24/7 Wall St. Insights

• Jefferies is one of Wall Street’s fastest-growing firms.
• Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500.
• Access 2 legendary, high-yield dividend stocks Wall Street loves.

The artificial intelligence rally over the past year and a half, led by the so-called Magnificent 7, has been remarkable if you owned those stocks. However, most of the S&P 500 is treading water and will not likely catch up to the hype-driven AI stocks soon.

One thing remains certain: with storm clouds gathering on the horizon and the risk of an escalating conflict in the Middle East, many Wall Street strategists are cautious, predicting modest single-digit gains for the remainder of 2024. However, a significant 20% or more sell-off could also be possible.

Our screening of the Jefferies Franchise list of buy-rated stocks has unearthed five top companies that offer solid total return potential and dependable dividends, presenting an outstanding opportunity for those seeking passive income.

These stocks are among the top Wall Street investment banks’ best dividend ideas, and they are likely to attract the attention of savvy investors. The company noted this in a recent research report when they added some new companies to the Franchise List of top stock ideas:

Jefferies’ Franchise Picks are amongst our highest-conviction, Buy-rated
stocks across U.S. Research. These 22 top ideas are underpinned by differentiated analysis, supported by catalysts, and at valuation levels suggesting upside.

Amgen 

This biotech giant remains a top stock for investors to buy and pays a solid 2.95% dividend. Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide.

Amgen focuses on:

• Inflammation
• Oncology/hematology
• Bone health
• Cardiovascular disease
• Nephrology
• Neuroscience 

The company’s products include:

•  Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis.
•  Neulasta reduces the chance of infection due to a low white blood cell count in patients with cancer.
•  Prolia to treat postmenopausal women with osteoporosis. 
• Xgeva for skeletal-related events prevention.
• Otezla for treating adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behcet’s disease. 
• Aranesp to treat a lower-than-normal number of red blood cells and anemia. 
• KYPROLIS to treat patients with relapsed or refractory multiple myeloma.
• Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization. 

ConocoPhillips

This is another large-cap company that offers substantial value for investors and a solid 2.90% dividend. ConocoPhillips (NYSE: COP) explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide.

Conoco’s portfolio are:

• Resource-rich North American tight oil and oil sands assets
• Lower-risk legacy assets in North America, Europe, Asia, and Australia
• Various international developments and an inventory of conventional and unconventional exploration prospects

Many Wall Street analysts feel Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford with visibility on future growth.

In addition, ConocoPhillips and Marathon Oil Corp. (NYSE: MRO) announced recently that they have entered into a definitive agreement. Pursuant to this agreement, ConocoPhillips will acquire Marathon Oil in an all-stock transaction with an enterprise value of $22.5 billion, inclusive of $5.4 billion of net debt. 

Equitable Holdings

This venerable money managment and insurance giant offers a potential breakout at current trading levels and a 2.39% dividend. Equitable Holdings Inc. (NYSE: EQH), together with its consolidated subsidiaries, operates as a diversified financial services company worldwide.

The company operates through six segments:

• Individual Retirement
• Group Retirement
• Investment Management and Research
• Protection Solutions
• Wealth Management
• Legacy

The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals.

The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses.

The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional.

The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses.

The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products.

The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits.

International Paper

This legacy paper giant is also a breakout candidate where it is trading, and it pays a hefty 4.09% dividend. International Paper Co. (NYSE: IP)  produces and sells renewable fiber-based packaging and pulp products in:

• North America
• Latin America
• Europe
• North Africa

It operates through two segments:

• Industrial Packaging
• Global Cellulose Fibers

The company offers:

• Linerboard,
• Medium, whitetop, recycled linerboard
• Recycled medium and saturating kraft
• Pulp for a range of applications

The company’s pulp is used for diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.

It sells its products directly to end users and converters, as well as through agents, resellers, and distributors.

Three Ultra-High Dividend Stocks to Buy With $100 Right Now

PepsiCo

This top consumer staples stock will supply the goods for 4th of July parties and pays a solid 3.17% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company.

Its Frito-Lay North America segment offers

• Lays and Ruffles potato chips
• Doritos, Tostitos, and Santitas tortilla chips
• Cheetos cheese-flavored snacks, branded dips
• Fritos corn chips

The company’s Quaker Foods North America segment provides:

• Quaker oatmeal
• Grits
• Rice cakes
• Natural granola and oat squares
• Pearl Milling mixes and syrups
• Quaker Chewy granola bars
• Cap’n Crunch cereal
• Life cereal
• Rice-A-Roni side dishes

PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

• Pepsi
• Gatorade
• Mountain Dew
• Diet Pepsi
• Aquafina
• Diet Mountain Dew
• Tropicana Pure Premium
• Sierra Mist
• Mug

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