AI chipmaker Nvidia is set to release its latest quarterly report, and analysts expect to see earnings of $2.09 per share. That would be a stunning jump from the $0.92 per share posted last quarter. However, with the market under tremendous stress recently, just hitting the number may not be enough. The company may have to blow away the estimates and give super positive forward guidance. Just seven stocks in the S&P 500 have accounted for 75% of the move higher this year, and Nvidia is one of them. If it fails to hit the ball way out of the park, the market could be in big trouble.
What should investors with big “magnificent 7” gains do? If the overall market and the economy were in better shape, perhaps nothing other than hedge shares with a costless collar. Yet, with mortgage rates at highs not seen in years, the potential for interest rates to continue to rise and retail running into some stiff headwinds for some companies, it may make sense either to sell positions in full and take big profits to or sell half and hedge the other half.
We screened our 24/7 Wall St. large-cap value and dividend research database for stocks with big dividends and also some big safety for worried investors. While all are rated Buy across Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This stock certainly offers investors growth and income potential. Dow Inc. (NYSE: DOW) is a leading materials science company and was formed from the merger of Dow and DuPont in 2017 and the subsequent spin-off 2019. The company is organized into three principal divisions: Performance Materials & Coatings (23% of EBITDA), Industrial Intermediates & Infrastructure (27%) and Packaging & Specialty Plastics (51%).
The company’s segments include Agricultural Sciences, which is engaged in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils. The Consumer Solutions segment consists of Consumer Care, Dow Automotive Systems, Dow Electronic Materials and Consumer Solutions-Silicones businesses.
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The Infrastructure Solutions segment consists of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, Performance Monomers and Infrastructure Solutions-Silicones businesses. Performance Materials & Chemicals consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses. The Performance Plastics unit consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons businesses.
Shareholders receive a 5.18% dividend. Piper Sandler has a $68 price objective on Dow stock. The consensus target across Wall Street is just $56.21, and shares closed on Tuesday at $53.79.
Enterprise Products Partners
This is the largest publicly traded energy partnership and a leading North American provider of midstream energy services to producers and consumers. Enterprise Products Partners L.P. (NYSE: EPD) provides a wide variety of midstream energy services, including gathering, processing, transportation and storage of natural gas, natural gas liquids fractionation, import and export terminaling, and offshore production platform services.
One reason many analysts may have a liking for the stock might be its distribution coverage ratio. This ratio is well above 1 times, making it relatively less risky among the master limited partnerships.
Investors receive a 7.53% distribution. J.P. Morgan has set its price target at $33, and Enterprise Products Partners stock has a consensus target of $32.16. Tuesday’s close was at $26.38.
Federal Realty Investment Trust
While real estate has been hit by rising interest rates, demand is still growing and hard assets are good in inflationary times. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Boston to Washington, as well as San Francisco and Los Angeles.
Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California; Pike & Rose in North Bethesda, Maryland; and Assembly Row in Somerville, Massachusetts.
Federal Realty’s 102 properties include approximately 3,200 tenants in 26 million square feet and over 3,100 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 55 consecutive years, the longest record in the real estate investment trust industry.
The distribution yield here is 4.90%. The Barclays price target is $127, while the consensus target is $110.65. Federal Realty Investment Trust stock was last seen on Tuesday trading at $96.17.
This top pharmaceutical stock was one of the biggest winners in the COVID-19 vaccine sweepstakes. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes and sells biopharmaceutical products worldwide.
Pfizer offers medicines and vaccines in various therapeutic areas, including the following:
- Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga and Paxlovid brands.
- Pneumococcal disease, meningococcal disease, tick-borne encephalitis and COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis and Cibinqo brands
- Amyloidosis, hemophilia and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX and Genotropin brands
Pfizer stock comes with a 4.43% dividend. Cantor Fitzgerald’s $75 price objective is well above the consensus target of $44.34 and Tuesday’s $36.84 closing share price.
This top telecommunications stock offers tremendous value at current levels. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.
Verizon’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition.
The company also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Verizon has been hit hard over concerns over lead landline issues, but the company posted solid second-quarter results as it reported an unexpected increase in wireless subscriber numbers.
Shareholders receive a 7.87% dividend. Verizon Communications stock has a $49 price objective at Cowen. The consensus target is $43.67, and shares closed at $33.20 on Tuesday.
The artificial intelligence tech rally has reminded many of the dot-com rally and implosion in the late 1990s and early 2000s. While the valuations may not be quite as stretched, the frothing mania certainly is similar. For young investors with a long timeline and big risk tolerance, as long as they stay off margin, they all should be fine. However, for those looking to take the money and run, now is a good time, and these picks are ideal for what could be a rough autumn.
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