Investors love dividend stocks because they not only provide dependable income but also give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends and distributions realized over a given period. In other words, the total return on an investment or a portfolio includes both dividend income and stock appreciation.
While last week’s big rally certainly made investors feel somewhat better, the reality is that the path of least resistance for the market may be lower at the worst or sideways at the best. The Federal Reserve is removing the liquidity punchbowl via higher federal funds rates and also ending and liquidating the quantitative easing purchases.
In a new and comprehensive report from Jefferies, the firm’s Microstrategy team is out with a dividend playbook for the rest of 2022. We focused on U.S. stocks that they consider “rock solid,” as the last thing investors need is a cut or elimination of dividends from stocks they own. In addition, all are rated Buy at Jefferies and other top Wall Street firms. However, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Investors who are more conservative may want to consider this mega-cap tech leader. Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells internet protocol (IP) based networking products and services related to the communications and information technology industry worldwide.
The company provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points and servers, as well as next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice and video applications.
Its cybersecurity products give clients the scope, scale and capabilities to keep up with the complexity and volume of threats. Putting security above everything helps corporations innovate while keeping their assets safe.
Shareholders receive a 2.72% dividend. BofA Securities has a $68 target price on Cisco Systems stock. The consensus target is $63.91, and Monday’s closing share price was $56.00.
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Hewlett Packard Enterprise
This spin-off from a Silicon Valley legend holds solid upside potential. Hewlett Packard Enterprise Co. (NYSE: HPE) provides solutions that allow customers to capture, analyze and act upon data seamlessly.
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