The top 5 dividend companies that analysts now recommend
The analysts' recommendations should not be 100% indicative for any investor. But of course they can suggest something and that is why many people follow them. And today we're going to take a look at 5 dividend companies that analysts say are perfect choices.
I found a list that includes the top-rated dividend stocks according to stock analysts. Each stock on the list has an average "buy" or "strong buy" rating from at least 20 analysts. Each stock also has a dividend yield of at least 2% and a payout ratio below 60%, indicating that the dividend is sustainable. And we'll take an even closer look at them.
The Home Depot, Inc. $HD-0.5%
The Home Depot is one of the world's largest retailers of building materials and DIY and household products. It was founded in 1978 by George Fernando and Bernie Marcus and is headquartered in Atlanta, Georgia.
HD operates as a retail chain with more than 2,000 stores in 50 U.S. states, Canada and Mexico. It offers a wide range of merchandise such as building materials, tools, DIY supplies, gardening supplies, interior decoration, bathroom and kitchen fixtures, lighting and many more for the home.
The Home Depot also specializes in providing advice and assistance to professional and amateur DIYers. The stores have staff with expertise in their respective fields who are happy to advise customers. A wide range of manuals, plans and guides are also available. To attract customers, the company also offers services such as a project calculator and the ability to rent work tools and equipment.
HD is one of the ten largest corporations in the world in terms of size. It has revenues of nearly $150 billion and employs over 500,000 people. The Home Depot's popularity continues to grow due to its convenient combination of a wide assortment of products, friendly service, and one-stop shopping for customer needs.
The Home Depot does a lot to engage its employees in profit sharing, bonuses, and stock ownership. The company has made millionaires out of thousands of former employees who started at the lowest level. According to anylitics, that's the main reason you can feel secure owning the company. It has an excellent culture and customer-centric strategy that transcends generations and beliefs and provides undeniable value to American homeowners.
The company has struggled since the demand for COVID time has declined, but all indications are that it's over. Profits look set to accelerate next year. Profits are likely to grow even more if the concurrent economic and demographic headwinds converge.
Merck & Co $MRK-1.2%
Merck & Co, Inc, also known as MSD outside North America, is a global pharmaceutical and healthcare company focused on the research, development, manufacture and sale of pharmaceuticals for human and veterinary use. It is headquartered in New Jersey and trades on the stock market under the symbol MRK.
Merck has been in business since 1891 and has provided the world with many breakthrough medicines in that time. Among its outstanding achievements are:
- The first synthetic antibiotic, sulfanilamide.
- Smallpox and measles vaccines
- Mectizan® against river blindness
- Gardasil® against human papillomavirus
Today, Merck has a very diverse portfolio of more than 20 therapeutic areas, with cancer, vaccines and heart disease drugs being the most profitable. In 2021, the company will reach $46 billion in sales.
Merck & Co.
MRKAlthough Merck thrives on a strong brand and research, it faces several risks such as loss of patents on key drugs, low product diversification, regulatory issues and competition from biologics.
Merck uses acquisitions, research and alliances to reduce risks and strengthen its position. It invests $10 billion a year in research and innovation. Its top priority is growth in vaccines, oncology and metabolic diseases. Merck's long history of success, research capabilities and strong financial position provide good prospects for further growth, although it will still have to face new challenges.
United Parcel Service $UPS-0.3%
United Parcel Service, Inc., better known as UPS, is one of the world's largest parcel shipping companies. It was founded in 1907 and is headquartered in Virginia. It focuses on providing courier, parcel, logistics and delivery services worldwide.
UPS's strength is its vast global shipping network, which includes offices in more than 220 countries. By delivering more than 22 million shipments a day, UPS has built a reputation as a reliable service provider for e-commerce businesses. UPS also benefits from its more than 100-year history of building trust with customers and partners. The company offers a wide range of logistics solutions, from small parcels to the international transport of high-volume goods.
UPS's weaknesses include increasing competition from traditional carriers such as FedEx and DHL, as well as emerging technology solutions for parcel delivery. UPS faces challenges from automation and the digital transformation of logistics as a whole. Tough regulations in the areas of energy efficiency, safety and environmental protection are also impacting UPS operations.
Although UPS faces various challenges, its strong position in e-commerce, flexibility and continuous investment in innovation and service expansion should help it to grow further. It will also be important to address competition and regulatory issues to help UPS maintain its position as an industry leader.
EOG Resources $EOG-0.6%
EOG Resources is one of the largest oil and gas exploration and production companies in the United States. It focuses primarily on production in the United States. It is headquartered in Houston, Texas.
Their pure focus on oil and gas production in the United States allows them to maximize their business model and focus on the most efficient returns. They have large oil and gas reserves, which allows them to maintain high production well into the future. They hold a leading position in horizontal drilling and hydraulic fracturing technologies, which allows them to produce from even the worst reservoirs. They have a strong balance sheet and generate high cash flows.
But they also have several disadvantages. For example, lower diversification than integrated oil companies. They are more sensitive to oil and gas price fluctuations. They have more limited access to capital than larger firms in the industry. Dependence on federal permits and a regulatory environment that changes rapidly.
Overall, EOG benefits from its specialized model that allows it to achieve efficient returns from a relatively limited area of operations. The company has focused on acquisitions and lean management to reduce vulnerability to price fluctuations. Going forward, it will be important to invest in increasing production and new technologies to maintain its competitiveness in the industry.
FedEx Corporation $FDX-0.7%
Interestingly, the top two positions were taken by two companies in a sector that you probably wouldn't think of in dividend investing. But analysts clearly like them.
FedEx Corporation is a global parcel shipping and logistics services company based in the United States. Known by the acronym FDX, the company is an industry leader and its services are used by millions of customers around the world.
FedEx holds its position as an industry leader thanks to a very extensive global transportation network that includes offices in more than 220 countries. They have been able to adapt to the development of e-commerce and become an integral part of it, which is key to growth. The FedEx brand is considered synonymous with fast and reliable shipping. They offer their customers a wide range of services from courier services to logistics to extreme shipments.
However, it also has weaknesses, for example: competition from established competitors such as UPS and emerging companies in e-commerce logistics. Challenges arising from automation and robotization of processes that the company does not use much. High operating costs. Dependence on economic activity and international trade.
FedEx is a financially healthy company in the long term. It is looking to strengthen its position in e-commerce, invest in automation and expand its services. Going forward, it will have to deal with increasing competition and pressure to lower costs. If they can combine this with innovation, they could grow further.
Disclaimer: This is in no way an investment recommendation. It is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.
