Investing

5 BofA Securities US 1 Stocks to Buy Pay a Higher Dividend Than the S&P 500

Broadcom

The company reported solid earnings last week and is the newest member of the US 1 list. Broadcom Inc. (NASDAQ: AVGO) has an extensive semiconductor product portfolio that addresses applications within the wired infrastructure, wireless communications, enterprise storage and industrial end markets.


Applications for Broadcom’s products in its end markets include data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems and displays.

The company posted a modest earnings beat and raise as expected, as supply remains tight but the backlog is now at a record $14 billion, which is higher than in the first half of the past fiscal year. Demand visibility going out six months of non-cancellable orders shows 50% free cash flow margins. Toss in an 11% dividend boost, which is the highest in the chip arena, and everything seems to be clicking for Broadcom.

With the increase, the dividend now sits at a solid 3.55%. BofA Securities has a huge $500 price objective, while the posted consensus price target is $417.43. Broadcom stock closed at $411.80 on Monday.

Bristol-Myers Squibb

This remains a solid pharmaceutical stock to own long-term and offers among the best values now for investors. Bristol-Myers Squibb Co. (NYSE: BMY) is a global pharmaceutical company focused on discovering, developing, licensing and marketing chemically synthesized drugs or small molecules and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV), oncology, neuroscience, immunoscience and cardiovascular.

The company’s products include the following:

  • Opdivo for anti-cancer indications
  • Eliquis, an oral inhibitor targeted at stroke prevention in adult patients with non-valvular atrial fibrillation, and the prevention and treatment of venous thromboembolic disorders
  • Orencia for adult patients with active RA and prostate-specific antigen, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis.

Shareholders receive a 3.27% dividend. The $80 BofA Securities price target is above the $74.29 consensus target. Bristol-Myers stock closed at $59.97.