Holiday Stocks for Giving 2019
Merck & Co., Inc. (MRK $84.61, 2.6% Dividend Yield)
Merck has one of the most promising pipelines within the pharmaceuticals sector, driven primarily by oncology and vaccines. Current dividend yield is above the 10-year treasury yield with a dividend growth rate of over 14%. Even though we had a strong market this year, this company is still at a reasonable valuation to continue to buy. It trades at a 10% discount to the S&P 500 and at a 10% discount to its' average 5 year price to earnings ratio. Looking ahead growth looks strong on the sales front with an improvement in costs. An A ESG rating is another added positive.
CVS Health Corporation (CVS $74.73, 2.7% Dividend Yield)
Solid earnings growth ahead for a company currently transforming itself into a healthcare hub. Combined with a new CEO this company is moving in the right direction. CVS now offers treatment centers in their stores able to treat 85% of the conditions traditionally handled by a primary care physician. The company foresees expansion from 50 HealthHubs this year to 1500 in 2020. Above average dividend yield, 10% free cash flow yield, and attractively priced for future appreciation.
AT&T Inc. (T $38.42, 5.3% Dividend Yield)
This is the only company that has combined Entertainment and Wireless. Their wireless network acts as the distributor for their entertainment content. The company is transforming from a dull utility into an exciting long-term growth story. While this is happening, we are being well paid to wait with a 5.3% dividend yield and 11.5% free cash flow yield.