Investing

8 High Dividend Stocks to Buy for Q2 Growth & Income

courtesy of Kraft Heinz Co. Inc.

Needless to say, most investors are not sad to see the first quarter in the rearview mirror. Two huge legs down in the major indices give investors a big hit as volatility spiked. The Nasdaq just had the worst month since January of 2016, as the Facebook data breach threw a wrench into the crowded FANG trade and investors sold en masse.

The good news for investors is that first-quarter earnings should be outstanding and the economy is in very good shape. So good in fact that last Thursday’s unemployment report showed the lowest number of filings since 1973. Clearly things are much better than in years past, and with huge cash repatriations, companies will be buying back shares as well.

We screened our 24/7 Wall St. research database for reasonably priced stocks that paid at least a 4% dividend and found eight that look like great buys for growth and income portfolios.

AT&T

This stock has bounced off the lows but is still down from highs printed in January. AT&T Inc. (NYSE: T) is the world’s largest provider of pay TV, with TV customers in the United States and 11 Latin American countries. In the United States, the AT&T wireless network has the nation’s self-described strongest 4G LTE signal and most reliable 4G LTE. The company also helps businesses worldwide serve their customers better with mobility and highly secure cloud solutions.

With its shares trading at a very cheap 12.8 times estimated 2018 earnings, the company continues to expand its user base, and strong product introductions from smartphone vendors have not only driven traffic but increased device financing plans.

AT&T shareholders are paid rich 5.61% dividend. The Wall Street consensus price target for the communications giant is $40.71. The shares closed trading last Thursday at $35.65. The 52-week trading range for the stock is $32.55 to $42.70.

Altria

Altria Group Inc. (NYSE: MO) is a top mega-cap consumer discretionary stock to buy on Wall Street, and the company’s Marlboro brand remains one of the most recognizable in the world. Many Wall Street analysts concede that the stock has solid downside support owing to the generous dividend yield, which remains at a huge premium in relation to the 10-year Treasury rate.

Altria investors receive a hefty 4.5% dividend. The posted consensus estimate is $77.46, and the stock closed Thursday at $62.32 a share. The 52-week trading range is $59.65 to $77.79.

Duke Energy

Duke Energy Corp. (NYSE: DUK) is one of the leading U.S. utility companies, given its stable earnings base, as a significant portion of the company’s earnings is derived from regulated operations. Also, the company has delivered a healthy financial performance in the past and remains an attractive option for income-seeking investors.

Duke shareholders are paid an outstanding 4.6% dividend. The consensus price target of $82.07 compares with the most recent share price of $77.47. The 52-week trading range is $72.93 to $91.80.

Exxon Mobil

This remains a top Wall Street energy pick and is down over 15% in the past month. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.

The company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.

For 75 years in a row, Exxon has raised its dividend on a split-adjusted basis. Thanks to the company’s vertically integrated model in the oil and gas business, its profitability doesn’t suffer through commodity price swings like a company that’s a pure play in one segment of the value chain.

Shareholders are paid a 4.13% dividend. The consensus target price is $86.36. The stock closed most recently at $74.61, in a 52-week trading range of $72.67 to $89.30.

General Mills

General Mills Inc. (NYSE: GIS) is the world’s ninth-largest producer and marketer of packaged food and the fifth-largest in the United States. The company’s 13 divisions compete in over 20 food categories, supplying products to all manner of retailers, along with food distributors, restaurants, bakeries and vending machine operators.

The company reported solid earnings for their fiscal third quarter of 2018, but higher input prices could temper margins going forward. The stock remains a safe play for total return accounts.

Investors in General Mills receive a nice 4.35% dividend. The consensus price objective is $55.39, and shares ended last week at $45.06 apiece. The 52-week trading range is $43.96 to $60.69.

Kraft Heinz

Kraft Heinz Co. (NYSE: KHC) is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world, with eight $1 billion or more brands. The company’s iconic brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.

Shareholders are paid a 4.01% dividend. The consensus target price is $81.23. The shares closed most recently at $62.29, in a 52-week trading range $59.95 to $93.88.

Simon Property

Simon Property Group Inc. (NYSE: SPG) invests in the real estate markets across the globe. It engages in investment, ownership, management and development of properties. It primarily invests in regional malls, premium outlets and community/lifestyle centers to create its portfolio.

Through its subsidiary partnership, it owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.

Shareholders receive a 4.76% dividend. The consensus price target on Wall Street is $186.24. The shares ended trading last week at $154.35. The 52-week trading range is $147.28 to $176.17.

Verizon Communications

This is a top telecommunications company and has had among the worst performing Dow Jones industrial average stocks for much of this year, with shares down over 10%. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s self-described most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Verizon posted solid fourth-quarter results and remains a safe and solid growth and income play.

The dividend yield is 4.9%. Wall Street has a consensus price target of $55.96. The stock closed at $47.82, in a 52-week trading range of $42.80 to $54.77.

These are eight solid picks, not only the second quarter but the rest of 2018. While the economy should do well, we can also count on continued higher volatility as numerous extenuating factors remain in the news.

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