The popularity of real estate investment trusts (REITs) hinges heavily on dividends. Equity (meaning non-mortgage) REITs pay on average of 4.1% in dividends, vs. 1.8% for the S&P 500. Tax rules tend to boost dividend payments for these real estate stocks. If REITs agree to pay out at least 90% of their income in dividends, certain types of income receive an exemption from federal income tax. While such a rule can lead to constant fluctuation in payout amounts, investors often willingly accept this condition in exchange for the higher dividend.
A handful will also pay a dividend that places the yield close to or sometimes above 10%. Stockholders must exercise caution with some of these real estate stocks, as the high payout could mask problems with the stock. For example, CBL & Associates Properties (NYSE:CBL) may tempt some investors with its 14.3% dividend. However, investors will likely find themselves less anxious to buy when they see that troubled retailers such as Sears (NASDAQ:SHLD) and J C Penney Company (NYSE:JCP) anchor 60% of their properties.
While investors need to understand the stocks and exercise caution, they can still find REITs that pay a safe, sustainable, return at or near double-digit dividend yields.
Top Performing Stocks To Watch For 2019: Government Properties Income Trust(GOV)
Dividend Yield: 10.7%
As the name implies, Government Properties Income Trust (NASDAQ:GOV) acquires, manages, and leases office space to government entities. What differentiates GOV from most real estate stocks is that most of their real estate is leased to the federal government. Still, GOV also counts many state governments, municipalities, and international organizations among its clients. Both the growth of government and the expansion of agencies have sustained a continued growth path for longer than anyone can remember. Hence, this REIT should remain among the safer investments.
Investors should buy this stock assuming that most (and possibly all) the income derived from GOV stock will come from the dividend. The stock trades a little bit more than 20% lower than its IPO levels of 2009. Still, it could be well-positioned to bounce back. The stock is well off its 52-week low of $11.87 per share.
At nearly $16 per share, it remains about 35% below the near-term high achieved in 2016. That places its forward price-to-earnings (P/E) ratio at just under 8. Although no profit growth is forecast through 2020, both the P/E and price-to-sales (P/S) ratio trade well below five-year averages.
Moreover, the reduction in price has brought the dividend yield near double-digit levels. The REIT has held its annualized dividend at $1.72 per share since 2013. At current prices, that takes the dividend yield to about 10.9%. With a stable income source, a double-digit yield and the possibility of stock price appreciation, long-term income investors should look at GOV stock.
Top Performing Stocks To Watch For 2019: Amazon.com, Inc.(AMZN)
Amazon is my pick from the services sector. Up 47% YTD compared to 25% for its specialty retail peers, it has managed to deliver an annualized total return of 29% over the past 15 years, making CEO and founder Jeff Bezos one of the better providers of shareholder value.
You’re probably not going to believe this, but picking Amazon as my service-sector pick wasn’t a slam dunk despite the fact I’m a big fan and think Amazon’s long-term goal of selling you everything you need in your home and life is a big home run.
The company’s June 28 announcement that it would pay close to $1 billion to acquire online pharmacy PillPack knocked $11 billion in market cap from the nation’s three leading publicly traded drug store chains’ stocks … in a single day.
The Seattle behemoth has certainly become a company that can move markets. I expect the future to be a bright one for Bezos and company no matter where it chooses to set up its second headquarters. Even a Canadian HQ2 couldn’t slow it down.
If a rising tide lifts all boats, bank stocks are the ship you want to be on.
Interest rates are rising. The economy is growing. And unemployment is below 4%, which has helped keep loan losses near historical lows. Best of all, most banks have spent the past decade shedding expenses, so a greater share of each dollar of revenue flows into pre-tax profit.
But investors can do even better by selecting the very best banks the market has to offer. Below, three Fool.com contributors make the case for why these stocks are worthy additions to your portfolio.
Top 5 Medical Stocks To Buy For 2019: Costco Wholesale Corporation(COST)
Last but not least, add Costco Wholesale Corporation (NASDAQ:COST) to your list of stocks to buy for their long-term uptrend.
Costco won’t win any value awards. Priced at 29 times its trailing earnings and 25 times its forward-looking profits, the stock is more than pushing its luck — especially by retail standards. But investors just don’t care. They love the way the brick-and-mortar retail has managed to compete with both Amazon.com, Inc. (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT) at the same time, setting the stage for shockingly consistent income and revenue growth — no “retail apocalypse” here.
Analysts have taken notice too. Wells Fargo analyst Edward Kelly just upgraded COST stock, explaining:
“We expect the company to sustain strong comp momentum despite difficult comparisons, deliver improved membership trends, navigate rising retail cost pressures, and beat consensus expectations.”
Top 5 Medical Stocks To Buy For 2019: Eli Lilly and Company(LLY)
Our next choice is Eli Lilly And Co (NYSE:LLY). The stock has an Earnings ESP of +0.73% and a Zacks Rank #2.
The consensus mark for first-quarter earnings stands at $1.13 per share. Headquartered in Indianapolis, IN, Lilly has an excellent positive earnings surprise history.
The company’s average beat over the trailing four quarters is 4.08%.
Top 5 Medical Stocks To Buy For 2019: Amazon.com, Inc.(AMZN)
Shares in Amazon.com, Inc. (NASDAQ:AMZN) are down 7% over the last month. Amazon has had to deal with FB’s data woes as well as a barrage of tweet attacks from President donald Trump. “I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,” Trump tweeted on April 3.
But while Amazon may not be the president’s favorite stock, it certainly has top marks from the Street. RBC Capital’s Mark Mahaney writes “Presidential Obsession” is now an investment risk, but we continue to view the long-term growth outlook for AMZN to be the most robust in ’Net land given the very large TAMs [total addressable markets] AMZN is facing.”
He continues: “For ’18, we believe AMZN starts gaining traction in Marketing services (AMS), while Cloud appears to have hit a positive industry inflection point.” Indeed, AWS revenue contribution is still growing and should act as a meaningful, sustainable source of leverage for Amazon.
Right now 34 out of 35 top analysts are bullish on the stock. These analysts see the stock spiking 19% to $1,706. This is just above Mahaney’s $1,700 price target.
Top 5 Medical Stocks To Buy For 2019: Ingersoll-Rand plc (Ireland)(IR)
Ingersoll-Rand Plc (NYSE:IR) is a designer, manufacturer and seller of industrial and commercial products.
The company is based out of Swords and has a Zacks Rank #2. The expected earnings growth rate for the current year is 17.21%. The Zacks Consensus Estimate for the current year has improved 2.3% over the past 60 days. Ingersoll-Rand has gained 4.4% in the past six months.
Top 5 Medical Stocks To Buy For 2019: AudioCodes Ltd.(AUDC)
AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. Analysts have become increasingly bullish on AUDC lately, and our consensus projection for its full-year earnings has moved three cents higher in the last month. The stock is a Zacks Rank #2 (Buy) based on this revision activity. The company is now expected to witness EPS growth of 22% on 9% higher revenue this fiscal year. Meanwhile, AUDC’s P/E of 16.2 represents a discount to its industry average.
Penny stocks are great opportunities for retail investors to make triple-digit gains in a matter of days, but it can be like finding a needle in a haystack. In order to help Money Morning readers profit, we’re bringing you the five top penny stocks to watch in April 2018.
While a few penny stocks have great growth potential, the truth is that many of these low-cost stocks have very little chance of providing investors with a profit. In an effort to avoid losing your investment, it’s important to identify penny stocks that have strong financials and a good chance for growth.
In order to protect our investments, we follow five rules for investing in penny stocks – take a look at them on the right.
And based on our analysis, these are the five penny stocks to watch right now…
Top 10 Heal Care Stocks To Invest In 2019: BlackBerry Limited(BB)
Yes, that Blackberry Ltd (NYSE:BB). While the company is a ghost of its former glory on the smartphone front, it’s important to remember that the intellectual property and enterprise software potential of this once-dominant tech stock is still quite promising.
Considering that Wall Street has deeply discounted BB stock, that may be the perfect time for aggressive investors to pile in.
The new incarnation of BlackBerry is engaged mainly in software instead of hardware. And its longstanding reputation for the most secure platform out there has made it particularly attractive lately in the age of hacking and malware. This cybersecurity function and enterprise potential make it attractive both as an acquisition target and as a standalone enterprise.
Although revenue is expected to dip this year, it will still come in at more than $900 million, while the company sits on a cash cushion of over $2.4 billion — so let’s not hear uninformed talk of how BlackBerry is going under.
Shares surged from $7 to $14 during one stretch in 2017, and now that it has rolled back a bit it is time to consider buying in once more. There are high hopes that the company will make a name for itself in an age of cybersecurity and increasingly connected devices, or that an acquisition is likely.
It may never get back to its old glory, but a buy-in under $12 a share could very well result in a doubler or even a tripler for savvy investors who stick with BB through 2018.
Top 10 Heal Care Stocks To Invest In 2019: Chevron Corporation(CVX)
Newfield does not pay a dividend, but there are energy stocks in rising trends that do. Of the major companies, Chevron (CVX, $122.31) has many favorable characteristics, including a 3.6% dividend yield.
Chevron’s quarterly earnings have been mostly trending higher since early 2016. Analysts expect that trend to continue with a sizeable jump in their estimates for Q1 2018, due for release later this week.
The company raised its dividend Jan. 31, which is always welcomed by investors. And Chevron’s stock price reacts to crude oil price changes, so the commodity provides additional wind in the stock’s sails.
In early February, despite reporting higher earnings than the quarter before, analysts expected more. The stock tumbled, likely exacerbated by the sudden and steep drop in the broader market when leading technology stocks finally pulled back. Technical indicators suggested that the reaction was overdone as very little money left the stock. In essence, it provided a nice buying opportunity and, with the rally in April, the bulls are back in charge.
A run at the all-time high set in 2014 is not much of a stretch from current price levels. If and when it gets there, we will have to see how it reacts. Continued short-term strength would be a good sign that CVX can rally for much of the rest of the year.
Top 10 Heal Care Stocks To Invest In 2019: Vail Resorts, Inc.(MTN)
You might think it odd that I’m recommending Vail Resorts, Inc. (NYSE:MTN), a company primarily known as an operator of ski resorts, but the truth is, MTN does a lot of business in the summer and hopes to do more.
In the company’s first quarter ended Oct. 31, 2017, the quarter that best reflects its summer business, it lost $103.7 million on $220.9 million in revenue. It’s normal for Vail Resorts to lose money in the first quarter.
However, management was happy with its summer results.
“Perisher performed very well in the first quarter with outstanding conditions in September that led to strong visitation and revenue growth across the business,” stated its Q1 2018 press release. “Whistler Blackcomb’s robust summer business also performed well with strong performance in its world-class mountain biking operations, summer activities and sightseeing.”
As the premier ski resort operator in North America, anything it does in the summer months is gravy. Delivering revenue per available room (RevPAR) growth in double digits at both the hotels it owns and condos it manages, the summer business is more than holding its own.
Top 10 Heal Care Stocks To Invest In 2019: Amazon.com, Inc.(AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) shares are making a move on the $1,500 threshold again, rising above their 50-day and 20-day moving averages to return to levels last seen in late March. President Trump, who has criticized the company and its CEO Jeff Bezos, has quieted his Twitter feed lately and held off on threats to reexamine its relationship with the U.S. Postal Service.
The company will next report results on April 26, after the close. Analysts are looking for earnings of $1.32-per-share on revenues of nearly $50 billion. When the company last reported on Feb. 1, earnings of $2.19-beat-estimates by 36 cents on a 38.2% rise in revenues.
Top 10 Heal Care Stocks To Invest In 2019: Spectrum Brands Holdings, Inc.(SPB)
Spectrum Brands, Inc. (NYSE:SPB) is in the middle of a major transformation that would test the mettle of any mid-cap company.
First, in January, Spectrum announced that it would seek buyers for its global batteries and appliances businesses so that it could focus on its higher margin, faster-growing businesses.
So far, it’s agreed to sell Rayovac batteries to Energizer Holdings Inc (NYSE:ENR) for $2.0 billion. It still is accepting offers for its Remington appliances business.
Then in February, it announced that it would merge with its majority owner, HRG Group Inc (NYSE:HRG), a $10 billion transaction that provides HRG shareholders with greater liquidity and a singular focus.
Finally, on April 26, Spectrum announced weaker than expected earnings and guidance along with news CEO Andreas Rouvé was being replaced after three years in the job.
All in all, it’s been a very turbulent four months for the company.
However, looking at the glass half full, its continuing operations will still make at least $600 million in fiscal 2018. Trading at less than ten times cash flow, SPB stock is cheaper than it’s been since 2011.
Technology stocks are staples in growth portfolios because of their eye-popping revenue growth, but technology isn’t the only sector of the stock market that boasts fast-growing companies. For example, many healthcare stocks are growing at rates that Silicon Valley would envy. In fact, these stocks all reported year-over-year sales growth north of 100% in the first quarter of 2018.
Are these stocks worth including in your portfolio?
Top Canadian Stocks To Buy Right Now: AbbVie Inc.(ABBV)
Our first pick is AbbVie Inc (NYSE:ABBV). This North Chicago, IL-based company has an Earnings ESP of +0.24% and a Zacks Rank #3.
The stock has seen the Zacks Consensus Estimate for first-quarter 2018 earnings being pegged at $1.78 per share. Besides this, the company boasts an encouraging earnings track record, exceeding expectations in all the last four quarters with an average beat of 1.81%.
Top Canadian Stocks To Buy Right Now: Amazon.com, Inc.(AMZN)
Hey, I’m as big a fan of Jeff Bezos and Amazon.com Inc. (NASDAQ:AMZN) as anyone, but how on earth did the world’s biggest e-commerce company beat analyst estimates by 157%?
I’ll admit I love using analysts for sound bites in my coverage of public companies but there’s something definitely wrong when a business on as big a roll as AMZN gets a Q1 2018 estimate of $1.27, 21 cents lower (!?!) than the year before.
Are these men and women not reading Amazon’s financial reports?
If you are an Amazon shareholder, the one thought you should have after examining its first-quarter results is: Please keep losing money internationally — the unit had a $622 million operating loss in the quarter, 29% higher than a year earlier — because we know what happened with its North American e-commerce business after losing lots of money; it’s now making lots of money.
Throw in its AWS business which grew operating margins by 140 basis points year-over-year while pulling down $1.4 billion in operating profits and I’m not sure there’s an argument against owning its stock for the next 10-30 years.
Top Canadian Stocks To Buy Right Now: Facebook, Inc.(FB)
Following iRobot, Facebook reports its first-quarter results on Wednesday. As usual, the bar is high for Facebook. In Facebook’s fourth quarter, revenue climbed 47% and adjusted earnings per share surged 83%. In addition, Facebook’s user base grew to 2.1 billion people using it every month and 1.4 billion people using it daily. The results capped off a year of excellent financial performance.
But Facebook also admitted during the last earnings call that 2017 "was also a hard year" in some ways. "We’ve seen abuse on our platform, including interference from nation states, the spread of news that is false, sensational and polarizing, and debate about the utility of social media," said Facebook CEO Mark Zuckerberg in the company’s fourth-quarter earnings call. Problems were exacerbated in March when Facebook announced that a third-party developer had mishandled user data.
In 2018, Facebook will most likely try to renew user and advertiser confidence. Beyond looking for more strong revenue growth, look for Facebook to comment on how recent developments will impact its guidance for spending on security and safety.
Top Canadian Stocks To Buy Right Now: Clarke(T)
With its big yield, history of delivering regular dividend growth, and a non-prohibitive valuation, AT&T is a stock that’s worth building a super-long-term position in. The telecom giant’s yield comes in at 5.7%, and a 34 year history of delivering annual payout growth and massive cash flow suggest there’s a good chance the company will continue to raise its payout.
The company’s stock performance has been tepid in recent years due to pressures in both the wireless and television spaces. Competition from budget priced rivals like T-Mobile has put pressure on mobile service sales and the rise of cord-cutting and skinny bundles is impacting the performance of its DirecTV subsidiary. AT&T has been leveraging its advantage when it comes to bundling mobile, internet, and television services to create meager sales growth, but it’s also taking hits when it comes to its margin.
The good news is that the company may be able to reclaim pricing strength and create new revenue streams with the introduction of 5G networks. 5G is the next generation of wireless internet technology, and it’s on track to deliver dramatic speed increases that will pave the way for better consumer-level service and a range of new technologies including connected cars, augmented-reality hardware, and smart-city devices.
Another positive catalyst on the horizon is its pending acquisition of Time Warner — so long as it survives an antitrust suit from the Department of Justice. If AT&T is allowed to integrate the entertainment company, it’ll diversify into a new space and open up new bundling and advertising opportunities that could do a lot to brighten its long-term earnings trajectory.
Shares trade at just 10 times forward earnings estimates and nine times this year’s projected free cash flow. With its top-notch dividend profile and the company making some smart moves to fortify its business, AT&T looks like a smart long-term play.
Top Canadian Stocks To Buy Right Now: Lam Research Corporation(LRCX)
Lam Research is a designer and manufacturer of semiconductor processing equipment used in the fabrication of integrated circuits. The company is recognized as a leading supplier of front-end wafer processing equipment to the worldwide semiconductor industry. Despite this existing leadership position, LRCX is slated to witness massive earnings and revenue growth soon.
Based on current consensus estimates, we expect Lam Research to post EPS growth of 75.8% and net sales growth of 38.0% this fiscal year. Meanwhile, the firm is generating cash flow growth of 45.8% and RoE of 41.1%. LRCX is also sporting a Zacks Rank #1 (Strong Buy) right now.