2 Stocks With Burly Dividends
Here's a look at Interpublic Group and Clorox, which were recently added to the Morningstar Dividend Yield Focus Index.
Susan Dziubinski: Hi, I'm Susan Dziubinski for Morningstar.com. In a low-interest-rate environment, income-producing stocks are particularly attractive. After all, dividend producers can deliver yields on par with or even better than bonds, along with the opportunity for capital appreciation. Today, we're highlighting some stocks that were recently added to the Morningstar Dividend Yield Focus Index, which consists of high-quality, high-yield U.S. stocks screened for consistent records of dividend payments and the ability to sustain them in the future.
Ali Mogharabi: Ad holding company Interpublic Group of Companies, or IPG, is now trading close to our $26 fair value estimate. As it has nicely come up 8.0% year to date, higher than S&P 500's 2.5%. While it's fairly valued at these levels, it has differentiated itself by outperforming its peers, making smart data acquisitions, maintaining organic growth in North America, strengthening the balance sheet, and increasing the dividend that's yielding over 4% at IPG's current price. IPG's one-stop-shop strategy that includes creativity, integrated with data and technology offerings, is attracting new clients and giving them reasons to spend more.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.