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The Zacks Analyst Blog Highlights: Macy's, AbbVie, Pfizer and New Residential Investment

Zacks Equity Research

For Immediate Release

Chicago, IL – March 23, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Macy's, Inc. M, AbbVie Inc. ABBV, Pfizer Inc. PFE and New Residential Investment Corp. NRZ.

Here are highlights from Friday’s Analyst Blog:

4 Dividend Stocks to Buy Amid Coronavirus Rout

Per the latest report from Johns Hopkins University, the number of cases of COVID-19 infections rose above 10,000 in the United States for the first time on Mar 19. Furthermore, the pandemic has claimed more than 10,000 lives globally, affecting approximately 2,44,500 people across the world.

Meanwhile, the coronavirus has also dealt a huge blow to markets globally. Valuations have gone for a toss across every asset class and sector. Also, volatility-induced selling has hit the bourses. Such developments have had an adverse effect on some of the best stock market performers, forcing the major market indices into correction.      

Furthermore, lockdowns and social distancing have also disrupted supply chains of almost every business. In fact, the Federal Reserve’s monetary easing did little to improve investors’ sentiments. However, investors shouldn't panic and sell their position in stocks. Instead, they must focus on companies that are immune to the current market gyrations and pay steady.

As a matter of fact, long-term investors treat such sell-offs as golden opportunities to buy stocks at great discounts.

Why Dividend Stocks?

Investors are once again in search of dividend stocks amid the current uncertainty. This is because dividend-paying securities are major sources of consistent income when returns from the equity market are at risk.

Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.

Additionally, these stocks have superior fundamentals that make dividend growth a quality and make them a promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that the company is likely to continue the trend.

4 Hot Choices

Dividend stocks will prove to be a safe harbor amid the coronavirus crisis. Dividend paying stocks are likely to provide a cushion from the adverse economic effects of social distancing too. In this context, we have selected four stocks that are expected to gain from these factors. These five stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Macy's, Inc. is a retailer which operates stores, websites and mobile applications.

The company is based out of Cincinnati, OH and sports a Zacks Rank #1. The Zacks Consensus Estimate for the current year has improved 7.8% over the past 60 days. The company provides a dividend yield of 24.4%.

AbbVie Inc.is a developer and manufacturer of pharmaceutical products.

The company is based out of North Chicago, IL and carries a Zacks Rank #2. The Zacks Consensus Estimate for the current year has improved 2% over the past 60 days. The company provides a dividend yield of 6.7%.

Pfizer Inc., based out of New York, NY, holds a Zacks Rank #2. The Zacks Consensus Estimate for the current year has improved 4.9% over the past 60 days. The company provides a dividend yield of 4.7%.

New Residential Investment Corp. is a real estate investment trust, focusing on investing in and managing residential mortgage related assets.

The company is based out of New York, NY and carries a Zacks Rank #1. The Zacks Consensus Estimate for the current year has improved 3.9% over the past 60 days. The company provides a dividend yield of 34.9%.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Pfizer Inc. (PFE) : Free Stock Analysis Report
 
Macy's, Inc. (M) : Free Stock Analysis Report
 
AbbVie Inc. (ABBV) : Free Stock Analysis Report
 
New Residential Investment Corp. (NRZ) : Free Stock Analysis Report
 
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