Investing

BofA Securities Warns of 5% to 10% Sell-Off: 5 Safe Dividend Stocks to Buy Now

In 2021, AT&T expects a free cash flow of at least $26 billion, as well as a full-year dividend payout ratio of 50% or more. Consolidated revenue growth is expected to be around 1% and gross capital investment is pegged at roughly $21 billion, with $18 billion in capital expenditure.

Shareholders receive a 7.25% dividend. The BofA Securities price target for the shares is $36, while the Wall Street consensus target is $32. AT&T stock closed on Thursday at $28.69 a share.

Altria

This maker of tobacco products offers value investors a great entry point now and was hit recently as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro, one of the most valuable brands in the world.

Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer. In March 2008, it spun off its international cigarette business to shareholders. In December 2018, the company acquired 35% of Juul Labs, and it has purchased a 45% stake in cannabis company Cronus for $1.8 billion.

Shareholders now receive a 7.94% dividend. BofA Securities has a $53 target price, and the consensus target is $47.46. Altria stock closed at $43.31 per share on Thursday.

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 compares with the $74.76 consensus target. Bristol-Myers Squibb stock closed most recently at $59.99.

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