Buying These 3 Stocks Could Turn Your Stimulus Check Into an ATM

This article was originally posted here

In the midst of the COVID-19 pandemic, the U.S. government has stepped into the breach, passing a $2 trillion spending package that, among other things, will put a stimulus check of $1,200 into the hands of many Americans, with even more earmarked for married couples and those with children.

That money will offer much-needed financial support for those who have been furloughed or are temporarily unemployed as a result of efforts to halt the spread of the coronavirus. That said, assuming you don't need the money for immediate expenses or to bulk up your emergency fund, investing it in income-generating stocks can help increase the impact of those funds even more.

Investors in a position to do so might want to consider three stocks that could help their stimulus check generate cash for years to come — Verizon Communications (NYSE:VZ), Apple (NASDAQ:AAPL), and NextEra Energy (NYSE:NEE). Let's find out a little more about these three stocks and why they can boost your portfolio.

1. Verizon Communications

While there are no absolutes, it's a pretty fair assumption that consumers won't be abandoning their mobile phones anytime soon. With much of the U.S. populace being asked to stay at home right now, their phones have become one of their only means of contact with the outside world. The same could be said for U.S. businesses, as those that are still working behind the scenes will need to keep the lines of communication open with customers and staff alike.

There's also the coming of 5G, the next generation of wireless technology that promises to deliver faster and better service over wireless networks. While bringing unprecedented speeds to smartphones, this telecommunications upgrade will enable Verizon to provide investors with an excellent opportunity, as it stands to benefit greatly from the coming wave of 5G. 

The company ended 2019 with the highest fourth-quarter customer growth in six years, pushing its free cash flow to $17.8 billion. Verizon has also increased its dividend every year since 2007, increasing the total by nearly 30% over the past decade. Just last month, Verizon boosted its quarterly payout to $0.615 per share, giving it a juicy dividend yield of 4.5% at current prices. Even more importantly, Verizon devotes just 52% of its free cash flow to fund the dividend, leaving plenty of opportunity for future increases.

2. Apple

While the iPhone maker may not be the first stock that comes to mind for income generation, its dividend only tells part of the story. Apple (NASDAQ:AAPL) is down more than 20% from its recent highs, following the broader market slump and bear market resulting from the pandemic. This gives investors an excellent opportunity for some significant capital gains in the coming months and years.

Another reason Apple deserves its place on the list is the security that comes from an unassailable balance sheet. The California company has a massive war chest with more than $207 billion in cash and marketable securities and just $108 billion in debt. So with $99 billion in net cash, its dividend is as safe as they come. Plus, Apple generated operating cash flow of more than $30 billion in the first quarter alone, and while the pandemic will take a toll on current sales, those delayed sales won't simply evaporate.

Apple has also consistently increased its payouts since it resumed its dividend in mid-2012, with its quarterly payment of $0.77 a share up 103% over the past 7 years. The dividend now yields nearly 1.3%, and Apple has historically announced updates to its capital allocation plan along with its second-quarter results, which are due later this month. The company uses less than 25% of its profits to fund the payout, so it would be surprising not to see another increase in the coming weeks.

3. NextEra Energy

Another industry that's about as solid as they come, even in times of financial distress, is utilities. Even as consumers are spending more time working and shopping from home, many non-essential businesses have shuttered for the duration. Over the long term, however, that shouldn't be too painful for renewable energy producer NextEra Energy (NYSE:NEE). The Florida-based utility is the world leader in electricity generated by solar and wind energy. 

NextEra Energy owns two electric companies that serve customers in Florida: Florida Power & Light Company, which serves more than 5 million customers and is one of the largest rate-regulated electric utilities in the United States; and Gulf Power Company, which serves more than 470,000 customers in eight counties throughout northwest Florida. 

In February, NextEra Energy increased its quarterly dividend by 12% to $1.40 a share. The company also announced a plan to continue to grow its dividend by roughly 10% per year through at least 2022. Management also said its 60% payout ratio is below industry averages. Its solid earnings and operating cash-flow growth, along with “clear visibility” to continue delivering on its profit estimates over the coming three years, leave the company well-positioned to continue its dividend policy going forward. NextEra Energy also sports an attractive 2.5% yield, with management assurances that the rate will climb — at least for the next several years — and potentially beyond.

Editor's Note:

Dear Reader,

I don’t want to get too excited, but…

I believe I’ve just made a rather large discovery.

You see, for the past several months, I’ve been tracking Warren Buffett's top 25 holdings…

And what I found was surprising, to say the least.

21 of his favorite companies are going “all in” on a hot new technology…

To the tune of $1.7 billion!

This is remarkable because Buffett is notoriously “anti technology.”

(In fact, he once joked about shooting down the Wright Brothers’ first plane at Kitty Hawk!)

So, what is this new technology? And why are America’s biggest companies all in a race to implement it?

I reveal the full story in a brand-new presentation I just released.

You can see all my findings here.

Let the game come to you!

Teeka Tiwari

Editor, Palm Beach Daily

P.S. Buffett isn’t the only one that’s smitten by this new tech… Apple’s co-founder called this “the future.” And the World Economic Forum projects it will grow 295,762% by 2027. But, sadly, the mainstream news has totally missed this story. Shame. You can see all the ground-breaking details for yourself right here…

Is Amazon Obligated to Pay You?

Thanks to a U.S. law, you can claim your slice of this jackpot and collect up to $48,000 over the next year.

Enter your email below to find out how.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 Energy Pick

This little-known Silicon Valley company is using AI to do something incredible…
Enter your email address to receive the name and ticker symbol of the #1 tech bargain stock now.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 EV Breakthrough of 2022

Louis Navellier is about to give away the ticker symbol of an overlooked battery company… one set to skyrocket in value as the EV boom gets underway. 
Simply enter your email below to learn the name of this company today…


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Anyone can invest like “The People’s Shark” with as little as $100

You no longer have to be rich, famous, or powerful to become an angel investor. Starting now, it’s possible for you to get involved in these life-changing deals.
Enter your email address for all the details of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Is L.A.S.E.R. The Greatest Tech Breakthrough in History?

A $3.5 trillion megatrend… spearheaded by Elon Musk is bringing what could be the most disruptive, revolutionary tech breakthrough the world has ever seen, with one small company sitting at the center.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

2,467% Return on Israeli Laser Company

Learn the 3 Steps You Need to Protect Your Retirement and One Stock that Could Soar 2,476% in Nine Months.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

One Tweet From Elon Could Blow This Story Wide Open

Last year, anyone who listened to this man about Tesla could’ve made EIGHT TIMES their money. Now he’s revealing how Elon’s NEXT big move will revolutionize ANOTHER massive $23 trillion market.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

$25 to Profit from 20,000 IPOs

Days from now — 20,000 ‘IPOs’ could start flooding the market…
Enter your email address to reveal how anyone with $25 can stake their claim.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

"Bio-Chip" Sparks Potential 199,900% Surge by 2025

Sign up below for all the details on this tiny company being considered a once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works