Investing

5 Total Return Stocks to Buy Now That All Pay 5% or Higher Dividends

Lee Jackson

Ford

This venerable automotive giant remains a solid value play now, and demand could jump with a trade deal with China paving the way. Ford Motor Co. (NYSE: F) is one of the world’s largest vehicle producers, with over 6 million units manufactured and sold globally. The company has made significant progress executing on its One Ford plan and delivering best-in-class vehicles.

The company also remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services.

Ford reported very solid first-quarter results, and Jefferies, which has remained positive on the company, noted this:

Large first quarter beat, adjusted EPS of $0.44, 70% ahead of consensus, and updated guidance should finally drive some earnings upgrades. We think results validate the current strength of products ahead of critical launches at Ford and Lincoln brands. Credit risk stabilized and dividend confirmed. We continue to see Ford as the most promising restructuring investment case in Autos.

Shareholders receive a 5.77% dividend. The $11 Jefferies price target compares with a $9.53 consensus target. The stock rose almost 11% on Friday to $10.41.

GlaxoSmithKline

This top global pharmaceutical stock offers outstanding total return potential for investors. 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.

GlaxoSmithKline investors receive a 5.71% dividend. Jefferies has a $46 price target. The consensus price objective is $44.33, and shares ended the week at $40.40.

Invesco

This remains a very attractive way for investors to invest in the financial services arena. Invesco Ltd. (NYSE: IVZ) is one of the world’s largest independent asset management groups, with over 750 investment professionals worldwide and a presence in over 20 countries. It offers a range of investment styles and products to institutions and individuals through a variety of distribution channels around the world.

Last week, Invesco reported preliminary month-end assets under management for March 2019 of $954.8 billion, an increase of 1.0% month over month. The increase was driven by favorable market returns, non-management fee earning asset under management inflows and reinvested distributions, partially offset by foreign exchange and net long-term outflows.

The company also reported solid first-quarter results, with management focused on the pending Oppenheimer acquisition, as it increased its earnings-per-share accretion projections and provided a timeline of the expected expense savings. Most on Wall Street remain very positive on the acquisition as they see solid long-term growth.

Invesco investors receive a 5.72% dividend. The Jefferies price target is $24. The consensus target is $21.23, and shares closed at $21.77 apiece.

Nothing exciting here, and that’s exactly the point. With low volatility ratings, big dividends and some growth potential, these five stocks are ideal for investors looking for something they can add to their portfolios and forget about. Plus, none of these companies are real estate investment trusts, so no bothersome K-1s when tax time rolls around.