Investing

4 UBS Equity Focus List Blue Chip Stocks That Pay Outstanding Dividends

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One of the best investing plans, especially for long-term investors, is to look for solid total return. Owning quality stocks that pay a good and increasing dividend also enhances the chances for success, because even if the stocks don’t show price appreciation, the dividend gets paid every quarter. Total return is the combination of price appreciation and dividend payout. If a stock is up 5% and the dividend is 3%, the total return is 8%.

One of the best way we know for finding solid stocks that can provide total return is to look at the highest conviction stocks picks at a Wall Street firm. We screened the UBS Equity Focus list for the top dividend yielding members and found four solid companies for investors to consider now.

Boeing

This top aerospace industrial has dropped a whopping 14% since the beginning of the year.

Boeing Co. (NYSE: BA) 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 thesis that 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 who are Boeing’s big customers.

The company reported numbers that beat estimates, but charges weighed on the overall report. However, the company is continuing what is a sizable share buyback program. We covered the Wall Street take on the earnings in depth.

Boeing investors receive a 3.25% dividend. The Thomson/First Call consensus price target is $145.17. The stock closed Monday at $134.01 per share.


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