The advent of the new version of Omicron COVID has shown investors that epidemic instability is not over. So when it comes to what to bet on, it makes sense to look at bigger companies that have safer ways to grow.
If you are a buying investor, large equity stocks are one of the safest bets you can go through. These companies tend to have strong business models that allow them to generate regular cash flow for their shareholders. Strong balances, commodities and services, as well as large global tracks, also help investors secure significant annual returns.
In addition, rising inflation աճ rising profitability make high dividend payers more attractive to long-term investors who want to maintain their fixed income value. Below, we have singled out three such shares.
Health stocks are considered relatively safe և are considered solid income producers.
Medtronic (NYSE 🙂 is a lesser-known healthcare stock that we like because of the company’s strong market position և its huge payouts. The world’s largest medical device maker controls 50% of the global pacemaker market. It is also a leader in products that support spinal surgeries and diabetes care.
No matter where the economy is headed, shares like Medtronic will continue to export cash. The company, based in Dublin, Ireland, has a long-term strategy of paying 50% of its free cash flow to shareholders as dividends. At 2.27% per annum, the company pays a quarterly dividend of $ 0.63 per share. That payment has, on average, grown by more than 10% per annum over the past five years.
Last week’s sales of Medtronic, which did not live up to Wall Street expectations, reduced its revenue growth prospects due to the revival of COVID-19 and health care challenges.
But this weakness is temporary և, in our opinion, a good buying opportunity for dividend investors. The company is one of the strongest, anti-inflation stocks that has a clear leadership in the medical device business և can recover when the epidemic is contained.
2. Texas Instruments:
Technical giant Texas Instruments (NASDAQ), which manufactures electronics, including chips, used in many diversified industries, is a strong name to increase your revenue portfolio.
TI gets most of it from industrial equipment manufacturers. It also manufactures semiconductors that include everything from cars to home electronics to space equipment.
But the biggest attraction for long-term investors is the company’s dividend plan, which is growing year by year. With an annual dividend yield of 2.4%, TXN currently pays $ 1.15 per share on a quarterly basis, which has grown by more than 20% per annum over the past five years.
With a payout ratio of just over 50%, TI will be in a good position to continue to increase its dividends in the future. In addition, the company’s long-term growth prospects are brightened by the amount of electronics added to cars: cars. Unlike many chipmakers, who mainly supply their own products, Dallas-based Texas Instruments has factories that meet about 80% of their own needs.
3. JPMorgan Chase:
Banks are purely cyclical trades, very closely related to the direction of the economy. Right now, these factors have become quite favorable for bank shares, given the prospects for higher interest rates and stable economic growth.
Of the bank shares, we like JPMorgan Chase (NYSE :), the largest lender to income investors operating in the United States because of its balance sheet power and the quality of its operations.
In its most recent period, JPM has shown strong results as the economy continues to grow despite the mitigating effects of COVID options և supply chain disruptions.
In the third quarter, the lender in New York recorded a 52% increase in investment bank payments, increasing its profitability. Combined with huge government infrastructure spending programs and a gradual reduction in monetary stimulus, banks may see a significant increase in demand for credit next year as companies and individuals consume the liquidity accumulated during the epidemic.
With an annual dividend yield of 2.47%, JPM pays a quarterly dividend of $ 1 per share, which has grown by about 18% per annum over the past five years.