Tag Archives: AMT

Top China Stocks To Watch For 2019

High-yield stocks can give income portfolios a nice boost, but not every high-yield stock deserves a spot in your income portfolio. Sometimes, a high yield can indicate business problems that cause share prices to fall, and when that happens, the losses can far exceed any benefit associated with pocketing dividend checks.

You won’t always be able to avoid that risk, but taking the time to consider the business behind the high yield before buying may reduce your risk. For instance, following stocks are high-yielding stocks that are backed by strong businesses, which could make them worth owning.

Top China Stocks To Watch For 2019: American Tower Corporation (REIT)(AMT)

American Tower may not be a household name, but its business is as ubiquitous as it can get. The company owns more than 160,000 cell tower sites throughout the U.S. and across the globe, and rents out the space to wireless carriers. This means that in the U.S. the top wireless service providers pay American Tower to put up signals on its towers, and when they need more capacity — and carriers always do — they have to fork over more money to American Tower.

The demand for wireless data is poised to increase: From 2016 to 2021, mobile data usage is expected to jump 700%. American Tower benefits by entering into long-term lease agreements; the stability from those contracts allows the company to earn about 99% of its sales from recurring revenue.

The great news for dividend investors is that American Tower is a real estate investment trust(REIT), which means that the majority of its net income is paid out as dividends. So as data usage grows — and revenue and income increase — so do the company’s dividends.

American Tower can experience up and downs in sales and earnings just like any other company, and in the first quarter its revenue climbed 7.8% year over year, but earnings fell 8.8%. But that shouldn’t discourage investors. Management expects full-year 2018 sales to increase by 6% and net earnings to rise by 13% year over year, both at the midpoint of guidance.

The company should also benefit from the ongoing wireless evolution, including the upcoming 5G standard. Carriers are already testing 5G, and as they ramp up usage they’ll have to update and expand their signals on cell towers.

American Tower pays a forward yield of 2.19% right now, and has raised its dividend for a modest, but not insignificant, six consecutive years. If you’re looking for a bet on the future of wireless communication — and want a reliable dividend too — you may want to consider this towering tech play.

Top China Stocks To Watch For 2019: Capital One Financial Corporation(COF)

Shares of Capital One are down just 1.2% over the last month, which shows that it has been a bit more resistant to the nearly market-wide downturn than many other stocks. The credit card company is projected to see its quarterly revenues climb by 6.4% to hit $6.96 billion, based on our current Zacks Consensus Estimates. Meanwhile, Capital One’s Q1 earnings are expected to surge by 32% to $2.31 per share. 

Better still, Capital One is currently a Zacks Rank #3 (Hold) and sports an Earnings ESP of 0.79%. The company’s Most Accurate Estimate—the representation of the most recent analyst sentiment—calls for earnings of $2.33 per share, which comes in 2 cents above our current consensus estimate. This means that Capital One is a stock that could top earnings estimates when it reports its first quarter financial results after market close on Tuesday.

Top China Stocks To Watch For 2019: BB&T Corporation(BBT)

This super-regional bank offers an attractive value as it realizes expense cuts in its core business and benefits from rising interest rates thanks to a sticky deposit mix.

BB&T is a powerhouse in the American Southeast, where it ranks as a top 10 bank by deposits in every state in which it competes. Thanks to established commercial relationships, roughly one-third of its deposits are noninterest-bearing — deposits on which it pays nothing in interest. Costly and less-sticky certificates of deposit make up less than 9% of its deposits.

Investors who examine this bank based on headline figures will miss the favorable trends in its loan portfolio. Though loan growth has been flat, or even negative, in recent months, BB&T is effectively swapping low-yielding warehouse loans for higher-yielding commercial loans, thus generating better returns on its $144 billion loan book.

This slow-growing bank is unlikely to surprise, but that’s a good thing. Bank investors know that BB&T was one of the very few that remained profitable even at the depths of the financial crisis, thanks to a conservative lending culture that puts credit quality ahead of growth. And at roughly 13 times Wall Street’s consensus earnings estimate in 2018, investors aren’t exactly overpaying for quality, either.

Federal Reserve building

Top 5 Insurance Stocks To Watch For 2019

Tech stocks have been unpredictable over the past few weeks, but there is no question that the technology sector has been at the forefront of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts.

Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.

By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!

Check out these stocks to buy now:

Top 5 Insurance Stocks To Watch For 2019: American Tower Corporation (REIT)(AMT)

When I’m looking for an industry with decades and decades of staying power, wireless networks easily spring to mind. Not the network providers themselves, of course, since that industry is intensely competitive, and it’s difficult to pick out any long-term winners there. No, I’m talking about the infrastructure behind it all.

Say hello to American Tower, a global leader in the business of making wireless networks tick.

The company owns and leases more than 40,000 network sites in the U.S. alone, and that’s just 25% of American Tower’s worldwide footprint. Other hotspots of infrastructure investments include India, Brazil, and Mexico. American Tower pursues both the international and domestic markets mostly through acquisition.

The four big American networks have largely handed off their tower and small cell site management to American Tower and a handful of rivals, leasing back the tower properties they once constructed and owned. Similar deal structures are becoming popular all around the world, allowing the networks to focus on running their mobile data and voice services while American Tower and friends double down on the property management and infrastructure maintenance that they do best.

Being structured as a low-tax real-estate investment trust (REIT), American Tower must send out at least 90% of its taxable income in the form of dividend payments. That’s the shareholder-friendly catch that lets REITs qualify for extremely low corporate tax rates. So American Tower funnels essentially all of its pre-tax income straight into its dividend program, resulting in juicy payouts and generous yields.

All told, American Tower has raised its dividend payouts every year without fail, going back to the original policy in 2011. The dividend checks have more than tripled in size over the last six years, and annual yields are hovering around 2%.

And I dare say that this dividend will stick around for the very long haul, only growing larger and more wealth-building over time. That’s why I own some American Tower myself and would recommend this stock to any hunter of long-term dividends.

Top 5 Insurance Stocks To Watch For 2019: Teradyne, Inc.(TER)

Teradyne, Inc. (NYSE:TER)

Source: Shutterstock

 

If you’re an Apple Inc. (NASDAQ:AAPL) shareholder, you’ve probably heard the chatter about smartphone sales slowing including the iPhone X. For a company like Teradyne, Inc. (NYSE:TER), who manufactures automated test equipment for testing smartphones, data storage and other complex electronic systems, that’s not good news.

As a result, Teradyne seriously lowered its Q2 2018 guidance when announcing first-quarter results April 25.

“Despite the strong first quarter results, the demand outlook for 2018 mobile device test capacity declined sharply in the quarter and our second quarter guidance reflects that revised outlook,” CEO Mark Jagiela said in Teradyne’s press release.

So, instead of generating the Wall Street sales consensus of $691 million in the second quarter, Teradyne expects revenues to be as low as $490 million. This is also significantly less than the $697 million it generated a year ago.

Despite the setback in the second quarter, Teradyne is generating more free cash flow than it has in the past decade. It currently has an enterprise value of $7.2 billion, which is just 13 times free cash flow.

That’s close to value territory and worth a sniff.

Top 5 Insurance Stocks To Watch For 2019: Cohn & Steers Inc(CNS)

Some investors may know asset manager Cohen & Steers, Inc. (NYSE:CNS) for its exchange-traded and closed-end funds. But CNS itself is a worthy investment as well, particularly for income investors.

Cohen & Steers offers a strong balance sheet, as it closed Q1 with over $3 per share in cash – and no debt. Earnings continue to grind higher, with Q1 adjusted EPS climbing 32% year-over-year (thanks in part due to tax reform). CNS’s regular dividend is growing and yields 3.33%, but the company also adds a year-end payout each year, with a 3%-plus special dividend paid at the end of 2017.

There are risks here. Most notably, there’s pressure on the fee aspect of the business. Investors fear a “race to the bottom” in pricing, as index funds gain popularity. But Cohen & Steers funds generally outperform the market — 86% of assets under management in U.S. open-end funds are in 4- or 5-star funds — and growth internationally could offset any U.S.-based pressure.

Obviously, investors need to trust the market as well — including U.S. real estate, where C&S has substantial exposure. But it’s not as if CNS is all that expensive, trading at 14x forward earnings backing out cash.

And if investors are willing to put their money to work elsewhere in the market, they should consider CNS as both a fund sponsor and an investment.

Top 5 Insurance Stocks To Watch For 2019: Legacy Reserves LP(LGCY)

Little-Known Stocks to Buy: Legacy Resources (LGCY)

Source: Shutterstock

 

Legacy Resources LP (NASDAQ:LGCY) is an oil and gas limited partnership that focuses on exploration and production of properties in Texas, the Rocky Mountains and mid-continent fields.

The stock has risen from around $1 a share in the past year to about $8 today. And its market cap is almost $650 million at this point.

Just remember, LGCY is leveraged to the price of oil and natural gas. This is fundamentally a leveraged bet on energy prices. Also, the Donald Trump administration has talked about changing the rules related to limited partnerships, which may affect LGCY’s 7.2% dividend.

But at this point, with the summer driving season upon us, this one looks like it has some legs left, especially if tensions in the Middle East continue to run high.

Top 5 Insurance Stocks To Watch For 2019: Garmin Ltd.(GRMN)

The beauty of Garmin Ltd. (NASDAQ:GRMN) truly is in the eye of the beholder. The company has done a hugely impressive job adapting to a steady multi-year decline in sales of its GPS units.

Revenue in that business has dropped by over half in just the last seven years. But a pivot to the marine and outdoor categories, along with ‘smartwatch’ sales, have allowed Garmin to grow regardless. First- quarter revenue actually set a record despite continuing weakness in the automotive business.

Meanwhile, Garmin has a whopping $12 per share in cash, and no debt. It yields 3.55%. And backing out that cash, 2018 EPS guidance suggests a reasonable ~16x multiple.

But I’m still not quite sold on GRMN, as I wrote back in February. The hardware business is notoriously tough, as shareholders of Fitbit Inc (NYSE:FIT) and GoPro Inc (NASDAQ:GPRO) have learned. Top-line growth isn’t that impressive, and a reasonable multiple looks about right going forward considering the company’s growth prospects.

I’ll admit, however, that other investors might see it differently — and at the least investors buying GRMN stock should know they’re in good hands as far as management goes. James Brumley made the case for GRMN this month, and he makes some good points.

Even bears have to admit that the company has performed exceedingly well in a very difficult industry. On which part of that history — the performance or the industry — an investor chooses to focus likely will drive his or her sentiment toward Garmin stock going forward.