Even as economic news paints a picture of rising unemployment amid stunted levels of commerce, stocks have overall held on to gains made since the market bottomed on March 23, notes growth and income expert John Dobosz. The editor of Forbes Dividend Investor reviews 3 stocks recently added to his model portfolio.
Wayne, N.J.-based Valley National Bancorp (VLY) is a bank holding company whose principal subsidiary is Valley National Bank, a regional bank with approximately $38 billion in assets and branch locations in New Jersey, New York, Florida and Alabama.
In December, Valley completed its acquisition of Oritani Financial Corp., which had $4.3 billion in assets, $3.4 billion in net loans, $2.9 billion in deposits, and 26 branches. Valley offers mortgage loans, automobile loans and home equity loans, as well as wealth management services including trust, asset management, insurance services, and asset-based lending.
Consumer and commercial lending increased 10% year-over-year in the fourth quarter of 2019, and the company forecasts 6% to 8% growth this year, with net interest income up 13% to 16%.
Insiders including the CEO bought shares last month, and a company director purchased $2.45 million worth of stock at $7.54 per share, 50 cents higher than Friday’s closing price.
Camden, N.J.-based Campbell Soup (CPB) is an iconic food brand, famous for its eponymous brand of ready-to-serve soups, as well as Swanson broth and stocks, Prego pasta sauces, Pace Mexican sauces, V8 juices, and Pepperidge Farm cookies.
Revenue this year is expected to rise 3.9% to $8.43 billion, with earnings up 5.7% to $2.77 per share. The stock has shown its defensive stripes, gaining 4.2% year-to-date, and up 7% since the S&P 500 Index market top on February 19. Free cash flow of $2.84 per share over the past 12 months is more than double $1.40 in annual dividends.
Santa Monica, Calif.-based Douglas Emmett (DEI) is a real estate investment trust and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal sub-markets of Los Angeles, Calif., and Honolulu, Hawaii.
Revenue this year is expected to grow 4.5% to $978.8 million, with funds from operations (FFO) up 5.2% to $2.21 per share. At 13.2 times FFO, Douglas Emmett trades 29% below its five-year average price/FFO multiple of 18.2.
DEI shares were thrashed 46% lower from February 14 through March 23, but they have gained 20% in the past month. Company director William E. Simon, Jr. bought $985,000 worth of shares last month at prices higher than Friday’s $29.50 close.
