8 stocks in the penalty box that offer big upside dividends and passive income of up to 9% – 24/7 Wall St.


Finding stocks that are trading after the S&P 500’s worst first half in more than 50 years, and a third quarter that’s unfolding on a large scale, isn’t difficult these days. Finding the companies that also pay big dividends and are likely to keep them is another story. Often companies find themselves in a situation where a one-time event occurs, or a change in the economy that can damage the products or services that a company provides puts a heavy hit on stock prices. Now is the time for nimble investors to buy stocks.

A big advantage to buying battered stocks with substantial dividends is that investors are paid to wait for the rally. Although it can sometimes take time, four times a year the dividends will arrive. In addition, writing covered calls can also improve the income profile.

We scoured our 24/7 research database on Wall St. for well-known stocks that have been hammered, looking for solid ideas for investors. These eight well-known stocks seem ripe for the picking, and all are rated Buy on Wall Street.

It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.


This tobacco maker now offers value-oriented investors a great entry point, as it has been hurt by the slowdown in cigarette sales. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA holds 51% of the US cigarette market, led by its leading brand of Marlboro cigarettes.

Altria also owns more than 10% of Anheuser-Busch InBev, the world’s largest brewer. In 2008, it sold its international cigarette business to shareholders. The stock has taken a beating recently, as last month the US Food and Drug Administration announced a ban on all sales of Juul vape pens. This decision was made after appeals from government officials and public health institutes.

Last week, Juul Labs agreed to pay $438.5 million to settle claims by 34 U.S. states and territories that it downplayed the risks of its products and targeted underage buyers, several states announced. As part of the settlement, Juul agreed to refrain from certain types of marketing, including the use of cartoons, product placement, and depictions of users under 35. The agreement stems from a two-year investigation by Connecticut, Texas and Oregon.

Altria has already reduced the investment, and while everything is settled, investors will receive a 9% dividend. Deutsche Bank has a target price of $46 on Altria stock, and the consensus target is even higher at $49.28. The shares ended Thursday at $42.01 each.

ALSO READ: 7 ‘Strong Buy’ Warren Buffett Dividend Stocks Could Be Safe Havens If The Market Crashes


The former telecommunications company went through a long restructuring, cut its dividend and sold or merged underperforming assets. AT&T Inc. (NYSE: T) provides telecommunications, media and technology services worldwide.

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