Whenever a company falls after a bad quarterly report, value investors should track the stock. Newell (NASDAQ:NWL) and Altria (NYSE:MO) are two such companies that offer strong dividend yields.
Newell’s core growth fell 5.1% in Q1, above its guidance range. Sales in appliance and cookware and outdoor living fell. But if the stock market is rallying on 30 million unemployed in the U.S. (in April 2020), it is signaling a belief of a rebound next. To recover, lockdowns must end and stores need to reopen.
Fundamentally, the re-opening is a big risk to society if the virus is not eradicated through stay-at-home orders. For now, investors should look at Newell’s household and school products as a sales rebound potential.
Altria posted revenue growing a solid 15%, to $5.05 billion. It earned $1.09 a share. Yet Altria stock lost $5 last week on no other news. With a dividend in the 9-10% range, investors should consider this dividend-income stock.
Smoking demand is falling but still generates income. Its e-cig product helps smokers quit and to use something less harmful.
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Altria’s Juul unit is a growth prospect for the long-term.
Investors should assume much of its downside risks are priced into the stock already.