As the weekend rolls in, I decided to do some initial research on several stocks that I believe could be of significant value to income seeking investors, especially those who are lucky enough to be retired.
The 2 stocks I decided to look into are not "under the radar," "no brand" stocks. Quite the contrary, each has had a wonderful run both in performance and dividend history.
Stocks We Will Research Further For Our Portfolio
In this article, let's stick to the basics for easy weekend reading:
1) Sanofi (SNY): Price: 36.89, Dividend Yield: 4.60%, ESS Rating: Neutral
- Market cap of $100 billion
- Revenues of $45 billion
- Net Income of $6 billion
- P/E ratio of 14.00
- Very low Beta of .86
There has been plenty of news in the big pharma section recently and Sanofi even was given some positive opinions on a drug for infants, called Hexaxim.
Per Zacks Research;
"The EMA (European Medicines Agency) issued the positive opinion for approving the fully liquid Hexaxim vaccine for the protecting infants against six diseases caused by Haemophilus influenzae type b, namely: diphtheria, tetanus, pertussis (whooping cough), hepatitis B, poliomyelitis and invasive infections.
Hexaxim, by targeting six diseases at the same time, reduces the number of vaccinations required by infants thereby facilitating better comfort and compliance."
2) Aflac (AFL): Price: $42.63, Dividend Yield: 3.10%, ESS Rating: Bullish
- Market cap of $20 billion
- Revenues of $20 billion
- Net Income of $2 billion
- P/E ratio of under 9.00
- Moderate Beta of 1.80
Insurance companies know how to make money. Sort of like big financials but with far less risk. Aflac sells all insurance products under the sun and they are quite large with many of the most prestigious companies on our planet handling many products for company employees.
They also have that annoying duck! (When exactly IS duck hunting season anyway?)
Pharmaceuticals And Insurance Companies
My belief is that in the coming years, the 2 sectors that will continue to pay dividends and grow profitably is big pharma and insurance. I will not say they are bullet proof, but they tend to be defensive in nature and have a solid potential for capital appreciation as well.
In upcoming articles I will delve into specifics about each company, but for a broad stroke overview, as well as advance notice of what I think those seeking income should begin thinking about adding to their portfolios, this fundamental analysis is obviously the place to start.
I will be adding these stocks to our "TEAM ALPHA" portfolio, while I sell Duke Energy (DUK), as we rebalance and adjust for current economic conditions (like the Affordable Care Act). For those of you who have tailored your portfolio after "Team Alpha's," you now have an advance heads up.
You can do the same, if that is your choice.