Hot stocks today
- PayPal has just launched a new app and plans to develop it further.
- Coca-Cola has a steady and growing dividend.
The broader market is “cooling off” from the highs of 2021, which means investors can put up a great stock for sale. The Dow Jones Industrial Average index is up 11% since the beginning of the year, but down 4% in the last month. A $1,000 investment is a great starting point. If you have extra money consider investing in the stock market.
Here are two great stocks, each with a different value to create a mini-diversified portfolio: PayPal Holdings is a top value stock ( NASDAQ: PYPL ) and Coca-Cola ( NYSE: KO ) is a classic high-yield dividend stock.
PayPal has been around for a long time, but it has evolved and modernized to maintain its leadership position in digital payments. It had some of its best quarters ever during the pandemic, and it predicts continued growth for a long time to come.
It surpassed 400 million accounts in the second quarter, more than the entire population of the U.S. and Canada combined. And it expects to add more than 40 million more for the full fiscal year. In the past 12 months, it has processed more than $1 trillion in payments and processes about 38,000 transactions every minute.
Revenue by 2020 was $21 billion, and PayPal expects that number to grow to $50 billion by 2025, or an average annual growth rate of 20 percent. To that end, the company is launching new products and features.
In September, the company launched a new app that presents all services, including banking, peer-to-peer payments, bill payment, commerce and more, in a user-friendly way. It sees this as the app of the future, where customers can process all their financial transactions under one banner and in one place.
PayPal stock has risen more than 500% in the last five years, but has fallen 10% in the last month, making now the perfect time to buy stock.
Coca-Cola has been a longtime leader in beverage sales, but the growth rate hasn’t slowed down because of the pandemic. The company quickly changed direction to make the most of its extensive distribution network, making up for some of the lost revenue from home sales with its large service category away from home. Now the company is growing again, after giving up half of its brands, as lockdowns end. In the second quarter (ended July 2), net revenue rose 42% from a year ago to more than $10 billion, completely offsetting the decline in 2020 and surpassing 2019.
Despite its size, the company says it accounts for 13% of the total commercial beverage market in developed countries and 5% of the market in underdeveloped countries. That means there is still room for growth. It is using its considerable resources to develop new products, create campaigns and use its digital systems to increase market share.
Coke is the dividend king , and it has increased its dividend every year for 59 years. It tends to pay a dividend that typically yields about 3%. Since the stock is down 7% in the last month, the yield has risen to 3.15%, and you can buy this company’s biggest dividend stock at a great price.