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2 Dividend Stocks to Buy in January

2 Dividend Stocks to Buy in January

Here are two dividend-yielding stocks that experts recommend for the month of January.

General Motors Company (GM)
Dominos Pizza (DPZ)

General Motors: From Losing to Cruising.

Make no mistake: GM has angered the Trump administration for deciding to shed a total of 14,700 jobs and close its sprawling Lordstown, Ohio plant, where it builds the Chevrolet Cruze. The move combined with additional plant closings would cut roughly 15 percent of the automaker’s workforce.

But while the president may not like it and has made GM the latest target of his ire, it’s hard to slam the GM layoffs in light of what it could do to bolster the automaker’s long-term survival.
At least in the short term, GM stock is up 5 percent since late October Meanwhile, GM announced that it would add 2,700 positions at several U.S. factories,
and some employees affected by its decision to close five other plants will be eligible to transfer.

Domino’s Pizza: Rolling in Dough

Domino's PizzaSometimes, what sinks one pizza delivery juggernaut can provide a tailwind to another. The recent misfortunes of Papa John’s International ( PZZA) and embattled founder John Schnatter have provided a golden opportunity for Domino’s ( DPZ) to expand market share. In 2018, Papa John’s stock is down more than 27 percent. And Domino’s? It’s up 28 percent to $239 per share.

Domino’s also earns a top score from Blockforce Capital’s dividend health rating system, which assesses the likelihood that companies will grow or cut their dividends in the next 12 months. DPZ has a quarterly dividend of 55 cents per share – up close to a third from 2016 – and a 16.59 percent expected growth rate in the next 12 months,
says Kian Salehizadeh, a Blockforce senior analyst and based in San Diego.

“Domino’s has lots of free cash flow to support future dividend growth,” Salehizadeh says, adding that “funds can be reallocated from future buybacks to dividend increases.”
Investors may also want to tip the Domino’s driver – as in new CEO Richard Allison, who took over in July for Patrick Doyle.
Rather than rock the boat, Allison has announced nifty innovations such as “Domino’s Hotspots,” which will let customers order food from places without traditional addresses.

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