We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: McCormick, Cintas, Archer-Daniels and Ameren
Read MoreHide Full Article
For Immediate Release
Chicago, IL –January 18, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McCormick & Company, Inc. (MKC - Free Report) , Cintas Corp. (CTAS - Free Report) , Archer-Daniels-Midland Co. (ADM - Free Report) and Ameren Corp. (AEE - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Stocks in Remembrance of Vanguard's Jack Bogle
John C. Bogle, father of the index fund, passed away at the age of 89 on Jan 16. He was known for his low-cost, buy-and-hold investing strategy and founded the Vanguard Group, the mutual fund house mostly known for their low-cost funds that track a market index rather than trying to outdo it. He said that the main appeal of these funds is that these capture nearly all of a bourses’ return ably and inexpensively.
Bogle always said “Why can’t managers beat the market? Where’s the value added? In terms of industrywide statistics, it’s just not there. One reason is because of cost. The cost is a handicap on the horse. If the jockey carries a lot of extra pounds, it’s very tough for the horse to win the race.”
Vanguard was formed in 1974 and began functioning the next year. Investors have put in nearly $5.3 trillion into Vanguard funds, according to the company. Most of the Vanguard funds are managed outside. Unlike other fund families, Vanguard doesn’t hire employees to manage funds. Instead, the world’s biggest fund family hires managers from outside. This makes it easier to replace the funds in case the manager fails to deliver. This in turn helps to control overall cost of actively-managed Vanguard funds.
When Bogle launched his first fund that tracked the S&P 500 index in 1976, it was called “the Vanguard experiment,” which initially accumulated $11 million. It is now famously known as the Vanguard 500 Index Investor fund and has almost $441 billion in assets, noted Vanguard.
Bogle’s Beliefs
Bogle had very modestly said “I don’t think I’m anything like a folk hero, but there aren’t a lot of people like me in this business. Most keep a lower profile, are much more guarded in the way they speak, and much less strident in their advocacy of shareholders’ values and rights. If this industry had one fox and 1,000 hedgehogs, maybe I wouldn’t stand out. But if it has 1,000 foxes and one hedgehog, you’re going to be more distinctive. You carry a different set of values and investment ideas. If it’s unusual — even unique — you will stand out.”
So, what was his simple approach toward investing? No doubt, he asked everyone to consider index funds. Having a diversified portfolio comprising stocks as well as mutual funds was also recommended. Last but not the least he said that don’t be bothered about the broader market. Think long term, stay invested and ignore the noise. But, most importantly he had confirmed that growth comes from dividends.
Dividends Are a Stock Investor's Best Friend
According to Bogle, dividend yield along with earnings growth primarily drives stock prices. In the 20th century, out of the stock market’s 9.6% return, 4.5% came from dividend growth and 5% came from earnings growth. Meanwhile, a meager 0.1% came from adjustments in market price-to-earnings ratio, noted Bogle.
Bogle added that the compounding power of dividends is amazing and is key to huge wealth creation by index funds. Dividend payers, thus, make for wonderful investments. The best dividend stocks, undoubtedly, yield healthy returns, have strong prospects and are less susceptible to market gyrations. Their large customer base, sustainable business model, long track of profitability and strong liquidity allow them to offer sizable yields on a regular basis, regardless of market conditions.
4 Stocks to Go Over Bogle’s Timeless Investing Lesson
While finding solid dividend paying companies isn’t easy, they certainly do exist. To help you find these businesses, we have selected four dividend payers who have a Zacks Rank #1 (Strong Buy) or 2 (Buy).
McCormick & Company, Inc.manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products. The stock currently has a Zacks Rank #1. The company has raised its dividend payments for 31 consecutive years. It has a dividend yield of 1.6%, while its five-year average dividend yield is 1.9%. The Zacks Consensus Estimate for current-year earnings has increased 0.2% in the past 90 days.
Cintas Corp.provides corporate identity uniforms and related business services. The stock currently has a Zacks Rank #2. It has raised its dividend for 34 years in a row. It has a dividend yield of 1.2%, while its five-year average dividend yield is 1.1%. The Zacks Consensus Estimate for current-year earnings has increased 1.5% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer-Daniels-Midland Co.procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients. The stock currently has a Zacks Rank #1. The company has raised its dividend payments for more than 25 successive years. It has a dividend yield of 3.1%, while its five-year average dividend yield is 2.7%. The Zacks Consensus Estimate for current-year earnings has moved up 0.8% in the past 60 days.
Ameren Corp. operates as a public utility holding company in the United States. The stock currently has a Zacks Rank 1. The company has consistently paid dividends for a considerable period of time. It has a dividend yield of 2.9%, while its five-year average dividend yield is 3.5%. The Zacks Consensus Estimate for current-year earnings has moved 0.9% north in the past 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: McCormick, Cintas, Archer-Daniels and Ameren
For Immediate Release
Chicago, IL –January 18, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McCormick & Company, Inc. (MKC - Free Report) , Cintas Corp. (CTAS - Free Report) , Archer-Daniels-Midland Co. (ADM - Free Report) and Ameren Corp. (AEE - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Stocks in Remembrance of Vanguard's Jack Bogle
John C. Bogle, father of the index fund, passed away at the age of 89 on Jan 16. He was known for his low-cost, buy-and-hold investing strategy and founded the Vanguard Group, the mutual fund house mostly known for their low-cost funds that track a market index rather than trying to outdo it. He said that the main appeal of these funds is that these capture nearly all of a bourses’ return ably and inexpensively.
Bogle always said “Why can’t managers beat the market? Where’s the value added? In terms of industrywide statistics, it’s just not there. One reason is because of cost. The cost is a handicap on the horse. If the jockey carries a lot of extra pounds, it’s very tough for the horse to win the race.”
Vanguard was formed in 1974 and began functioning the next year. Investors have put in nearly $5.3 trillion into Vanguard funds, according to the company. Most of the Vanguard funds are managed outside. Unlike other fund families, Vanguard doesn’t hire employees to manage funds. Instead, the world’s biggest fund family hires managers from outside. This makes it easier to replace the funds in case the manager fails to deliver. This in turn helps to control overall cost of actively-managed Vanguard funds.
When Bogle launched his first fund that tracked the S&P 500 index in 1976, it was called “the Vanguard experiment,” which initially accumulated $11 million. It is now famously known as the Vanguard 500 Index Investor fund and has almost $441 billion in assets, noted Vanguard.
Bogle’s Beliefs
Bogle had very modestly said “I don’t think I’m anything like a folk hero, but there aren’t a lot of people like me in this business. Most keep a lower profile, are much more guarded in the way they speak, and much less strident in their advocacy of shareholders’ values and rights. If this industry had one fox and 1,000 hedgehogs, maybe I wouldn’t stand out. But if it has 1,000 foxes and one hedgehog, you’re going to be more distinctive. You carry a different set of values and investment ideas. If it’s unusual — even unique — you will stand out.”
So, what was his simple approach toward investing? No doubt, he asked everyone to consider index funds. Having a diversified portfolio comprising stocks as well as mutual funds was also recommended. Last but not the least he said that don’t be bothered about the broader market. Think long term, stay invested and ignore the noise. But, most importantly he had confirmed that growth comes from dividends.
Dividends Are a Stock Investor's Best Friend
According to Bogle, dividend yield along with earnings growth primarily drives stock prices. In the 20th century, out of the stock market’s 9.6% return, 4.5% came from dividend growth and 5% came from earnings growth. Meanwhile, a meager 0.1% came from adjustments in market price-to-earnings ratio, noted Bogle.
Bogle added that the compounding power of dividends is amazing and is key to huge wealth creation by index funds. Dividend payers, thus, make for wonderful investments. The best dividend stocks, undoubtedly, yield healthy returns, have strong prospects and are less susceptible to market gyrations. Their large customer base, sustainable business model, long track of profitability and strong liquidity allow them to offer sizable yields on a regular basis, regardless of market conditions.
4 Stocks to Go Over Bogle’s Timeless Investing Lesson
While finding solid dividend paying companies isn’t easy, they certainly do exist. To help you find these businesses, we have selected four dividend payers who have a Zacks Rank #1 (Strong Buy) or 2 (Buy).
McCormick & Company, Inc.manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products. The stock currently has a Zacks Rank #1. The company has raised its dividend payments for 31 consecutive years. It has a dividend yield of 1.6%, while its five-year average dividend yield is 1.9%. The Zacks Consensus Estimate for current-year earnings has increased 0.2% in the past 90 days.
Cintas Corp.provides corporate identity uniforms and related business services. The stock currently has a Zacks Rank #2. It has raised its dividend for 34 years in a row. It has a dividend yield of 1.2%, while its five-year average dividend yield is 1.1%. The Zacks Consensus Estimate for current-year earnings has increased 1.5% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archer-Daniels-Midland Co.procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients. The stock currently has a Zacks Rank #1. The company has raised its dividend payments for more than 25 successive years. It has a dividend yield of 3.1%, while its five-year average dividend yield is 2.7%. The Zacks Consensus Estimate for current-year earnings has moved up 0.8% in the past 60 days.
Ameren Corp. operates as a public utility holding company in the United States. The stock currently has a Zacks Rank 1. The company has consistently paid dividends for a considerable period of time. It has a dividend yield of 2.9%, while its five-year average dividend yield is 3.5%. The Zacks Consensus Estimate for current-year earnings has moved 0.9% north in the past 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.