The S&P 500 Index dipped down at the end of the week as investors digested increasing political tensions and a terrorist attack in Barcelona. However, a handful of dividend stocks continued powering through and issued a vote of confidence in their businesses in the form of dividend raises.
Seven notable dividend stocks increased their payouts over the last week, including two financial services firms, two industrial products manufacturers, a large railroad business and a department store.
Top Dividend Stocks To Own For 2018: Reynolds American Inc(RAI)
Advisors’ Opinion:
- [By Rich Duprey, Demitrios Kalogeropoulos, and Brian Feroldi]
It remains true that the tobacco industry will continue coming under pressure from anti-smoking activists, politicians, and regulators who seek to stub out cigarettes further by raising taxes on smokes, but companies such as Altria and Reynolds American (NYSE:RAI) are largely able to offset their impact on profits by raising prices. The ability to command such pricing power without an overly large loss of customers obviously speaks to the addictive qualities of smoking but is also an otherwise enviable position to be in.
- [By Leo Sun]
With interest rates set to rise this year, many dividend investors are likely worried that their stocks will slip as bond yields become more attractive. While some dividend stocks will inevitably decline, investors can still find some low-risk income plays that have high yields and cheap valuations. Let’s take a look at three such stocks — AT&T (NYSE:T), Cisco Systems (NASDAQ:CSCO), and Reynolds American (NYSE:RAI).
- [By Ben Levisohn]
Just before 1pm today, shares of Reynolds American (RAI) took a sudden nosedive on reports that its merger with British American Tobacco (BTI) had “hit a snag” according to StreetInsider.com. Cowen’s Vivien Azer and team still think a deal gets done:
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Street Insider is reporting that BATS’ acquisition of RAI has “hit a snag,” and that “a potential transaction may be less likely near-term.” We view this source as less credible (vs. a WSJ or CNBC), in particular given the scant level of detail. While the delay in a consummated deal has extended longer than we thought, we still view the deal as likely (85% probability).
Shares of Reynolds American have dropped 1.3% to $55.47 at 2:26 p.m. today, while British American Tobacco has declined 0.2% to $112.71. Shares of Philip Morris International (PM), which could be interested in an acquisition of Altria Group (MO), have fallen 1% to$90.28 after getting cut toNeutral from Buy at BofA Merrill Lynch, while Altria has risen 0.5% to$67.94 after getting upgraded to Buy from Neutral at Merrill.
Top Dividend Stocks To Own For 2018: TAL International Group Inc.(TAL)
Advisors’ Opinion:
- [By Craig Jones]
Instead of buying TAL Education Group (ADR) (NYSE: TAL), Cramer would buy Alibaba Group Holding Ltd (NYSE: BABA).
Cramer thinks Burlington Stores Inc (NYSE: BURL) is going to have a good quarter, because Ross Stores, Inc. (NASDAQ: ROST) posted a good one, and they have similar business models.
Top Dividend Stocks To Own For 2018: Polo Ralph Lauren Corporation(RL)
Advisors’ Opinion:
- [By Casey Wilson]
Ralph Lauren Corp. (NYSE: RL) just became the latest company to fall victim to the “Retail Ice Age.”
The 50-year-old American icon announced it shuttered its flagship store at Fifth Avenue and 55th Street in New York City on Tuesday (April 4). It will also close 50 other retail locations by the end of the fiscal year.
- [By WWW.THESTREET.COM]
The sidewalks outside stores like Armani, Dolce & Gabanna, Ralph Lauren (RL) , Gap (GPS) , Prada, Abercrombie & Fitch (AF) , Microsoft (MSFT) and Harry Winston are now lined with metal barricades. The strip commands some of the highest retail rents in the world, with the average annual rent being $3500 per square foot.
- [By Johanna Bennett]
Times are tough for Ralph Lauren (RL). Profit and sales are fallingat theiconic clothingcompany, and investors who bet on a turnaround havelost their shirts on the stock. Adding to its troubles,CEO StefanLarsson is departingfollowing a creative clash with the companys namesake and founder.
Pessimism, meanwhile, appears to be on the rise.
According to a report by the financial analytics company S3 Partners, short interest in Ralph Lauren has risen since the start of the year, hitting historical levels. And while that short position is expected to keep expanding, bearish sentiments could turn on a dime.
Ihor Dusaniwsky at S3 Partners writes:
RL short interest levels, already at historical highs today, should continue to grow if the recent trend continues, but having made almost 23% in 2016 and 14% in 2017, short sellers may be quick to cover their positions and lock in profits if RLs stock price turns against them.
Short interest in Ralph Lauren fell in 2016 as the stock price fella nd shorts covered positions, netting a return of 22.6%. So far this year, however, the short position as increased $226 million, or 38% to $815 million as of this morning, according to the S3 report.
Its a profitable day for those short sellers. Todays 11% decline Ralph Laurens stock price on an $815 million short position has added $90 million to the short sellers collective bottom line.
Ralph Lauren is down 11.5% in recent market actions to $77.26 a after earlier falling as low as $76.86 a share. Thats the lowest price for the stock since 2010.
- [By Ben Levisohn]
Hanesbrands was just one of many retail companies that got shellacked this week. Under Armour (UAA) tumbled 29% after missing earnings forecasts and cutting its guidance, while Deckers Outdoor (DECK) plunged 21% after its earnings missed the Street consensus, and Ralph Lauren (RL) plummeted 13% after its CEO stepped down.
- [By Casey Wilson]
Amazon has been a growing pain in the neck for low-price retailers like Wal-Mart Stores Inc. (NYSE:WMT) for some time, but even high-end specialty stores like Ralph Lauren Corp. (NYSE: RL) have struggled now that Amazon has crept into their sector.
Top Dividend Stocks To Own For 2018: SPX Corporation(SPW)
Advisors’ Opinion:
- [By Damon Churchwell]
These companies manufacture processing products used by industries such as food and beverages, oil & gas, and wastewater treatment, among others. They serve a wide range of end markets that are mostly poised for increased earnings and are likely to spend on capital projects. While these positive trends persist, flow technology companies’ prospects ought to remain favorable. Let’shighlight several sector participants, starting with a top selection,SPX(NYSE: SPW),.
Top Dividend Stocks To Own For 2018: United Parcel Service Inc.(UPS)
Advisors’ Opinion:
- [By Demitrios Kalogeropoulos]
Meanwhile, earnings season produced large price swings in a few stocks individual stocks, including Under Armour (NYSE:UA) (NYSE:UAA) and UPS (NYSE:UPS).
- [By Todd Shriber, ETF Professor]
“The fourth quarter may be the index’s best opportunity to turn around its anemic 2017,” said Direxion. “Over the past five years, the index’s Q4 performance averaged over 7 percent growth and only ended the quarter down once in that span; in 2015. Delivery companies like FedEx Corp. (NYSE: FDX) and United Parcel Service Inc. (NYSE: UPS) typically drive the Index around the end of the year.”
- [By Casey Wilson]
Top executives at United Parcel Service Inc. (NYSE: UPS) took home outrageously high compensation last year, even though the parcel carrier missed many of its performance targets, like revenue growth and total shareholder returns.
- [By Brian Stoffel]
UPS (NYSE:UPS) has long been a proxy for the overall economy. When the economy is strong and consumers are feeling flush, they buy and sell more goods — and no one delivers more of those goods than UPS.
Top Dividend Stocks To Own For 2018: Amphenol Corporation(APH)
Advisors’ Opinion:
- [By Darren Williams] Although the entire cannabis space has quietly taken a hit of their own medicine in recent weeks and gone to sleep, don’t think for one second the entire space isn’t going to light up again soon. That’s just what they do, right? However, knowing who the pretenders are and knowing who the contenders are is really the challenge when it’s comes right down to it.
First, anyone who claims to be a grower or a seller of cannabis can’t for one second ever make it as a public company right now, or can even legally consider being a public company for that matter, so you can scratch any of those right off your list. At least here in the U.S. anyway, because Canada is already well ahead of the curve having legalized it for medicinal purposes already.
More importantly, full legalization of marijuana in Canada appears to be on track for July 2018, which will make Canada just the second nation in the world after Uruguay to completely legalize the cultivation, sale and possession of the drug for medical and recreational purposes.
Regardless, the best time to buy any stocks in a hot growth sector is when either everyone has forgotten about them, or when the overall market landscape has turned bearish, which has yet to happen. However, the former seems to be the case for the cannabis space, despite some very favorable state legislation last Fall.
For now, as long as you have a license issued by Health Canada, you’re good to go, so there are some stocks trading in Canada already who are well on their way to making some green for investors. Canopy Growth Corporation (TSE: WEED), formerly Tweed Marijuana Inc., is a medical marijuana company based in Smiths Falls, Ontario. Aurora Cannabis Inc. (CVE: ACB), which is engaged in the production and sale of medical cannabis. There’s also Aphria Pharmaceutical Company (TSE: APH), which also is engaged in producing and selling medical marijuana through retail sales and wholesale channels.
There are many more, but those are just a - [By Lee Jackson]
This is the top pick in the sector and has remained a favorite at RBC for some time.Amphenol Corp. (NYSE: APH) is one of the worlds largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.
