Investing

BofA Securities Makes Big Fall Changes to High Quality & Dividend Yield Portfolio

Republic Services recently announced that it closed an offering of $650 million 1.450% senior notes due February 2031. The net proceeds of the offering will be used to finance the call of its 5.250% senior notes due November 2021. The redemption is expected to occur on September 10, 2020. Lowering interest expense is always a positive for shareholders.

Shareholders receive a 1.80% dividend. The BofA Securities price target is $101, while the consensus target was last seen at $98.62. Republic Services stock closed at $94.71 on Wednesday.

Emerson Electric

This stock has rallied nicely off the lows posted in March but still offers a solid entry point for investors. Emerson Electric Co. (NYSE: EMR) is a global technology and engineering company providing innovative solutions for customers in industrial, commercial and residential markets.

The company’s Automation Solutions business helps process, hybrid and discrete manufacturers maximize production, protect personnel and the environment while optimizing their energy and operating costs. The Commercial & Residential Solutions business helps ensure human comfort and health, protect food quality and safety, advance energy efficiency and create a sustainable infrastructure.

Shareholders receive a 2.83% dividend. The $80 BofA Securities price target compares with the $70.58 consensus figure. Emerson Electric stock was last seen trading at $70.70.

General Dynamics

This company, like other major defense prime contractors, has had a solid year, and the balance of 2020 looks very positive. General Dynamics Corp. (NYSE: GD) is engaged in business aviation, land and expeditionary combat vehicles and systems, armaments, munitions, shipbuilding and marine systems, and information systems and technologies.

Major products include Virginia-class nuclear-powered submarine and Ohio class replacement, Arleigh Burke-class Aegis, Abrams M1A2 tank, Stryker eight-wheeled assault vehicle, medium-caliber munitions and gun systems, tactical and strategic mission systems.

Some Wall Street analysts were disappointed by quarterly results from the company’s information technology segment. Though most don’t view the segment’s struggles as a product of a structurally impaired business, some may begin to question that thesis. However, most continue to see value in the company’s Marine, Aerospace, Mission, and Land businesses and view the overall valuation as depressed.

Investors in General Dynamics stock receive a 2.86% dividend. BofA Securities has set a $175 price target. The consensus estimate is $172.78, and the last trade on Wednesday hit the tape at $153.92.

Public Storage

This giant self-storage leader has always been a go-to REIT stock for income investors. Public Storage Inc. (NYSE: PSA) is a fully integrated, self-administered and self-managed real estate investment trust that primarily acquires, develops, owns and operates self-storage facilities.

As of December 31, 2019, Public Storage had interests in 2,483 self-storage facilities located in 38 states with approximately 169 million net rentable square feet in the United States and 35% equity interest in Shurgard, which owned 234 storage facilities located in seven Western European nations with approximately 13 million net rentable square feet.

Investors receive a 3.74% distribution. The BofA Securities price target is $229. The consensus target is just $199.91, below the $214.16 per share at which Public Storage stock closed on Wednesday.

With outstanding metrics and good dividends, these quality companies make good sense for conservative growth portfolios. With solid total return potential, and seemingly far less potential for volatility, they all are outstanding long-term portfolio additions.

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