After a rocky week where the markets were concerned about everything from Russia, slowing Chinese growth and why Malaysia Airlines Flight 370 can’t be found, some investors have started to move out of volatile stocks. One of the best moves to make is to go with quality stocks paying good dividends. The combination of stock price appreciation and dividend delivers total return. Solid total return over time can make the difference in a well rounded portfolio.
This past week, we scanned our 24/7 Wall Street database of research for the top high-yield dividend stocks. Many happened to be components of the Dow Jones Industrial Average (DJIA). Wall Street firms don’t always agree on things, but they universally tout the top names that pay shareholders solid income. More importantly, they are looking for the top names that are returning capital to investors.
Here are some of the top DJIA high yielding dividend stocks from around Wall Street.
Cisco Systems, Inc. (NASDAQ: CSCO) is a top name to buy at UBS. The company remains the networking leader and may be forced to really start to show real growth to Wall Street after three straight sub-par earnings reports. While the company has been looking to protect its core business from new competition, stiff competition has started to squeeze the tech giants core earnings power. Last year, Cisco bought out the remainder of its majority-owned data center technology start up called Insieme, in an $863-million deal. As a leader in the new “Internet of Things,” investors are betting that Cisco will enhance the network interface ability of tech companies. Investors are paid a solid 3.5% dividend. The UBS price target for the stock is $26.50. The consensus estimate is at $23.77. Cisco closed Friday at $21.35, down 0.8%, after disclosing corruption allegations overseas.
General Electric Co. (NYSE: GE) has lagged the market this year and may offer investors a solid entry point. The stock is buy rated at Oppenheimer. GE continues to expand its investment into energy, committing $10 billion to its “ecomagination” budget through 2020. GE plans to use the initiative to develop alternative technologies to replace water in the hydraulic fracturing process. In 2012, fracking used over 50 billion gallons of water, according to Bloomberg News. With water shortages in places like California, energy companies are looking for ways to cut back on water use. The iconic industrial trades at a low 15 times forward earnings. Investors are paid a very solid 3.5% dividend from the blue chip name. The consensus price objective is at $28.83. GE closed Friday at $25.11, down 0.9%.
Intel Corp. (NASDAQ: INTC) is another buy rated name from Oppenheimer. The stock has been caught in a ratings tug-of-war on Wall Street, but many firms believe the Silicon Valley giant is poised to breakout of its multi-year slump. A new commitment to smartphone and mobile applications, combined with a possible resurgence of PC growth this year may make Intel one of the best large cap value stock to buy. Intel trades at a very low 13.2 times forward earnings. Investors are paid a very solid 3.7% dividend. The Consensus target is posted at $25.05. Intel closed Friday at $24.50, down 0.3%.
Microsoft Corp. (NASDAQ: MSFT) has finally named a successor to Steve Ballmer as CEO with Satya Nadella becoming just the third CEO in the software giant’s history. The company has moved on to focus on its Windows Phone product, which has shown serious intent in becoming one of the top players in smart phones and perhaps even unseat Apple’s (NASDAQ: AAPL) iOS as the second-most popular operating system after Google’s (NASDAQ: GOOG) Android. Windows Phone is now the fastest-growing smartphone platform, and the second-most popular smartphone platform in Latin America and India. Investors are paid a nice 2.96% dividend. The UBS price target is at $43, and the consensus target is at $38.60. Microsoft closed Friday at $37.70, down 0.6%.
Pfizer Inc. (NYSE: PFE) trades at a low 13 times forward earnings and is buy-rated at Jefferies. The company recently updated investors and physicians on the phase 2 trial results on palbociclib for advanced breast cancer. The doctors on the breast cancer panel were much more optimistic than previously about the possibility of palbociclib being filed and approved on Phase II data in first line advanced breast cancer. Preliminary/interim overall survival data will be presented at American Association for Cancer Research on April 6. Investors are paid a 3.3% dividend. The consensus price target for the stock is posted at $33.69. Pfizer closed at $31.23, up 0.4%, on Friday
The Dow has lagged the rest of the market this year and is down 3.1% near the end of the first quarter. Many of the top names in the average are trading at extremely cheap multiples, and the added bonus of solid and growing dividends makes these top names to buy suitable for almost any portfolio.