4-Value/Dividend Stocks For An Uncertain Market
This article was written for RIA PRO subscribers by Matthew (Cole) Robertson who is an analyst with RIA Advisors in Houston, Tx.
MetLife, Inc. (MET)
MetLife, Inc. (MET), a provider of insurance and financial services based in New York is an intriguing stock yielding high dividends. The common stock currently generates an annual dividend of $1.84 (4.80%).
- MET has ramped up dividends every year in the past five years by 20% ($0.38 in 2015 $0.48 in 2020)
- MetLife has beat earnings estimates in the past two quarters of 2020 amidst the coronavirus pandemic
- 30% revenue growth in the first two quarters in 2020
- P/E ratio of 4.03 compared to competitor’s average of 9.87
- Price-to-book value of 0.49
- Positive outlook of with a diversified business model in insurance and financial services across the world including emerging markets
B&G Foods, Inc, (BGS)
B&G Foods, Inc, (BGS), is a frozen foods company based in Parsippany, New Jersey employing over 2,706 full-time employees. The company hosts brands such as Green Giant, Old London, and Ortega.
- Currently maintains a 7.13% dividend yield
- BGS has maintained a 5.7% average in the past five years
- B&G projects to post revenue growth of 37.7% from Q2 2019 and a $0.64 earnings per share according to Zacks
- Price-to-book value of 2.11
- Profit margin of 5.11%
The food conglomerate outlook has upside due to uptick of household cooking by millennials and financial strain on individuals due to the coronavirus pandemic. B&G Foods continues to be a company that provides value to investors while keeping an upside for future growth.
AT&T Corp. (T)
The Dallas based telecom company of AT&T (T) has been a cornerstone dividend stock among investors. However, the giant’s current value should be appealing to both value and dividend investors alike.
- AT&T has share price has rebounded ~10% compared to ~40% rebound for the rest of the S&P 500 since March lows
- AT&T’s rebound lag provides investors with an opportunity for growth
- 5G technology and an increase in subscription services will facilitate AT&T’s growth
- ~25% decrease in stock price YTD
- Maintains a dividend yield of 7.03% ($2.08 per share)
- P/E ratio of 15.02
- Price to book value of 1.19
Chevron Corporation (CVX)
Chevron Corporation (CVX), the oil and gas giant is the final stock in this list. CVX has enjoyed a sharp rebound compared since the crash in March 2020 compared to its competitors such as Exxon (XOM) and Occidental Petroleum (OXY). Chevron’s acquisition of Noble Energy and significant reserves in the Permian should allow for the giant to generate cash flow in the future. Chevron currently operates with a dividend of $5.16 (5.73%) and should be expected to increase dividends as oil prices continue to rebound from COVID-19 lows in addition to the following reasons:
- CVX has raised its dividend for 32 straight years
- Increased its dividend by 8.4% in February 2020
- 49% return on assets
- Profit margin of 2.86%
- Chevron plans on cutting 33% of its workforce in 2020
- 33% reduction on its capital expenditures
- Increased its dividend by 8.4% in February