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Caterpillar (CAT) & Sony (SNE): Dividend-Paying Stocks to Watch
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Wall Street is paying close attention to developments in Washington D.C. as President Trump, trade talks, and the Fed continue to make headlines. Nevertheless, indexes are near all-time highs, and Ryan McQueeney has is eyes on two dividend-paying stocks: Caterpillar (CAT - Free Report) and Sony .
Caterpillar shares have had a hard time getting off the ground lately, but the stock is sporting a Zacks Rank #1 (Strong Buy) and looks poised for a rebound on renewed trade talks and an improving earnings outlook.
Earnings estimates and estimate revisions are the foundation of the Zacks Rank, and this is exactly why CAT is holding our top designation right now. The company has witnessed 10 positive revisions to its full-year EPS estimates within the past 30 days, against no negative revisions within that same timeframe. This trend extends into Caterpillar’s next fiscal year estimates and looks similarly strong for the current quarter.
All in all, these positive revisions have resulted in an even more positive outlook for Caterpillar. The construction equipment giant is now expected to see earnings growth of nearly 68% this year, underscoring the success of its growth initiatives and the strength of its core business right now.
Caterpillar is also holding an “A” grade for Value in our Style Scores system. The stock is trading at just 12.1x forward earnings, representing a sharp discount to its industry’s average. Plus, as income investors should note, Caterpillar is presenting a dividend yield of 2.5%.
Another Zacks Rank #1 (Strong Buy) paying out a dividend—although an admittedly much smaller one—is Sony Corporation .
Sony is on the brain this week as video game fans have their attention planted firmly on Gamescom 2018, a massive gaming trade show in Cologne, Germany. The PlayStation 4 maker did not hold an official press conference, but company was out promoting the highly-anticipated Marvel’s Spider-Man PS4 exclusive, and to celebrate this moment, Ryan dug into the stock a bit.
This Japanese tech behemoth has also seen a number of positive earnings estimate revisions recently, with earnings growth now expected to touch 26% in the current fiscal year. Sony is a legacy tech pick, but it has put together strong earnings momentum, and that has resulted in solid gains for the stock in 2018.
But even with these gains, Sony is still a “B” grade for Value. Its dividend yield might be relatively small, but investors will likely appreciate any extra payout for this impressive stock.
Make sure to check out today’s video to hear Ryan’s full thoughts on both companies!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Caterpillar (CAT) & Sony (SNE): Dividend-Paying Stocks to Watch
Wall Street is paying close attention to developments in Washington D.C. as President Trump, trade talks, and the Fed continue to make headlines. Nevertheless, indexes are near all-time highs, and Ryan McQueeney has is eyes on two dividend-paying stocks: Caterpillar (CAT - Free Report) and Sony .
Caterpillar shares have had a hard time getting off the ground lately, but the stock is sporting a Zacks Rank #1 (Strong Buy) and looks poised for a rebound on renewed trade talks and an improving earnings outlook.
Earnings estimates and estimate revisions are the foundation of the Zacks Rank, and this is exactly why CAT is holding our top designation right now. The company has witnessed 10 positive revisions to its full-year EPS estimates within the past 30 days, against no negative revisions within that same timeframe. This trend extends into Caterpillar’s next fiscal year estimates and looks similarly strong for the current quarter.
All in all, these positive revisions have resulted in an even more positive outlook for Caterpillar. The construction equipment giant is now expected to see earnings growth of nearly 68% this year, underscoring the success of its growth initiatives and the strength of its core business right now.
Caterpillar is also holding an “A” grade for Value in our Style Scores system. The stock is trading at just 12.1x forward earnings, representing a sharp discount to its industry’s average. Plus, as income investors should note, Caterpillar is presenting a dividend yield of 2.5%.
Another Zacks Rank #1 (Strong Buy) paying out a dividend—although an admittedly much smaller one—is Sony Corporation .
Sony is on the brain this week as video game fans have their attention planted firmly on Gamescom 2018, a massive gaming trade show in Cologne, Germany. The PlayStation 4 maker did not hold an official press conference, but company was out promoting the highly-anticipated Marvel’s Spider-Man PS4 exclusive, and to celebrate this moment, Ryan dug into the stock a bit.
This Japanese tech behemoth has also seen a number of positive earnings estimate revisions recently, with earnings growth now expected to touch 26% in the current fiscal year. Sony is a legacy tech pick, but it has put together strong earnings momentum, and that has resulted in solid gains for the stock in 2018.
But even with these gains, Sony is still a “B” grade for Value. Its dividend yield might be relatively small, but investors will likely appreciate any extra payout for this impressive stock.
Make sure to check out today’s video to hear Ryan’s full thoughts on both companies!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>