Finding stocks that are down big with S&P 500 trading in bear market territory is not hard these days. Finding the companies that also pay big dividends and are likely to keep them is a different story. Often, a one-off event occurs or an economic change damages the products or services a company provides, and that puts a big-time hurt on the share price. That is the time for nimble investors to buy the shares.
One big advantage to buying beaten-down stocks with substantial dividends is that investors are paid to wait for the recovery. While that can sometimes be a lengthy period, four times a year the dividends will arrive. Selling covered call options also can enhance the income profile.
We screened our 24/7 Wall St. research database for well-known stocks that have been hammered for one reason or another, looking for solid ideas for investors. We found seven such companies that look ripe for the picking. Though all are rated Buy on Wall Street, it is important to remember that no single analyst report should be used as the sole basis for any buying or selling decision.
Shares of this top money management company make sense for more aggressive growth and income investors. Blackstone Group L.P. (NYSE: BX) is one of the largest global alternative asset managers. Blackstone manages investments and provides services across four operating segments: Private Equity, Real Estate, Credit and Hedge Fund Solutions.
Blackstone launches and manages private equity funds, real estate funds, funds of hedge funds and credit-focused funds for its clients. It invests in private equity, public equity, fixed income and alternative investment markets.
Blackstone stock investors receive a 5.40% distribution. Deutsche Bank has a $153 price target, and the consensus target is just $119.33. The shares closed on Wednesday at $88.77 apiece.
British American Tobacco
This conglomerate got much bigger with the acquisition of Reynolds American in 2017. British American Tobacco PLC (NYSE: BTI) provides tobacco and nicotine products to consumers worldwide. It offers vapor products, tobacco heating products and modern oral products; combustible products; and traditional oral products, such as Swedish-style snus and American moist snuff. The company distributes its products to retail outlets.