![]() On the other hand, dividend stocks remained much more favorable and rewarded investors with strong, stable returns, outperforming both non-dividend stocks and bonds.Īdditionally, Hartford Funds states that dividends have played a significant role in the returns investors have received during the past half century, as 84% of the total return of the S&P 500 Index can be attributed to reinvested dividends since 1960, while the contribution of dividend incomes to the total return of the S&P 500 Index averaged 40% till 2021.Ĭompanies with long histories of annual dividend growth are known to have positive performance over time. A market report provided by ProShares stated that the S&P 500 declined by over 18%, while the Russell 2000 Index fell by more than 20% this past year. Such companies, known to have experience in navigating market downturns, pay regular dividends. ![]() When things get rough for Wall Street, many smart investors turn towards safe dividend stocks. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read the 5 Best Safe Dividend Stocks For 2023. AT&T stock, in turn, has probably bottomed out, making it a great bargain income play at current levels.In this article, we discuss the 15 best safe dividend stocks for 2023. The stock trades at a forward price-to-earnings ratio of 5.8, which is well below the industry average of 12.7. On the bright side, this double-digit drop in AT&T's shares has put them firmly in bargain territory. In 2023, the company's shares have plunged by nearly 23% over concerns about its free-cash-flow generation in the back half of the year, potential liability over legacy infrastructure, a high debt load, limited growth prospects, as well as the emergence of low-cost competitors. However, this sizable yield has largely been the byproduct of AT&T's falling share price. At present, the telecom giant offers shareholders an eye-popping 7.9% annualized yield. AT&T: A 7.9% annualized yieldĪT&T is one of the largest telecommunications companies in the world, with over 222 million wireless subscribers and over 15 million broadband customers. All told, Takeda stock may be worth buying for its attractive valuation, robust pipeline, and above-average dividend yield. However, these risks aren't insurmountable and Takeda has done an admirable job of positioning the company for long-term growth. Takeda's low valuation reflects a handful of important risks, such as key patent headwinds for top-selling drugs like Vyvanse, along with the company's highly leveraged balance sheet. Large-cap pharma stocks, after all, trade at an average earnings multiple of 15.1. Over the past five years, for instance, the Japanese pharma giant has grown its annual revenue by 18.4%, earnings per share by 15.8%, and free cash flow by 45.5%.Īt under 10 times projected earnings, Takeda stock is substantially undervalued compared to its peers. Takeda's dividend is supported by an overall improving financial picture. Underscoring this point, most big pharma stocks sport payout ratios well north of 50%. The company has a payout ratio of approximately 49%, indicating it should have ample room to grow its payout in the years to come. Takeda pays a generous dividend of 4.4%, which is well above the average of 2.3% for the healthcare sector. ![]() The company also has a robust pipeline of experimental drugs and vaccines, with over 50 candidates in ongoing clinical trials. Takeda focuses on four therapeutic areas: oncology, rare diseases, neuroscience, and gastroenterology. The company has a strong presence in Japan, the U.S., Europe, and emerging markets. Takeda Pharmaceutical is a global leader in the pharmaceutical industry, with a diversified portfolio of drugs and vaccines. Takeda Pharmaceutical: A 4.4% annualized dividend yield
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |