6 Undervalued Stocks That Just Increased Their Dividends

Which stocks are leading this super-concentrated stock market, what to watch in the CPI report, and why it may finally be time for emerging markets to shine. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=45623&elqTrackId=3af17b761fcf49d68046ee4391b934a0&elq=518ec33f76f74b2094006d368b17fd7d&elqaid=45623&elqat=1&elqCampaignId=22324) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week’s newsletter: - [6 Undervalued Stocks That Just Increased Their Dividends]( - [5 Charts That Show Where the Stock Market’s Gains Are Concentrated]( - [May CPI Forecasts Show Little Slowdown in Inflation]( - [Why Emerging-Markets Stocks Could Finally Shine]( Could it be? Yes, it could. Something’s coming: a new bull market. Well, maybe. This past week, U.S. stocks technically broke out of the bear market that started last January, with the market up more than 20% from the lows it hit in October. But if this is a new bull market, somebody forgot to invite most of the stocks. This year has seen the narrowest rally in recent history. The top ten stocks have accounted for all—that’s right, all—of this year’s gains. Lauren Solberg tells the story of 2023’s rally in five charts [here]( with a look at the names driving the market higher. Another issue is that there’s still significant uncertainty about the timing of any recession and what the Federal Reserve may end up doing about interest rates. While markets are expecting the Fed to cut rates by the end of this year, a lot will depend on whether inflation resumes its decline. In fact, Fed policy will be front and center this coming week as officials meet Tuesday and Wednesday. While it's widely expected the Fed will hold rates steady at this meeting, the real question is what comes next. In [our Fed meeting preview]( we explore whether it will be a “pause” or a “skip.” But before we get the Fed decision, we’ll see the latest reading on inflation Tuesday morning with the release of the May Consumer Price Index report. In [this week’s Markets Brief]( learn what investors should expect from the CPI and the outlook for inflation. (Hint: Still sticky.) Even if we say goodbye to the 2022 bear market, most prognosticators expect equities to face an extended period of lower returns. That means dividends will play a bigger role in generating gains in your portfolio. This week we rolled out a new screen of undervalued stocks that have just increased their dividends. We showcase six intriguing names [here](. Speaking of which, not all dividend strategies pan out for investors. [Check out this video]( from Russ Kinnel, in which he digs into three mutual funds that offered big yields but delivered poor returns. On the flip side of the coin, our weekly mutual fund screen looks for the best-performing tech stock funds. We [highlight eight funds]( including strategies from Vanguard, Fidelity, and iShares. And looking further abroad, we dig into the outlook for emerging markets stocks. It’s been a while since EM has been a leader in global stocks, but [here’s a look]( at why it could finally be time for this group to shine. That’s it for this week. As always, you can find all our markets coverage [here]( along with our new live U.S. stock market report, which offers an easy way to keep up to date on what’s happening during the trading day. [6 Undervalued Stocks That Just Increased Their Dividends]( [6 Undervalued Stocks That Just Increased Their Dividends]( Qualcomm, Williams-Sonoma, and Comcast make our list of cheap stocks with higher dividend payouts. Jakir Hossain [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Thematic Investing: Just Say No]( [Thematic Investing: Just Say No]( Seventy-five years of failure is quite enough. John Rekenthaler [Why Emerging-Markets Stocks Could Finally Shine]( [Why Emerging-Markets Stocks Could Finally Shine]( Attractive valuations and China reopening could lead long-lagging emerging stocks to outperform. Lauren Solberg [3 Mediocre Dividend Funds]( [3 Mediocre Dividend Funds]( The siren song of yield has wrecked many portfolios. Russel Kinnel [8 Top-Performing Tech Stock Funds]( [8 Top-Performing Tech Stock Funds]( Funds from Vanguard, Fidelity, and iShares have outperformed in a turbulent market for tech stocks. Sadhika Thapa [May CPI Forecasts Show Little Slowdown in Inflation]( [May CPI Forecasts Show Little Slowdown in Inflation]( Overall price pressures may soften, but services prices are keeping inflation well above the Fed’s target. Lauren Solberg, Caryl Anne Francia [Fed Meeting Preview: Will Powell Unveil a Rate-Hike Pause or a ‘Skip’?]( [Fed Meeting Preview: Will Powell Unveil a Rate-Hike Pause or a ‘Skip’?]( Another rate hike is seen possible in July, as expectations have faded that the Fed will lower rates in 2023. Tom Lauricella [Regulatory Limbo Likely for Coinbase as SEC Brings Charges]( [Regulatory Limbo Likely for Coinbase as SEC Brings Charges]( Leaving $80 fair value estimate for Coinbase stock unchanged, but highlighting our Very High Uncertainty Rating. Michael Miller [Tesla Opens Supercharging Network to GM and Ford]( [Tesla Opens Supercharging Network to GM and Ford]( While we see the news as positive for the industry, there’s no impact on our fair value estimate for Tesla stock. Seth Goldstein [Is Cisco Stock a Buy, Sell, or Fairly Valued After Earnings?]( [Is Cisco Stock a Buy, Sell, or Fairly Valued After Earnings?]( With strong Q1 sales but a short-term slowdown in order growth, here’s what we think of Cisco’s stock. William Kerwin [Is Alibaba Stock a Buy After Earnings?]( [Is Alibaba Stock a Buy After Earnings?]( With better-than-expected revenue and a planned spin off, here’s what we think of Alibaba shares. Chelsey Tam [Obesity Drug Stocks: Time to Buy?]( [Obesity Drug Stocks: Time to Buy?]( Weight-loss drugs could be a $60 billion market in 10 years. These companies stand to benefit. Karen Andersen, Damien Conover [What’s Inside Anti-ESG Funds?]( [What’s Inside Anti-ESG Funds?]( These funds deliver on some expectations, surprise on others. Mahi Roy, Alyssa Stankiewicz [Why ARKK Shareholders Are Still Underwater]( [Why ARKK Shareholders Are Still Underwater]( Despite a recent performance rebound, most ARK Innovation ETF investors have lost money. Amy Arnott [4 Highly Rated ETFs on Sale]( [4 Highly Rated ETFs on Sale]( Compelling ETFs that trade well below their fair value. Ryan Jackson [Avoid These Mistakes With Your Cash, Bonds, and Stocks]( [Avoid These Mistakes With Your Cash, Bonds, and Stocks]( And what investors should do instead. Christine Benz [The Trillion-Dollar Club: Are These Stocks Too Expensive?]( [The Trillion-Dollar Club: Are These Stocks Too Expensive?]( What Apple, Microsoft, Alphabet, and Amazon stock are worth after Nvidia’s market cap tops $1 trillion. Susan Dziubinski [5 U.S. Treasury ETFs With High Yields]( [5 U.S. Treasury ETFs With High Yields]( These highly rated ETFs from Vanguard and others are paying their fattest yields in years. Katherine Lynch [10 Best Blue-Chip Stocks to Buy for the Long Term]( [10 Best Blue-Chip Stocks to Buy for the Long Term]( The stocks of these high-quality companies with large market capitalizations look undervalued today. Susan Dziubinski Chart of the Week [5 Charts About the Super Concentrated Stock Market]( [5 Charts About the Super Concentrated Stock Market]( We may be entering a new bull market, but nearly all of 2023′s returns are from the largest stocks, including Apple, Microsoft, and Nvidia. Lauren Solberg [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [A Comprehensive Guide to 529 College Savings Plans]( Learn how a 529 plan can help pay for educational expenses. [5 Steps to a Minimalist Portfolio]( A guide to building an effective, low-maintenance portfolio. Plus, some sample portfolio mixes to help you get started. [Our Ultimate Stock-Pickers’ Top 10 Buys and Sells]( Funds see value in a diverse range of sectors. [A Fund Shop Bets the Ranch on One Stock]( Horizon Kinetics’ love affair with Texas Pacific Land raises questions about conflicts of interest with no exit strategy in sight. [A Financial Guide on What to Do After College]( Use these resources to help you set up retirement savings, tackle debt, and begin investing. Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602