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5 companies with ROIC up to 30% for portfolio diversification

David Boulder
25. 3. 2024
4 min read

In the current turbulent economic environment, portfolio diversification is essential for investors seeking stability and growth in their investments. The combination of dividend yields and expected growth can make these 5 selected stocks attractive options for investors. Their return on invested capital (ROIC) of up to 30% demonstrates their ability to generate high profits and provide investment value.

The diverse mix of these companies with different sectors and market positions helps to reduce risk and maximize potential over the long term. Investors seeking stable growth and investment income should consider including these stocks in their portfolio to achieve optimal diversification and achieve their investment objectives.

Colgate $CL+1.9%

Colgate has held its position as one of the leading companies in the consumer goods. It has paid dividends to shareholders since 1963, representing an incredible 61 years of consistent payouts. This long history demonstrates not only the company's stability, but also its ability to adapt to changing market conditions and maintain its position as a leader in its industry.

CL
$91.01 $1.72 +1.93%
Target Price
85.31 (-6.26% Downside)

With a dividend yield of2.23% Colgate it attracts investors to hold the stock for the long term. Analysts predict further growth in the stock's value, with a projected share price of $95.

Home Depot $HD+0.9%

Home Depot is not only retail retailer, it's a key player that serves as an economic "benchmark" With a market capitalization of over $370 billion and annual sales of 150 billion Home Depot is one of the most significant players.

HD
$335.09 $3.11 +0.94%
Target Price
350.31 (+4.54% Upside)

With a dividend yield of 2.42%, investors enjoy not only stable dividend payments, but also long-term growth potential. Analysts predict further growth in the stock's value, and the projected share price is at $450. This combination of dividend yield and growth amounts to Home Depot an attractive investment opportunity. With a 29.28% return on invested capital (ROIC) and a three-year sales growth rate of around 7.5%, Home Depot outperforms its peers and offers investors a solid foundation for long-term success.

IBM $IBM-1.1%

With a market capitalization of over $170 billion and approximately 380,000 employees worldwide, IBM is one of the leading technology giants. Innovation is a key element of IBM's success. With its Watson and other advanced technology solutions, IBM helps IBM its clients around the world to harness the power of digital intelligence and solve complex business problems.

IBM

IBM

IBM
$167.13 -$1.78 -1.05%
Target Price
159.81 (-4.38% Downside)

With a dividend yield 3,3 % IBM is an attractive choice for investors seeking long-term investment income. Analysts predict further growth in the stock's value, and the implied share price is at USD 354. In addition, IBM recently reported fourth quarter revenue growth of 4% on 17.3 billion USD, showing the company's strength and stability in the face of economic challenges.

AvalonBay Communities $AVB+0.1%

AvalonBay Communities is a key player in the real estate industry, offering an investment opportunity with the prospect of long-term growth and stability. With a portfolio of residential properties in major metropolitan areas on the East Coast and in California, AvalonBay the third largest apartment owner in the United States.

AVB
$191.45 $0.13 +0.07%
Target Price
235.67 (+23.10% Upside)

Analysts are forecasting further growth in the stock's value, with a projected share price of $307. With a dividend yield of 3.6% , the AvalonBay is an attractive investment target for those seeking stable investment income. Which makes AvalonBay an interesting choice for investors looking for long-term appreciation of their investments.

Universal Corp $UVV-0.9%

Universal Corp is one of the world's leading tobaccoretailers , offering an investment opportunity with long-term growth prospects and stability. Universal Corp has been in the tobacco business for over 100 years and offers a broad portfolio of tobacco products.

UVV
$50.80 -$0.45 -0.88%

With a dividend yield 6,3 % Universal Corp is an attractive option. Analysts predict that Universal Corp's stock price will reach $80.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis on your own.

Source.


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