3 stocks to help you grow the nest egg

The S&P 500 and Nasdaq closed last week lower, ending a four-week winning streak on concerns about the hawkish Fed and weak economic data from some of the influential nations. However, investors should consider fundamentally sound growth stocks The Kroger (KR), Johnson & Johnson (JNJ) and Taiwan Semiconductor Manufacturing (TSM), which also provide stable income in the form of dividends to generate strong long-term returns. . Read on to find out more….

shutterstock.com - StockNews

Many economists expect the Federal Reserve to maintain its hawkish stance in the coming months as inflation remains high. Concerns over an economic slowdown led benchmark stock indices to close lower last week after gaining for four consecutive weeks on optimism over a slight drop in inflation in July and a soft labor market. full effervescence.

Weaker-than-expected industrial production and retail sales in China and 40-year high inflation in the UK also fueled investor concerns. The S&P 500 and Nasdaq lost 1.2% and 2.6% respectively last week.

According to Ataman Ozyildirim, senior director of economics at the Conference Board, "the U.S. economy will not grow in the third quarter and could tip into a short but mild recession by the end of the year or the beginning of of 2023."

Given the current market scenario, it is important to build up a nest egg to achieve your long-term goals. To this end, it might make sense to invest in The Kroger Co. (KR), Johnson & Johnson (JNJ) and Taiwan Semiconductor Manufacturing Company Limited (TSM), which have strong growth potential and offer a stable revenue stream. in the form of dividends.

The Kroger Co. (KR)

KR operates as a retailer in the United States. The Company operates food stores and pharmacies that offer natural and organic food sections, pharmacies, general merchandise, pet centers, fresh seafood and organic products, as well as retail stores. to multiple departments that offer apparel, fashion and furniture for home, outdoor living, electronics, automotive products, toys, price impact marketplaces and warehouses.

Last month, KR announced that it would offer more US deliveries by adding shelf facilities in Nashville, Tennessee, and Maywood, Illinois. Through collaboration with nearby fulfillment centers, KR delivery will now reach customers in Greater Nashville and the Chicago metro area.

In June, KR announced a 35,000 square foot expansion to Tamarack Farms Dairy to help establish a state-of-the-art aseptic milk line capable of producing products such as half and half , heavy whipping cream, coffee creamers , and Carbmaster milk drink. The new line will allow the facility to support over 150 jobs.

KR declared a quarterly dividend of $0.26 on June 22, 2022, payable September 1, 2022. KR's annual dividend of $1.04 yields 2.1% on the current share price. Additionally, it has a four-year average dividend yield of 1.96%. Its dividend payouts have grown at a CAGR of 12.9% over the past five years.

Additionally, in June, KR announced it would be offering more U.S. delivery services with the addition of a new Customer Order Fulfillment Center (CFC) in Aurora, Colorado. powered by the Ocado Group, designing a model for the region, taking advantage of advanced robotic technology. and creative solutions to redefine the customer experience in the Denver metro area.

KR's sales increased 8% year-on-year to $44.60 billion in the first quarter of 2022. Its operating profit was $1.51 billion, up 87% over the prior year quarter. The company's net profit increased 374.3% year-on-year to $664.00 million, while its EPS increased 400% year-over-year to 0, $90.

The consensus EPS estimate of $0.78 represents a 0.5% year-over-year improvement in the third quarter ending October 2022. Analysts expect KR's revenue grows 7.6% year-over-year to $34.09 billion in the second quarter ending July 2022. Additionally, the company has an impressive earnings track record as it exceeded consensus estimate BPA...