Stock dividend boosts unveiled for these 13 underestimated assets by Morningstar
In a recent analysis, financial research firm Morningstar has identified 13 undervalued dividend stocks that could offer attractive returns to long-term investors. Among the list are Equity Lifestyle Properties, Essex Property Trust, Exelon, DuPont de Nemours, Ameren, Baker Hughes, PPL, Public Service Enterprise Group, Xcel Energy, NextEra Energy, Quest Diagnostics, Macy's, and Interpublic Group of Companies.
NextEra Energy, a leading energy company, is projected to have a dividend yield of approximately 3.05% to 3.22%, according to Morningstar. The firm expects a 10% dividend increase by 2027 for NextEra Energy, with the payout ratio remaining around 65%. Although the article does not explicitly state the potential price gain for NextEra Energy, its premium valuation suggests a moderate upside.
Quest Diagnostics, a diagnostic information services company, is projected to offer a dividend yield of about 1.5% and a potential price gain of roughly 31%. This combined yield and price appreciation indicate a strong total return potential for Quest Diagnostics.
| Company | Dividend Yield (Projected) | Potential Price Gain | |-------------------|----------------------------|---------------------| | NextEra Energy | ~3.05% - 3.22% | Not explicitly stated | | Quest Diagnostics | ~1.5% | ~31% |
It's important to note that Morningstar's selection of these stocks does not constitute a recommendation or advice for individual investors. The dividend yields of these stocks await investors, but the amount of price gain is not specified in the article.
Moreover, Morningstar suggests that the poor performance of dividend stocks presents an opportunity for long-term investors to find undervalued dividend payers. However, the specific reasons why these stocks are considered undervalued by Morningstar are not discussed in the article.
Investors should also be aware that the performance of these stocks in the past does not guarantee their future performance. For instance, NextEra Energy's stock could be forming a bottom after a longer decline, while Quest Diagnostics' stock could be forming a double bottom.
Lastly, it's crucial for investors to carefully consider their investment strategies and research each stock before making decisions. While Quest Diagnostics has a good dividend yield of 2.24%, it is seen as risky until an uptrend emerges. Similarly, Macy's and Interpublic Group of Companies are not included in the list of 13 undervalued dividend stocks, but they may warrant further investigation based on an individual's investment strategy.
Personal finance enthusiasts may find the projected dividend yield of 3.05% to 3.22% from NextEra Energy an appealing opportunity for investing in the field of energy. Furthermore, with a potential price gain of approximately 31%, Quest Diagnostics presents an intriguing option for those interested in the diagnostic information services sector.
