These 3 Out-Of-Favor 4% Yielding Stocks Are A Buy

Jul. 01, 2024 2:25 PM ETES, TROW, UPS9 Comments
Dividend Power
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(12min)

Summary

  • UPS, T. Rowe Price, and Eversource Energy each have dividend yields exceeding 4%, suggesting undervaluation.
  • Despite near-term challenges, all three companies retain competitive advantages and long-term growth potential.
  • UPS benefits from distribution scale, T. Rowe Price has a retirement fund franchise that performs well, and Eversource is a regulated monopoly, making them attractive buys.

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The stock market is cyclical-any long-term investor will tell you that. Equities go through economic and financial cycles, and as a result, they are sometimes overvalued and undervalued. The dividend yield is a good measure of comparative valuation.

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This article was written by

5.89K Followers
I am a self-taught individual investor and I have been investing in stocks for over 25 years. I focus on dividend growth investing with a long-term horizon since I believe in the compounding power of dividend growth investing. I generally look for undervalued large cap stocks with sustainable dividend growth and capital appreciation potential. My second focus is tech and small- or mid-cap stocks with or without dividends for their growth potential. I try to provide a little more in depth analysis weighing the positives and negatives. I am now in the Top 2.0% out of 28,000+ financial bloggers (December 2023) as tracked by Tip Ranks for my SA articles.Work/ associated with the existing authors James Marino and Ferdis.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UPS, TROW, ES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Related Stocks

SymbolLast Price% Chg
ES--
Eversource Energy
TROW--
T. Rowe Price Group, Inc.
UPS--
United Parcel Service, Inc.

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