As we enter the new year, investors are likely looking at their 2024 results and trying to find a way to either match or beat them, and today’s market offers several opportunities to do so with a few added benefits. When it comes to dividend stocks, they typically don’t have the volatility and growth potential that drive portfolio growth, but today’s list is different.
Today’s list will allow investors to familiarize themselves with enough fundamental trends and expose their capital to attractive growth potential, as well as stable and growing dividend payouts. With these stock prices falling seriously below their 52-week highs today, the interest yield offered by their dividends has only become more attractive, creating the perfect storm for portfolios to start 2025 on a strong note.
To begin with, the consumer discretionary sector provides an incredible opportunity for investors to consider stocks Kal-Man Foods Inc. NASDAQ: CALMa recent decline from its highs and a sufficient dividend yield to attract new buyers. There is an opportunity for the transport sector in shares United Parcel Service Inc. New York Stock Exchange: UPSand finally, technology stocks that once caught Warren Buffett’s attention; HP Inc. New York Stock Exchange: HPQ.
Discount on Kal-Man stock attracts new customers
Cal-Maine Foods Inventory Forecast Today
$67.00
-37.38% DisadvantageReduce
Based on 2 analysts’ estimates
| High forecast | $82.00 |
|---|---|
| Average forecast | $67.00 |
| Low forecast | $52.00 |
Cal-Maine Foods Inventory Forecast Details
After hitting a 52-week high of $114.06 per share, Cal-Maine shares fell more than 10% in a matter of days, giving investors a potential buying opportunity. Before reaching the significant support level of $100 per share, some institutional investors were already lining up to grab the stock and its dividend before it was too late.
State Street elected to increase its stake in Cal-Maine shares by 3.0% as of November 2024, bringing its net position today to a high of $120.5 million, or 3.2% ownership in the company. Following the recent double-digit sell-off in the stock, institutional buying activity will continue to increase.
But that’s not what investors are counting on right now; rather, they are offering shareholders payouts of up to $5.95 per share in dividends. At today’s share price, these payments would bring today’s dividend yield to 5.84%, beating any remaining U.S. inflation as well as beating most other dividend stock offerings.
Moreover, the stock trades at a discount to the rest of the materials sector, with a price-to-book (P/B) ratio of just 2.8x compared to the sector average of 3.6x, giving investors ample room for growth . raise your price higher to catch up.
Business activity will lead to growth in UPS shares
United Parcel Service Inventory Forecast for Today
$151.10
Growth potential 20.74%Moderate purchase
Based on ratings from 23 analysts
| High forecast | US$180.00 |
|---|---|
| Average forecast | $151.10 |
| Low forecast | US$100.00 |
United Parcel Service Inventory Forecast Details
At least that’s what some Wall Street analysts, especially Citigroup, are saying today, reiterating their buy rating on UPS stock; this time, however, they decided to maintain the stock price target of $158 for November 2024. UPS stock would have to rise to 28% from today’s price to prove this new view correct.
That’s why buying the stock at just 76% of its 52-week high becomes such an attractive proposition. But in addition to the price discount, investors can also take advantage of the company’s dividend payout per share of up to $6.52, which works out to an annualized yield of as much as 5.3%.
Even UPS bears have decided to give up some of their short positions, knowing that the favorable decline in interest rates and increased business activity of late will have a direct impact on shipping and packaging services. Investors can see this bearish capitulation as short interest on UPS stock has fallen 4.8% over the past month.
HP Short Crash: Potential Turnaround
HP stock forecast today
$36.23
Growth potential 11.02%Hold
Based on ratings from 12 analysts
| High forecast | $41.00 |
|---|---|
| Average forecast | $36.23 |
| Low forecast | US$30.00 |
HP stock forecast details
Over the past month, short interest in HP shares has fallen 14.9%, showing that the market’s preference for dividend discount stocks may now be gaining momentum. At today’s price of 83% from its 52-week high, HP shares offer shareholders a dividend yield of 3.46% to cushion inflation and still offer greater upside potential.
This is a factor that can be tested against the $41 per share estimate posted by JP Morgan Chase analysts as of November 2024, which implies a net upside of up to 23.1% from today’s price. The stock’s current environment has indeed generated much more institutional interest, as evidenced by recent buying activity.
As of November 2024, State Street decided to increase its holdings of HP shares by as much as 8.2%, bringing its net position to today’s high of $1.9 billion, or 5.4% ownership of the company. Speaking of discounted dividends, HP shares trade at a price-to-earnings (P/E) multiple of just 11.8x, which is a significant discount compared to the computer sector’s average multiple of 233.9x today.
Before you consider HP, you should hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and HP wasn’t on the list.
While HP currently has a Hold rating among analysts, the top-rated analysts consider these five stocks to be Strong Buys.
View five stocks here
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