If you’re looking to build a strong portfolio with solid long-term returns, two “boring” stocks might be the key to success. While exciting advancements in AI technology are driving some stocks to new heights, there is still value in investing in traditional, unloved companies that are trading at pessimistic prices.
At Extreme Investor Network, we believe that British American Tobacco (NYSE: BTI) and AT&T (NYSE: T) are two such stocks worth considering for your investment portfolio. Let’s take a closer look at why these companies, often overlooked by investors seeking rapid growth, could offer stable returns and dividend income over time.
British American Tobacco may not seem like a glamorous investment, given the declining volumes of traditional combustibles like cigarettes. However, the company is strategically transitioning into the booming market of non-combustible tobacco products. With brands like Vuse capturing significant market share in key markets, British American Tobacco expects to see steady organic revenue and profit growth despite industry headwinds. Trading at less than 7 times earnings and offering a dividend yield of over 9%, this stock presents a compelling value proposition.
Similarly, AT&T is not a high-growth stock, but its core wireless business and fiber internet services are paving the way for increased free cash flow. By shifting towards higher-margin services and attracting new subscribers, AT&T aims to generate between $17 billion and $18 billion in free cash flow this year. With the stock trading at less than 8 times the midpoint of its cash flow guidance range and a dividend yield of nearly 6%, AT&T remains an attractive option for income-focused investors.
While the market may be fixated on the latest tech trends and high-flying stocks, sometimes the best investments are the ones that fly under the radar. At Extreme Investor Network, we believe that British American Tobacco and AT&T are two boring, yet reliable stocks that could provide long-term value and stability to your investment portfolio. Don’t overlook the power of investing in unloved companies that are trading at attractive prices – they may just surprise you with their resilience and returns.