Going into the new year, investors may be looking at their 2024 performance and looking to either repeat it or top it, and today’s market offers some opportunities to do so with some additional gains. provides When dividend stocks are considered, they aren’t usually known for the volatility and upside potential they bring to portfolio growth, but today’s list is different.
Today’s list will align investors with substantial fundamental trends and expose their capital to attractive upside potential as well as stable and growing dividend payouts. As the prices of these stocks have narrowed sharply below their 52-week highs today, the percentage yield offered by their dividends has only become more attractive, on a strong note for portfolios. Creating the perfect storm to kick off 2025.
To begin with, the Consumer staples sector is giving investors an excellent opportunity to consider the shares of Cal-Maine Foods Inc. Nasdaq: QuietA recent respite from its highs, and a dividend yield high enough to attract new buyers. There is of the transport sector opportunity in shares of United Parcel Service Inc. NYSE: UPSAnd finally, the Technology stocks who once caught the attention of Warren Buffett; HP Inc. NYSE: HPQ.
Cal-Maine stock discount attracted new buyers
Cal-Maine Foods Stock Forecast Today
$67.00
-34.27% declinesubtract
Based on 2 analyst ratings
| High forecast | $82.00 |
|---|---|
| Average forecast | $67.00 |
| Less predictable | $52.00 |
After hitting a 52-week high of $114.06 a share, Cal-Maine stock fell more than 10% in a few days, presenting investors with a potential buying opportunity. Before reaching the critical support level at $100 per share, some institutional investors were already lining up to snap up this stock and its dividend before it was too late.
People at State Street decided to increase their holdings in Cal-Maine stock by 3.0% through Nov 2024, bringing their net position to a higher level. $120.5 million todayor 3.2% ownership in the company. After the recent double-digit selloff in the stock, institutional buying activity will increase further.
But that’s not what investors are banking on right now; Instead, they are offering shareholders a $5.95 a share payout in dividends. At today’s stock price, these payments would translate into a Dividend yield up to 5.84 % Today, it has outpaced any U.S. inflation and is also outpacing most other dividend stock offerings.
Moreover, the stock trades at a discount to the rest of the materials sector, as its price-to-book (P/B) ratio would appear to be just 2.8x against the sector average of 3.6x, giving investors plenty of room. is Play a higher price on a potential catch up.
Trading activity will push UPS stock higher
United Parcel Service stock forecast today
$151.10
Up 22.46%buy medium
Based on 23 analyst ratings
| High forecast | $180.00 |
|---|---|
| Average forecast | $151.10 |
| Less predictable | $100.00 |
At least that’s what some Wall Street analysts are saying today, notably from Citigroup, through their reiteration of a buy rating on UPS stock; This time, however, they decided Set a $158 price target In stock until November 2024. UPS stock would have to rally up to 28% from today’s price to justify this new scenario.
So just picking up the stock 76% of its 52-week high Level becomes such an attractive proposition. But, beyond the price discount, investors can also take advantage of the company’s dividend payout of up to $6.52 per share, which translates to a Annual yield as 5.3%.
Even UPS stock bears have decided to exit some of their short positions, knowing that favorable interest rate cuts and the recent uptick in trading activity will have a direct impact on transportation and packaging services. Investors can see this decline through UPS stock fell 4.8% in short interest More than last month.
HP stock’s declining short interest, a potential turnaround
HP stock forecast today
$36.23
8.89% upcatch up
Based on 12 analyst ratings
| High forecast | $41.00 |
|---|---|
| Average forecast | $36.23 |
| Less predictable | $30.00 |
From last month, of HP stock Short interest collapsed Up 14.9%, indicating that the market’s preference for discount dividend stocks is now gaining traction. At today’s price, 83% of its 52-week highHP stock offers shareholders a 3.46% dividend yield to dwarf inflation and offers even more upside potential.
This is a factor that can be tested $41 a share valuation Held by analysts at JP Morgan Chase to November 2024, that implies a net upside of 23.1% from where the stock trades today. The current setup in the stock also attracted a lot of interest from the institutional sector, as seen in the recent buying activity.
As of November 2024, the folks at State Street decided to increase their HP stock holdings by 8.2%, bringing their net position to a record high. $1.9 billion todayor 5.4% ownership in the company. Speaking of discounted dividends, HP stock trades at just 11.8x price-to-earnings (P/E) ratio, a steep discount to the computer sector average of 233.9x times.
Before you consider HP, you might want to hear this.
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While HP currently has a “Hold” rating among analysts, top analysts believe these five stocks are good buys.
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