Tags: Peters | dividends | GE | Coke

Morningstar's Peters Likes, GE, Coke for Dividend Plays

By    |   Tuesday, 13 January 2015 09:55 AM

With interest rates likely to rise only gradually from historic lows this year, you might want to consider dividend stocks to drum up more income.

Among those favored by Josh Peters, director of equity income strategy at Morningstar, are General Electric and Coca-Cola, CNBC reports.

GE stock has run into tough sledding lately, thanks to its heavy reliance on the energy sector, falling 10 percent since Nov. 24.

But Peters says the share price doesn't reflect GE's strategy to shrink its financial services business and expand its more powerful industrial and infrastructure sectors. GE is trading in the low $20s, and Morningstar puts fair value at $30. The company also boasts a dividend yield of 3.8 percent.

S&P Capital IQ Equity analyst Jim Corridore has a four-star (out of five) buy rating for the company. "We see GE as well positioned for growth supplying high technology products and services critical for economic development across the globe," he writes in a commentary.

"We expect results to be aided by two primary longer-term trends: credit market improvement and improving global demand in longer-cycle infrastructure businesses such as power generation, energy management and exploration and jet engines, as global growth trends pick up."

As for Coke, its "biggest headwind far and away" is the dollar's strength, Peters notes. The greenback has hit multi-year highs against many currencies in recent weeks.

"I don't know when that's going to turn around, but eventually it's going to," he adds. Peters expects Coke to enjoy annual dividends and earnings growth of 7 to 8 percent long-term.

Coke traded at $43.13 Tuesday morning, and Morningstar puts fair value at $42.

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Finance
With interest rates likely to rise only gradually from historic lows this year, you might want to consider dividend stocks to drum up more income.
Peters, dividends, GE, Coke
272
2015-55-13
Tuesday, 13 January 2015 09:55 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved