The 2021 stock market rally has not been good for all successful companies. As financials and tech stocks dominate the yield rankings through mid-July, Wall Street has left many blue chip companies out of this year's surge.
The good news for income investors is that this underperformance translates into higher yields of Walmart ( NYSE: WMT ) , Verizon Communications ( NYSE: VZ ) , and Procter & Gamble ( NYSE: PG ) - could offer some interesting value today.
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Walmart is worth
The reasons There's no shortage of liking Walmart stocks right now. The global retailer just had an incredible fiscal year that added $ 40 billion in revenue to its base. sure, growthwill slow in the wake of the pandemic that has pushed spending in areas like groceries and home supplies. But CEO Doug McMillon and his team come from raised their outlook for the current year following strong demand in the retail aisles.
Wall Street is concerned about high costs in the over the next several years as Walmart invests in its e-commerce platform and strives to retain all of the new customers it attracted during the pandemic. These initiatives could put pressure on earnings and reduce direct shareholder returns, such as share buybacks. But they are also a down payment on future growth. And they will help ensure that Walmart continues to lead its industry, just as it has in a wide range of environments.Selling events over the past few decades.
Verizon Communications is a Buffett favorite
Wall Street has excluded Verizon from this rally in favor of tech giants like Microsoft and Cisco Systems . But there's a lot to recommend this communications network stock.
Start with its over 4% return, which is probably one of the biggest reasons billionaires love Warren Buffett a accumulated actions . This meaty payout is well covered by a huge base of recurring income. Verizon recently announced an acceleration in sales growth and affirmed its bullish outlook for 2021.
Of course, the expected 4% sales increase this year seems meager compared to some of the sales figures. generated by tech companies like Apple . But Verizon's 5G push sets the stage for many years of user growth on its network. And this generous payout is well covered by income and cash flow.
Procter & Gamble Continues to Win
Procter & Gamble isn 't loved enough on Wall Street. The consumer staples giant proved in its April earnings report that it can continue to grow as consumers return to more normal spending habits. Organic sales increased 4%, as P&G gained market share in attractive global categories such as cosmetics and laundry care products.
P&G faces challenges. challenge of raising prices to account for rising input costs in recent months. But executives forecast another strong year for sales, profits and even cash generation.i sales growth is slowing compared to that of 2020.
And fans have every reason to love this stock. The increase in p & g's