After a period of steady increase, the stock market has been repeatedly banned for various concerns since the beginning of the year and has fallen sharply. It is the high-yield energy company that has suffered a heavy blow in this sell-off. This is mainly due to concerns about the impact of rising interest rates on their operating activities and investor demand.
However, this decline pushed up the yields of several top energy income stocks to more than 6%, making them likely to consider buying. The following six items stand out:
Top Dividend Stocks For 2018: Alphabet(GOOGL)
Alphabet’s Google is the core of the Internet, including millions of people (including myself), and the company has established a crazy profit-making business on search engines. The company uses the data from our search history to email to provide relevant advertisements and has established a huge advertising business. I think search and Google will continue to grow, but the other businesses in Alphabet are the reasons for making it a long-term winner.
Alphabet’s investment in new business will maintain its relevance in the coming decades. Waymo is a leader in self-driving cars, Google Fiber is a leading high-speed Internet provider, and Calico is developing health and wellness solutions. These are the top priorities for Slack, Airbnb, Uber, Lyft, Stripe and other companies investing in stocks. Even though Alphabet’s core business is beginning to fade – we don’t see any signs today – investing in powerful businesses inside and outside of the Alphabet business will make the company a good stock for the coming years.
Top Dividend Stocks For 2018: Summit Midstream Partners (NYSE: SMLP)
At the same time, Summit Midstream Partners initially appeared to be able to maintain high returns as its data supported this view. However, these metrics have come to a solid conclusion from the guidance of the company in 2018. Last year, the company generated enough cash flow to pay its allocation at 1.14 times the price. This buffer will completely disappear this year, and the company only wants to pay about 1.0 times of expenses, partly because the cost is higher than the normal cost, and because it needs to sell equity to finance growth projects.
The company believes that these expansions will begin to significantly improve cash flow starting next year. However, its development projects are larger and its parent company completed a large deferred payment completed in 2016 by 2020. These capital requirements represent a large amount of external funds that the company needs to obtain so that it does not bear too much debt. This is a balancing act, and the market believes that the summit can be managed without reducing expenditures, which is why in the past year, its rate of return rose from 9% to 16.6%.
Top Dividend Stocks For 2018: Toyota (TM)
The Japanese car giant is currently ranked #1 in Zaks (strong buying) and scores “A” for “value” in our style rating system. In the current market downturn, Toyota’s value may come in handy because super-large growth is difficult to achieve.
Toyota Motor also reported a strong profit margin, which may be very useful when we enter the first quarter earnings season. In addition, Toyota’s 0.75 beta version theoretically means that the stock fluctuates by 25% compared to the market.
Top Dividend Stocks For 2018: LAM Research (LRCX)
“Trend is your friend” is an old saying that is the life of most motivational investors. The main concern of momentum investment is simple: if the stock movement is strong, when the trend ends, and when it will start to buy the upcoming stocks. Today we will look at LAM Research (LRCX) and see if we can find a solution for this particular company.
LAM Research is a leading semiconductor company based in Fremont, California. The company is known for wafer manufacturing equipment and services and has maintained strong growth over the past five years. At present, its value is divided into “B” level, growth level “C” level, and momentum level “A” level. This enabled LAM Research to obtain a “B” overall VGM score in our style scoring system.
LAM Research has remained strong in the style rating, but the key factor is the “A” level in the momentum category. Let’s take a look at what the stock has done to deserve this trademark.