The four stocks which I chose for the couple who have just retired are 3M, Facebook, JP Morgan Chase and Capital One. I chose these stocks because over the years these companies have exhibited substantial growth. They are already mature companies; thus, less risk is involved. Furthermore, they have registered high yields during the past years.
For 3M, its second quarter 2016 results showed an EPS of $2.08, up by 3.0%, year-on-year. Moreover, the company has also declared $1.5 billion in dividends and gross share repurchases. The future for 3M looks bright as it has developed a new advanced film technology, the 3M Conceal Film, which can be used by the wireless industry, specifically for cell site infrastructure.
Since its unveiling in 2004, there is no stopping to the growth of Facebook. It now has other applications such as Instagram, Messenger, WhatsApp and Oculus. As of the second quarter of 2016, its net income reached $2,055 million, a growth of 184% from $719 million, year-over-year. Facebook’s EPS for the year ended 2015 was $1.31, a 151% increase from 2011’s $0.52. The company recently launched a major project with Microsoft for the construction of a new state-of-the art subsea cable across the Atlantic, which is the companies’ answer to the growing demand for a faster and reliable connection.
Another stock chosen was JP Morgan Chase, the country’s biggest bank. Its assets is currently at $2.5 trillion and last year, it registered a net interest income of $44 billion. Recently, JP Morgan announced that it will build more branches to increase its in-person customer service, a strategy which other banks are not currently doing.
Lastly, I chose Capital One as another worthy investment. Capital One is one the largest diversified bank in America. Their revenue growth year-over-year could be attributed to its credit card business. The company’s total shareholder return (TSR) was 10.9% in 2015 and its closing stock price last year was $72.18 per share. Earnings per share rose from 2011’s $6.76 to 2015’s $7.07. Capital One’s revenue has grown 121.2% for the past five years while EPS has grown 21.8% .
Works Cited
3M. "2016 Second Quarter Business Review (unaudited)." 2016. 3M 2016. Web. 1 September 2016.
Capital One. "2015 Capital One Annual Report." 2015. Capitalone.com. Web. 1 September 2016.
Facebook, Inc. "Facebook reports second quarter 2016 results." 27 July 2016. investor.fb.com. Web. 1 September 2016.
Fuller, Eva. "Securities analyst recommendations: Capital One Financial Corporation (NYSE:COF), FireEye, Inc. (NASDAQ:FEYE)." 30 August 2016. The Wellesly News. Web. 1 September 2016.
Maxfield, John. "JPMorgan Chase Is 10 times bigger than you think it is." 24 August 2016. The Motley Fool. Web. 1 September 2016.
