Growth opportunities in 2024


  • Enterprise Products Partners (EPD) offers a high yield of 7.55% and has a history of consistently growing dividends.
  • Broadcom (AVGO), with a yield of 1.9%, stands out for its strong position in the semiconductor sector and growth potential in 2024.
  • Extra Space Storage (EXR), a high-yield REIT, has seen an impressive 400% growth over the past decade.

Dividend stocks have historically been a favorite among investors, offering stable profits and reliable income stream. These listed companies not only provide opportunities for capital growth, but also share part of their profits directly with shareholders through regular dividends.

While some investors prioritize growth-oriented strategies, others value the stability and long-term incremental growth potential that dividends provide.

Recognizing these benefits, especially in uncertain market conditions, Finbold decided to conduct stock market analysis as we approach the end of 2023. possible takeoff next year.

Broadcom (AVGO)

Pressured by macroeconomic headwinds and the dominance of G7 AI companies, dividend stocks haven’t delivered much in 2023. However, next year could create a more favorable environment for these companies, especially due to Federal Reserve expects rate cuts.

Charlie Gaffney, managing director at Morgan Stanley, believes that companies “with solid commercial franchises” may attract the attention of investors in 2024, as “can generate huge amounts of free cash flow for distribution and dividend increases over time”.

For this reason, Gaffney has chosen semiconductor giant Broadcom (AVGO) as a dividend stock that could perform well in 2024. 1.9% yield and delivered “phenomenal results” in 2023 with year-to-date growth of over 100%.

The 1.9% yield means the annual dividend paid by Broadcom is 1.9% of the current share price.

According to the analyst, AVGO will have more growth opportunities in the future, mainly due to current trends in cloud computing and artificial intelligence.

Enterprise Product Partners (EPD)

Enterprise Products Partners (EPD) is an energy company primarily engaged in the transportation, storage and refining of oil, natural gas and petrochemical products.

The company has demonstrated stable financial results for many years, which has allowed it to increase dividends to shareholders for more than two decades. In addition, the average annual growth rate of dividends was 7%.

Currently EPD offers high 7.55% yield and returned approximately $51 million to its shareholders in the form of dividends and share repurchases.

The company estimates that its $6.8 billion worth of capital projects will be operational by 2025, which will support its organic growth and lead to future earnings, which will subsequently lead to higher dividend payouts.

The stock has posted modest gains in 2023, up just 8.1% year-to-date.

Extra Storage Space (EXR)

Extra Space Storage (EXR) is a real estate investment trust (REIT) that specializes in owning and operating storage facilities.

The REIT is currently paying quarterly dividend of $1.62 per share, with a dividend yield of 4.19%. EXR has been distributing significant dividend payments for about 13 years and has been one of the best-performing REITs over that period.

In particular, Extra Storage Space has generated more than 400% of total profits over the past 10 years (17.6% YoY), outperforming the broader S&P 500 index.

The company’s growth catalysts have allowed it to continue to grow its dividend. While EXR is unlikely to continue increasing its payout at the same rate, the REIT will likely continue to deliver industry-leading dividend growth.

The company’s shares are up more than 12% since the start of 2023.

In the third quarter of 2023, the company reported revenue of $748 million, up nearly 50% from a year earlier.

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