U.S. equities are powering higher thanks to a the combined tailwinds of seasonal strength, a “Phase 1” trade deal between the United States and China, and ongoing monetary policy support from the Federal Reserve and other global central banks. All the major indices are stretching to new record highs, setting the stage for an epic Santa Claus rally to close out 2019.
History’s longest and most powerful bull market is showing no signs of slowing. And as a result, a number of beaten down high-yield stocks within the S&P 500 are showing renewed signs of life.
If you are on the lookout for dividend stocks on the verge of a turnaround, here are five to consider:
Oil and gas services company Schlumberger (NYSE:SLB) is threatening to break up and out of a six-month consolidation range with a push above resistance near the $40-a-share level. The stock currency pays a dividend yield of more than 5% and is likely to push back towards prior highs near $48, which would be worth a gain of 20% from here.
SLB will next report results on Jan. 17 before the bell. Analysts are looking for earnings of 38 cents per share on revenues of $8.2 billion.
Kraft Heinz (KHC)
Kraft Heinz (NASDAQ:KHC) is in turnaround mode, climbing back up and over its 50-week moving average for the first time since the summer of 2017 after spending most of 2019 building a base of support. The company pays a dividend yield of just over 5% and trades at a reasonable price-to-book valuation of 0.75.
The company will next report results on Feb. 20 before the bell. Analysts are looking for earnings of 68 cents per share on revenues of $6.6 billion.
Ford (NYSE:F) shares are rounding higher and are set to break up and out of a post-August trading range. Watch for a return to the prior double-top highs near $10.50 that would be worth a gain of nearly 12% from here. The stock pays a dividend yield of nearly 6.4% on trades at a price-to-sales ratio of just 0.24.
Ford will next report results on Feb. 4 after the close. Analysts are looking for earnings of 18 cents per share on revenues of $37.3 billion.
Drugmaker AbbVie (NYSE:ABBV) is poised to move up and over its November high, setting the stage for a rally back to highs not seen since early 2017. The company pays a dividend yield of 5.3%. Healthcare stocks have recently been swinging back into favor, benefiting stocks like ABBV as the national dialogue around single-payer healthcare has died down somewhat.
The company will next report results on Jan. 24 before the bell. Analysts are looking for earnings of $2.20 per share on revenues of $8.7 billion.
Helmerich & Payne (HP)
Oil and gas exploration and production company Helmerich & Payne (NYSE:HP) is enjoying a share price move up and off of multi-month support near the $40-a-share level, setting up a challenge of the 200-day average last attempted back in May. The company pays an impressive 6.7% dividend yield.
HP will next report results on Jan. 28 after the close. Analysts are looking for earnings of nine cents per share on revenues of $604.3 million.