The artificial intelligence rally over the past year and a half, led by the so-called Magnificent 7, has been remarkable if you owned those stocks. However, most of the S&P 500 is treading water and will not likely catch up to the hype-driven AI stocks soon.
Our comprehensive analysis reveals that with storm clouds gathering on the horizon and the risk of an escalating conflict in the Middle East, many Wall Street strategists are cautious, predicting modest single-digit gains for the remainder of 2024. However, a significant 20% or more sell-off could also be possible, highlighting the need for a balanced investment strategy.
Our screening of the June Morgan Stanley list of blue-chip dividend stocks rated Overweight has unearthed six top companies with solid total return potential and dependable dividends. These stocks, among the world’s most prestigious investment bank’s top picks, are likely to attract the attention of savvy investors searching for passive income ideas.
Why we recommend Morgan Stanley stock picks
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Morgan Stanley, a globally recognized leader in the investment landscape, and is an acknowledged leader on Wall Street and worldwide. The firm’s top-notch research department, known for providing clients with some of the best ideas across the investing spectrum, instills confidence in the longevity and potential of their stock picks.
BP
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This company is one of the premier European integrated oil giants, paying shareholders a hefty 4.72 % dividend. BP PLC (NYSE: BP) engages in the energy business worldwide. It operates through Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments.
BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generating facilities, and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage, and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to:
- Wholesale and retail customers
- Convenience products
- Aviation fuels
- Castrol lubricants
- Refining,
- Supply and trading of oil products
- Operation of electric vehicle charging facilities
In addition, it produces and refines oil and gas and invests in upstream, downstream, and alternative energy companies, advanced mobility, bio and low-carbon products, carbon management, digital transformation, and power and storage areas.
British American Tobacco
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This European giant continues to print money and pays a massive 9.57% dividend.
British American Tobacco PLC (NYSE: BTI) offers:
- Vapor
- Tobacco heating
- Modern oral nicotine products
- Combustible cigarettes
- Traditional oral products, such as snus and moist snuff
The company offers its products under:
- Vuse
- Glo
- Velo
- Grizzly
- Kodiak
- Dunhill
- Kent
- Lucky Strike
- Pall Mall
- Rothmans
- Camel
- Natural American Spirit
- Newport
- Vogue
- Viceroy
- Kool
- Peter Stuyvesant
- Craven A
- State Express 555
- Shuang Xi brands
Gaming and Leisure Properties
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While off the radar, this company offers investors a rich 6.64% dividend and total solid return potential. Gaming and Leisure Properties Inc. (NASDAQ: GLPI) is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements.
In a triple new lease arrangement, the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or concerning the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.
In February of this year, Gaming and Leisure Properties acquired the real estate assets of Tioga Downs Casino Resort for $175 million and entered into a 30-year master lease agreement. In addition, revenues for the first quarter were up 5.8% year-over-year.
Lazard
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This financial leader has solid momentum and is paying shareholders a dependable 5.17% dividend. Lazard Inc. (NYSE: LAZ) together with its subsidiaries, operates as a financial advisory and asset management firm in North and South America, Europe, the Middle East, Asia, and Australia.
It operates in two segments:
- Financial Advisory
- Asset Management
The Financial Advisory segment offers financial advisory services, such as:
- Mergers and acquisitions
- Capital markets
- Shareholder
- Sovereign
- Geopolitical advisory
- Strategic advisory services
- Restructuring and liability management
- Capital raising and placement services
This segment offers its services to corporate, partnership, institutional, government, sovereign, and individual clients in various industry areas, including:
- Consumers
- Financial institutions
- Healthcare and life sciences
- Industrials
- Power and energy/infrastructure
- Real estate
- Technology
- Telecommunication
- Media and entertainment.
The Asset Management segment offers a range of investment solutions:
- Investment and wealth management services in equity and fixed-income strategies
- Asset allocation strategies
- Alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients
Philip Morris International
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This company has continued to grow its global market share and pays a fat 5.22% dividend. Philip Morris International Inc. (NYSE: PM) is one of the largest international cigarette producers, with a share of 28% of the global cigarette/heated tobacco market.
Key combustible brands include:
- Marlboro
- Parliament
- L&M
The company is commercializing IQOS, a heat-not-burn product, in over 40 markets, which could drive earnings in the future. Most on Wall Street believe Philip Morris International offers superior underlying growth prospects, both near-term and long-term.
The share price has been weak lately as investors have questioned the growth potential of its reduced-risk products. All sales are outside the United States.
Ternium
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Based in Luxembourg this company offers solid growth and a rich 7.82% dividend. Ternium S.A. (NYSE: TX) manufactures and distributes steel products in Mexico, Brazil, and elsewhere.
It operates through three segments:
- Steel
- Mining
- Usiminas
The Steel segment offers slabs, hot and cold rolled products, coated products, roll-formed and tubular products, bars, billets, and other products.
Its Mining segment sells iron ore and pellets.
The Usiminas segment offers a wide range of products and services, from iron ore extraction and steel transformation to the production of capital goods and logistics.
The company also manufactures and sells various products and raw materials, such as flat steel, iron ore, and stamped steel parts for the automotive industry, and products for the civil construction and capital goods industry.
Additionally, Ternium S.A. provides medical and social services, scrap, renewable energy, and engineering services, and operates as a distribution company and is actively involved in the exploration, exploitation, and pelletizing of iron ore.
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