Before any rotation occurs, consider investing in stocks with historically low valuations and high yields. If you have at least $1,000 to spare, you can generate an extra annual income of $40-$70 by investing in underappreciated dividend stocks like Verizon Communications (NYSE: VZ), Vici Properties (NYSE: VICI), and Opera (NASDAQ: OPRA).
Verizon has faced challenges in its core wireless business and competition, resulting in share price declines over the past few years. However, the stock is now attractively priced at just 8 times forward earnings and offers a generous forward dividend yield of 7.1%. Despite revenue declines in 2023, the company has shown signs of recovery in 2024 through strategic initiatives and acquisitions.
Vici Properties, a real estate investment trust (REIT) with a portfolio of casinos and entertainment properties, has demonstrated resilience with long-term leases and a stable occupancy rate. The company’s stock is trading at a discount valuation with a high forward dividend yield of 6%.
Opera, a developer of web browsers and a news app, has a small market share but potential for growth in the tech industry.
Consider these investment opportunities for potential returns and income growth.
Opera, a player in the fiercely competitive browser market, is facing challenges in attracting new users due to the dominance of larger competitors. Despite this, the company managed to maintain a solid user base of 296 million monthly active users (MAUs) across all its apps in the third quarter of 2024, as reported by StatCounter.
To combat the stiff competition and retain its existing users, Opera has deployed innovative strategies, including the integration of artificial intelligence (AI) tools and the introduction of more targeted advertising. The company’s latest browser offering, Opera One, showcases the incorporation of generative AI tools from OpenAI, complemented by its proprietary AI assistant, Aria.
Financial analysts are optimistic about Opera’s growth prospects, forecasting a 20% increase in revenue and a 32% surge in adjusted earnings per share (EPS) for 2024. Looking ahead to 2025, expectations remain positive with projected revenue and adjusted EPS growth rates of 16% and 21%, respectively. These impressive growth forecasts come at a time when Opera’s stock is trading at a modest valuation of just 8 times forward earnings.
In a move to further entice investors, Opera initiated semiannual dividend payments in 2023, offering a forward yield of 4.4%. This dividend yield, considered high for a smaller growth stock, adds an attractive dimension for value and income-seeking investors eyeing Opera as a potential investment opportunity.
While Opera’s performance is noteworthy, the spotlight shifts to the investment landscape with a question posed to potential investors: Is now the right time to invest in Verizon Communications? The Motley Fool Stock Advisor analyst team has highlighted ten stocks they believe hold significant growth potential, with Verizon Communications not making the cut. This selection process, reminiscent of past success stories like Nvidia’s inclusion in 2005, underscores the importance of strategic stock picks in generating substantial returns for investors over time.
The Stock Advisor service, known for providing actionable investment insights and stock recommendations, has outperformed the benchmark S&P 500 index since 2002, showcasing a track record of success in guiding investors towards profitable opportunities. With a focus on delivering value and growth to its subscribers, the Stock Advisor service offers a curated selection of top stock picks, coupled with expert analysis and regular updates to aid investors in navigating the dynamic market landscape.
As the investment landscape evolves, considerations around potential investment opportunities in companies like Verizon Communications prompt investors to evaluate their investment strategies and assess the alignment of their portfolio with emerging market trends. The interplay between value, growth, and dividend investing underscores the importance of diversification and strategic decision-making in maximizing returns and achieving long-term financial goals.
In conclusion, Opera’s innovative approach to user engagement and revenue growth, coupled with investment insights from leading advisory services like The Motley Fool Stock Advisor, presents an intriguing narrative for investors seeking opportunities in the dynamic world of finance. By staying informed, engaging with expert analysis, and exploring a diverse range of investment options, investors can position
