#8 Chevron Corporation (NYSE:CVX)
Chevron Corporation (NYSE:CVX) has a dividend yield of 4.64%, almost double the 10-year Treasury bond yield. Management believes the company will have enough cash flow to cover the dividend by 2018. The analysts at Deustche Bank also believe Chevron’s yield is safe:
“While some dividends may be (or should be) at risk (e.g. Marathon Oil’s), we believe the remaining dividends are safe, suggesting the Integrateds’ current yields (vs SPX and Euro Majors and respective historical averages) are overly discounted.”
Shares of Chevron Corporation (NYSE:CVX) are down 15% year-to-date, but look for shares to rebound once crude prices normalizes.
#7 Walt Disney Co (NYSE:DIS)
Walt Disney Co (NYSE:DIS) shares are up 24% year-to-date as investors anticipate strong sales for the company’s up coming Star Wars movie. Although shares fell substantially in August as investors worried Walt Disney Co (NYSE:DIS)’s crown jewel ESPN faces a long secular decline, Disney’s stock has since recovered as the company has a strong internet presence with ESPN.com and its Sling TV partnership. Analysts have a 118.59 price target.
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#6 Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation (NASDAQ:MSFT) is no longer the dominant tech company that it once was. The Department of Justice lawsuit a decade and half ago and Steve Jobs made sure of that. The good news is that Microsoft is still fantastically profitable, having made $22 billion in net income in 2014. Given that over a billion people around the world regularly use Microsoft Office and Windows, Microsoft products are still in demand, and the company is making solid inroads in future growth categories such as the cloud and virtual reality. With a dividend yield of 2.3% and forward P/E of 17.26, Microsoft Corporation (NASDAQ:MSFT) shares are cheap.
Follow Microsoft Corp (NASDAQ:MSFT)
Follow Microsoft Corp (NASDAQ:MSFT)
#5 Facebook Inc (NASDAQ:FB)
Facebook Inc (NASDAQ:FB)’s services are just as addicting now as they were 10 years ago. The difference is that a billion more people are using it. Under CEO Mark Zuckerberg’s leadership, Facebook Inc (NASDAQ:FB) has grown from a dorm room project to a website used by one-sixth of humanity each month. The company has successfully adapted to the mobile age, and has acquired two of the fastest growing mobile applications in the world for low prices relative to their net worth, WhatsApp and Instagram. The social media giant is also making productive progress in videos, e-commerce, and could potentially challenge Google in search one day too. Shares are up 39.7% year-to-date.
