Intel announced back in January it would invest significantly to build potentially the world’s largest chip-making complex in Ohio, looking to boost capacity as a global shortage of semiconductors affects everything from smartphones to automobiles. Intel says the 1,000-acre “mega-site” northeast of Columbus has room for as many as eight plants, known as “fabs.” The company estimates it would require a $100-billion investment to fully build and equip those plants.
Shareholders receive a 5.14% dividend. Needham has set a $32 price target, just shy of the $32.23 consensus target for Intel stock. Tuesday’s close was at $28.30.
Vale
This very solid commodity play is one of the best ideas during a recession. Vale S.A. (NYSE: VALE) produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally.
The company operates through Ferrous Minerals and Base Metals segments. The former segment produces and extracts iron ore and pellets, manganese, ferroalloys and other ferrous products, as well as providing related logistic services. The latter segment produces and extracts nickel and its by-products, such as gold, silver, cobalt, precious metals and others, as well as copper.
Last week, the company confirmed it has hired advisors to assess “long term value-unlocking alternatives,” after the Financial Times reported the company was looking to sell a stake in its metals business. Vale added in a securities filing, however, that no decision has been reached yet on any potential transaction. Financial Times also reported that Vale was in talks to sell a $2.5 billion minority stake in its metals business, citing people familiar with the matter.
The dividend yield here is 11.17%. Vale stock has a $16 target price at BMO Capital Markets. The consensus target is higher at $17.23. The stock closed almost 4% higher on Tuesday at $13.43, after mixed earnings results were posted earlier this week.
Verizon
This top telecommunications company offers tremendous value and passive income at current levels. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.
The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Its wireline business has undergone a period of secular decline due to wireless substitution and cable competition.
Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Investors receive a 6.98% dividend. The Cowen target price is $55. The consensus target was last seen at $45.30, and Verizon Communications stock closed at $37.37 on Tuesday.
Six top companies that for a variety of reasons are trading incredibly cheaply and offering investors very timely entry points. That noted, it still may be very prudent to start with buying partial positions, as the market still has a plethora of issues to deal with, not the least of which is the ongoing inflation burden and a continuing rise in interest rates. However, for long-term investors searching for stability and passive income, all six look like solid ideas for the rest of the quarter and 2023.
Originally published at 24/7 Wall St.
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