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What stocks will go up in 2021?
If your focus is on income investing or dividend-paying shares, we recommend several companies that pay a high yield. For example, 3M yields 2.6% at current prices, while General Electric Co.’s dividend payout ratio is only about 35%. Both of these investments offer solid dividends and stable cash flows.
However, their price performance hasn’t always matched up with their dividend payments. If you’re interested in buying quality stocks that provide good returns, check out the list below!
It’s not surprising that telecom giant AT&T would make it onto my shortlist of best buys for 2020. After all, its stock has already gained nearly 20% since mid-October. Its strong balance sheet gives investors confidence in the company’s ability to weather any future downturns. And although AT&T doesn’t pay a particularly generous dividend, its yield currently sits around 4.7%. With a market cap north of $230 billion, AT&T could quickly become even cheaper than today’s valuation suggests.
Boeing continues to benefit from rising defense budgets worldwide. While military spending isn’t expected to reach new highs anytime soon, it does appear set to remain relatively steady compared to previous years. That means there should be plenty of demand for commercial aircraft over the next few decades.
Boeing projects continued growth through 2025 as global air travel grows by an average of 1.5% per year. The aerospace manufacturer offers one of the most reliable sources of earnings among large U.S.-based corporations.
As long as economic conditions continue to improve, expect Boeing’s share price to rise further. At present, the company trades at just 12 times forward earnings estimates.
Oil giants are often overlooked when picking winners. But Chevron deserves special consideration because it’s so well positioned within the energy industry. Chevron still generates more revenue from crude production than any other major integrated producer despite recent volatility in oil markets. This allows the firm to maintain a sizable cushion against falling commodity costs. Moreover, Chevron boasts some of the lowest capital expenditures relative to total revenues. Investors who want exposure to this type of business model can consider Chevron Corp., which pays shareholders a
decent 5.8% annualized return.
Pharmacy operator CVS Health recently announced plans to acquire health insurer Aetna for roughly $69 billion. Although many analysts have questioned whether such a deal makes sense, they don’t seem concerned enough to push down CVS’ share price much during the past month. So far, CVS remains cheap despite its acquisition prospects. The pharmacy chain trades at less than ten times the estimated FY20E EPS.
GM may look like a bad investment right now. But keep in mind that the automaker was once trading near bankruptcy levels before being rescued by the federal government back in 2009. Nowadays, GM looks poised to bounce back thanks to increased sales of electric vehicles and self-driving technology. Shares of the Detroit carmaker have risen almost 30% since early October. We think GM is undervalued based on our analysis of key metrics, including EV penetration rates, autonomous vehicle usage, and profit margins. Currently, GM trades at just 14 times the projected FY21E adjusted EBITDA.
Johnson & Johnson
J&J is another name worth considering. Like GM, the healthcare conglomerate has seen its share price fall sharply amid concerns surrounding COVID-19. Yet, unlike GM, J&J benefits from higher consumer awareness regarding coronavirus risks. Plus, J&J has been able to reduce operating expenses due to lower employee headcounts. These factors suggest that J&J could outperform rivals like Merck & Co. and Pfizer Inc. Right now, J&J trades at just 13 times forward earnings estimates — significantly cheaper than both MRK and PFE.
Microsoft is a software powerhouse whose products include Windows OS, Office suite, Xbox game console, Surface tablet line, Bing search engine, Skype VOIP service, etc.
The stock has had a great run lately after hitting lows last summer below $50/share. It seems investors were worried about the impact of the pandemic on PC shipments, but things turned out better than they feared. Overall, we believe MSFT shares offer good value right now, given their low valuation multiples.
With streaming services becoming increasingly popular around the world, companies like Netflix are enjoying record profits. And with consumers shifting away from traditional cable TV packages, these businesses stand to grow substantially. For example, Netflix reported Q1 2020 results yesterday, showing substantial subscriber gains across all regions.
Meanwhile, the company also said international subscribers grew 50%, while domestic subs rose 20%. All told, Netflix added 2 million net new members globally during the first quarter. When combined with existing member additions, the
number of active accounts reached nearly 140 million people.
On top of that, Netflix generated a positive free cash flow of USD 1.7B during the same period. Based on those numbers alone, you’d think that Netflix would trade at a premium multiple to peers like Disney or Comcast. However, shares of NVEFF currently trade at only 11x 2019F PE ratios. That suggests that investors view the company as reasonably valued.
Amazon is arguably the best pure-play tech stock available today. Its cloud computing platform powers everything from Alexa devices to AWS infrastructure used by hundreds of thousands of customers.
Which is the best share to buy in 2021?
The home improvement retailer has been growing at an impressive rate over the past few years. It’s now worth more than $100 billion, making it one of the largest retailers in America. And with its recent acquisition of OfficeMax, it could become even more significant.
The company just announced plans to open 1,000 new stores by 2022, making it the second-biggest retail chain behind Walmart. That means there should be plenty of room left for growth as long as shoppers keep buying stuff like paint and light bulbs from this store.
But don’t expect big profits right away. While sales are expected to grow around 6% annually through 2023, net income only looks set to increase about 3%. This isn’t bad news, though, because when compared to competitors such as TJX or Ross Stores, Home Depot trades at a much lower valuation.
So while we might see modest gains in revenue, shareholders shouldn’t need to worry too much about how quickly those numbers come in.
And since shares trade at less than 13 times the estimated 2020 earnings, it makes sense to consider investing in this business today. You’ll get an excellent return on your money before anyone else does.
Which share is best to buy at the lowest price in 2021?
It’s hard not to love Apple. The iPhone maker continues to dominate mobile technology and remains the most valuable public company in history. But despite the success of iPhones and iPods, Apple hasn’t seen any real innovation in quite some time. Sure, they’ve released some fantastic products recently, but nothing game-changing.
This is why we’re so excited about what CEO Tim Cook will unveil next week. According to reports, he’s planning to announce three major product launches: A refreshed Mac lineup, a smartwatch, and possibly a foldable phone. We’re hoping the last two announcements take place later this year. But if Apple can release something genuinely innovative, investors won’t have to wait very long to reap the rewards.
As far as where to invest goes, AAPLTRADE is our favorite pick, thanks to its attractive dividend yield.
Plus, given the company’s size, you never know what kind of returns you may receive. In other words, it’s possible that AAPLTRADE could continue to outperform the S&P 500 in the future.
Considering all the possibilities and investing will make you richer and help you obtain more profits. Try out and check out all possible ways and invest safely.