As we creep toward the end of the third quarter, many Wall Street firms that we cover are making changes to the various portfolios that they present to their institutional and high net worth clients. In a new research report, UBS tweaks the Dividend Rulers portfolio.
With above-average dividend yielding stocks lagging the broader market this year, more conservative growth and income investors are in a position to add these stocks to their portfolios. Not only do they present a good value now, they are also better suited to handle the current volatile markets.
While there were there was no deletions, Marsh & McLennan Companies Inc. (NYSE: MMC) is the newest member of the Dividend Rulers team. The company is comprised of two business segments: a leading insurance brokerage and a collection of consulting businesses focusing on human resource management and management consulting. Marsh & McLennan has increased its dividend by 5% to 6% annually over the past decade and by a faster 10% rate over the past three years. Management has committed to “double digit dividend growth” going forward.
Marsh & McLennan investors are paid a solid 2.4% dividend. The Thomson/First Call consensus price target for the stock is $61.17. The stock closed Tuesday at $54.26.
We also screened for the current highest yielding members of the portfolio. Here are the four highest yielding stocks in the portfolio now.
Many of the Wall Street firms that we cover are becoming more positive on utilities again after this year’s underperformance. Dominion Resources Inc. (NYSE: D) is one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 24,600 megawatts of generation and 6,455 miles of electric transmission lines. Dominion operates one of the nation’s largest natural gas storage systems, with 928 billion cubic feet of storage capacity, and serves utility and retail energy customers in 13 states.
Dominion investors are paid a solid 3.77% dividend. The UBS price target for the stock is $79. The consensus target is at $79. The stock closed Tuesday at $68.72.