Here is your VIP list of Pro Picks for the week, offered exclusively to InvestingPro subscribers: a hand-picked selection of S&P 500 stocks that InvestingPro awarded a high financial health score of at least 2.75 out of 5.00.
This week, we’ve put together a list of 2.75+ scored stocks that also pay dividends with upwards of a 2.5% yield and which have been upping their payout for 10+ years.
Historically, stocks that rated above 2.75 have a high potential to outperform the S&P 500. For a deeper dive into how we make our Pro Picks, read more here.
Pfizer: A dividend powerhouse with strong financial health score
Pharmaceutical behemoth Pfizer (NYSE:PFE) is a household name, but did you know it’s also a dividend powerhouse? The company’s payout stands at a fantastic 4.3%, and it has raised its dividend annually for the last dozen years in a row. Its InvestingPro financial health score is solid at 3.61, largely thanks to robust profits and a nice cash flow that should keep those dividends coming. Shares are down some 27% for the year to $37.34, and analysts expect a rise of more than 35% from here. So it may be time for investors of all kinds – but especially dividend investors – to swoop in and pick up some Pfizer.
Robert Half International’s share buybacks
Staffing name Robert Half International (NYSE:RHI) pays a solid 2.9% dividend yield, and has upped its payout for the past 19 straight years — which certainly gives its dividend investors peace of mind. Not only is its dividend high, but it has also been returning cash to shareholders by aggressively buying back shares. Its profits and cash flow are both exceptional, giving it a very nice 3.06 InvestingPro financial health score, and analysts figure it has more than 30% upside from current levels. Shares are down 9.1% for the year to $66.87.
Aflac’s financial health supported by price momentum and cash flow
Aflac (NYSE:AFL), the insurance giant, has a proven track record of 39 consecutive years of dividend bumps, earning it the coveted title of “dividend aristocrat.” It also sports a generous dividend payout of 2.5%, and Wall Street analysts price targets put stock upside at an impressive 15%. Aflac’s respectable InvestingPro financial health score, moreover, is 2.83 thanks to its exceptional price momentum and strong cash flow. Shares have slipped some 8% year to date to $66.10.
Regions Financial’s potential 30% upside
Regions Financial (NYSE:RF) has raised its dividend payout annually for the past decade, and the current dividend payout of 5.1% is particularly impressive. The bank boasts a robust financial health score of 2.94, largely thanks to its lofty profits — and, per both fair value estimates and analyst projections, the stock is undervalued and could see a surge of at least 30%. Shares are down 27% for the year to $15.74, offering a chance to get in at a great price.
Texas Instruments: Growth and dividends in the same stock
Texas Instruments (NASDAQ:TXN) has ratcheted up its dividend payout for 19 years in a row, and this reliable payout is a juicy 3%, adding to the company’s appeal. On top of that, the chipmaker’s InvestingPro fair value gives the stock significant upside, and the company boasts a solid InvestingPro financial health score of 2.89, in large part due to its mouth-watering profits and strong cash flow. Shares are nearly breakeven for the year at $161.
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