5 Top Total Return Stocks to Buy That All Pay Near 5% or More Dividends
Enterprise Products Partners
This is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers. Enterprise Products Partners L.P. (NYSE: EPD) provides a wide variety of midstream energy services, including gathering, processing, transportation and storage of natural gas, natural gas liquids fractionation, import and export terminaling, and offshore production platform services.
One reason why many analysts may like the stock might be its distribution coverage ratio. That ratio is well above one-times, making it relatively less risky in its sector. The company’s distributions have grown for several quarters, and last year Enterprise Products announced that the board of directors of its general partner declared an increase in the quarterly cash distribution paid to partners to $0.4275 per common unit, or $1.71 per unit on an annualized basis.
Investors are paid a 5.79% distribution. RBC analysts rate the shares at Outperform with a $34 price target. That compares with the consensus price target of $32.23 and the recent share price of $29.35.
This is a solid value play now. Ford Motor Co. (NYSE: F) is one of the world’s largest vehicle producers, with over 6 million units manufactured/sold globally. The company has made significant progress executing on its One Ford plan and delivering best-in-class vehicles. It also remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services.
The company reported disappointing results for the most recent quarter and the shares trading down on the results Thursday morning. Investors may want to wait until the selling settles out to buy. The second half of the year is expected to be decidedly better.
Shareholders receive a 5.84% dividend. Jefferies recently upgraded the stock to Buy with a $14 price target, and the consensus target is $12.12. The shares were trading at $10.10.
This top global pharmaceutical could offer outstanding total return for investors as a solid portfolio holding. GlaxoSmithKline PLC (NYSE: GSK) offers pharmaceutical products in the therapeutic areas, including respiratory, antivirals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials and emesis, dermatology, rare diseases, immuno-inflammation, vaccines and HIV. It also provides consumer health care products in wellness, oral health, nutrition and skin health areas.
The company has three divisions: Prescription Medicines (includes ViiV HIV joint venture with Pfizer and Shionogi), Consumer Health and Vaccines. In prescription drugs, its key franchises include Advair (asthma/COPD), HIV and other antiviral drugs.
The company posted solid second-quarter results and is a safe way to play the global pharmaceutical sector.
GlaxoSmithKline investors are paid a 5.31% dividend. The Cowen price target for the Buy-rated stock is $47, while the consensus target is $42.13. The shares traded at $40.15.
Nothing exciting here, and that’s exactly the point. With low volatility ratings, big dividends and some growth potential, these stocks are ideal for investors who want to own stocks that they can put in their portfolio and forget about.