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The stock market is doing well overall, but not every stock is performing well. Three stocks, The Home Depot, Realty Income, and Altria, have seen significant drops in price and are being considered as great investment opportunities for long-term investors.
The Home Depot had a decrease in sales in 2023, but its sales have still risen significantly due to pandemic-related factors. While the stock is down 17% from its high, it is still a profitable business, with a market share of 16% in the home improvement market. The company has been buying back shares and raising dividends consistently for 15 years, and analysts predict average annual earnings growth of 10% over the next three to five years.
Realty Income, a real estate investment trust (REIT), focuses on single-tenanted properties, particularly in recession-proof sectors like grocery stores and cinemas. Its dividend has been paid and raised annually since going public, making it a reliable source of income for investors, despite the current drop in price. The stock trades at just 13 times its funds from operations, making it a potentially lucrative investment opportunity.
Altria, known for its Marlboro brand cigarettes, saw a significant loss after investing $12 billion in the now-worthless electronic cigarette company Juul. The stock has lost over 40% of its value since then. However, the company’s large dividend yield of over 9% has remained secure, as smoking rates in America continue to decline. The stock’s valuation is low, trading at just over 8 times earnings, which could lead to investment returns, even with single-digit earnings growth. The company’s move to accelerate share repurchases by selling a portion of its stake in Anheuser-Busch suggests management’s confidence in the stock’s future and its pivot to smokeless nicotine products.
These three stocks offer solid investment opportunities for long-term investors looking to add them to their portfolios. Before making any decisions, it’s essential to do thorough research and consult with financial advisors.
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