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Dividend Stocks our AI Quant Models Like Amid Volatile Global Markets

Dec 10, 2018

 

  • Earlier this morning, we highlighted that equity risk premiums, as measured by the difference between the S&P 500 earnings yield and the 10-Year TIPS yield, are back to late CY2016 levels.  You can read more about our commentary here: Global Stocks Continue Drop as US-China Tensions Rise Following Arrest of Huawei CFO.  In this type of environment, it might make sense for investors to consider dividend stocks in their portfolios to generate “yield” income as market volatility finds its level.   
     
  • We look at our Top Buys for December and highlight several stocks we think you might want to consider when adding "income yield" to your portfolios: 
     
  • Enterprise Products Partners (EPD) is one of the largest providers of mainstream energy services for producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. Over the last 12 months, Enterprise Products generated an ROE of 16.2%. Enterprise Products is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas while it maintains an extremely strong forward 12-month dividend yield of 6.82%.
     
  • EPR Properties (EPR) is a real estate investment trust that adheres to rigorous underwriting and investing criteria centered around property level cash flows and industry standards to achieve higher growth potential and better overall yield in Entertainment, Recreation, and Education commercial real estate investment segments. EPR Properties generated an ROE of 9.85% over the last 12 months. EPR Properties is rated “Top Buy” Top Buy" in our US Large-Cap Global Top Stock Ideas with a healthy forward 12-month dividend yield of 6.34%.
     
  • Medical Properties Trust, Inc. (MPW) is a real estate investment trust that seeks to capitalize on changing trends in healthcare delivery through the acquisition and development of net-leased healthcare facilities. Medical Properties Trust realized an ROE of 24.34% over the last 12 months. Medical Properties Trust is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and maintains a forward 12-month dividend yield of 6.04%.
     
  • Altria Group, Inc. (MO) manufactures and sells cigarettes, smokeless products, and wine in the United States through its various subsidiaries, most prominently its Marlboro brand and Black & Mild brand. Altria Group’s generated a sizeable ROE of 77.18% over the last 12 months. Altria Group is rated “Top Buy” in our US Consumer Staples Global Top Stock Ideas and “Attractive” in our US Large-Cap Global Top Stock Ideas and trades with a forward 12-month dividend yield of 6.02%.
     
  • Kraft Heinz Co. (KHC) is a manufacturer and seller of food and beverage products across the globe. Kraft Heinz generated an attractive ROE of 16.73% over the last 12 months. Kraft Heinz is rated “Top Buy” in our US Consumer Staples Global Top Stock Ideas and “Neutral” in our US Large-Cap Global Top Stock Ideas while it maintains a forward 12-month dividend yield of 5.36%.
     
  • General Mills, Inc. (GIS) manufactures and markets consumer foods worldwide across various brands through five business segments: North America Retail; Convenience Stores and Foodservice; Europe & Australia; Asia and Latin America; and Pet. General Mills generated an attractive ROE of 38.19% over the last 12 months. General Mills is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Staples Global Top Stock Ideas while it trades at a forward 12-month dividend yield of 5.18%.
     
  • Host Hotels & Resorts, Inc. (HST) is one of the largest lodging real estate investment trusts in the world, owning 88 properties across the United States with 5 properties internationally to total 52,000 individual rooms. Host Hotels & Resorts generated a modest ROE of 12.17% over the last 12 months. Host Hotels & Resorts is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas while it maintains a forward 12-month dividend yield of 4.71%.
     
  • Broadcom, Inc. (AVGO) designs, develops, and supplies a range of semiconductor devices through four operating segments: Wired Infrastructure; Wireless Communications; Enterprise Storage; and Industrial & Other. Broadcom’s ROE of 52.23% generated over the last 12 months is very attractive. Broadcom is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas while it trades at a forward 12-month dividend yield of 4.24%.
     
  • BB&T Corporation (BBT) is a financial holding company that performs various banking and trust services primarily for small and mid-size businesses, public agencies, local governments, and individuals through four different operating segments. BB&T generated a moderate ROE of 11.08% over the last 12 months. BB&T is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas while its forward 12-month dividend yield is 3.61%.