Lockheed Martin (NYSE: LMT ) is part of the defense sector. Either way, there’s no indication that Walgreen’s is cutting its dividend which makes the stock an attractive buy. Although that’s rare, it may be a necessary step for a company that needs to take care of its debt load. Walgreens is a Dividend Aristocrat with 47 consecutive years of dividend increases. But the key for investors is the dividend. It’s down 35% in the last year and 42% in 2023 alone. WBA stock has taken a beating in the last year. The company’s CEO also recently left the company after being at the helm for just two years. The company has been relying heavily on debt as it has been acquiring other businesses. But this is one renovation that may be worth investing in. That doesn’t mean that the Walgreens house doesn’t need maintenance. But Walgreens Boots Alliance (NYSE: WBA ) may be the best house on a bad street. That being said, investing in drugstore chains has been no bargain for investors. Healthcare has been one of the few sectors that are serving as a bright spot in the most recent quarter. However, with the stock down 9% in 2023, it’s starting to look like a great value for investors looking for a stock that’s likely to close out the year on a high note. Part of the return on that investment will be $736 million in dividends it will receive this year.ĭespite revenue and earnings that continue to grow on a YOY basis, investors are a little concerned about the premium valuation that KO stock commands. Berkshire Hathaway (NYSE: BRK-A, NYSE: BRK-B ) owns approximately 9% of the company’s stock. The reliability of that dividend is a key reason that the stock remains one of the core holdings of Warren Buffett’s hedge fund. It’s also a Dividend King that has increased its dividend for 62 consecutive years and counting. First, the company is known for its iconic products that have continued to demonstrate their pricing power in 2023. And within that sector Coca-Cola (NYSE: KO ) stands out. When you think about the best value stocks, the consumer staples sector is a good place to look. In its most recent earnings report, the company announced a “ progressive dividend goal that targets mid-single digits dividend growth.” With little reason to question the company’s dividend, and a forward price-to-earnings (P/E) ratio of just 8.6x, MO stock is one of the best value stocks for risk-conscious investors. And Altria is a Dividend King that has raised its dividend for 54 consecutive years. As of this writing, the dividend yield is an eye-popping 9.14%. In the case of Altria that translates to a stable price for MO stock, a healthy free cash flow which reached $8 billion in 2023 and dividend growth. It may not be your cup of tea, but tobacco continues to be a profitable business. The company continues to deliver consistent revenue and earnings growth. And you don’t have to drill too far down in the earnings reports to see that value. However, what sin stocks lack in popular sentiment, they make up for in the value they provide to investors. It’s also one of the best value stocks for investors.Īs a classic “sin stock” Altria Group is a no-go for many investors. Altria Group (MO)Īltria Group (NYSE: MO ) is the parent company behind some of the most iconic tobacco brands in the world including Marlboro cigarettes and smokeless tobacco brands such as Copenhagen and Skoal. To that end, many of the stocks on this list are dividend aristocrats or dividend kings. It’s also about maintaining, and better still growing, its dividend. This is not just about a high yield, although many of them do offer one. Some of the best value stocks, like the ones featured here, also offer an attractive dividend. With concerns about higher interest rates and a possible recession (no matter how shallow), it makes sense to invest in companies that have a track record of turning a profit even when the economy is slowing down. These companies have dependable business models that allow them to generate consistent revenue and, more importantly, profits. Now with higher interest rates well into 2024 a near certainty, institutional money is likely to flow back into some of the best value stocks. In the second quarter, some of that money moved back to growth stocks. As the year began, institutional investors fled growth stocks to the relative safety of value stocks.
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