Consumer staples stocks like Newell tend to be solid ideas in times of inflation and rising rates. In 2021, the company’s cash distributions to shareholders were close to $400 million. During the period, Newell produced roughly $600 million, which included an abnormally large $350 million in cash spent on an inventory buildup, which the company attributed to preparation for sales growth. With a dividend payout ratio below 70%, Newell should continue to easily support the large and tempting dividend.
Shareholders receive a 4.72% dividend. The Newell Brands price target at Raymond James is $28 price target, and the consensus target is $27.55. The shares closed at $20.00 on Tuesday.
This top super-regional bank is among the higher-paying dividend bank stocks and is a Warren Buffett holding. U.S. Bancorp (NYSE: USB) provides various financial services in the United States through a network of 2,434 banking offices, principally operating in the Midwest and western regions of the United States, as well as through online services and a network of 4,232 ATMs.
The company offers depository services, including checking accounts, savings accounts and time certificate contracts; lending services, such as traditional credit products; and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance and other products. It also provides ancillary services comprising capital markets, treasury management and receivable lock-box collection services to corporate customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations and charitable organizations.
In addition, U.S. Bancorp offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds. The company also provides corporate and purchasing card and corporate trust services, and merchant processing services, as well as cash and investment management, ATM processing, mortgage banking and brokerage and leasing services.
U.S. Bancorp stock comes with a 4.05% dividend. Wells Fargo has a $60 price objective. The consensus target is $57.70. The shares closed on Tuesday at $46.46.
The stock market is headed lower, and buying any of these in front of second-quarter earnings reports could be dangerous. It may make sense to buy partial positions now and see how the results come in. The bottom line is that none of these companies is going away, so it is a solid idea to buy shares, collect the dividends and wait for a move higher, even if it takes a year.
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