With concerns growing over multi-decade-high inflation, supply chain constraints, and rising COVID-19 cases owing to the spread of new variants, analysts predict a potential market correction in the near term. So, with the Federal Reserve trying to…
maintain low-interest rates now, investors are seeking shelter with fundamentally sound, dividend-paying stocks with stable dividend payout histories—so-called Dividend Aristocrats.
TheProShares S&P 500 Dividend Aristocrats ETF’s (NOBL) 3.5% gains over the past month have surpassed the SPDR S&P 500 Trust ETF’s (SPY) 2.8% returns.
Given this backdrop, we believe prominent blue-chip stocks AbbVie Inc. (ABBV – Get Rating), PepsiCo, Inc. (PEP – Get Rating), Caterpillar Inc. (CAT – Get Rating), Target Corporation (TGT – Get Rating), and Cardinal Health, Inc. (CAH – Get Rating) could help investors generate a stable passive income while dodging the market’s short-term fluctuations.
AbbVie Inc. (ABBV – Get Rating)
ABBV in North Chicago, Ill., develops, manufactures, and sells a range of pharmaceutical products. The company’s products are focused on treating diseases related to immunology, oncology, virology, neuroscience, eye care, women’s health, gastroenterology, and other serious health conditions.
ABBV paid a $1.30 per share quarterly cash dividend on Nov.15, 2021. The stock pays a $5.64 per share dividend annually, translating into a 4.17% yield. The company’s dividend has grown at a 17.93% rate over the past five years.
On December 16, 2021, ABBV’s Allergan Aesthetics company acquired Soliton, Inc. (SOLY). SOLY’s RESONIC device has received FDA 510(k) clearance for showing long-term improvement in the appearance of cellulite. This technology enables Allergan Aesthetics’ portfolio of non-invasive body contouring treatments to include a proven treatment for the appearance of cellulite.
For its fiscal third quarter, ended September 30, 2021, ABBV’s net revenues increased 11.2% year-over-year to $14.34 billion. The company’s operating earnings came in at $4.31 billion, representing a 32.3% rise from the prior-year period. While its adjusted net income increased 17.9% year-over-year to $5.95 billion, its adjusted EPS increased 17.7% to $3.33. As of September 30, 2021, the company had $12.18 billion in cash and equivalents.
Analysts expect the company’s EPS to increase 20% year-over-year to $12.67 in the current year. A $56.22 billion consensus revenue estimate for the current year represents a 22.8% rise from the prior-year period. In addition, it surpassed the Street’s EPS estimates in each of the trailing four quarters. ABBV’s EPS is expected to grow at a 4.5% rate per annum over the next five years. The stock has gained 15.8% in price over the past month and closed yesterday’s trading session at $135.36.
ABBV’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has a B grade for Growth, Value, and Quality. Click here to see the additional ratings for ABBV’s Sentiment, Stability, and Momentum. ABBV is ranked #13 of 191 stocks in the Medical – Pharmaceuticals industry.
Click here to checkout our Healthcare Sector Report
PepsiCo, Inc. (PEP – Get Rating)
Harrison, N.Y.-based PEP manufactures or uses contract manufacturers, markets, and sells a variety of grain-based snacks, carbonated and non-carbonated beverages, and foods worldwide. It markets its products through a network of direct-store-delivery, customer warehouse, distributor networks, as well as through e-commerce platforms and retailers.
PEP is scheduled to pay a $1.08 quarterly cash dividend on Jan. 7, 2022. The stock pays a $4.30 per share dividend annually, which translates to a 2.67% yield. The company’s dividend has grown at a 7.6% rate over the past five years.
On October 7, 2021, PEP’s Frito-Lay division announced…
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