As the stock market continues to soar, investors may be wondering if it’s still possible to find undervalued gems. Despite some areas of the market appearing overpriced, there are opportunities to be found for those willing to look beyond the noise. Now is the perfect time to focus on companies with strong fundamentals and a proven track record of delivering value to shareholders. Three dividend stocks that stand out as excellent buys for the long haul are Visa, Kinder Morgan, and PPG Industries.
Visa, a financial giant with a market capitalization of over $535 billion, has been under pressure from the U.S. Department of Justice regarding its debit market dominance. However, the company’s impressive operating margin of 67% and ability to convert 55% of every dollar in sales into net income make it a reliable choice for dividend investors. With a forward price-to-earnings ratio of 27.7, Visa is reasonably priced considering its growth potential and commitment to returning capital to shareholders.
Kinder Morgan, a leading pipeline company, has demonstrated a strong commitment to distributing capital to its investors. With a robust backlog of projects and a 5.6% forward-yielding dividend, Kinder Morgan is an attractive option for income-focused investors. The company’s ability to generate ample free cash flow and its leadership position in the natural gas industry make it a solid choice for those looking to hold for decades to come.
PPG Industries, a paint and coatings company, may not be the most exciting industry, but its high return on equity and ability to generate free cash flow make it an attractive dividend stock. With exposure to interest rate-sensitive sectors and a leading position in the aerospace coatings market, PPG is well-positioned to improve its earnings and cash flow in the coming years. As a consolidating industry, PPG’s market position is solid, making it an excellent option for dividend investors looking for a long-term hold.
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