While the market dazzles with the allure of AI and cryptocurrencies, some investors are veering towards the road less traveled – dividend stocks. Bank of America’s recent report on investors divesting $4.4 billion from tech stocks signals a shift towards safety and value. In light of this, exploring passive-income plays might just be the prudent route to take.
Trash into Treasure: Waste Management (WM)
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Think intrinsic and what pops up? Trash. Waste Management (NYSE:WM) handles the unglamorous yet indubitably essential task of waste disposal. Like death and taxes, waste generation is an inevitability which plays into WM’s favor. Fiscal setbacks have been sporadic, but in 2023, WM saw an average positive earnings surprise of 3.83%.
Projections for the current fiscal year hover at $6.93 EPS with revenue hitting $21.75 billion. While the forward dividend yield may be a modest 1.42%, few ventures promise as steady a revenue stream. Thus, Waste Management stands tall among the roster of dividend stocks for the long haul.
Black Gold: Chevron (CVX)
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Chevron (NYSE:CVX) sparks debates with its status quo stance on hydrocarbons amid the electric vehicle fervor. Yet, recent recalibrations by industry peers hint at a potential U-turn on EV dominance. Chevron, a reliable performer save a bumpy Q3, saw an average 5.1% earnings surprise in 2023.
Expectations for the current fiscal year foresee $12.57 EPS on $200.79 billion revenue, not quite a match for last year’s $13.13 per share and $200.95 billion sales. However, pundits predict a high-end EPS of $14.55 and revenue touching $246.34 billion.
The clincher? An attractive 4.19% forward yield, substantiating potential and stability even in the face of evolving market dynamics.
Golden Years: LTC Properties (LTC)
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For those daring souls who seek bold dividends, LTC Properties (NYSE:LTC) beckons. This real estate investment trust focuses on senior housing and healthcare properties, leveraging sale-leasebacks and structured finance schemes.
LTC’s track record may not gleam in 2023 due to erratic earnings, but the allure lies in the silver tsunami – the silvering population. Q1 and Q2 painted mixed pictures, yet an average 14.75% earnings surprise for fiscal 2023 hints at potential.
Analysts eye sales of $199.33 million for this fiscal year, albeit a marginal 1.1% increase over last year. Despite rated ‘hold’, LTC boasts a generous 7.08% forward yield – a siren call for the risk-takers in the dividend stock arena.
Josh Enomoto has analyzed high-stakes contracts with industry giants in his former role with Sony Electronics. His insightful observations have graced diverse industries, underlining his knack for dissecting investment markets and broader sectors convincingly. Connect with him on Twitter at @EnomotoMedia.
