Dividend stocks to own in 2017: PFE
Thankfully, Pfizer’s bad fortunes changed in 2016, with the company finally losing enough revenue and completing enough acquisitions to produce year-over-year growth. I think that is a meaningful psychological factor for investors who want to see growth. Investors will like the mid-single digit growth that PFE will produce both this year and in 2017.
Yet because Pfizer has been down in the dumps for so long, PFE stock has not yet reflected the company’s newfound growth. PFE trades at just 12x forward earnings.
With a near 4% dividend yield for the coming 12-months, and such a cheap valuation, PFE stock is own that dividend investors should own.
Dividend stocks to own in 2017: BP
BP plc (NYSE:BP) is not the same company it was just six years ago. Since then, BP has sold $75 billion in assets to strengthen its balance sheet, deleverage its asset portfolio, and to afford unprecedented legal liabilities. As a result, BP has emerged leaner and better than ever with more than $20 billion in cash.
That cash hoard has protected the company in times of turmoil, caused by a sharp decline in crude oil prices. However, the “turmoil” has not caused the problems it could have in years past thanks to BP’s divestments. BP has said that with oil prices between $50 and $55 that its operating cash flow will cover both CAPEX and dividend payments.
This is good news given the recent OPEC deal and the appearance that oil prices will stay around BP’s necessary level. With a 6.5% dividend yield, and enough cash for cushion, BP stock is another dividend stock you want in a high yield focused portfolio in 2017.