3 Value and Dividend Stocks To Invest In March Amid Russia and Ukraine Uncertainty
The Russia-Ukraine conflict has been all we could think about; among other things, investors are concerned about how it will affect global supply chains, fearing that consumer prices will rise even more. With the rise in uncertainty and volatility in stock markets, investors are thinking of adjusting their investing strategies, and considering adding value and dividend stocks to their portfolios. Investing in such stocks would likely yield good long-term returns as markets begin to price them appropriately based on their fundamentals. Moreover, the current dip in stock prices would be a great opportunity for investors to purchase good stocks at bargain prices.
Value Stocks
Stocks that appear to be underpriced based on their fundamentals are known as value stocks. As these stocks begin to attract investor attention, their prices begin to catch up, allowing investors to book long-term profits.
Ford (F)
Ford is one of the world's largest automakers, with strong financials and a track record of providing high-quality products to its customers. In 2021, the company reported $136 billion in revenue and a net profit of $17.9 billion. The true potential of the company, however, lies in its ability to successfully enter the electric vehicle (EV) market.
With more consumers shifting to electric vehicles and governments providing incentives to accelerate this shift, the future outlook of car manufacturing companies is heavily reliant on how effectively they can pivot to the EV sector and compete with Tesla for a massive market. To that end, Ford has taken significant steps by electrifying its two most prestigious brands, Mustang and F-150 pickup trucks. The company was able to supply 27,140 Mustang Mach-E models last year, and this year it will begin deliveries of electric versions of its transit vans and F-150 Lightning.
Goldman Sachs (GS)
Goldman Sachs had a fantastic 2021, achieving nearly $59 billion in sales revenue and $21.6 billion in earnings, which is an impressive 60% higher than its previous record profit. The bank also reported the highest return on equity (ROE) among its peers, at 23%. Goldman Sachs anticipates improved loan market conditions as well as improved performance from its wealth management and investment banking divisions in the future. As a result, the bank elevated its earnings projections through 2025. Goldman Sachs has a strong credit rating as well, with Moody's and Fitch assigning it A-2 and A ratings, respectively.
Verizon (VZ)
Verizon is the second-largest telecommunications company in the world. Its revenue for the fourth quarter of 2021 was $17.8 billion, representing a 4.1 % rise. The company was also able to achieve its target of saving $10 billion in costs. Verizon's free cash flow was also $39.5 billion, indicating that the company has sufficient funds for potential expansion plans as well as meet its current obligations. Moving forward, Verizon’s management intends to strengthen its core business while leveraging its assets to expand its 5G capabilities.
Dividend Stocks
As inflation continues to rise, the need for additional sources of income grows, with consumers struggling to keep up with their expenses and cover their basic necessities. As a result, investors should consider adding high-yielding dividend stocks to their portfolios to supplement their monthly income.
Apple (AAPL)
Apple is considered to be a benchmark of quality and innovation. Due to the pandemic, demand for digital products rose significantly, enabling Apple to expand its sales to $365.8 billion in 2021 from $260.2 billion in 2019. Apple’s net income also surged to $94.7 billion last year from $55.3 billion in 2019. The company's future outlook is also positive, as consumers are confident that Apple will continue to launch innovative products that will attract markets. Furthermore, the company has a devoted fan base, which aids in the company's ability to generate consistent sales revenues and profits.
Microsoft (MSFT)
According to the most recent earnings report, Microsoft was able to collect $51.73 billion in revenue, which was higher than the expected $50.88 billion. Similarly, the company achieved earnings per share (EPS) of $2.48 versus expectations of $2.31.
The future of Microsoft also seems to be solid, as it is actively working to capitalize on the metaverse in the near future. The company announced that its Mesh application would be integrated with Microsoft Teams, allowing users to enter the metaverse with their avatars using any of their digital devices. These applications will provide consumers with life-like experiences by allowing them to conduct meetings, interviews, and even formal gatherings without having to be physically present in a room. Furthermore, Microsoft Teams already has nearly 270 million monthly active users. This existing market is likely to assist the company in advancing metaverse use cases in the near future.
Target (TGT)
Target has been able to post impressive earnings growth in recent quarters. This is evident in the company's revenue figure for the quarter ending October 30, which jumped to $25.65 billion versus the expected $24.78 billion, growing at an incredible rate of 13% compared to that of the same period last year. Similarly, the company was able to achieve an EPS of $3.03 as opposed to the expected $2.83.
The pandemic proved to be fruitful for Target as it was able to capitalize on its digital platform and cater to a surge in demand for ecommerce. The company spent $7 billion to develop its omnichannel shopping platform. When it comes to Target's business model, it is clear that the company is getting the best of both worlds by targeting both online and in-store customers. The company is attempting to entice customers to return to its physical stores and is collaborating with companies such as Walt Disney, Ulta Beauty, and Apple in order to increase consumer traffic and provide more value to customers.
The Bottom Line
Given the recent uptick in stock market volatility, investors should concentrate on stocks of good companies with solid fundamentals. When such companies' stocks are priced correctly, they are likely to provide stock traders with good long-term returns. Furthermore, given the current market situation, buying stocks of companies that pay out high dividends is also a good strategy. As a result, the stocks mentioned above are excellent choices for investors looking to get in on the action right now.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Naeem Aslam
I am a former Hedge Fund Trader with over 15 years of experience in investment banking. During my early career, I was awarded a national award (Young Irish Broker) in 2010. Over the years, I have worked with Bank of America in equity trading and with Bank of New York in hedge fund trading. I specialize in Blockchain technologies (cryptocurrencies and digital assets) and Sustainable Investments. In my career thus far, I have also extensively covered Equities, Commodities and Forex.
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