We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Top S&P 500 Stocks to Bet on for Income & Growth Investors
Read MoreHide Full Article
Amid the uncertain economic-operating backdrop, investors are apprehensive while taking decisions. Though the coronavirus crisis-related concerns resulting in anaemic consumer confidence impacting private consumption have hampered economic activities since the virus outbreak, improvement in economic activity in the third quarter compared with the second, anticipations of a new fiscal stimulus package, the Fed’s accommodative-monetary policy and sturdy equity markets remain positives.
Furthermore, with the anticipations of a solid earnings performance in the July-September quarter, along with an improving consumer-spending environment, the time is apt for investors to make profitable investment decisions. Though the latest labor market and factory sector data underline some deceleration in the recovery, it, however, seems to be in a place that should sustain the improving earnings trend. Therefore, all eyes are on the expectation of this improving earnings trend to speed up as companies start reporting their September-quarter results soon.
Also, the S&P 500 Index rallied merely 7.9% in the third quarter, leading investors to venture into the domain of growth stocks.
However, amid several domestic and international happenings, it may be a cliche, so sticking to the old-school style of investing in stocks that provide steady income in the form of regular dividends, along with a solid growth potential, would be wiser. While betting on undervalued stocks could be appropriate in this scenario, one may end up falling in a value trap if the low-price multiples are justified with weak fundamentals.
Therefore, we have selected stocks with a favorable Zacks Rank, indicating that these have been witnessing positive estimate revisions, which generally translate into rapid price appreciation. Following this strategy can help investors reap profits despite the prevalent ambiguity of the situation.
Moreover, regular dividend-paying stocks always attract more investors as these act as a steady source of income. Most of the time, cash dividends return more than what can be earned from deposits in savings accounts.
Hence, while selecting stocks, investors should focus on the dividend yield (annual dividend per share/stock’s price per share) together with growth potential, which is reflected by the price rally.
Further, these stocks have a VGM Score of ‘A’ or ‘B’. Using our new style score system, the VGM Score rates each stock on the combined weighted styles, helping identify the ones with the most attractive value, highest growth, and most promising momentum, across the board. The combination of all three styles that goes into the VGM Score makes it one of the most comprehensive and best performing indicators to use with the Zacks Rank.
Atlanta-based Genuine Parts Company (GPC - Free Report) is a global distributor of automotive replacement parts, industrial parts and materials, and business products.
Charlotte-based Sealed Air Corporation (SEE - Free Report) is a provider of food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific.
Wilmington-based DuPont de Nemours, Inc. (DD - Free Report) is a provider of technology-based materials, ingredients, and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
5 Top S&P 500 Stocks to Bet on for Income & Growth Investors
Amid the uncertain economic-operating backdrop, investors are apprehensive while taking decisions. Though the coronavirus crisis-related concerns resulting in anaemic consumer confidence impacting private consumption have hampered economic activities since the virus outbreak, improvement in economic activity in the third quarter compared with the second, anticipations of a new fiscal stimulus package, the Fed’s accommodative-monetary policy and sturdy equity markets remain positives.
Furthermore, with the anticipations of a solid earnings performance in the July-September quarter, along with an improving consumer-spending environment, the time is apt for investors to make profitable investment decisions. Though the latest labor market and factory sector data underline some deceleration in the recovery, it, however, seems to be in a place that should sustain the improving earnings trend. Therefore, all eyes are on the expectation of this improving earnings trend to speed up as companies start reporting their September-quarter results soon.
Also, the S&P 500 Index rallied merely 7.9% in the third quarter, leading investors to venture into the domain of growth stocks.
However, amid several domestic and international happenings, it may be a cliche, so sticking to the old-school style of investing in stocks that provide steady income in the form of regular dividends, along with a solid growth potential, would be wiser. While betting on undervalued stocks could be appropriate in this scenario, one may end up falling in a value trap if the low-price multiples are justified with weak fundamentals.
Therefore, we have selected stocks with a favorable Zacks Rank, indicating that these have been witnessing positive estimate revisions, which generally translate into rapid price appreciation. Following this strategy can help investors reap profits despite the prevalent ambiguity of the situation.
Moreover, regular dividend-paying stocks always attract more investors as these act as a steady source of income. Most of the time, cash dividends return more than what can be earned from deposits in savings accounts.
Hence, while selecting stocks, investors should focus on the dividend yield (annual dividend per share/stock’s price per share) together with growth potential, which is reflected by the price rally.
5 S&P 500 Stocks to Bet On
With the help of our Zacks Stock Screener, we have shortlisted five stocks which carry a Zacks Rank #1 (Strong Buy) or #2 (Buy), have outperformed the S&P 500, in the last six months, and pay dividends that yield more than 1.50%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Further, these stocks have a VGM Score of ‘A’ or ‘B’. Using our new style score system, the VGM Score rates each stock on the combined weighted styles, helping identify the ones with the most attractive value, highest growth, and most promising momentum, across the board. The combination of all three styles that goes into the VGM Score makes it one of the most comprehensive and best performing indicators to use with the Zacks Rank.
Atlanta-based Genuine Parts Company (GPC - Free Report) is a global distributor of automotive replacement parts, industrial parts and materials, and business products.
Zacks Rank: #2
VGM Score: A
Price Gain: 31.7%
Dividend Yield: 3.24%
Minneapolis-based Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States.
Zacks Rank: #1
VGM Score: B
Price Gain: 51.4%
Dividend Yield: 1.68%
Charlotte-based Sealed Air Corporation (SEE - Free Report) is a provider of food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific.
Zacks Rank: #2
VGM Score: B
Price Gain: 46.2%
Dividend Yield: 1.56%
Atlanta-based Newell Brands Inc. (NWL - Free Report) designs, manufactures, sources and distributes consumer and commercial products worldwide.
Zacks Rank: #2
VGM Score: A
Price Gain: 28.5%
Dividend Yield: 5.31%
Wilmington-based DuPont de Nemours, Inc. (DD - Free Report) is a provider of technology-based materials, ingredients, and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.
Zacks Rank: #2
VGM Score: B
Price Gain: 44.4%
Dividend Yield: 2.14%
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>