Phillips 66
This extremely diversified energy company has a long and successful operating history. Phillips 66 (NYSE: PSX) operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. The company holds many of these assets within its master limited partnership, Phillips 66 Partners.
The company benefits from the tax-advantaged structure while still operating a more diversified operating business that also contains many assets that are not ideal master limited partnership assets, such as its fast-growing chemical manufacturing business and its super-profitable refined products marketing business.
After stellar results for the fourth quarter were posted, the analysts said this:
Phillips 66 remains our top idea within our Refining coverage, where we continue to see headroom for incremental capital returns this year, are constructive on a positive rate of change at Refining in 2022, and continue to see attractive nonefining value in Midstream, Marketing, and Chemicals.
Investors in Phillips 66 stock receive a 4.21% dividend. The $99 Goldman Sachs price target compares to the $99.71 consensus target. The shares closed at $87.44, up close to 5% on Wednesday.
Realty Income
This is an ideal stock for growth and income investors looking for a safer, inflation-busting idea. Realty Income Corp. (NYSE: O) is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company’s monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.
To date, the company has declared 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since its public listing in 1994. It is a top real estate member of the S&P 500 Dividend Aristocrats index.
Investors receive a 4.22% distribution. The Realty Income stock price target at Goldman Sachs is $87. The $77.25 consensus target is closer to the $70.28 close on Wednesday.
All five of these top companies offer growth and income investors solid and dependable ways to stay invested in equities while playing some defense in a market that has rallied recently but may be poised for another big leg down when May rolls around. Rising interest rates and inflation are not huge concerns for any of them at the margin, and the defensive qualities they share make sense in these turbulent times.
Originally posted at 24/7 Wall St.
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