Two high-yield stocks to buy in November. You’re looking for a stock that pays a solid dividend yield and isn’t incredibly risky
If so, for Motley Fool, a Virginia-based investment and financial advisory firm, the two stocks that should be on investors’ radar this month are Walgreens Boots, an American multinational that distributes health and wellness products, and the US telephone company, At & t. Both are paying far more than the 1.3% average return that would be obtained with a stock in the S&P 500 index. And with solid business behind them, investors need not worry about the safety of their payouts. shareholders), Motley Fool pointed out.
More specifically, Walgreens benefited from increased traffic for Covid-19 in its stores this year. And with the recalls coming, it’s a trend that shouldn’t slow down yet. In its fiscal fourth quarter (ending August 31), the company reported earnings per share (eps) of $ 1.17, which significantly beat analysts’ expectations at $ 1.02. Revenue at $ 34 billion was also better than analysts’ projections of $ 33 billion. Underlying this surprising performance was having administered twice the number of vaccines he thought.
But even as investors think there will be a slowdown in this trend in the coming quarters, this is still a great time to invest in Walgreens, according to the broker. The stock has fallen 10% in the past six months, while the S&P 500 index has risen 10%. “It hasn’t been highly regarded despite this year’s strong performance – it has beaten analysts’ expectations for earnings in each of the past four quarters,” said Motley Fool. Additionally, with the company investing $ 5.2 billion in primary care provider VillageMD to diversify its business, there are more opportunities for growth in the future. The two companies plan to launch 1,000 co-located primary care practices by 2027. ”
Walgreens announced an increase in its dividend in July for the 46th year in a row. Four more raises and he will become a “dividend king”. Today, the company’s annual dividend is $ 1.91 per share, which is 83% of the $ 2.30 earnings per share Walgreens reported in fiscal year 2021. Still a sustainable payout, according to Motley Fool. , especially if expansion opportunities with VillageMD pay off. “Not only does Walgreens look like a stock offering safe, high-yield dividends to buy this month, but there is a strong likelihood that investors will also benefit from more hikes in the future.”
Instead, At & t’s current 8.2% yield seems far too good to be true. However, “it shouldn’t deter investors, as there will be a change in the company’s dividend policy once it separates from WarnerMedia, which joins media company Discovery. For dividend investors, this may be welcome news. , as the spin-off means that the HBO Max streaming service will also quit AT&T, ”Motley Fool noted.
If that means less growth opportunities for AT&T, it will also mean the company won’t go against Walt Disney and Netflix in the battle over content and the fight for streaming subscribers. It would have been difficult for the telecom giant to continue paying a high dividend while also pursuing growth targets for HBO Max.
Once the deal is completed, AT&T said it will “scale down” its dividend to a sustainable 40% -43% of free cah flow. How this will turn out is a question mark, but historically the group has been able to pay a high yield with its payouts sitting comfortably above 4% in each of the past five years. While the payout will likely end up being more modest in the future, it appears to be a safe bet for Motley Fool At & t to continue providing its shareholders with an above-average payout, especially in light of an encouraging performance over the past quarter.
In fact, in its latest results (through September), AT&T has seen strong growth, with CEO, John Stankey, saying: “We have had our best net add postpaid quarter in more than 10 years.” The 928,000 net add was 18% higher than the 789,000 reported in the previous quarter. In the mobile segment, revenues grew by 7% and consumer wireline sales also increased by more than 3% over the previous year.
At & t is, therefore, performing well in the midst of an economy that is reopening and with the company moving away from the streaming business “it will once again be a boring but stable telecommunications action that can be counted on for dividends. The stock has fallen by 19% in six months and this “, concluded Motley Fool,” could be an opportune moment for investors to buy it, as we do not believe the recent sell-off is justified “. (All rights reserved)
