雅虎香港財經 3 Best High-Yield Stocks to Sail Through Uncertainties in June
U.S. stocks are coming off a solid May, with all the major indexes ending in the green. However, the rally lost steam at the end of the month, with the broader S&P 500 closing more than 1% below its record high, while tumbling chip stocks dragged the tech-laden Nasdaq down 1.1% last week.
The 30-stock Dow, on the other hand, started June’s trading with a decline, with all the major cyclical sectors, including industrials, materials, and energy, closing in the red on Jun 3. Things aren’t looking hunky-dory for the stock market. At the moment investors are grappling with weak economic data.
The manufacturing side of the economy contracted for the second successive month in May. The manufacturing index of the Institute of Supply Management came in at 48.7% in May, down from April’s reading of 49.2%. Notably, any reading below the 50 mark signifies signs of contraction.
Economic growth, by the way, already slowed down in the first quarter, while price pressures continued to run hot. For the first three months of the year, the U.S. economy expanded at a lackluster annual pace of 1.3% as consumer outlays slowed down due to lower spending on cars and durable goods.
Meanwhile, as inflation remains elevated, consumer spending is unlikely to jack up for the rest of the year. The Federal Reserve’s favored inflation measure, the personal consumption expenditure (PCE) index, was up 2.7% in April from a year earlier and remained higher than the central bank’s annual inflation target of 2%.
With the economy cooling down, the stock market is expected to wobble. Also, the stock market may face bouts of volatility heading into the presidential election later this year. Hence, judicious investors should place their bets on high-yield stocks such as The Western Union Company WU, The Bank of N.T. Butterfield & Son Limited NTB and NewtekOne, Inc. NEWT for a steady income. This is because dividend payers have a solid financial structure that helps them remain unfazed by market gyrations.
These stocks have a Zacks Rank #1 (Strong Buy) and 2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Western Union is a leader in global money transfer. Western Union has a Zacks Rank #1. Western Union has a dividend yield of 7.3%, while its five-year average dividend yield is 5.3%.
In the past 5-year period, WU has increased its dividend 2 times. WU’s payout ratio presently sits at 53% of earnings. Check Western Union’s dividend history here.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.8% over the past 60 days. WU’s expected earnings growth rate for the next year is 5.1%.
The Bank of N.T. Butterfield & Son Limited offers bank and wealth management services. Bank of N.T. Butterfield & Son has a Zacks Rank #2. The company has a dividend yield of 5.2%, while its five-year average dividend yield is 5.1%.
In the past 5-year period, NTB has increased its dividend once. NTB’s payout ratio presently sits at 38% of earnings. Check Bank of N.T. Butterfield & Son’s dividend history here.
The Zacks Consensus Estimate for its current-year earnings has moved up 6.8% over the past 60 days. NTB’s expected earnings growth rate for the next year is 7.1%.
NewtekOne is a financial holding company. NewtekOne has a Zacks Rank #1. NewtekOne has a dividend yield of 5.5%, while its five-year average dividend yield is 10.6%.
In the past 5-year period, NEWT has increased its dividend 12 times. NEWT’s payout ratio presently sits at 49% of earnings. Check NewtekOne’s dividend history here.
The Zacks Consensus Estimate for its current-year earnings has moved up 4.9% over the past 60 days. NEWT’s expected earnings growth rate for the current year is 12.9%.
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The Western Union Company (WU) : Free Stock Analysis Report
NewtekOne, Inc. (NEWT) : Free Stock Analysis Report
Bank of N.T. Butterfield & Son Limited (The) (NTB) : Free Stock Analysis Report
