The company is commercializing IQOS, a heat-not-burn product, in over 40 markets, which could drive earnings in the years to come. Most on Wall Street believe the company offers superior underlying growth prospects, both near term and long term. The share price has been weak of late as investors have questioned the growth potential of its reduced-risk products, and the overall market weakness has contributed. All of its sales are outside of the United States.
Shareholders receive a 5.00% dividend. The Jefferies price objective of $118 is well above the $107.43 consensus target for Philip Morris International stock. Shares closed at $101.82 on Friday.
Verizon
This top telecommunications stock offers tremendous value 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 6.53% dividend. Morgan Stanley’s price objective is $44. The consensus target is $45.05. Verizon Communications stock closed on Friday at $40.
The fact that long rates have collapsed is a rather good sign that the bond market thinks the economy will face a recession at some point this year. With more hikes coming from the Federal Reserve, and the reality that even when they are finished raising rates they will keep them there, it makes sense to add these conservative stocks as income-producing ideas.
With fourth-quarter earnings reports just getting out of the gate, it makes sense to check the ex-dividend dates on all these stocks, and perhaps to buy just partial positions now, as even with earnings estimates going lower, companies are struggling as inflation is still near 40-year highs.
Originally published at 24/7 Wall St.
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