This financial services leader has strong positions in both equity exchange traded funds (ETFs) and actively managed equity and debt mutual funds. Invesco Ltd. (NYSE: IVZ) looks to be very well-positioned to capitalize on inflows into both segments, as well as higher asset prices as many on Wall Street see a continuation of the six-year bull market.
Invesco PowerShares is the boutique investment management firm that manages a family of ETFs. It has been part of Invesco, which markets the PowerShares product, since 2006. The incredible growth and popularity of the product is why many on Wall Street remain so bullish on the stock.
Invesco investors are paid a 3.17% dividend. The UBS price target is $45. The consensus target is $41.03, and the shares closed Friday at $34.10.
This top energy stock is one of the higher yielding domestic stocks in the energy sector. Occidental Petroleum Corp. (NYSE: OXY) is an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. It is one of the largest U.S. oil and gas companies, based on equity market capitalization. The company’s midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of its businesses. Its wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.
The company posted surprising third-quarter numbers recently that beat analyst expectations, and it also announced that it would be leaving the Bakken shale after posting very heavy losses there.
Occidental also announced recently a deal with Ecopetrol to invest up to $2 billion over the next decade to increase production at the La Cira-Infantas oil field in Colombia. According Reuters, the new round of investments will increase production in the region by more than 200 million barrels.
Occidental shareholders receive an outstanding 4% dividend. The $95 UBS price target is higher than the consensus target of $79.55. Shares closed on Friday at $75.10.
This is another top yielding financial stock to add to portfolios. Toronto-Dominion Bank (NYSE: TD) operates through Canadian Retail, U.S. Retail and Wholesale Banking segments. The Canadian Retail segment offers various financial products and services, as well as telephone, Internet and mobile banking services to approximately 15 million personal and small business customers through a network of 1,165 branches and 2,867 automated banking machines in Canada.
The company’s TD Ameritrade business is an incredibly fast-growing one that consistently challenges for online supremacy among the top Wall Street investment banks.
Toronto Dominion investors receive a very sold 3.8% dividend. The consensus price target is $59.05. The stock closed on Friday at $41.10.
The UBS team is probably right when they surmise that investors have shunned dividend stocks fearing a fast move in long-term interest rates. The reality is even when rates go higher, they will be very small and measured increases. These stocks offer more conservative growth and income investors nice entry points now.
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