Inventory Trade Immediately: Shares come to life on manufacturing dates and J&J vaccines
A clash of positive drivers shook the cops on Monday and sparked a general rally to kick off March.
The Institute for Supply Management’s manufacturing index rose 2.1 points to a two-year high of 60.8, with a number above 50 indicating an expansion in activity. That was much better than the consensus expectation of 58.9.
“These metrics suggest that as supply restrictions tighten, factories are still struggling to catch up with strong demand for goods from retail to replenishment,” said Jonathan Millar, US deputy chief economist at Barclays Investment Bank.
Over the weekend, the Food and Drug Administration approved Johnson & Johnson’s (JNJ, + 0.5%) single-dose COVID-19 vaccine for emergency use. Distribution is expected to begin soon. Also over the weekend, the House narrowly passed President Joe Biden’s stimulus package worth $ 1.9 trillion.
Falling interest rates on most US Treasuries on Monday also allayed fears that held stocks back last week.
Every sector was green, with financials and technology stocks leading. The Nasdaq Composite was the front runner among blue-chip averages, increasing 3.0% to 13,588; strong performance of Tesla (TSLA, + 6.4%) and Apple (AAPL, + 5.4%) helped push the tech-heavy index up.
Other actions on the stock market today:
- The Dow Jones industry average improved by 2% to 31,535.
- The S&P 500 rose by 2.4% to 3,901.
- The little cap Russell 2000 Shot 3.4% higher to 2,275.
- US crude oil futures declined 1.5% to $ 60.57 a barrel.
- Gold futures slipped 0.3% to $ 1,723 an ounce.
- Bitcoin Prices, which stood at $ 46,381 on Friday, fell to the $ 44,500 level over the weekend but ended Monday at $ 48,266, an improvement of 4.1%. (Bitcoin trades 24 hours a day; the prices given here apply from 4 p.m. on each trading day.)
The stage is set for dividends
Could dividend stocks be set up for a long period of outperformance? This idea was developed by a team of BlackRock strategists and portfolio managers.
In a BlackRock Multi-Asset Income Insight, the team points out that high-dividend stocks lagged 30% behind the S&P 500 over the past year. Though they admit history won’t necessarily repeat itself, they write, “The last time we saw this big performance difference was in 1999. After that, dividend stocks outperformed stocks for the next seven years.”
In addition to this history lesson, the BlackRock team points out that many stocks offer higher yields than their corporate bonds, while also reminding investors that dividend yields can go up. Bond coupons are fixed.
It’s hard to have a conversation about dividends (and dividend growth, certainly) without mentioning the Dividend Aristocrats, 65 stocks that have demonstrated financial standing by increasing their payouts for at least 25 years without a break. But the real royalty within this group are the dividend kings, who have been raising their stakes like clockwork for at least half a century.
While it’s a shorter list, it’s one that includes some of the most enduring dividends on Wall Street – in some cases, those payouts have risen steadily for a century or more.
Read on as we check out our updated list of these seemingly unstoppable dividend payers.