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5 Top High-Yielding Stocks With Double-Digit Returns YTD

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Wall Street has so far seen a pathetic 2020 thanks to the outbreak of the coronavirus across the globe. However, stock markets started on an impressive note this year after witnessing a fabulous 2019, the best performance in six years. A stable U.S. economy and the interim trade deal between the United States and China intensified the momentum of the historically longest bull market.

The bull market lost its momentum since mid-February as the spread of coronavirus heightened and finally Wall Street fell into bear market territory on Mar 11. Although, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — finally got rid of the bear market on Apr 14, volatility still remains high. This is evident from the fact that the VIX — recognized as the best fear gauge of Wall Street — is still in mid 40s, which is significantly above the volatility index's historic average level of 20s.

Coronavirus Harms U.S. Economy

Several disappointing data revealed how badly the U.S. economy was hurt in the first quarter due to lockdowns, both domestic and international. In the absence of any vaccine or line of treatment, enforcing of social distancing was the only option to curb the spread of the deadly virus.

Unemployment in the United States skyrocketed to more than 22 million in the last two weeks of March and first two weeks of April. Moreover, March's data for industrial production, retail sales, manufacturing activities, home building and consumer confidence, revealed how badly the U.S. economy was hurt in the first quarter.

To make the situation worse, on Apr 20, the price of the U.S. benchmark WTI crude oil for May delivery lost all its value finishing at negative $37.63 per barrel. This happened for the first time in the benchmark's history.

Imposition of partial or full lockdowns across the world resulted in a near-complete stagnation of aviation, road and sea transport as well as industrial activities. Consequently, the storage capacity of refineries is full, resulting in virtually zero demand for crude oil.

Not All Stocks Are Infected With the Virus

Despite above-mentioned negatives, some of the stocks remained unaffected by the market bloodbath. Year to date, the Dow, the S&P 500 and the Nasdaq Composite - are down 19.3%, 15.3% and 7.9%, respectively.

However, a closer look into Wall Street will give us a number of good stocks that have offered double-digit returns so far this year to market participants. Coronavirus-led market turmoil failed to deter their north-bound journey. Proper selection of these stocks will be a prudent investment strategy at this juncture.

Our Selection Criteria

We have used three selection criteria. First, stocks with high-dividend yield and strong growth potential will be attractive. Regular dividend will ensure a steady income stream. Second, upward earnings per share (EPS) estimate revision for 2020 of any stock means the market is expecting these companies to do good business this year. A positive EPS estimate revision during a period of historic financial turmoil highlights the company's solid business model and robust growth potential. Third, each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

 

The Clorox Co. CLX manufactures and markets consumer and professional products worldwide. It operates through four segments: Cleaning, Household, Lifestyle and International. The company has an expected earnings growth rate of 2.9% for the current year (ending June 2020). The Zacks Consensus Estimate for current year earnings has improved by 1.9% over the past 30 days. The stock price has rallied 24.2% year to date and offers a dividend yield of 2.2%.

Manning & Napier Inc. MN operates as an investment advisor engaged in managing corporate and union pension and annuity funds, endowment funds, foundations, profit sharing plans and benefit plans. The company has an expected earnings growth rate of 41.2% for the current year. The Zacks Consensus Estimate for current year earnings has improved by 41.2% over the past 30 days. The stock price has jumped 72.4% year to date and offers a dividend yield of 2.7%.

Virtu Financial Inc. (VIRT - Free Report) offers a technology platform through which it provides quotations to buyers and sellers in equities, commodities, currencies, options, fixed income and other securities on exchanges, markets and liquidity pools. The company has an expected earnings growth rate of 147.9% for the current year. The Zacks Consensus Estimate for current year earnings has improved by 25.9% over the past 30 days. The stock price has soared 50.6% year to date and offers a dividend yield of 4.1%.

PLDT Inc. PHI operates as a telecommunications company in the Philippines. Its operating segment consists of Wireless, Fixed Line and Others. The company has an expected earnings growth rate of 14.9% for the current year. The Zacks Consensus Estimate for current year earnings has improved by 9.6% over the past 30 days. The stock price has climbed 14.5% year to date and offers a dividend yield of 4.5%.

The Scotts Miracle-Gro Co Inc. SMG manufactures, markets, and sells consumer lawn and garden products in the United States and internationally. The company operates through three segments: U.S. Consumer, Hawthorne and Other. The company has an expected earnings growth rate of 15.9% for the current year. The Zacks Consensus Estimate for current year earnings has improved by 0.6% over the past 30 days. The stock price has surged 10.9% year to date and offers a dividend yield of nearly 2%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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