The stock market is experiencing substantial volatility due to concerns over high inflation and the worldwide spread of the COVID-19 Delta variant. Because the stock market is expected to remain unpredictable for the foreseeable future, we think…
it could be wise to bet on dividend-paying stocks now to ensure a consistent source of income. Investing in dividend-paying stocks is usually a safer strategy to beat market volatility and reduce portfolio losses.
Furthermore, according to Democratic Senator Joe Machin, if the Fed continues to maintain its current interest rate policy, it could fuel higher inflation and financial instability.
So, to hedge one’s portfolio against a potential stock market downturn in the coming months, we think dividend-paying stocks Novartis AG (NVS – Get Rating) and PetroChina Company Limited (PTR) could be the best bets now.
Novartis AG (NVS – Get Rating)
NVS in Basel, Switzerland, is a global healthcare company that conducts research, and develops, produces, and markets healthcare products. Innovative Medicines and Sandoz are the company’s two divisions of the firm. In addition, NVS has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran; a collaboration agreement with CureVac to manufacture COVID-19 vaccine candidate CVnCoV; a collaboration with Artios Pharma Limited to create next-generation DDR cancer therapies; and a clinical collaboration with Kura Oncology, Inc. to evaluate the combination of Tipifarnib and chemotherapy.
This month, NVS announced that the U.S. Food and Drug Administration (FDA) has ruled that OAV-101 intrathecal (IT) clinical studies for patients with spinal muscular atrophy (SMA) may proceed, eliminating a partial clinical-trial suspension imposed in October 2019.
NVS’ net sales increased 14.2% year-over-year to $12.96 billion in the second quarter, ended February 27, 2021. Its operating income grew 47.9% from its year-ago value to $3.48 billion, while its net income surged 55.1% year-over-year to $2.90 billion over this period. The company’s cash flow from operating activities increased 4.3% year-over-year to $4.13 billion.
The company’s EPS is expected to grow 5.9% year-over-year to $6.12 in the current year. Analysts expect NVS’ revenue to increase 6.5% year-over-year to $51.81 billion in its fiscal year 2021. NVS’ stock has gained 9.5% over the past year and 7.8% over the past nine months.
NVS’ $3.20 annual dividend yields 3.5% on its current stock price. On January 26, the company approved a $3.20 quarterly dividend, payable on March 15. It has a 3.5% four-year average dividend yield.
NVS’s POWR Ratings reflect this promising outlook. The company has an overall A rating, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
NVS is also rated an A for Stability, and a B for Growth and Quality. Within the Medical – Pharmaceuticals industry, it is ranked #2 of 219 stocks.
To see additional POWR Ratings for Momentum, Value, and Sentiment for NVS, click here.
Click here to checkout our Healthcare Sector Report for 2021
PetroChina Company Limited (PTR)
Beijing-based PTR and its subsidiaries deliver a variety of petroleum-related goods, services, and operations in Mainland China and around the world. Its business segments include Exploration and Production; Refining and Chemicals; Marketing; Natural Gas, and Pipeline.
During its fiscal year ended December 31, 2021, PTR’s net sales were…
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