#7 - CNH Industrial (NYSE:CNHI)
MarketBeat recently gave investors a list of seven agriculture technology stocks to consider. CNH Industrial (NYSE:CNHI) didn’t make that list. One reason is that the company recently completed the sale of its Raven Engineered Films Division (EFD). So this was the first quarter in which the company reported as a pure-play agriculture and construction business.
But the equipment company makes this list of dividend stocks for several reasons. For starters, the company looks to be appropriately valued with a forward price-to-earnings (P/E) ratio of 10.85.
Second, the demand for commodities remains high. For example, a significant amount of wheat will not be exported from Ukraine. That should keep demand for farming equipment at elevated levels. And that will allow the company to grow revenue even if the economy tips into a recession.
Finally, CNH Industrial pays a one-time annual dividend. Last year that paid out at 30 cents a share. Investors should look for that to move higher as earnings grow.
About CNH Industrial
CNH Industrial N.V., an equipment and services company, engages in the design, production, marketing, sale, and financing of agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific. The company operates through three segments: Agriculture, Construction, and Financial Services.
Read More - Current Price
- $0.00
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $14.96
Dividend stocks are not going to generate the growth that investors can get in young tech stocks. These are mature companies that pay out a percentage of their earnings as a dividend. However, on a risk-adjusted basis many of these stocks have outperformed the stocks of companies that don't pay dividends.
However, like all stocks, dividend stocks are not without risk. A company can suspend or cut a dividend for many reasons. That scenario played out during the Covid-19 pandemic when companies pre-emptively suspended dividends in anticipation of lower earnings.
To help offset that risk, investors may want to choose the relative safety of an exchange-traded fund (ETF) that focuses on dividend-paying companies. By diversifying across many sectors, investors will be less impacted if some companies have to reduce their dividend. One option is the ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL). This fund invests in companies that have increased their dividend for at least 25 years.
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