3 stocks to buy to build a millionaire portfolio

Inflation fell for the second consecutive month in November and the Fed slowed the pace of rate hikes after four consecutive 75 basis point hikes. However, recession fears loom as the central bank plans to hike rates until next year. Regardless of economic uncertainties, investing in fundamentally strong stocks of Merck & Co. (MRK), PepsiCo (PEP) and Bristol-Myers Squibb (BMY) could make sense to generate meaningful long-term returns. Continue reading….



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This year, inflation hit its highest level in 40 years, prompting the Fed to aggressively raise interest rates. The Fed’s hawkish stance is finally paying off, as inflation has come down significantly over the past two months.

Fed Chairman Jerome Powell said, “The inflation data received so far for October and November shows a welcome reduction in the monthly pace of price increases. But it will take a lot more evidence to be confident that inflation is on a sustained downward path.

The Fed kept its word to slow the pace of rate hikes as announced a 50 basis point rate hike last week. However, officials indicated the central bank’s plans to continue raising rates until next year, with no cuts until 2024. They expect the “terminal rate” to be at 5.1 %. This sparked fears of recession.

Despite macroeconomic uncertainty, investing in fundamentally sound, dividend-paying stocks Merck & Co., Inc. (M.K.R.), PepsiCo, Inc. (DYNAMISM) and Bristol-Myers Squibb Company (BMY) could make sense for investors looking to build long-term wealth.

Merck & Co., Inc. (M.K.R.)

MRK is a global healthcare company that delivers solutions through its prescription medicines, vaccines, biological therapies and animal health products. The Company operates in the pharmaceutical and animal health segments.

On September 22, 2022, Merck Animal Health announced that it had signed a definitive agreement to acquire Vence. Merck Animal Health President Rick DeLuca said, “The acquisition of Vence will expand our portfolio with complementary products and technologies to advance animal health and welfare and outcomes for our customers.

MRK’s annual dividend of $2.92 yields 2.62% on the current share price. The company’s dividend distributions have grown at a CAGR of 9.1% over the past three years and at a CAGR of 9.2% over the past five years. Its four-year average return was 2.95%.

MRK’s sales increased 13.7% year-over-year to $14.96 billion for the third quarter ended September 30, 2022. The company’s non-GAAP net income increased 3.9% in year-over-year to reach $4.70 billion. It is not GAAP compliant PES came in at $1.85, representing a 3.9% year-over-year increase.

Analysts expect MRK’s revenue for the quarter ending December 31, 2022 to increase 0.9% year-over-year to $13.64 billion. Its EPS for fiscal 2022 is expected to rise 22.7% year-over-year to $7.38. It has exceeded Street EPS estimates in each of the past four quarters. Over the past year, the stock has gained 46.1% to close the last trading session at $111.24.

M.K.R. POWR Rankings reflect strong prospects. The company has an overall rating of A, which translates to a strong buy in our proprietary rating system. POWR ratings rate stocks on 118 different factors, each with its own weighting.

It has a B rating for value, feeling and quality. It is ranked No. 10 out of 159 stocks in the Medical – Pharmaceutical industry. Click here to see other MRK reviews for growth, momentum and stability.

PepsiCo, Inc. (DYNAMISM)

PEP is a global food and beverage company. It operates in the Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Europe and AMESA segments.

PEP’s annual dividend of $4.60 yields 2.54% on the current share price. The company’s dividend payouts have grown at a CAGR of 6.1% over the past three years and at a CAGR of 7.4% over the past five years. Its four-year average return was 2.79%.

PEP’s net revenue increased 8.8% year-on-year to $21.97 billion for the third quarter ended September 30, 2022. The company’s non-GAAP net income increased 10 % year-on-year to reach $2.73 billion. Additionally, its non-GAAP EPS was $1.97, representing a 10% year-over-year increase. Additionally, its non-GAAP operating profit rose 10.9% year-over-year to $3.59 billion.

For the quarter ending December 31, 2022, EPS and PEP revenue are expected to increase 7.2% and 5.3% year-over-year to $1.64 billion and $26.59 billion , respectively. Its earnings have exceeded Street EPS estimates in each of the past four quarters. Over the past six months, the stock has gained 11.8% to close the last trading session at $181.09.

PEP’s POWR ratings reflect this promising outlook. The stock has an overall rating of B, which equates to a buy in our proprietary rating system.

It has an A rating for quality and a B for growth and stability. In category A Beverages industry, it is ranked #9 out of 33 stocks. To see PEP’s other ratings for value, momentum and sentiment, Click here.

Bristol-Myers Squibb Company (BMY)

BMY develops, licenses, manufactures and markets biopharmaceuticals worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrosis, neuroscience and COVID-19.

On August 17, 2022, BMY announced the completion of the acquisition of Turning Point Therapeutics, Inc. BMY’s Executive Vice President of Strategy and Business Development, Elizabeth Mily, said, “Turning Point has distinguished itself in the field of precision oncology, and this acquisition will further strengthen our leading oncology franchise.

BMY’s annual dividend of $2.28 yields 3.09% on the current share price. The company’s dividend payouts have grown at a CAGR of 9.6% over the past three years and at a CAGR of 6.7% over the past five years. Its four-year average return was 3.03%.

BMY’s total online product and new product portfolio revenue increased 8% year-over-year to $8.62 billion for the third quarter ended September 30, 2022. 5 .13 billion. Its non-GAAP EPS attributable to BMY rose 3.1% year-on-year to $1.99. Additionally, its total spending rose 4.8% year-over-year to $9 billion.

For fiscal 2022, BMY’s EPS is expected to increase 1.4% year-over-year to $7.62. Its revenue for the quarter ending June 30, 2023 is expected to increase 1% year-over-year to $12 billion. It has exceeded consensus EPS estimates in each of the past four quarters. Over the past year, the stock has gained 18.9% to close the last trading session at $73.83.

BMY’s strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.

It is ranked #3 in the Medical – Pharmaceutical industry. It has an A rating for value and a B for stability, feeling, and quality. To see BMY’s other ratings for growth and momentum, Click here.


MRK shares were unchanged in premarket trading on Friday. Year-to-date, MRK has gained 49.81%, compared to a -18.54% rise in the benchmark S&P 500 over the same period.


About the Author: Dipanjan Banchur

Ever since he was in elementary school, Dipanjan had been interested in the stock market. This enabled him to obtain a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan is particularly interested in reading and analyzing emerging trends in financial markets.

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