Market volatility is rife, as is evident from the CBOE Volatility Index’s 37% year-to-date gains. Amid high prices and consecutive rate hikes, Morgan Stanley’s Michael Wilson believes “the path forward is much more uncertain than a year ago.”
On the other hand, inflation data for October 2022 showing signs of cooling price pressures is bringing in optimism. Stuart Clark, portfolio manager at Quilter Investors, said, “Inflation in the U.S. has once again fallen, giving some momentum to the idea that the worst is now behind us. The rate is lower than expectations, and this will provide some relief to consumers.”
Given this backdrop, investors could consider buying quality dividend-paying stocks Comcast Corporation (CMCSA) and Texas Roadhouse, Inc. (TXRH) to ensure a steady income stream. These stocks are trading under $100.
Comcast Corporation (CMCSA)
CMCSA operates as a media and technology company worldwide. It operates through Cable Communications; Media; Studios; Theme Parks; and Sky segments.
On October 27, 2022, CMCSA announced that Xfinity Mobile surpassed five million customer lines in just five years, marking a milestone achievement for the company.
Brian L. Roberts, CMCSA’s Chairman and CEO said, “Our company is a leader in very large and profitable markets. Despite the challenges that may lie ahead, we are in an enviable strategic and financial position, and our future remains bright.”
CMCSA has paid dividends for 13 consecutive years. Its dividend payouts have increased at 11.7% CAGR over the past five years. Its current dividend yield is 3.17%, and its four-year average dividend yield is 2.05%.
CMCSA’s revenue came in at $29.85 billion for the 2022 third quarter, down marginally year-over-year. However, its adjusted net income came in at $4.22 billion, up 4.5% year-over-year, while its adjusted EPS came in at $0.96, up 10.3% year-over-year. Also, its adjusted EBITDA came in at $9.48 billion, up 5.9% year-over-year.
For 2022, analysts expect CMCSA’s revenue to increase 4.3% year-over-year to $121.35 billion. Its EPS is expected to increase 12.1% year-over-year to $3.62 in 2022. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 13.6% to close the last trading session at $34.13.
CMCSA’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to a Buy in our POWR Rating system. The POWR Ratings assess stocks by 118 different factors, each with its weighting.
Also, the stock has a B grade for Quality. Within the Entertainment - TV & Internet Providers industry, it is ranked first among nine stocks. Click here for the additional POWR Ratings for Growth, Value, Momentum, Stability, and Sentiment for CMCSA.
Texas Roadhouse, Inc. (TXRH)
TXRH and its subsidiaries operate casual dining restaurants in the United States and internationally. The company has grown to over 680 restaurants system-wide in 49 states and ten foreign countries.
On October 27, 2022, Jerry Morgan, TXRH’s CEO, said, “Our planned franchise acquisitions and a disciplined approach to capital allocation reflects our commitment to driving shareholder value.”
TXRH’s dividend payouts have increased at 16.8% CAGR over the past five years. Its current dividend yield is 1.91%, while its four-year average dividend yield is 1.53%.
TXRH’s total revenue came in at $993.30 million for the third quarter that ended September 27, 2022, up 14.3% year-over-year. Its net income came in at $62.33 million, up 18.5% year-over-year, while its EPS came in at $0.93, up 24% year-over-year.
Street expects TXRH’s revenue to increase 16.2% year-over-year to $4.03 billion in 2022. Its EPS is expected to increase 17.1% year-over-year to $4.10 in 2022. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 4.3% to close the last trading session at $96.61.
TXRH has an overall B rating, which translates to a Buy in our proprietary rating system.
TXRH has a B grade for Quality. Within the B-rated Restaurants industry, it is ranked #12 out of 45 stocks. Click here for the additional ratings for TXRH (Growth, Value, Momentum, Stability, and Sentiment).
CMCSA shares were trading at $34.47 per share on Tuesday afternoon, up $0.34 (+1.00%). Year-to-date, CMCSA has declined -29.70%, versus a -14.98% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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