5 top Deutsche Bank dividend stocks to buy
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)
One
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
$69.15.
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