Top Dividend Stocks For November

Markets have surged to begin November. The election is finally over, and investors are euphoric about Pfizer and BioNTech’s COVID vaccine candidate. Additionally, the week began with unloved cyclical stocks surging, while trendy tech stocks lagged. As the week has gone on though, reality has begun to set back in that there are still headwinds to worry about. COVID is not going away and surging to record highs, while there is a very real possibility that President Trump never concedes the election. People also seem to forget that there is still no stimulus package. However, one of the best ways to chase the markets’ upside, while adding security to your portfolio, is through quality, dividend paying stocks. As markets seem to see-saw based on sentiment, quality companies that pay solid dividends are always a great way to go. Our Artificial Intelligence (“AI”) algorithms at Q.ai have identified some of these standout dividend stocks for the month. Our AI systems have identified three Top Buys, three Attractive, three Neutral, and one Unattractive dividend paying stock. These types of stocks may be a safer bet than tech names right now- especially if there is more encouraging data indicating a COVID recovery.

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Top Buy

From our list of Top Dividend stocks, we identified three Top Buys this month.

Walmart Inc (WMT)

Walmart is our first Top Buy of the month. With Black Friday sales beginning, Walmart is primed to continue its strong run. Walmart has long been a retailer with quality financials, and is the largest company in the world in terms of revenue. Not to mention, Walmart is also the largest private employer in the world, and as of 2019, was also the largest grocer in the US. Our AI systems rated Walmart B in Technicals, B in Growth, A in Low Volatility Momentum, and C in Quality Value. The stock closed up 1.66% to $147.98 on volume of 6,268,607 vs its 10-day price average of $143.01 and its 22-day price average of $143.33, and is up 24.42% for the year. Revenue grew by 3.45% in the last fiscal year and grew by 8.33% over the last three fiscal years, Operating Income grew by 16.56% in the last fiscal year and grew by 19.52% over the last three fiscal years, and EPS grew by 20.77% in the last fiscal year and grew by 91.1% over the last three fiscal years. Revenue was $523964.0M in the last fiscal year compared to $500343.0M three years ago, Operating Income was $21468.0M in the last fiscal year compared to $20937.0M three years ago, EPS was $5.19 in the last fiscal year compared to $3.28 three years ago, and ROE was 18.86% in the last year compared to 13.04% three years ago. The stock is also trading with a Forward 12M P/E of 27.42.

Microsoft Corp (MSFT)

Microsoft is our second Top Buy this month. Despite Xbox sales disappointing, the mega tech name’s numbers still continue to impress and crush estimates. This is a company that was built to withstand macro-level crises such as COVID, because they are always innovating, growing, and adapting. Our AI systems rated Microsoft B in Technicals, B in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 2.63% to $216.55 on volume of 29,440,790 vs its 10-day price average of $212.53 and its 22-day price average of $214.05, and is up 34.82% for the year. Revenue grew by 2.87% in the last fiscal year and grew by 33.3% over the last three fiscal years, Operating Income grew by 6.02% in the last fiscal year and grew by 60.16% over the last three fiscal years, and EPS grew by 7.62% in the last fiscal year and grew by 191.03% over the last three fiscal years. Revenue was $143015.0M in the last fiscal year compared to $110360.0M three years ago, Operating Income was $52959.0M in the last fiscal year compared to $35058.0M three years ago, EPS was $5.76 in the last fiscal year compared to $2.13 three years ago, and ROE was 40.14% in the last year compared to 19.45% three years ago. Forward 12M Revenue is expected to grow by 2.55% over the next 12 months, and the stock is trading with a Forward 12M P/E of 32.12.

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Home Depot Inc (HD)

Home Depot is our final Top Buy for the month. As the largest home improvement retailer in the US, demand for Home Depot has surged due to more people staying at home from the pandemic. Our AI systems rated Home Depot C in Technicals, B in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed up 0.79% to $277.75 on volume of 2,987,878 vs its 10-day price average of $276.06 and its 22-day price average of $279.74, and is up 26.45% for the year. Revenue grew by 8.25% in the last fiscal year and grew by 18.25% over the last three fiscal years, Operating Income grew by 5.37% in the last fiscal year and grew by 13.7% over the last three fiscal years, and EPS grew by 6.52% in the last fiscal year and grew by 49.77% over the last three fiscal years. Revenue was $110225.0M in the last fiscal year compared to $100904.0M three years ago, Operating Income was $15843.0M in the last fiscal year compared to $14681.0M three years ago, EPS was $10.25 in the last fiscal year compared to $7.29 three years ago, and ROE was 298.25% three years ago. The stock is also trading with a Forward 12M P/E of 23.81.

Attractive

From our list of Top Dividend stocks, we identified three Attractive stocks this month. 

Target Corp (TGT)

Target is our first Attractive stock. While not as large in size and scale as Walmart, Target is still a very successful retailer as the 8th largest retailer in the country. They will also surely benefit from Black Friday deals as well. Our AI systems rated Target B in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed up 1.02% to $159.69 on volume of 3,336,512 vs its 10-day price average of $156.7 and its 22-day price average of $159.51, and is up 26.67% for the year. Revenue grew by 8.37% in the last fiscal year and grew by 16.42% over the last three fiscal years, Operating Income grew by 11.7% in the last fiscal year and grew by 20.74% over the last three fiscal years, and EPS grew by 8.73% in the last fiscal year and grew by 30.52% over the last three fiscal years. Revenue was $78112.0M in the last fiscal year compared to $72714.0M three years ago, Operating Income was $4728.0M in the last fiscal year compared to $4374.0M three years ago, EPS was $6.36 in the last fiscal year compared to $5.3 three years ago, and ROE was 28.27% in the last year compared to 25.73% three years ago. The stock is also trading with a Forward 12M P/E of 21.89.

Verizon Communications Inc (VZ)

Verizon Communications is our next Attractive stock for this month. Verizon is one of the largest telecom companies in the US. In fact, after AT&T, Verizon is the second largest telecom company in terms of revenue. Our AI systems rated Verizon D in Technicals, C in Growth, A in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.16% to $61.0 on volume of 12,196,930 vs its 10-day price average of $58.5 and its 22-day price average of $58.05, and is down 0.08% for the year. Revenue grew by 1.86% over the last three fiscal years, while Operating Income grew by 7.77% over the last three fiscal years. Revenue was $131868.0M in the last fiscal year compared to $126034.0M three years ago, Operating Income was $31521.0M in the last fiscal year compared to $28673.0M three years ago, EPS was $4.65 in the last fiscal year compared to $7.36 three years ago, and ROE was 33.67% in the last year compared to 88.91% three years ago. Forward 12M Revenue is expected to grow by 3.44% over the next 12 months, and the stock is trading with a Forward 12M P/E of 12.3.

Bristol-Myers Squibb Co (BMY)

Pharmaceutical giant Bristol-Myers Squibb is our third and final Attractive stock for the month. Bristol Myers Squibb is best known for manufacturing prescription drugs for treatments in several areas, such as cancer, HIV/AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders. Our AI systems rated the company D in Technicals, C in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed down 1.7% to $63.42 on volume of 8,269,684 vs its 10-day price average of $62.21 and its 22-day price average of $61.11, and is up 0.13% for the year. Revenue grew by 50.68% in the last fiscal year and grew by 89.62% over the last three fiscal years, while Operating Income grew by 11.75% in the last fiscal year and grew by 98.34% over the last three fiscal years. Revenue was $26145.0M in the last fiscal year compared to $20776.0M three years ago, Operating Income was $7064.0M in the last fiscal year compared to $3980.0M three years ago, EPS was $2.01 in the last fiscal year compared to $0.61 three years ago, and ROE was 10.51% in the last year compared to 6.92% three years ago. Forward 12M Revenue is expected to grow by 5.15% over the next 12 months, and the stock is trading with a Forward 12M P/E of 9.21. 

Neutral          

From our list of Top Dividend stocks, we identified three Neutral stocks this month.

Metlife Inc (MET)

Metlife is our first Neutral stock on our list for the second straight month. The life insurance company is one of the largest global providers of insurance, annuities, and employee benefit programs in the world, with 90 million customers in over 60 countries. Our AI systems rated Metlife C in Technicals, D in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed down 1.13% to $45.51 on volume of 7,381,405 vs its 10-day price average of $41.09 and its 22-day price average of $40.01, and is down 11.84% for the year. Revenue grew by 5.23% over the last three fiscal years, Operating Income grew by 58.7% over the last three fiscal years, and EPS grew by 0.74% in the last fiscal year and grew by 68.85% over the last three fiscal years. Revenue was $69620.0M in the last fiscal year compared to $62308.0M three years ago, Operating Income was $7856.0M in the last fiscal year compared to $4838.0M three years ago, EPS was $6.06 in the last fiscal year, compared to $3.62 three years ago, and ROE was 9.9% in the last year compared to 7.91% three years ago. Forward 12M Revenue is expected to grow by 7.35% over the next 12 months, and the stock is trading with a Forward 12M P/E of 7.46.

Ameriprise Financial Inc (AMP)

Diversified financial services and bank holding company Ameriprise Financial is our second Neutral stock for the month. Our AI systems rated Ameriprise C in Technicals, C in Growth, C in Low Volatility Momentum, and A in Quality Value. The stock closed down 1.02% to $181.3 on volume of 566,438 vs its 10-day price average of $171.21 and its 22-day price average of $168.98, and is up 7.13% for the year. EPS grew by 2.37% in the last fiscal year and grew by 50.96% over the last three fiscal years. Revenue was $12890.0M in the last fiscal year compared to $12180.0M three years ago, Operating Income was $3038.0M in the last fiscal year compared to $3125.0M three years ago, EPS was $13.92 in the last fiscal year compared to $9.44 three years ago, and ROE was 33.45% in the last year compared to 24.09% three years ago. Forward 12M Revenue is expected to grow by 5.95% over the next 12 months, and the stock is trading with a Forward 12M P/E of 9.92.

Enterprise Product Partners Lp (EPD)

Enterprise Product Partners is our final Neutral stock for the month. One of the larger companies in the US in terms of revenue, Enterprise Product Partners is a Houston-based midstream natural gas and crude oil pipeline company. Our AI systems rated the company B in Technicals, C in Growth, C in Low Volatility Momentum, and C in Quality Value. The stock closed up 0.61% to $18.18 on volume of 8,287,832 vs its 10-day price average of $17.07 and its 22-day price average of $17.17, and is down 35.37% for the year. Operating Income grew by 51.59% over the last three fiscal years. EPS grew by 58.65% over the last three fiscal years. Revenue was $32789.2M in the last fiscal year compared to $29241.5M three years ago, Operating Income was $5566.8M in the last fiscal year compared to $3540.7M three years ago, EPS was $2.09 in the last fiscal year compared to $1.3 three years ago, and ROE was 18.7% in the last year compared to 12.68% three years ago. Forward 12M Revenue is expected to grow by 0.87% over the next 12 months, and the stock is trading with a Forward 12M P/E of 9.65.

Unattractive             

Our AI systems identified one Unattractive stock for this month. 

Valero Energy Corp (VLO)

Energy juggernaut Valero is our one and only Unattractive stock for this month. The San Antonio based company is an international manufacturer and marketer of transportation fuels, other petrochemical products, and power. Valero is also a large retailer, with approximately 6,800 retail and branded wholesale outlets in the United States, Canada, United Kingdom, and the Caribbean under the Valero, Diamond Shamrock, Shamrock, Beacon, and Texaco brands. Our AI systems rated Valero F in Technicals, C in Growth, C in Low Volatility Momentum, and D in Quality Value. The stock closed down 0.34% to $49.79 on volume of 6,325,274 vs its 10-day price average of $42.2 and its 22-day price average of $41.12, and is down 47.66% for the year. Revenue was $102729.0M in the last fiscal year compared to $88407.0M three years ago, Operating Income was $3885.0M in the last fiscal year compared to $3599.0M three years ago, EPS was $5.85 in the last fiscal year compared to $9.16 three years ago, and ROE was 12.3% in the last year compared to 19.0% three years ago. Forward 12M Revenue is also expected to grow by 10.4% over the next 12 months.

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