Although Friday’s rally was a very pleasant surprise, the reality is that we could have some very tough luge this summer and fall. Federal Reserve Chairman Powell has telegraphed a series of 50 basis point increases for the rest of this year and into 2023, with the stated aim of bringing the federal funds rate to the 3-level. 25% to 3.50%. With the current rate of 0.75% to 1.00%, that’s a long way to go.
With the highest inflation in 40 years and a slew of additional issues both at home and abroad, now is the time to move on to high value stocks that pay dividends. Value stocks are generally defined as stocks of a company with strong fundamentals that are priced below those of its peers, based on an analysis of price-to-earnings ratio, yield and other factors. The BofA Securities Value 10 Portfolio is quantitatively generated and is based on BofA Securities’ proprietary model versus consensus earnings surprise model, plus three additional selection criteria. The universe used by analysts is the S&P 500.
We selected the Value 10 portfolio for the five stocks with the highest dividends. We’ve found five top picks that could be the big winners of 2022. While all are rated Buy at BofA Securities, it’s important to remember that no single analyst report should be used as the sole basis for any investment decision. buying or selling.
The need for electronics and equipment to set up a “work from home” office has been a huge tailwind for this major retailer, and what started as a pandemic necessity has become a trend. Best Buy Inc. (NYSE: BBY) is a leading consumer electronics specialty retailer in the United States and Canada. As of January 30, 2022, it had 1,144 stores.
These stores offer computer products, such as desktops, laptops, and peripherals; mobile phones with associated mobile network operator fees; networking products; tablets covering e-readers; smart watches; and consumer electronics including digital imaging, health and fitness, home theater, portable audio including headphones and portable speakers, and smart home products.
Its stores also offer household appliances, such as dishwashers, laundry detergent, ovens, refrigerators, blenders, coffee makers and vacuum cleaners; entertainment products consisting of drones, peripherals, movies, music, and toys, as well as hardware and software for games, virtual reality, and other software products; and other products, such as babies, food and beverages, luggage, outdoor goods and sporting goods.
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In addition, Best Buy offers consultation, delivery, design, health, installation, membership, repair, configuration, technical support and warranty services. The Company offers its products in stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Best Buy Mobile, Pacific Kitchen, Home banners. and Yardbird. .
Shareholders receive a dividend of 4.12%. BofA Securities’ price target for Best Buy shares is $135, while the consensus target is $123.71. The shares closed Friday trading at $86.36.