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3 Hot Dividend Paying Stocks to Buy to Close Out 2019

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The stock market dipped lower Thursday as Wall Street assesses the trade war developments between the US and China. The DJIA was down as low as 100 points and the S&P 500 slipped down 0.4% at one point. The back and forth trade developments coming from the countries’ leaders caused the equity markets to stall as they await more concrete indications.

Despite the continued geopolitical uncertainty, corporate earnings have helped reassure the economic outlook. Consumer spending continues to anchor the domestic economy as retail giants reported strong financial figures in the third quarter. However, for those still not completely optimistic about the economic outlook, dividend stocks are a great precautionary move to make.

Target TGT is a solid stock to consider after retail sales rebounded last month. Retail sales i.e. purchases at stores, restaurants and online, rose a seasonally adjusted 0.3% in October. In addition to the overall rebound performance in the retail sector, Target just posted scorching hot third quarter results that sent its shares to new all-time highs.

Target looks poised to cash in on the holiday season with its beefed-up workforce and its Disney (DIS - Free Report) partnership, which can help it capture a larger portion of toy sales. Target pays out a quarterly dividend with a healthy 2.09% yield that can bolster returns. Target shares have soared over 90% in 2019 and the stock currently sits at a Zacks Rank #2 (Buy).

Fidelity National Financial FNF is a leading provider of title insurance, specialty insurance, and claims management services. The insurance company is also coming off a strong third quarter where its total revenue grew 4.76% and its earnings soared 41%. The company also repurchased 810,000 shares of common stock during the third quarter for approximately $35 million. The strong quarter continued the stock’s YTD rise and it now is up over 52% on the year.

Fidelity pays out a dividend with a 2.6% yield and has a beta ratio of 0.83, which can help weather broader market volatility. Our Q4 consensus estimates forecast the firm’s earnings to climb over 36% to $0.86 per share and for its total revenue to hike 26.55% to $2.14 billion. The insurance company’s earnings estimates have been revised higher across the board helping give the stock a Zacks Rank #1 (Strong Buy).

Duke Realty Corporation DRE is a domestic industrial REIT engaged in owning, managing, and developing industrial properties across the nation. Its portfolio of industrial properties comprises of about 156 million rentable square feet located in 20 key logistics markets. Duke Realty is coming off a third quarter where its core FFO rallied 5.71% to $0.37 per share and its net sales jumped 4.07% to $241.3 million.

REITs are a solid move to make especially after the Federal Reserve cut interest rates three times already this year. The low rate environment allows REITs to refinance their debt and use the extra cash to expand or finance other initiatives. Duke Realty’s dividend has a 2.67% yield and its shares have risen over 34% YTD. Q4 estimates look solid as they call for core FFO to leap 8.57% to $0.38 per share and for sales to gain 7.24%. Duke Realty is currently a Zacks Rank #2 (Buy).

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