Nasdaq 100 on pace for best January since 1999

The Nasdaq 100 Stock Index is on pace for its best January since 1999 despite warning signs from the likes of Microsoft Corp. and Intel Corp. and another expected interest-rate hike from the Federal Reserve. The Cboe Volatility Index sank within striking distance of a 10-month low on Friday, signalling less angst in the market. Meanwhile, options trading on megacaps last week showed demand hasn’t jumped for protection against a selloff.

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Highest Yielding Dividend Aristocrats

Three stocks, C.H. Robinson Worldwide (CHRW), Nordson (NDSN) and J.M. Smucker (SJM), will join the storied S&P 500 Dividend Aristocrats on Feb. 1.

Those paying highest yields, with newest index additions shown for comparison.

Company	TICKER	SECTOR	Years of dividend increases	Dividend yield
VF	VFC	Consumer Discretionary	50	6.8%
Walgreens Boots Alliance	WBA	Consumer Staples	47	5.3
3M Company	MMM	Industrials	60	5.3
International Business Machines	IBM	Information Technology	27	4.7
Realty Income	O	Real Estate	28	4.4
Amcor	AMCR	Materials	39	4.2
T. Rowe Price Group	TROW	Financials	36	4.1
Essex Property Trust	ESS	Real Estate	28	4.1
Franklin Resources	BEN	Financials	41	4.0
AbbVie	ABBV	Health Care	50	4.0
J.M. Smucker *	SJM	Consumer Staples	25	2.7
C.H. Robinson Worldwide*	CHRW	Industrials	25	2.3
Nordson*	NDSN	Industrials	42	1.1

Sources: S&P Global Market Intelligence, IBD, * — new index additions

Brazilian stocks outperforming US equities

 

Emerging-market stocks rise to six-month high vs S&P 500

• MSCI Index hands 19% excess returns over S&P 500 since October
• China reopening, weaker dollar key reasons for outperformance

Emerging-market stocks extended their lead over US shares in the early days of the new year, with the equity benchmark rising to a six-month high against the S&P 500 Index.

The MSCI Emerging Markets Index has advanced 3% this week, compared with a 0.8% decline in the US gauge, continuing a turnaround that began in recent months following its worst annual losses since the 2008 global financial crisis. China’s reopening, a softer dollar, and signs of easing global inflation have been spurring gains, leading the gauge to rise Friday for a fourth day to its highest since August.

Highest dividend yielding stocks in Dow Jones Industrial Average

 

Company	Symbol	Dividend yield	Sector
Verizon Communications	(VZ)	6.5%	Communication Services
Dow	(DOW)	5.5	Materials
Intel	(INTC)	5.5	Information Technology
Walgreens Boots Alliance	(WBA)	5.2	Consumer Staples
3M	(MMM)	4.9	Industrials
International Business Machines	(IBM)	4.7	Information Technology
Chevron	(CVX)	3.3	Energy
Amgen	(AMGN)	3.3	Health Care
Cisco Systems	(CSCO)	3.2	Information Technology
JPMorgan Chase	(JPM)	3.0	Financials
Goldman Sachs	(GS)	2.9	Financials

Sources: S&P Global Market Intelligence, IBD

10 for 2023

 Good companies at bargain prices could be winners in the new year

Company/Ticker	Recent Price	YTD Change	2023E EPS	2023E P/E	Dividend Yield	Market Value (bil)
Alcoa / AA	$45.50	-24	$3.13	14.5	0.9%	$8.1
Alphabet / GOOG	95.31	-34	5.27	18.1	None	1,232.00
Amazon.com / AMZN	91.58	-45	1.85	49.5	None	934.3
Bank of America / BAC	32.28	-27	3.69	8.7	2.8	259.0
Berkshire Hathaway / BRK.A	468,020	4	22,928	20.4	None	682.0
Comcast / CMCSA	35.35	-30	3.74	9.5	3.1	152.8
Delta Air Lines / DAL	34.31	-12	4.92	7.0	None	22.0
Madison Square Garden Sports / MSGS*	160.42	-8	1.71	93.8	None	3.9
Medtronic / MDT**	78.79	-24	5.5	14.3	3.5	104.8
Toll Brothers / TOL***	50.79	-30	7.34	6.9	1.6	5.8

Note: Data is of 12/14/22 *June fiscal year end **April fiscal year end ***October fiscal year end E=estimate

Source: FactSet

Income-producing investments, ranked in order of preference

Energy pipelines once again top our annual list of income-producing investments, ranked in order of preference.

	Recent Price	YTD Return	Yield
Energy Pipelines
Alerian MLP / AMLP	$37.12	22.4%	8.1%
Tortoise Midstream Energy / NTG	34.01	21.4	9.1
Williams Cos. / WMB	32.72	32.2	5.2
U.S. Dividend Stocks
Vanguard High Dividend Yield / VYM	$107.45	-1.2%	3.0%
Schwab U.S. Dividend Equity / SCHD	74.92	-4.0	3.1
ProShares S&P 500 Dividend Aristocrats / NOBL	89.58	-6.9	2.0
Foreign Dividend Stocks
iShares International Select Dividend / IDV	$27.12	-6.5%	7.1%
Schwab International Dividend Equity / SCHY	22.32	-9.8	4.7
Real Estate Investment Trusts
Vanguard Real Estate / VNQ	$81.30	-27.3%	3.9%
Cohen & Steers Quality Income Realty / RQI	11.19	-32.9	8.6
Convertible Bonds
SPDR Bloomberg Convertible Securities / CWB	$63.71	-21.6%	1.9%
Miller Convertible Bond / MCIFX	12.20	-11.0	1.0
Advent Convertible & Income / AVK	10.81	-35.0	13.0
Junk Bonds
iShares iBoxx HIgh Yield Corporate Bond / HYG	$72.63	-12.2%	6.6%
Blackrock Corporate High Yield / HYT	8.43	-25.3	11.1
Nuveen Credit Strategies Income / JQC	5.02	-15.4	11.4
Municipal Bonds
Vanguard Intermediate-Term Tax-Exempt / VWITX	$13.36	-6.9%	2.6%
Nuveen AMT-Free Quality Municipal Income / NEA	11.01	-25.7	4.9
Pimco High Yield Municipal Bond / PHMIX	8.19	-12.8	4.7
Preferred Stocks
iShares Preferred & Income Securities / PFF	$30.35	-18.7%	6.1%
InfraCap REIT Preferred / PFFR	16.52	-24.9	7.7
JPMorgan Chase 4.2% / JPM Pr M	17.39	-27.7	6.1
Telecoms
AT&T / T	$18.22	4.7%	6.1%
Verizon Communications / VZ	38.81	-21.2	6.7
Cash Alternatives
iShares Short Treasury Bond / SHV	$109.87	0.9%	4.1%
SPDR Bloomberg 1-3 Month T-Bill / BIL	91.44	1.3	4.2
Vanguard Ultra-Short-Term Bond / VUBFX	9.85	-0.5	5.5
Treasuries
iShares 1-3 Year Treasury Bond / SHY	$81.21	-3.8%	4.3%
iShares 20+ Year Treasury Bond / TLT	99.55	-31.3	3.9
iShares TIPS Bond / TIP	106.32	-12.3	3.9
Electric Utilities
Utilities Select Sector SPDR / XLU	$70.67	1.7%	3.2%
Reaves Utility Income / UTG	28.53	-12.5	8.0
NextEra Energy / NEE	83.16	-9.1	2.0

Note: data as of Dec. 28

Sources: Bloomberg; company reports