UBS Has 4 Dividend-Yielding Quality Growth at a Reasonable Price Stocks to Buy

Investing

Published: March 16, 2016 8:20 am

Last Updated: January 13, 2020 11:54 am

One of the greatest strategies for investors to follow is actually a very simple one, look for stocks that can provide solid total return. Total return is the combination of the increase in a stock’s price and any dividends the stock may pay. Obviously, stocks that don’t pay dividends only provide gains if the stock itself trades higher. While dividend-paying stocks provide income even if the stock trades sideways or down.

The UBS Quality Growth at a Reasonable Price (Q-GARP) portfolio has absolutely clobbered the S&P 500 since its inception in 2007. One of the reasons why is that the portfolio managers have selected some stocks that pay outstanding dividends. We screened the list for the four top-paying dividend stocks.

Boeing

Shares of this top aerospace industrial have dropped a whopping 14% since the beginning of the year. Boeing Co. (NYSE: BA), together with its subsidiaries, designs, develops, manufactures, sells, services and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services worldwide.

Top Wall Street analysts have increased confidence in continuing good demand, and they note that the company has made announcements in the past that support the analysts’ thesis that the productivity and margins will continue to improve. 787 execution is good as the company works through the backlog, and cash flow looks to be strong with 787 deliveries and C-17 orders. Some Wall Street analysts also point to low oil prices as a bullish indicator for the top carriers that are Boeing’s big customers.

Boeing investors are paid a very solid 3.45% dividend. The Thomson/First Call consensus price target for the stock is $137.95. The stock closed trading on Tuesday at $126.36 per share.