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UBS Adds New Stock for April to Prestigious Dividend Ruler Stocks Portfolio

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One thing has become very clear as interest rates have plunged since the beginning of 2016, dividend stocks that were somewhat out-of-favor last year continue looking to be much more in vogue this year. With the prospects for faster Federal Reserve interest rate increases diminishing as growth and corporate profits slow, the top dividend stocks can offer total return for more conservative accounts.

In a recent research report, the UBS Dividend Ruler portfolio team made some of their first changes for the second quarter, adding in a top insurance company stock that offers outstanding dividends and good upside potential.

Here we track the changes to the portfolio, and also highlight the three top-yielding companies.

Chubb Ltd. (NYSE: CB) is a new addition to the portfolio and becomes the only insurance company to make the grade. It provides property and casualty insurance and reinsurance products worldwide. Its Insurance and North American P&C segment offers casualty insurance, environmental, inland marine, professional risk, disaster protection, vacant land and building, and claims and risk management services; homeowners, automobile, valuables, umbrella liability and recreational marine insurance; and wholesale excess and surplus lines property, casualty, environmental, professional liability and product recall coverages.

UBS believes the company is well positioned to generate sustainable earnings growth in the years ahead. The firm also notes that on January 15, 2016, ACE Ltd. completed the purchase of Chubb Corp. and adopted the premium consumer brand name in Chubb, creating Chubb Ltd. The resulting combined company creates one of the largest property and casualty insurance companies in the world.

Chubb investors receive a 2.28% dividend. The Thomson/First Call consensus price target for the stock is $126.57. The stock closed most recently at $117.63.


Here are the current three top-yielding companies in the Dividend Ruler portfolio:

Boeing Co. (NYSE: BA) designs, develops, manufactures, sells, services and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services worldwide. Investors are paid a very solid 3.43% dividend. The consensus price target for the stock is $137.95. The shares closed trading on Thursday at $127.

Intel Corp. (NASDAQ: INTC) is a world leader in computing innovation. It designs and builds the essential technologies that serve as the foundation for the world’s computing devices. As a leader in corporate responsibility and sustainability, Intel also manufactures the world’s first commercially available “conflict-free” microprocessors. The company provides processors for all the Apple desktop and notebooks. Intel investors receive a solid 3.3% dividend. The consensus price target is $35.83. Shares closed Thursday at $31.55.

Invesco Ltd. (NYSE: IVZ) is a financial services leader with strong positions in both equity and exchange traded funds (ETFs). Invesco PowerShares is the boutique investment management firm that manages a family of ETFs. The company has been part of Invesco, which markets the PowerShares product, since 2006. The incredible growth and popularity of the product is why many on Wall Street remain so bullish on the stock. Shareholders receive a 3.65% dividend. The consensus target price is $36.40. The shares closed Thursday at $29.60.

As we have noted in the past, the Dividend Ruler portfolio has far outperformed the S&P 500 on a total return basis since the portfolio’s inception in 2003. For growth and income investors, the UBS stock picks are among the best in the business.

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