For more than a century, the stock market has been high in all other asset categories. In the case of buying and holding bonds, gold, oil or real estate, your wealth will increase your wealth, but there is no asset category comparable to the average annual income of long -term stocks.
Although there are many ways to make money on Wall Street, it is difficult to defeat a test strategy to buy and hold high -quality dividend stocks.
Companies that regularly pay dividends to shareholders usually make profits on the basis of often appearing and can provide transparent long -term growth prospects. Perhaps the most important thing is that dividend stocks almost always prove to investors that they can successfully drive the period of economic turbulence.
Another important aspect of income inventory is their clear non -payer performance. exist Power of dividends: past, present and futureThe analyst of Hartford Funds cooperated with NED Davis Research to compare the performance of dividend stocks with non-payer spans half a century (1973-2023). Their research shows that the average annual yield of dividend stocks has increased by more than doubled. The average annual return of these companies does not provide dividends: 9.17 % is 4.27 %.
Ideally, investors hope to get the maximum rate of return at the least risk. However, research has found that risk and dividend output often go hand in hand. In other words, ultra-high returns invent S & P 500 -In sometimes more troubles they are worth. But the situation is not always the case
With appropriate review, amazing transactions can be found for companies with high yields. The following is two ultra -high -yield dividend stocks (average yields of 6.15 %), which makes it unable to buy in February.
The first magnificent dividend stock investor can confidently increase the shortest one month (and later) investment portfolio of the year Boring (NYSE: PFE)Essence Pfizer's decline in the decline in the decline in the stock price (recently) has steadily increased, increasing its yield to 6.5 %, which is a stone than the highest score in history.
Despite the three years behind, Pfizer's stock fell 51 %, which seemed to show the company's operating model problem, but the company was the company's own successful victim.
During the popularity on the 19th, Pfizer was one of the minority pharmacists who successfully developed the Cominaty. It also created PaxLovid, a oral solution used by patients to prevent them from developing serious diseases. In 2022, COMIRNATY and Paxlovid jointly sold more than $ 56 billion for Pfizer. In 2024, the combination is estimated to generate $ 10.5 billion in revenue.
Indeed, the Core COVID-19 therapy of Pfizer will see that sales have fallen by more than $ 45 billion in two years, but we also pointed out that at the beginning of the decade, the company's sales in COVID-19 drug sales are the sales of drug sales are the sales of drug sales are the sales of drug sales are the sales of drug sales are the sales of drug sales are the sales of drug sales are the sales of drug sales are the sales of drug sales are 0 US dollars. In fact, Pfizer's mid -point ($ 62.5 billion) in the 2024 sales guide was 49 % higher than the net sales reported in 2020. Significant It has been strengthened in the past four years.
It does not include the COVID-19 therapy of Pfizer, which operates and sells (SANS currency changes) in September by 14 %. In the first nine months of 2024, the growth of the operation and sales of oncology and professional care increased by 26 % and 12 %, respectively.
One of Pfizer's most exciting catalyst-the main reason for the surging income of the above 26 % oncology revenue is that it acquired cancer-drug developer Seagen, which was closed in December 2023. In addition to the substantial long -term cost, -save this transaction that greatly expands Pfizer's oncology channels, and it should significantly accumulate the earnings per share this year.
Pfizer also benefited from the high defense department. Regardless of the performance or poor performance of the United States and global economy, people will still get sick and need prescription medicines. This leads to stable demand for therapy and relatively predictable cash flow.
The icing on the cake to investors is Pfizer's cheap valuation in history. Its long -term price (P/E) ratio is 9, which is 15 % more than its average long -term income in the past five years.
In February, the second ultra -high -yield dividend stock was Wall Street's leading retail real estate investment trust (REIT), Real estate income (Nyse: o)Essence Since the first public offering in 1994, real estate income has increased by 128 dividends, including 109 consecutive quarters. The most important thing is that it paid for payment per month Base.
Similar to Pfizer, in the long -established bull market, real estate income stocks are struggling in the struggle. In the three years behind, the stock of Prime Minister Retail Real Estate Investment Trust Fund fell 21 %.
Although Pfizer is the victim of his own success, the performance of real estate income can be traced back to the change of the Fed's monetary policy. Investors are looking for real estate investment trust funds due to their juicy yields and low volatility. However, when the Bank of the United States launched a positive trekking cycle in March 2022, it issued a short -term rate of return on the Ministry of Finance. As the treasury bond yield is close to the dividend yield of real estate income, investors have chosen bonds.
The good news is that the country's central bank has changed its monetary policy position again and is in the interest rate cycle. Over time, this should allow ultra -high -yield REITs like real estate income to stand out.
However, this story is not just the expectations of interest rates. For example, the investment portfolio of the commercial real estate (CRE) income of real estate is well protected by a brief recession and the pressure of e -commerce. By renting an independent enterprise that provides basic demand products and services to the brand name (such as grocery stores, US dollar stores and drug stores), real estate income can ensure that the lessee pays the rent and renews the lease.
At this point, the review process of real estate income and the lengthy lease terms make the occupation rate much higher than the industry average. Since the beginning of the 21st century, the median occupancy rate of the Standard 500 residence has been 94.2 %, but since the beginning of 2000, the median occupancy rate of real estate income is higher than 400 basis points (98.2 %). A higher occupancy rate will lead to stable (and stable) (and predictable) operation funds.
Management is still doing well in the new vertical field. Realty revenue purchased Spirit Realty Capital in January 2024, and two lease transactions carefully planned in the gaming industry, pointing out continuous diversified work.
The ultimate reason for real estate income is that the weak buy is its attractive valuation. According to the consensus of Wall Street, the company's stock value is about 12.4 times the forecast cash flow of 2025, which is equivalent to the average multiple of 26 % from the average multiple to the average of cash flow within five years of the deadline.
Before you buy stocks in Pfizer, please consider the following ways:
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*As of February 3, 2025, the stock consultant returned
Sean Williams has no position in any stock mentioned. Motley has a position and recommends Pfizer and real estate income. Motley fools have disclosed policies.
The two ultra -high -yield dividend stocks purchased in February were originally published by Motley Fool