MOST INVESTORS WOULD probably love to forget October ever happened, move on with their lives and look to the future. With that in mind, U.S. News has put together five of the best stocks to buyfor November.
Since last month was such a bloodbath – the S&P 500 fell 9 percent while the Nasdaq composite suffered a 12 percent sell-off – the following five stocks are largely defensively positioned. While it’s more likely that November produces gains, it doesn’t hurt to showcase a few attractively valued stocks that can hold their own should volatility continue.
With names hailing from defensive sectors like consumer goods, real estate and utilities, here are five of November’s best stocks to buy.
Starbucks Corp. (Nasdaq: SBUX). You should know upfront that the world’s favorite coffee shop chain reports earnings after market close on Nov. 1, so if you’d rather not be around for the potential earnings volatility you should wait until after the quarterly numbers are announced.
No matter what quarterly earnings shake out to be, SBUX goes down as one of the best stocks to buy for November for a few reasons.
Going into the report, Starbucks looks like Warren Buffett’s ideal stock: a great company trading at a fair price. And another billionaire, hedge fund manager Bill Ackman recently announced he’s a big fan of the stock, owning about $900 million worth.
Ackman believes China is Starbucks’ biggest growth opportunity, notes share buybacks in the next two years will account for something like 20 percent of its current market cap, and thinks SBUX could double in three years.
That’s a bold prediction, but Starbucks isn’t just a solid long-term holding selling for a fair earnings multiple (18), it also went up in a bearish October and pays a 2.5 percent dividend.
MFA Financial (MFA). Not quite the household name as Starbucks, MFA Financial is a mid-cap real estate investment trust.
The primary reason MFA makes November’s best stocks to buy list is its enormous dividend, which currently sits at 11.6 percent annually. On top of that, the stock’s long-term technicals reveal an interesting trend: since 2011, every time MFA has fallen below $7, it’s failed to stay there long before advancing.
Many investors like to know the level of support for a high-dividend stock like this, because it de-risks the stock for any patient investors looking to buy, hold, and get a stream of income in the meantime.
Keep in mind that even the best stocks have risk, however, and MFA is no exception. The company invests heavily in mortgage-backed securities, an obscure investment that played a starring role in the last financial crisis.
Still, MFA weathered the 08-09 crisis beautifully and is still going strong a decade later. The REIT reports earnings on Nov. 6 before market open……Read more>>