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Deutsche Bank Large Cap Stocks to Buy With Growing Dividends
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Given the stock market’s long run since the post-election 2012 lows, and following yesterday’s rout, now might be a good time to start looking at the top large cap stocks that are growing earnings and dividends. In a recent research report, the equity strategists at Deutsche Bank A.G. (NYSE: DB) highlighted top large cap stocks to buy that featured a market cap bigger than $10 billion, with a price-to-earnings ratio of less than 20 and net debt to market cap of 5% or less.
Here are the top large cap stocks to buy at Deutsche Bank with solid dividend growth.
CBS Corp. (NYSE: CBS) has done an impressive job of making its television network the top-rated network, vaulting over its peers. As a result, CBS stock jumped to all-time highs last month in what has been an impressive recovery since 2009’s stock market lows. The Deutsche Bank price target for the venerable broadcaster is $55. The Thomson/First Call estimate is at $52.50. Investors are paid a 1.0% dividend.
LyondellBasell Industries N.V. (NYSE: LYB) tops the list in the chemicals sector. This specialty chemical maker produces petrochemicals and thermoplastics utilized across a wide array of industries. Customers include makers of consumer products, packaging, housing, autos, and other goods. It also serves the market for rugs and upholstery, as well as numerous other household items. Deutsche Bank has placed a $75 target on the stock, while the consensus target is $72. Investors are paid a tidy 3.0% dividend.
Schlumberger Ltd. (NYSE: SLB) is a go to name in the oil field services sector. Schlumberger is the most diversified company in energy services, generating around 30% of its total revenues from North America. Deutsche Bank has a $91 target, while the consensus is right in line at $91.50. Investors are paid a 1.7% dividend.
J.P. Morgan Chase & Co. (NYSE: JPM) is a solid financial name to buy. Despite the controversy over the huge “Whale” trading losses last year in London, the growth and earnings path for the stock is wide open. Investors made it clear they still want Jamie Dimon at the helm. Deutsche Bank has a $53 price objective, and consensus rests higher at $57. Shareholders receive a 2.9% dividend.
Johnson & Johnson (NYSE: JNJ) is perhaps one of the most diversified companies in the pharmaceutical sector. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. This diversity helps to smooth overall earnings if one segment has a rough quarter. Deutsche Bank has placed $92 price target on the stock, while the consensus stands at $91. Investors are paid a solid 3.1% dividend.
General Dynamics Corp. (NYSE: GD) leads the way in aerospace and defense. The company provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Deutsche Bank has a $78 target. The consensus target is higher at $82. Investors are paid a 2.9% dividend.
General Electric Co. (NYSE: GE) is the top industrial stock to buy at Deutsche Bank. GE Healthcare posted 2012 revenue of $18.3 billion. Its products include a wide variety of medical equipment such as magnetic resonance imaging — or MRI — platforms, ultrasound systems, surgical imaging systems, patient monitoring technology, and many others. The diversity at GE offers investors an industrial stock to buy with many avenues for revenue and growth. Deutsche Bank has placed a $26 target on the iconic company, which is right in line with the consensus target. Investors are paid a solid 3.2% dividend.
Qualcomm Inc. (NASDAQ: QCOM) is a top technology name to buy for investors. Combining tremendous chip sales for smartphones with royalty payments that annuitize revenues make this stock one for almost any portfolio. Deutsche Bank has a $78 price target and the consensus is at $77. Shareholders receive a 2.3% dividend.
Read also: UBS Updates Its Key Call List
We have been diligent in reminding our readers that a market correction may be imminent. Given the market’s reaction to the possibility of the tapering of the quantitative easing and the end of the quarter for portfolio managers looking to lock in gains, stock prices are looking more palatable. The Federal Reserve is growing more comfortable with the economy, which ultimately should prove bullish for stocks. That said, it still makes sense to scale in or buy partial position in these top names, as the selling may not be over.
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