships with high-end beauty brands, and other headwinds could diminish Ulta’s leadership.
Those concerns are valid, but Ulta’s comps growth remains impressive for a 28-year-old retailer, and its unique combination of stores with salons should hold its rivals at bay. The company also has $397.4 million in cash, cash equivalents, and short-term investments to fall back on, as well as a clean balance sheet. With a strong track record and solid financials, I think Ulta still has room to run.
Best China Stocks To Buy Right Now: Markel Corporation(MKL)
Warren Buffett gave the world a great method of making money: Open a successful insurance operation and then invest the premiums that clients pay in investments that pay a lot more than the fixed-income securities that most insurance companies choose for their portfolios. Markel’s history as a publicly traded company dates back to 1986, and the company has an extremely good track record of generating positive underwriting profits, running about 70% with several years sporting very attractive returns.
Markel still has a much different emphasis than the Oracle of Omaha’s insurance operations. Rather than having brand-name car insurance that ranks among the nation’s most popular brands, Markel instead offers only specialty lines of insurance. There’s not as much volume for the types of insurance that you can get from Markel as there is for vanilla lines like auto, home, or life insurance. But because it’s tough to find other companies that are willing to take on the risks that Markel’s willing to assume, the specialty insurance company is able to get enough of a margin to protect it from adverse events. Moreover, because it writes a lot of different types of insurance, Markel’s different risks aren’t as correlated with each other, making a catastrophic year where everything goes wrong less likely.
With a sizable investment portfolio, Markel has generated strong returns the same way Buffett has. As long as its stock-picking prowess remains good, Markel should continue to find ways to deliver performance for its shareholders.