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Deutsche Bank Has 4 Sizzling 'Fresh Money' Dividend Stock Picks for Q3

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24/7 Insights

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.

One thing remains certain. 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, knowing that a significant 20% or more sell-off could also be possible is important.

Our screening of the Deutsche Bank list of “Fresh Money” Buy-rated dividend stocks has unearthed four top companies with solid total return potential and dependable dividends, presenting a promising opportunity for those seeking passive income.

These stocks are among one of the world’s most prestigious investment banks’ best dividend ideas for the third quarter, and they are likely to attract the attention of savvy investors.

AT&T

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AT&T is an American multinational telecommunications holding company headquartered in Downtown Dallas, Texas.

The legacy telecommunications company has been going through a lengthy restructuring while lowering the dividend, which still checks in at 5.85%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services.

Its Communications segment offers wireless voice and data communications services.

AT&T  sells through its company-owned stores, agents, and third-party retail stores:

  • Handsets
  • Wireless data cards
  • Wireless computing devices
  • Carrying cases
  • Hands-free devices

AT&T also provides:

  • Data
  • Voice
  • Security
  • Cloud solutions
  • Outsourcing
  • Managed and professional services
  • Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers.

It markets its communications services and products under these brands:

  • AT&T
  • Cricket
  • AT&T PREPAID
  • AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

Merck

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Merck develops and produces medicines, vaccines, biologic therapies, and animal health products.

This is a steadfast healthcare stock for conservative investors, and it offers a reliable 2.41% dividend. Merck & Co. Inc. (NYSE: MRK) is a global company operating through two segments: Pharmaceutical and Animal Health.

The Pharmaceutical segment offers human health pharmaceutical products in:

  • Oncology
  • Hospital acute care
  • Immunology
  • Neuroscience
  • Virology
  • Cardiovascular
  • Diabetes
  • Vaccine products, such as preventive pediatric, adolescent, and adult vaccines

The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, and digitally connected identification, traceability, and monitoring products.

Merck serves:

  • Drug wholesalers
  • Retailers
  • Hospitals
  • Government agencies
  • Managed healthcare providers, such as health maintenance organizations
  • Pharmacy benefit managers and other institutions
  • Physicians
  • Physician distributors
  • Veterinarians
  • Animal producers

The company collaborates with AstraZeneca PLC (NYSE: AZN), Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences Inc. (NASDAQ: GILD) to jointly develop and commercialize long-acting treatments for HIV.

PNC Financial Services Group

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The PNC Financial Services is one of the largest diversified financial services institutions in the United States.

This bank has a huge client base, pays a hefty 4% dividend, and is among the top 10 largest U.S. banks by assets. PNC Financial Services Group Inc. (NYSE: PNC) is a diversified financial services company in the United States.

It operates through three segments:

  • Retail Banking
  • Corporate & Institutional Banking
  • Asset Management Group

The company’s Retail Banking segment is a comprehensive suite of financial services, offering everything from checking, savings, and money market accounts to residential mortgages, auto loans, and investment and cash management services. This segment caters to consumer and small business customers through a wide network of branches, ATMs, call centers, and online and mobile banking channels.

PNC’s Corporate & Institutional Banking segment provides:

  • Secured and unsecured loans
  • Letters of credit
  • Equipment leases
  • Cash and investment management services
  • Receivables and disbursement management services
  • Funds transfer services,
  • International payment services, and access to online/mobile information management and reporting
  • Securities underwriting
  • Loan syndications
  • Customer-related trading
  • Mergers and acquisitions and equity capital markets advisory related services; and commercial loan servicing and technology solutions

It serves mid-sized and large corporations, and government and not-for-profit entities.

The company’s Asset Management Group segment offers:

  • Investment and retirement planning
  • Customized investment management
  • Credit, and cash management solutions
  • Trust management and administration services for high net worth and ultra-high net worth individuals and their families, and multi-generational family planning services for ultra-high net worth individuals and their families

It also provides outsourced chief investment officers, custody, private real estate, cash and fixed-income client solutions, and fiduciary retirement advisory services for institutional clients.

Buy These 7 Dividend Stocks and Hold Them Forever

Sabra Healthcare

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Sabra is a leading healthcare REIT investing in skilled nursing, senior housing, and behavioral health facilities across the United States.

This is one of the larger companies in the industry and pays a massive 7.80% distribution. Sabra Healthcare REIT Inc. (NASDAQ: SBRA) is an internally managed healthcare REIT that invests in skilled nursing (SNF) and senior housing.

As of September 30, 2023, Sabra’s investment portfolio included:

  • 377 real estate properties held for investment
  • 240 Skilled Nursing/Transitional Care facilities
  • 43 senior housing communities 
  • 61 senior housing communities operated by third-party property managers under property management agreements
  • 18 Behavioral Health facilities
  • 5 Specialty Hospitals and Other Facilities
  • 12 investments in loans receivable (consisting of two mortgage loans and ten other loans)
  • Five preferred equity investments 
  • Two investments in unconsolidated joint ventures

As of September30, 2023, Sabra’s real estate properties held for investment included 37,606 beds/units spread across the United States and Canada.

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