With the last week of August comes one of the slowest weeks on Wall Street as many New York traders hit the beach and vacation spots for the last time before the kids go back to school and the street gets down to business. While we can expect some slow trading this week, the return of the legions next Tuesday should get the ball rolling.
One thing everybody is looking for is stocks that have some decent value characteristics and pay a solid dividend. We scanned the top picks at Jefferies this week and found four stocks rated Buy that also pay solid dividends.
This top stock to buy offers intriguing potential for value expansion. Huntsman Corp. (NYSE: HUN) manufactures and sells differentiated organic and inorganic chemical products worldwide. It operates in five segments: Polyurethanes, Performance Products, Advanced Materials, Textile Effects, and Pigments and Additives.
The company’s products are used in various applications, including adhesives, aerospace, automotive, construction products, personal care and hygiene, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries.
The company recently announced a plan to spin off a specialty chemical business rather than sell it, and that will create a new publicly traded company by early next year. The Jefferies team is bullish on the spin-off and feels that there is solid value for shareholders at current levels.
Huntsman shareholders are paid a solid 2.95% dividend. The Jefferies price target for the stock is $20, and the Wall Street consensus is set at $19.50. The shares closed last Friday at $16.98.