When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Strategic investments lead to predictable financial outcomes. Dividends have proven their ability to provide stability against market fluctuations. We discuss two picks with up to 8% yields for a stress-free retirement.
After a decline in 2023 and sluggishness in the first half of 2024, BTI's price has picked up impressive pace recently, with 22% YTD gains. This can be attributed to progress on its new categories segment, with marketing authorisation received for its Vuse vapes and the segment's rising contribution to financials. At the same time, the market multiples still indicate further upside and the dividend yield looks good too.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
From a long-term perspective, prolonged and stable returns often lead to dividend stocks. These types of stocks provide constant income and mark strong business fundamentals.
British American Tobacco (BTI) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Here is how British American Tobacco (BTI) and Vital Farms (VITL) have performed compared to their sector so far this year.
Warren Buffett is not a fan of portfolio diversification. He once indicated it meant that someone didn't know what they were doing.
Consumer stocks are in an interesting position. Numerous consumer discretionary stocks have been oversold amid growing economic uncertainty, while consumer defensive stocks are defensive plays that can protect against a volatile economy.
I initially had concerns about the sustainability of the dividend, the deterioration of the core business, and the transition to smoke-free products. BTI continues to prove me wrong, strengthening its balance sheet and demonstrating strong growth in smoke-free products. Changing market sentiment, which I previously thought was too stable, has led me to revise my rating to “Buy.”.
Fed Chairman Jerome Powell hinted at a possible rate cut at the September meeting, reinforcing investor expectations. Powell expresses confidence in achieving a soft landing, as inflation trends towards the 2% target. These are 3 high-yield dividend stocks which should benefit.
BTI stock rallied 11.4% post-earnings after mid-mild market turbulence, showcasing its defensive qualities. However, the price rally only factored in the potential from new categories and the market still overstates risks with its traditional cigarettes. On the other hand, the current high dividend yield understates total return potential because it neglected buybacks and debt paydowns.