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.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.