Welcome to Extreme Investor Network, where we bring you the latest insights and information on all things investing. Today, we’re diving into the world of dividend stocks and how they could soon be welcoming new members, according to a recent report from Morgan Stanley.
Dividend stocks have long been a favorite among income-oriented investors, and for good reason. Not only do they offer a steady income stream, but they also send a positive signal to the market and show management’s confidence in the business. In fact, companies that initiate a dividend tend to outperform the market in the months following the announcement.
Recently, high-profile companies like Alphabet and Meta Platforms have joined the ranks of the “Magnificent Seven” stocks offering a dividend. These moves signal a hopeful future for these companies and attract passive and income investors looking for reliable returns.
Morgan Stanley has identified some potential dividend-initiating candidates by looking for stocks with a market cap exceeding $35 billion, a strong net cash position, and a free cash flow yield exceeding 3%. Among the companies that made the list are popular tech names like PayPal and Palo Alto Networks, as well as Expedia Group, which boasts a significant free cash flow yield of 12.6%.
Other notable companies on the list include newly public grocery delivery company Instacart, as well as Lululemon Athletica, Airbnb, and Regeneron. Each of these companies offers unique opportunities for investors looking to add dividend stocks to their portfolio.
At Extreme Investor Network, we strive to provide you with the most up-to-date and valuable information to help you make informed investing decisions. Stay tuned for more insights and tips on how to grow your wealth through smart investing strategies.