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Top 10 Gold Stocks To Own For 2019

 Retirees should favor companies that operate in stable industries and offer their shareholders a predictable stream of income. So which stocks in particular can fulfill their needs? We asked a team of Motley Fool contributors to weigh in, and they picked the following stocks.

Top 10 Gold Stocks To Own For 2019: Enbridge Inc(ENB)

Enbridge’s dividend yield has soared to a hefty 6.9%, thanks to a steep 20% drop in its share price so far this year. For the kind of growth potential that the Canadian energy infrastructure giant appears to possess, the stock has started to look like a bargain at current prices.

Enbridge is targeting 10% compound growth in dividends through 2020, backed by higher cash flows driven by restructuring and growth initiatives. Some of these include a potential divestment of non-core assets worth $10 billion Canadian dollars and development projects valued at nearly CA$48 billion in the foreseeable future.

If there’s one chink in the armor for Enbridge that has spooked investors, it’s the company’s heavy debt load that ran into almost CA$61 billion as of Dec. 31, 2017, the bulk of which was acquired with Spectra Energy. In the past couple of years, Enbridge also resorted to stock issues to raise capital that has diluted shareholders’ wealth, but that may soon be a thing of the past as management now is focused on monetizing non-core assets to fund its growth projects.

Enbridge’s cash flow from operations (CFO) hit multi-year highs last year, and although stock issues hit its CFO per share, the stock still is trading well below its five-year average price-to-CFO at 9.5 times. Given Enbridge’s dividend growth history of 23 consecutive years of dividend increases, it would need a heavy blow to the company’s business to break its dividend streak and disappoint income investors. That’s unlikely, given that almost 96% of Enbridge’s cash flows come from take-or-pay or regulated contracts.

Top 10 Gold Stocks To Own For 2019: PulteGroup, Inc.(PHM)

The technical chart of this $8 billion market cap builder mirrors that of Toll Brothers.

While the stock is off 12% this year, new orders have jumped, the backlog is soaring, and sales have grown double digits annually for the last four years.

Strong fundamentals make this stock a buy in the $29.00 per share zone with a target price of $41.00 per share and stops suggested at $26.93 per share.

Top 10 Gold Stocks To Own For 2019: Walker & Dunlop, Inc.(WD)

Walker & Dunlop claims a forward earnings multiple below 11. Like Micron, Walker & Dunlop operates in a cyclical industry — in this case, commercial real estate services and finance. 

The company primarily focuses on financing owners and operators of multifamily properties across the U.S. A serious slowdown in the economy would likely hurt Walker & Dunlop in several ways, including higher rates of defaults, fewer financing transactions, and lower price tags on deals made resulting from declining property values.  

But the U.S. economy still appears to be healthy. Walker & Dunlop’s business is doing better than ever before. Last year, the company reported its biggest jump in revenue, earnings, and total transaction volume since its initial public offering in 2011. Walker & Dunlop has increased its market share of the multifamily loan market from 2.8% seven years ago to 7.3% in 2017. 

Walker & Dunlop’s goal is to increase revenue by roughly 40% to $1 billion by 2020. That might seem overly ambitious, but I think the company can achieve its objective. Investors will also be paid as they wait for Walker & Dunlop’s growth: The company recently initiated a quarterly dividend. 

Top 10 Gold Stocks To Own For 2019: Microchip Technology Incorporated(MCHP)

This company is a huge Internet of Things benefactor. Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller, mixed-signal, analog and flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide.

The company recently received a receipt of antitrust clearance in the United States for the proposed acquisition of Microsemi. The company now expects to complete the acquisition of the company in June of this year.

Microchip investors are paid a 1.71% dividend. Merrill Lynch has set its price target at $110. The consensus price objective was last seen at $111.56, and the stock ended last week at $85.68 a share.

Top 10 Gold Stocks To Own For 2019: Berkshire Hathaway Inc. (BRK-B)

I’ve said many times before that if I could only own one stock in my portfolio, Berkshire Hathaway would be it.  

Berkshire is actually a conglomerate of more than 60 businesses, with massive operations in insurance (GEICO, General Re), railroads (BNSF), real estate (Berkshire Hathaway Home Service), consumer goods (Duracell), and more. The company also has a closely followed stock portfolio worth nearly $200 billion that includes large positions in Apple, Bank of America, Coca-Cola, American Express, and dozens of other stocks. 

Berkshire’s business model is simple yet effective. Its businesses and stock investments generate capital, which can then be used to acquire additional businesses and to make more investments. And who is picking those investments? Legendary investors Warren Buffett, Charlie Munger, and Berkshire’s two other investment managers who will eventually take their place.  

While Berkshire is an excellent stock to buy anytime, now could be an especially smart time to consider Berkshire. After ending 2017 with more than $116 million in cash, and Buffett and Munger visibly frustrated over the lack of attractive ways to deploy its capital, the company’s cash balance went down during the first quarter for the first time in a while. In short, it looks like Berkshire is starting to have some success with deploying its capital, so it could be a smart time to get in before Berkshire figures out how to put even more of its cash to work and boosts its profit potential by billions. 

Top Dividend Stocks To Invest In 2019

Warren Buffett has said that his "favorite holding period is forever," and I generally invest with that same philosophy in mind. I don’t think I’ll keep each and every stock I own forever — after all, there are plenty of valid reasons to sell stocks, and there’s no way of knowing how a company or its industry will change in the future. 

Having said that, here are three stocks in my portfolio that I couldn’t see myself selling anytime soon. 

Top Dividend Stocks To Invest In 2019: Nabors Industries Ltd.(NBR)

Nabors Industries Ltd. (NYSE:NBR) shares look ready to lift up and out of a bowl-shaped consolidation range going back to the summer of 2017. It also involved a reset of the early 2016 lows near $5.50, setting up a solid base of support with which to rise out of. The oil and gas services provider is well placed to profit from the surge of U.S. output.

The company will next report results on Aug. 1 after the close. Analysts are looking for a loss of 23 cents per share on revenues of $757.2 million.

When the company last reported on May 1, a loss of 44 cents per share misses estimates by 15 cents on a 30.4% rise in revenues.

Top Dividend Stocks To Invest In 2019: Summit State Bank(SSBI)

Little-Known Stocks to Buy: Summit State Bank (SSBI)

Source: Shutterstock

 

Summit State Bank (NASDAQ:SSBI) is a small commercial bank headquartered in Santa Rosa, CA, which is just north of Silicon Valley and San Francisco.

When the economy starts to expand, it creates more opportunities for entrepreneurs to strike out on their own. And there are few sectors where this trend is more reliable than tech.

As a bank focused on getting involved in small and medium-sized businesses, SSBI should see a lot of business in coming quarters. Already this year, SSBI stock is up more than 20% and it’s still delivering a 3.1% dividend on top of that.

And as rates rise, that gives SSBI more ability to generate higher profits between what it borrows at and what it lends at.

Top Dividend Stocks To Invest In 2019: Berkshire Hathaway Inc.(BRK.B)

I get dizzy thinking about being locked into a single investment — any investment — for a decade, let alone half a century! Typewriter companies, for example, sure looked like stable long-term investments in the 1970s. That’s why, over the long term, there’s safety in diversity: Being invested in a wide variety of industries ensures that one small disruption (for typewriter companies, the PC) doesn’t sink your entire portfolio. 

Luckily for investors, it doesn’t get more diverse than Warren Buffett’s Berkshire Hathaway, which has holdings in industries as diverse as insurance (GEICO), railroads (Burlington Northern Santa Fe), and food (Dairy Queen, See’s Candies), and many, many more, across a wide variety of industries. That makes the company just about the safest opportunity I can think of for an investor who intends to check his or her portfolio only occasionally.

Perhaps the company’s greatest asset is its founder, the famed "Oracle of Omaha," 87-year-old Warren Buffett himself. And while he’s unlikely to continue running the company for another 50 years — although, frankly, I wouldn’t put it past him — he has left his stamp on the company, whose current holdings and asset management strategy will certainly endure without him. After all, his is a strategy that’s produced returns that beat the market — if only slightly — over the past one-, three-, five-, and 10-year periods. Why not 50?

Top 5 Warren Buffett Stocks To Invest In 2019

In this segment of the Motley Fool Money podcast, host Chris Hill asks Million Dollar Portfolio’s Jason Moser, Hidden Gems Canada’s David Kretzmann, and Total Income’s Ron Gross about the companies they’re most intrigued by this week and why.

Top 5 Warren Buffett Stocks To Invest In 2019: AbbVie Inc.(ABBV)

If you typically don’t invest in healthcare, you might not know that shares in the biopharma giant AbbVie fell out of favor last month, following disappointing news on its solid-tumor cancer drug, Rova-T.

AbbVie had hoped definitive midstage trial data for Rova-T could allow it to file for accelerated approval from the Food and Drug Administration, but unfortunately, the data wasn’t good enoughfor that to happen. Instead, the company will need to wait until results from future trials are available before it submits Rova-T for approval, and that could mean a wait of a year or more.

The setback caused AbbVie’s shares to fall by more than 20%, but it’s far from a deal-breaker for the company. Importantly, the sell-off could be creating a great opportunity to add this top dividend stock to your income portfolio.

AbbVie inherited Abbott Labs’ dividend track record when it was spun off in 2013, so it’s considered a Dividend Aristocrat. It appears to take that badge of honor seriously, because its quarterly dividend has increased to $0.96 from $0.40 since its initial public offering.

Following the drop in its shares, its forward dividend yield has increased to almost 4%. That’s a healthy dividend for any company, but what really makes AbbVie an interesting buy is that its dividend could continue climbing because of double-digit revenue growth. In Q1 2018, sales grew 21% year over year. And since generic biosimilars to its best-seller, Humira, aren’t expected in the U.S. until 2023, there’s plenty of opportunity for investors to own AbbVie and pocket increasingly larger dividend checks.

Top 5 Warren Buffett Stocks To Invest In 2019: Berkshire Hathaway Inc.(BRK.B)

Warren Buffett’s Berkshire Hathaway is already worth nearly a half-trillion dollars. But it’s not crazy to think that the stock could double over the next 10 years. A doubling over a decade requires a compound annual growth rate of just about 7.2%. That’s a little more than one-third of the historical growth rate of both Berkshire’s book value and its stock price.

In other words, Berkshire doesn’t need to hit home runs for the stock to double from here. It just needs to keep doing what it’s been doing. Under Buffett’s leadership, the conglomerate has built up a collection of high-quality businesses with durable competitive advantages that should throw off increasing amounts of cash as time goes on. That cash can be invested in even more high-quality businesses, picked by Buffett or his eventual successors.

Of course, if the broader market goes nowhere over the next decade, perhaps because valuations today are historically high, Berkshire could follow suit and fall short of doubling. But Berkshire’s earnings will likely rise substantially over that time, making the stock more attractive and planting the seeds of future gains.

Top 5 Warren Buffett Stocks To Invest In 2019: Leju Holdings Limited(LEJU)

Leju Holdings Ltd (ADR) (NYSE:LEJU) has gotten some attention over the years because it’s one of China’s largest online and offline real estate companies.

When real estate was hot in China, and the tech firms were rolling out like donuts off a Krispy Kreme line, LEJU was one of the speculative darlings that were getting a fair amount of attention in the U.S.

It still has a $149 million market cap, which isn’t huge, but is decent for a tech start-up.

However, the real estate boom is China has cooled and the government is looking to keep things on the cool side moving forward until it can sort out the strength of the recovery. LEJU is off 65% in the past year as a result.

There are plenty of better ideas out there now to take advantage of China’s long-term growth.

Top 5 Warren Buffett Stocks To Invest In 2019: PDL BioPharma, Inc.(PDLI)

PDL Biopharma stock is up 18% over the last 12 months, a performance that beats the S&P 500index of large-cap stocks. Like Novavax, though, PDL was up a lot more at one point. An attempt to buy Neos Therapeutics that was later abandoned contributed primarily to the stock pullback.

It wasn’t long ago that PDL Biopharma claimed one of the biggest healthcare dividend yields on the market, with the company receiving royalties from blockbuster drugs including Avastin and Herceptin. However, the company’s patents expired, its royalties dwindled, and PDL was forced to eliminate its dividend and try to reinvent itself.

That reinvention effort resulted in PDL Biopharma investing in income-generating opportunities. In 2016, the company bought Noden Pharma, picking up blood pressure drug Tekturna with the deal. PDL’s long-term success hinges on its ability to make more strategic deals that generate solid returns.

PDL Biopharma claims one distinction that few companies can: Its cash stockpile is roughly the same as its market cap. The company reported cash, cash equivalents, and marketable securities totaling $405 million at the end of the first quarter. At the time of this writing, PDL’s market cap is $407 million.   

Top 5 Warren Buffett Stocks To Invest In 2019: International Paper Company(IP)

Despite the misconception, the paper industry is one of the most environmentally friendly and energy efficient industries on the planet. Most pulp is sourced from responsibly managed forests, fibers are often recycled into new products, wastewater is often managed efficiently, and wood liquid wastes from the pulping process provides most of the energy needed for industrial mills. In fact, wood products and wood liquids generated nearly as much electricity in the United States in 2017 as utility scale solar facilities.

International Paper (NYSE: IP) wants to take things even further. The company, a leading producer of cardboard that’s cashing in on online shopping trends, has a laundry list of efficiency goals aimed at helping the business and the environment. That includes increasing fiber recycling an additional 15% (the United States boasts a 64% recovery rate), improving energy efficiency of purchased power by 15% (it generates 75% of its energy from wood wastes on site), and improving water management.

The cost-saving moves should help bolster the company’s already-strong $2 billion in annual free cash flow — cementing International Paper as a blue chip dividend stock.