Positions I’m Watching: Healthy Companies with Strong Fundamentals

By: Stacey Nickens

Throughout market ups and downs, I remain focused on companies with strong fundamentals. These include companies with healthy revenue streams, strong potential for growth, and good dividend payments. Along those lines, this September, I’ll be watching positions in companies such as Logitech, Chemours, and Consolidated Edison.

Logitech (LOGI) produces computer and phone accessories. These accessories include keyboards, mice, tablet accessories, webcams, speakers, and video conferencing tools.  With the growth in demand due to remote work and school, the company’s first-quarter earnings soared 75%.  According to Morningstar, the company also pays a dividend with a current yield of 1.06% and just increased their dividend by 10% compared to their 2019 dividend. 

Chemours (CC) is a chemicals provider with an impressive dividend yield of 4.82%. The company released better-than-expected results for the second quarter and was able to increase free cash flow despite COVID-19 constraints. The FDA also recently approved their Glyclean Hard Surface Cleaning for use against COVID-19. The approval of this product could strengthen the company’s long-term growth prospects. Moreover, the company’s stock is affordable at just around $20, and Morningstar currently lists their stock as undervalued.

Consolidated Edison (ED) currently has a 4% dividend yield. It also has a strong history of growth and comes with a forward P/E ratio of 16.29. This is below the S&P 500’s forward P/E ratio of 25.64. Consolidated Edison is also the second largest solar energy producer in North America, which could allow the utility provider to be competitive in a changing energy market. The company is headquartered in New York. The state’s regulatory framework largely protects Con Ed from earnings volatility due to unexpected demand changes. Morningstar also lists their stock as currently slightly undervalued.

Disclosures: Past performance is not a guarantee or a reliable indicator of future performance. All securities carry a unique set of risks subject to a variety of factors. There is no guarantee that these investment strategies will work under all market conditions or that they are are suitable for all investors. This material has been distributed solely for informational purposes and should not be considered as individual investment advice or recommendation. Individuals should consult their investment professional prior to making an investment decision.