5 top Deutsche Bank div­i­dend stocks to buy

Financial Mirror (Cyprus) - - FRONT PAGE -

While the mar­ket shifts fo­cus to sec­ond quar­ter earn­ings, many in­vestors are hear­ing more omi­nous calls from Wall Street pun­dits warn­ing of a plunge. Some point to wor­ries about the debt mar­kets hav­ing an­other flash episode. Oth­ers note that stocks are sim­ply over­priced. The key for in­vestors want­ing to stay long is buy­ing good value.

New Deutsche Bank re­search high­lights the best global stock picks from the firm’s Quan­ti­ta­tive Strat­egy group. The fol­low­ing U.S. com­pa­nies have de­fen­sive qual­i­ties and pay bet­ter than av­er­age div­i­dends.

Dar­den Restau­rants (NYSE: DRI)

This is one of the largest ca­sual dining restau­rant op­er­a­tors world­wide, with op­er­a­tions in the U.S. and Canada and a to­tal of 1,504 restau­rants un­der the Olive Gar­den, Longhorn Steak­house, Ba­hama Breeze, Sea­sons 52, The Cap­i­tal Grille, Ed­die V’s and Yard House brand names. Man­age­ment re­turns much of its free cash to share­hold­ers through share re­pur­chases and div­i­dends (3.2%). The Thom­son/First Call con­sen­sus price tar­get for the stock is $69.09. The shares closed Mon­day at $68.60.

Home De­pot (NYSE: HD)


of the top con­sumer dis­cre­tionary stocks on Wall Street, Home De­pot is com­ing into the sweet spot of the year for sales. It is also be­com­ing a dar­ling of some quan­ti­ta­tive hedge funds, as some see the stock as way un­der­val­ued on an in­trin­sic ba­sis. In ad­di­tion to the com­pany’s al­ready huge do­mes­tic pres­ence, some Wall Street an­a­lysts have pointed to the re­cent trou­bles at Sears Hold­ings and Lum­ber Liq­uida­tors as even more solid im­pe­tus for the home im­prove­ment gi­ant. They also note that merger and ac­qui­si­tion tar­gets may be on the com­pany’s radar. In­vestors are paid a 2.06% div­i­dend. Deutsche Bank puts a $108 price tar­get on the stock. The stock closed most re­cently at $114.44.

Macy’s (NYSE: M)

This is one of the na­tion’s top re­tail­ers, and an­a­lysts at Wall Street firms have ap­plauded the great strides it is mak­ing in im­prov­ing its on­line sales. Many also feel that the mid-teens earn­ings-per-share growth pro­file over the next sev­eral years is achiev­able, driven by low sin­gle digit same­store sales growth, e-com­merce and im­prove­ments in store pro­duc­tiv­ity.

In­vestors are paid a 1.8% div­i­dend. The Deutsche Bank price tar­get is posted at $71. The stock closed Mon­day at


Lock­heed Martin (NYSE: LMT)

Lock­heed Martin is a top aerospace and de­fence stock, and many on Wall Street are ex­pect­ing a very solid con­tin­u­a­tion of U.S. and for­eign de­fence spend­ing. The com­pany has also de­vel­oped a su­per­sonic T-50 trainer in con­junc­tion with Korea Aerospace In­dus­tries, which is also re­ported to be con­sid­er­ing a clean-sheet de­sign. The T-50 en­tered ser­vice in 2002 and likely has the in­side track for the new Air Force trainer with­out a clean-sheet de­sign. In­vestors are paid a solid 3.05% div­i­dend. The Deutsche Bank price tar­get is $220. The stock closed at $197.05.

Ver­i­zon Com­mu­ni­ca­tions (NYSE: VZ)

This top tele­coms com­pany of­fers con­sis­tent and steadily grow­ing div­i­dends. The com­pany re­cently pur­chased $10.4 bln worth of new spec­trum dur­ing the first-quar­ter gov­ern­ment auc­tions, and it is plan­ning to con­tinue to ex­pand and im­prove its 4G LTE net­work, which it bills as the na­tion’s largest. In­vestors are paid an out­stand­ing 4.5% div­i­dend.

The con­sen­sus price tar­get Mon­day at $49.04 a share.

is $51.54. The stock closed

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