![]() ![]() “Additionally, Discover’s net interest income will benefit from a larger credit card receivable base now that growth has returned. We do not expect this to put any pressure on the bank’s balance sheet, though, as the firm is in a strong financial position with good reserves. On the other hand, while credit costs have normalized slower than we expected, there are clear signs that investors should expect higher net charge-offs from Discover and other credit card issuers in 2023. “After more than two years of little to no receivable growth and credit losses well below normal levels, Discover was able to generate impressive loan growth in 2022. Joshua Aguilar, senior equity analyst Discover Financial Services Manpower will also benefit from European governments’ pro-employment policies.” We think growth in these areas will provide a runway for Manpower to improve profitability while reducing the overall cyclicality of its businesses. Furthermore, we think Manpower will maintain the shift to higher-margin human resource solutions as multinationals increasingly look to outsource large-scale recruiting activities. ![]() This shift is easier said than done, but Manpower has made gradual improvements in recent years, and we believe there is room for it to grow. “We expect Manpower to continue shifting toward higher-value solutions and services, such as its Talent Solutions and Experis brands. The company is one of only three diversified global recruitment providers, alongside Adecco and Randstad. “We think Manpower will remain one of the largest global staffing firms in a highly fragmented industry. Michael Hodel, director of equity research, media and telecom. Overall we expect Comcast will deliver modest growth with strong cash flow for the foreseeable future.” NBCUniversal isn’t as well-positioned, but it holds unique assets, including core content franchises and theme parks, that should help ease the transition away from the traditional television business. “Comcast’s core cable business enjoys significant competitive advantages, but will likely see growth slow as competition for incremental customers heats up. These white-space business lines, along with faster growth from the franchise and e-commerce channels (which accounted for 66% of 2022 sales) should help the firm reach $10 billion in sales in 2028.” “In recent years, Williams-Sonoma has set its sights on expanding its total addressable market outside of furniture and home furnishings via B2B and marketplace efforts-categories with robust end markets that remain fragmented. ![]() This should help Williams-Sonoma outperform its competitors and grow its market share, aided by new category expansions. Its ability to drive repeat business relies on customer loyalty and smart marketing and merchandising, and the firm has access to some of the best analytics in retail. It has historically launched most of its brands organically in underserved segments, and its brand intangible asset has been the key factor in its top- and bottom-line growth. business-to-business industry (according to the firm). “Williams-Sonoma has carved out a solid position in the $750 billion global home category and the $80 billion U.S. Here’s what our analysts had to say about them: Williams-Sonoma After that we picked companies considered undervalued by Morningstar analysts, meaning they are rated 4 or 5 stars. Stocks with dividend yields under 2% were then excluded from the group. We then tracked changes between any dividends paid during the first quarter of 2023 and the most recent dividends for the second quarter.įrom there we filtered for companies that saw a dividend increase of 5% or more to capture the most substantial changes. We started with the 654 U.S.-based companies covered by Morningstar that pay a quarterly dividend to investors. How We Screened for Stocks With Increased Dividends Six Undervalued Stocks With Dividend Increases These stocks offer investors the potential to benefit from both increased dividend yields and the possibility that their investment values will grow. We combined this screen with one for stocks that are trading below their Morningstar fair value estimates, meaning they have attractive prices for long-term investors. Investors can look for stocks that offer the highest yield, names with a history of stable dividend payouts and strong finances, or companies that are raising dividends.įor this article, we screened for stocks that have increased their quarterly dividends, which can be a sign of a company’s confidence in its future finances. Dividend investing comes in various forms.
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