Equities appear to be caught in a vicious cycle of volatility as interest rates rise sharply and investors worry about the fate of the global economy. Therefore, fundamentally strong stocks with a track record of increasing dividend payments, Bristol-Myers Squibb (BMY) and CVS Health (CVS), can be considered safe investments for investors 50 and older. continue reading….
Recession fears are growing, especially since the Fed Announced the third consecutive rate hike 75 basis points . As the PCE Inflation Index showed inflation was much stronger than expected In August, further sharp interest rate hikes by the central bank are inevitable.
As investors increasingly worry about uncertainties The economic outlook, they are liquidating stocks while the market appears to be in solid bear control. In addition, the market sell-off is expected to continue amid expectations of lower-than-expected corporate third-quarter earnings.
Zachary, Head of Portfolio Management, Horizon Investments “In the short term, we may have continued market volatility ,” Hill said. Going into earnings season with our downward bias.”
As it seems unlikely that the market will return to stability anytime soon, investors aged 50 and over should choose businesses that are sufficiently profitable to operate Stocks of companies that pay ongoing dividends amid uncertain market conditions. To that end, healthcare stocks Bristol-Myers Squibb Company (BMY) and CVS Health Corporation (CVS) is a solid choice.
Bristol-Myers Squibb Company (BMY )
BMY discovers, develops, manufactures and markets biopharmaceutical products worldwide. It provides solutions for hematology, oncology, cardiovascular, immunology, fibrosis, neuroscience and Covid-19 disease.
On September 16, BMY was approved by the European Commission as LAG -3 blocking antibody combination Opdualag (nivolumab and relatlimab) for the treatment of unresectable or metastatic melanoma cells with PD-L1 expression
On September 15, BMY announced Opdivo (nivolumab) Adjuvant therapy resulted in a statistically significant and clinically meaningful improvement in recurrence-free survival (rfs) in patients with stage IIB/C melanoma in the CheckMate -76K trial.
On September 14, BMY announced 0.54 per share Quarterly dividend in US dollars, payable on November 1. The company pays an annual dividend of $2.16 per share, representing a 3.03% yield at current prices. The current payout ratio is 27.33%. The company’s dividend payments have grown at a CAGR of 6.4% over the past five years.
Second Fiscal Year 2022 Ending June 30 In the quarter, BMY’s revenue rose 1.6% year over year to $11.89 billion. During the same period, net profit attributable to BMS rose 34.7% year over year to $1.42 million, while its earnings per share rose 18.4% year over year to $1.93.
Analysts expect BMY FY 2023 (ending 2023) December) revenue will grow 3.4% year over year to $47.70 billion. The company’s earnings per share next year are expected to rise 6.7% from the prior year to $8.02. Additionally, BMY has an impressive history of earnings surprises, as it has beaten consensus EPS estimates in each of the past four quarters.
BMY stock has gained 3.8% over the past month , up 14.2% so far this year.
BMY’sPOWR Ratings reflect this promising prospect. A company’s overall A rating translates to a Strong Buy on our proprietary rating system.
This stock also has an A-rated value and a B-rated growth, mood and quality. It ranks No. 1 out of 165 stocks in Medical – Pharmaceuticals 3 Industries.
To see the stability of other POWR ratings and BMY’s Momentum, Click here.
CVS Health (
CVS is a health solutions company. The company operates through four segments: Healthcare Benefits; Pharmacy Services; Retail/LTC; and Corporate/Other. Its products include health and wellness services, health plans, pharmacy services and prescription drug insurance.
On September 21, CVS declared its quarterly dividend of $0.55, payable on November 1, 2022. The company pays $2.20 a year, yielding 2.19% at current prices. The current payout ratio is 24.5%. Its dividend has grown at a CAGR of 2.2% over the past five years.
On September 5, CVS announced that it would acquire Signify Health ( SGFY reached a final agreement ) about $8 billion. According to Karen S. Lynch, President and CEO of CVS, “Signify Health will play a key role in advancing our healthcare delivery strategy and provide us with a platform to accelerate our growth in value-based care.”
Fiscal Year 2022 Ending June 30, 2022 In the second quarter, CVS’ total revenue increased 11% year over year to $80.64 billion. CompanyOperating Income increased 5.6% yoy to $4.57 billion, while its net income rose 6.1% yoy to $2.96 billion.
Analysts expect CVS to have an For the third quarter of fiscal 2022, earnings per share and revenue will grow 1.5% and 4.4% year over year, respectively, to $2 and $76.78 billion. It has beaten EPS consensus estimates in each of the past four quarters. The stock has gained 12.4% over the past year.
CVS’ POWR rating reflects a solid outlook. It has an A overall rating, which translates to a Strong Buy on our proprietary rating system. It is rated B for mood, stability and growth.
at B level Medical – Drug Stores
#1 of the four stocks industry.
Click here to access additional ratings for CVS’ Value, Momentum and Quality.
BMY stock was trading at $70.92 per share Wednesday morning, down $0.29 (-0.41%). Year-to-date, BMY has gained 16.39%, while the benchmark S&P 500 has gained -20.57% over the same period.
About the author: Santanu Roy
Fascinated by the traditional and changing factors that influence investment decisions, Santanu decided to pursue a career as an investment analyst. Before turning to investment research, he was a process associate at Cognizant. He has an MBA and a fundamental approach to analyzing businesses designed to help retail investors identify the best long-term investment opportunities.
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