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The Coca-Cola Company logo is being displayed at a New Year's fair in Kyiv, Ukraine, on December 31, 2023. Investors looking to enhance their portfolio returns can opt for a combination of growth and dividend stocks. Choosing the right dividend stock by analyzing multiple factors can be complex for investors. However, recommendations from analysts can help inform investors' research and guide them toward lucrative dividend stocks from companies with strong fundamentals. Here are three attractive dividend stocks, according to Wall Street's top experts on TipRanks, a platform that ranks analysts based on their past performance.
Persons: Wall, Nik Modi, Modi, TipRanks, Brian Bedell, mgmt, Bedell, Goldman Sachs, Neil Mehta, Hess, Mehta Organizations: Cola, RBC Capital, Owl, Deutsche Bank, Chevron Oil, Chevron, CNBC PRO Locations: Kyiv, Ukraine, Chevron, Kazakhstan
Irrational behavior due to concerns over the stability of the U.S. banking system has made Charles Schwab 's stock a cheap investment opportunity, according to value investor Daniel O'Keefe. O'Keefe said this "cash sorting" was mistaken for a bank run. "On the negative side, cash sorting moved back up in August post the July Fed hike, and Ameritrade client attrition around conversion activity also rose considerably." "We believe fears of a reacceleration in cash sorting behavior are overblown," the JPM analysts said in a note to clients on Sept. 20. He initiated a position in Schwab for the value fund, calling it "a phenomenal business" trading at a discount.
Persons: Charles Schwab, Daniel O'Keefe, Schwab, O'Keefe, " O'Keefe, It's, Brian Bedell, Devin Ryan Organizations: Artisan Partners, Artisan, Fund, CNBC, Schwab, Deutsche Bank, JMP Securities Locations: U.S, Schwab
The recent dip in Charles Schwab shares provides a promising entry point for investors, according to Deutsche Bank. While this news likely rekindled worries about Schwab's client cash sorting, liquidity and capital levels, Deutsche analyst Brian Bedell thinks these concerns are "overblown." He said it does not see any significant changes to Schwab's client cash withdrawal behavior, the company's earnings profile, liquidity position or capital levels. The analyst added expects client cash levels to modestly grow in 2024 and pick up in 2025. As of now, attrition levels are tracking approximately in-line with initial expectations, Bedell said.
Persons: Charles Schwab, Brian Bedell, Bedell, Schwab, Michael Bloom Organizations: Deutsche Bank
Deutsche Bank thinks Charles Schwab stock is poised to break out in a more challenging market environment in the next three-to-six months. Analyst Brian Bedell also noted that Charles Schwab shares could get a boost once market volatility picks up. SCHW YTD mountain Shares of Charles Schwab have lost about 37% from the start of 2023. "After a lull in market volatility since March, we expect turbulence to resume this summer, assuming economic data weakens & markets increasingly debate recession timing and Fed policy," he wrote Thursday. Bedell also said that a slowdown in cash sorting will also help Schwab shares.
The liquidity risk fears around Charles Schwab are overblown, according to Deutsche Bank. Charles Schwab shares were hard-hit by the selloff of financial firms' stocks following the SVB failure. Atlantic Equities analyst Josh Heagerty reiterated the minimal liquidity risk for Charles Schwab and the likely downward target to earnings. Charles Schwab shares were up 9.2% before the bell on Tuesday, after falling 11.5% during the previous trading session. SCHW 5D mountain Charles Schwab shares plunged following the failure of SVB —CNBC's Michael Bloom contributed to this report.
Financial services stocks took a spill as SVB Financial Group's distress cued a sell-off in banks, but investors should use the decline to snap up shares of Charles Schwab on the cheap. Charles Schwab shares dipped more than 7% on Friday morning, following a nearly 13% decline during Thursday's trading session. SCHW 5D mountain Significant decline in Charles Schwab shares following SVB Financial's announcement The significant drop in financial services stocks has been fueled by a massive sell-off of tech-focused bank SVB Financial's shares. However, several analysts believe that such fears are overblown and remain bullish on Charles Schwab, saying that the current decline presents a promising entry point into Schwab's shares. UBS has a buy rating on Charles Schwab shares.
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