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3 Dividend Stocks to Buy and Hold for Decades

3 Dividend Stocks to Buy and Hold for Decades

Although the equity markets are up this month after a pullback in September, the rising COVID-19 cases and weak economic indicators could create headwinds. Also, the low-interest environment has made the yields on the debt instruments non-attractive. So, investors could invest in stocks that pay risk-free dividends to earn stable and predictable income.



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Various Canadian dollars in gray pants pocket

Meanwhile, here are the three dividend stocks that you can buy and hold for decades.

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TELUS

With telecommunication becoming an essential service in today’s digital ecosystem, my first pick would by Telus (TSX:T)(NYSE:TU), which offers a diverse set of telecommunication products and services. Despite the pandemic, the company added 141,000 net new customers in its second quarter, which drove the company’s top-line by 3.6%.

Further, the company generated $511 million of free cash flows, representing year-over-year growth of 57%. Meanwhile, the company’s management expects its free cash flows for this year to come closer to the lower end of the earlier provided range of $1.4 billion to $1.7 billion. So, given its strong cash flows and healthy liquidity of $3.6 billion, I believe the company’s dividends are safe.

The company has announced quarterly dividends of $0.2913 per share for the third quarter, representing a dividend yield of 4.8%. Further, the management has announced to raise its dividends by 7-10% every year from 2020 to 2022, which is encouraging.

Meanwhile, Telus’s growth prospects also healthy, given the launch of its 5G network in five markets across Canada and rising demand for its services amid the structural shift toward remote working and learning. So, I believe Telus would be an excellent buy in this volatile environment.

Canadian Utilities

My second pick would be Canadian Utilities (TSX:CU), which generates 95% of its earnings from regulated

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Reasons Why You Should Hold Sun Life Financial (SLF) Stock

Reasons Why You Should Hold Sun Life Financial (SLF) Stock

Sun Life Financial SLF is riding on strong foothold in Asia, expanding global asset management and a solid financial position. The company currently carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors.

Return on equity of 13.8% in the trailing 12 months was better than the industry average of 11.4%, reflecting the company’s efficiency in utilizing shareholders’ funds. It estimates generating underlying ROE of 12-14% over the medium term.

Why Hold is an Apt Strategy?

This Zacks Rank #3 (Hold) life insurer expects to witness underlying earnings per share rise of 8-10% per annum over the medium term. The expected long-term earnings growth is pegged at 9%, higher than the industry average of 5.5%. It has a favorable Growth Score of B. This style score analyzes the growth prospects of the company.

The third largest insurer in Canada remains focused on the emerging economies that are expected to provide higher return than the North American markets. Continuous strategic investments in Asia are in tandem with its growth strategy. It is shifting focus toward products that park lower capital and offer more predictable earnings. Aiming a spot within top five players, the company is growing its voluntary benefits business.

Sun Life is aggressively trying to boost its Global Asset Management Business, which has been witnessing a rise in asset base for the past quarters.  The company currently has $1.1 trillion worth of assets under management.

Acquisitions have been an important part of the company’s growth strategy. It acquired a majority stake in InfraRed Capital Partners to broaden management suite of alternative investment solutions. It is also contemplating to acquire Crescent Capital Group, the $28-billion worth credit manager, per sources. This

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Here’s Why You Should Hold On to Truist Financial Stock Now

Here’s Why You Should Hold On to Truist Financial Stock Now

Truist Financial Corporation TFC, formed following the BB&T-SunTrust merger in December 2019, will benefit from decent revenue growth and adequate available liquidity. However, mounting expenses and a low rate environment are major near-term concerns.

Truist Financial has been witnessing a steady rise in net interest income (NII) despite lower rates. The company’s NII increased in 2019 and first-half 2020, mainly on the elevated loan demand. Though there has been a fall in demand for consumer loans amid the pandemic-related economic slowdown, commercial lending activities continue to improve. Despite the uncertainty related to COVID-19, demand for loans is expected to be decent in the days to come. Thus, this is likely to support NII in the upcoming quarters.

Moreover, the company is focused on growth of non-interest revenue sources. Fee income grew in 2019 and the first six months of 2020. With near-zero interest rates and lower mortgage rates, a rise in origination volume and higher refinancing activities are being witnessed. Further, strength in investment banking and insurance income will support non-interest income growth in the upcoming period.

Truist Financial also has a decent capital-deployment plan. The company cleared the 2020 stress test and announced that it will maintain dividend at the prior level. Besides, the bank has suspended share repurchases until a sustained economic recovery is seen. Given a solid liquidity position and debt/equity ratio lower than the industry, it will be able to sustain dividend payments.

Also, shares of this Zacks Rank #3 (Hold) company have gained 19.4% over the past six months as against the 3.2% decline recorded by the industry. Furthermore, analysts seem to be bullish on the stock. The Zacks Consensus Estimate for earnings has been revised 4.2% and marginally upward for 2020 and 2021, respectively in the past seven days.

Nevertheless, the prevailing low rate

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Hold Dish Network Stock For 6 Months To Beat The Market

Hold Dish Network Stock For 6 Months To Beat The Market

Dish Network stock (NASDAQ: DISH) dropped 14% in the last one month to $28 currently. The decline was in line with the sell-off in the technology and cable industry over recent weeks. But will the company’s stock continue its downward trajectory over the coming weeks, or is a recovery in the stock imminent?

According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price data for the last 20 years, returns for Dish Network stock average 1.5% in the next one-month (21 trading days) period after experiencing a 14% drop over the previous month (21 trading days). Notably, though, the stock is very likely to outperform the S&P500 over the next month (21 trading days), with an expected excess return of 0.6% compared to the S&P500.

But how would these numbers change if you are interested in holding Dish Network stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Dish Network stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!

MACHINE LEARNING ENGINE – try it yourself:

IF DISH stock moved by -5% over 5 trading days, THEN over the next 21 trading days, DISH stock moves an average of 1.3 percent, which implies an excess return of 1 percent compared to the S&P500.

More importantly, there is 55.5% probability of a positive return over the next 21 trading days and 53.4% probability

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