Markets

Top Dividend Leaders Shape Bases In Correction

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T oymaker Hasbro is one of a few highly rated IBD Dividend Leaders carving new chart bases during the latest correction. A sharp pullback on Aug. 24 undercut the low of the previous pattern and reset the stock's base count.Hasbro ( HAS ) has a 90 Composite Rating and is up 37% year to date.

The stock showed tight weekly closes over the prior three weeks -- a sign of institutional accumulation. Second-quarter earnings and sales fell for the first time in six quarters, but analysts see full-year earnings up 8%, followed by a 19% jump in 2016.

Buzz surrounding the release Friday of licensed "Star Wars" toys forDisney 's ( DIS ) upcoming film "The Force Awakens" bodes well for Hasbro and has helped boost the toys, games and hobbies industry group to No. 11 in Wednesday's IBD.

CME Group ( CME ) is trading back near its 200-day moving average as it works on a new base. The derivatives exchange operator has reported average earnings-per-share growth of 24% on sales gains of 12% over the prior four quarters. CME Group will pay a 50-cent quarterly dividend on Sept. 25 to holders of record as of Sept. 10. Shares offer a current yield of 2.1%.

The two top-rated stocks by Composite Rating in Dividend Leaders are cigarette manufacturersReynolds American ( RAI ) (97) andAltria Group ( MO ) (92).

Altria Group is working on a consolidation pattern with an early buy point at 56.49. On Aug. 21, Altria announced an 8.7% increase to its quarterly dividend payment to 56.5 cents a share, payable Oct. 9 to shareholders of record on Sept. 15. It was the 49th time in the past 46 years that Altria hiked its dividend payout.

Reynolds American is bouncing off support at its 10-week moving average and in the fifth week of a potential new base. Shares are up 31% year to date. In June, Reynolds American closed its $25 billion acquisition of Lorillard.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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