Two dividend-paying leisure stocks to purchase for rebound potential feature a global mountain resort operator and a giant retailer that sells a vast array of products from athletic wear and exercise equipment to groceries.
Rising energy costs, worsened by Russia’s Feb. 24 invasion of Ukraine, and a shift toward leisure should not sabotage either of the two dividend-paying leisure stocks to purchase. Pent-up interest in recreation as the economy and employment stay strong could propel each of these two dividend-paying leisure stocks as they attempt to bounce back from the fallout of a global pandemic that began to plague America during early 2020.
Risk remains, based on aggregated BC credit and debit card data, which showed total card spending slowing in September across goods categories, as spending on leisure services leveled out. The data may signal economic reopening tailwinds on discretionary services are fading. In addition, the BofA US Economics team expects a recession, accompanied by a labor market slowdown and further weakness in consumer spending, during first-quarter 2023.
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Inflation-Resistant Walmart Is One of Two Dividend-paying Leisure Stocks to Purchase
Walmart Inc. (NYSE: WMT), of Bentonville, Arkansas, is one of the few stores that’s likely to benefit from high inflation, since it offers the “best discounts” of any major retailer, said Jim Woods, leader of the Intelligence Report newsletter and co-chief of the Fast Money Alert advisory service that recommends both stocks and options. His co-lead with the Fast Money Alert advisory service is Mark Skousen, PhD, who also heads the Forecasts & Strategies investment newsletter and is a fellow fan of dividend-paying stocks.
Mark Skousen, Forecasts & Strategies chief and Ben Franklin scion, meets Paul Dykewicz.
Woods told me he recommends Walmart in the Income Multipliers portfolio of his Intelligence Report newsletter partly due to its history of raising annual dividends. The stock also surged by rising 10.88% in the past month and 12.72% in the last three months.
Paul Dykewicz meets with Jim Woods in Washington, D.C.
Walmart Earns Place Among Two Dividend-paying Leisure Stocks to Purchase
The company produced strong revenue growth globally, with strength in Walmart U.S., Sam’s Club U.S., Flipkart and Walmexm in its fiscal 2023 third quarter results released on Nov. 15, 2022. Total revenue reached $152.8 billion, up 8.7%, or 9.8% in constant currency, Walmart announced.
Walmart helps people around the world save money and offers a wide array of products at its retail stores, online and through its customers’ mobile devices. Each week, approximately 230 million customers and members visit more than 10,500 stores and numerous eCommerce websites under 46 banners in 24 countries. The company’s fiscal year 2022 revenue totaled $573 billion.
Chart courtesy of www.stockcharts.com
Vail Resorts Rates as One of Two Dividend-paying Leisure Stocks to Purchase
Another BofA recommendation, also favored by New York-based Baron Funds, is Vail Resorts (NYSE: MTN), of Broomfield, Colorado. Vail’s focus includes using data to drive a unique, advanced customer commitment for a recurring business model. MTN is also well positioned to benefit from high-end, pent-up leisure demand in the coming ski season.
One shareholder of Vail Resorts is the Baron Growth Fund (BGRFX). BofA rates Vail Resorts as a buy, as does Michelle Connell, the chief executive officer of Portia Capital Management, of Dallas, Texas.
Michelle Connell heads Portia Capital Management, of Dallas, Texas.
Connell’s key reasons for investing in MTN include:
- Strong growing revenues in a softening economy. Despite MTN increasing ticket prices 7.5%, the company’s revenue from ski passes was already up 7% for the year through the end of September 2022.
- $320 Million Invested for Improved Consumer Experience. Just in time for the 2022-23 ski season, MTN has invested $320 million to install 19 new chairlifts across 14 of its resorts.
- Investment in Data Infrastructure. MTN has also invested heavily so that the online experience of its consumers is smoother and faster.
- MTN should appeal to the environmentally conscious young investor who also skis. The company is ahead of schedule to meet its target of 2030 to have a zero net (carbon) operating footprint.
- Estimated 12-month upside for MTN: 15-25%.
Chart courtesy of www.stockcharts.com
Vail Resorts has a long history in the ski industry, starting with the opening of Vail Mountain in 1962. It now has 37 resorts in 15 states and three countries, including some of the world’s most iconic destinations, as well as travel-centric retail and hospitality businesses.
The company’s subsidiaries operate destination mountain resorts and regional ski areas such as Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher, Falls Creek and Hotham in Australia; Stowe, Mount Snow and Okemo in Vermont; Hunter Mountain in New York; Mount Sunapee, Attitash, Wildcat and Crotched in New Hampshire; Stevens Pass in Washington; and Liberty, Roundtop, Whitetail, Jack Frost and Big Boulder in Pennsylvania. Vail Resorts owns and operates a variety of world-class luxury resorts for spa vacations or adventurous mountain lodges for relaxing after a day on the slopes.
SeaWorld Offers Non-Dividend Alternative to Two Dividend-paying Leisure Stocks to Purchase
Skousen, chief of the Forecasts & Strategies investment newsletter and advisory services that also include Home Run Trader, recommends SeaWorld Entertainment (NYSE: SEAS), of Orlando, Florida. The theme park and entertainment company has become a “big beneficiary” of the new post-pandemic economy, he added.
SeaWorld’s revenue hit $1.7 billion over the last 12 months, while its third-quarter earnings jumped 32% on an 8.4% increase in sales. Plus, shares of SeaWorld have soared nearly 300% over the past five years, despite the pandemic, Skousen said.
With the lockdowns over and consumers choosing to spend more on experiential services, the outlook for SeaWorld is exceptional, Skousen recently wrote to his Home Run Trader subscribers.
Chart courtesy of www.stockcharts.com
Insider Buying Boosts the Alternative of Two Dividend-paying Leisure Stocks to Purchase
SeaWorld’s Treasurer and Chief Financial Officer Michelle Adams recently purchased 39,000 shares at $51.03, an investment of nearly $2 million. She now owns more than 75,000 shares.
In addition, Chief Commercial Officer Christopher Finazzo purchased 8,950 shares a couple weeks later. He owns over 72,000 shares.
These are “two savvy insiders,” Skousen wrote to his subscribers. He advised that they own the stock, too.
Another reason Skousen said he likes SeaWorld is that his daughter Hayley, a professional figure skater, is performing in a principal role in SeaWorld’s Christmas Celebration in Orlando, Florida. The following link shows her doing a backflip. Her husband, Pablo, also works there as a musician.
The company’s recognized brands include SeaWorld, Busch Gardens and Sea Rescue. The latter unit saves and rehabilitates marine animals that are ill, injured or abandoned, with the goal of returning them to the wild.
During SeaWorld’s 50-year history, it has built 12 destination and regional theme parks in key markets across the United States, hosting an average of more than 20 million visitors a year.
SeaWorld Jumps, Despite Missing a Spot Among Two Dividend-paying Leisure Stocks to Purchase
Guests at SeaWorld attractions receive a variety of up-close experiences with wildlife, as well as thrill rides and shows. SeaWorld also has produced Parent’s Choice and Emmy-Award-winning shows like Sea Rescue and The Wildlife Docs that celebrate the natural world.
“The pandemic was a big negative for entertainment parks, of course, as they were forced to shut down,” Skousen wrote to his subscribers. “But most of them are coming back in a big way. And SeaWorld is no exception.”
Revenue hit $1.67 billion over the last 12 months and sales are up 15% year-over-year, Skousen noted. With the pandemic waning, the outlook remains positive, he added.
Skousen not only recommended the stock, but SeaWorld call options, too. His Home Run Trader service offers both ways to profit.
Bivalent COVID-19 Vaccine Could Lift Two Dividend-paying Leisure Stocks to Purchase
A new bivalent COVID-19 booster provides superior protection against the omicron BA.5 variant, which currently is the predominant strain of the virus. I received the new booster on Oct. 16 once it became available at pharmacies near my house.
However, 200-plus million Americans who are eligible have yet to accept the new booster. New cases and deaths can hurt demand for leisure activities, so a bivalent booster could enhance both public health and the economy.
Cases in the country totaled 98,500,124 and deaths reached 1,104,221, as of Nov. 23. America has the dreaded distinction of amassing the most COVID-19 cases and deaths of any nation. Worldwide COVID-19 deaths totaled 6,625,790, as of Nov. 23, according to Johns Hopkins University. Global COVID-19 cases reached 639,505,684.
Roughly 80.6% of the U.S. population, or 267,476,279, have received at least one dose of a COVID-19 vaccine, as of Nov. 16, according to the latest CDC data. People who obtained the primary COVID-19 doses totaled 228,154,832 of the U.S. population, or 68.7%, the CDC reported. The United States also has given a bivalent COVID-19 booster to 33,831,057 people who are age 18 and up, accounting for 13.1% of the U.S. population in that age range.
Despite Russia’s sustained attacks against Ukraine that the aggressor’s President Vladimir Putin describes as a “special military operation,” people outside of the current war zones still are able to enjoy leisure activities. Investors seeking a potentially good run may want to consider the two dividend-paying leisure stocks to purchase.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Holiday Offer: Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great holiday gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for special pricing on multiple-book purchases.