If you know how to observe stock statistics, it is possible to find a safe place in the market. Investors should follow stocks that sell at discounted prices because estimations can often get out of control when trend on the market goes higher. Among those value stocks, investors should search for dividend stocks as well. They give compensation just for holding them. As always, some stocks can be considered “safe buy” right now and the companies pay a dividend to shareholders.
Canada’s biggest telecommunication corporation, BCE Inc (NYSE: BCE) has lost 15% YTD from the late-2017 and currently pays a significant dividend yield of 5.8%. The company’s valuation is not at a low level at all and presently stands at 17.5 times P/E.
But investors have to check if BCE shares will stay in the same position or will maybe fall, and the second quarter results are the main reason for the uncertainty. If the dropping continues, the dividend yield might go up further, and that is another reason to have clear and precise reports surrounding the stock. Last time, the firm announced EBITDA moving up only 2% to $2.43 billion. Net earnings dropped 8% to $703 million and the free cash flow dropped 9.1%. The BCE wireless sector was a successful part of the company because additions have moved up 37.8% from 2017.
The company’s forecast EBITDA jump of 2-4%, and free cash flow jump of 3-7% gives a conclusion the BCE dividend will not drop any time soon. Occasionally, when mobile joins are beginning to reach the maximum for different telecoms, BCE followed the trend by watching jump never seen since 2000.
Still, there are some problems with the stock though. Their designated EPS figures are already in the low level and can get even lower if the country’s economy weakens because of Canada/U.S trade disputes.
Opinions on AT&T Inc. (NYSE: T) problematic debt are sometimes overwhelming among the investors. After the fall at $30.13 in July, the shares moved back to $33.44 when markets determined they were wrong. The company’s main business will create sufficient cash flow to cover costs for interest payments. Better content quality at HBO and lower costs at WarnerMedia will drive new subscriptions to the company and the profit will move higher.
The net income of a growing amount of subscriptions at HBO brings higher cash flow jump for quarters yet to come. The debt decline should remove investor worries over the balance sheet. AT&T shares are ideal dividend shares with a quite nice yield of 6%.
Moving to the energy industry, Kinder Morgan, Inc (NYSE: KMI) shares have moved up closely 23% from lows set in April this year. This pipeline and oil company is still worth considering due to a dividend yield of 4.43%.
Kinder Morgan’s long-term equity is yet flexible and manageable but the firm maintains to sell assets lower than expected. However, the midstream assets look more attractive and have a higher value that promises new benefits.