2 Stocks To Buy For Dividends And Growth As Dow Hits Record

The Nasdaq bounced back on Tuesday and closed Wednesday just barely in the red, which is a positive sign after a few weeks of major swings. As tech stocks cooled off, the Dow popped 1.5% during regular trading to close above 32000 for the first time.

The blue-chip index notched its 11th record close of 2021. The S&P 500 jumped 0.60% to inch within 1.2% of its mid-February highs, as Wall Street rotates into underperforming areas, as well as reopening stocks.

Investors are attempting to figure out what impact more government spending and the increased likelihood of a huge vaccine-boosted economic comeback will have on the market. For instance, a Wall Street Journal survey of economists projects that U.S. GDP will grow by 5.95% in 2021, for its fastest in roughly 40 years.  

The rising bond yields signal increased inflation worries. But U.S. Treasury yields remain historically low and the earnings outlook for the S&P 500 has improved substantially over the last several months.

Given this backdrop, investors likely want to find ways to safely add to their portfolios this year. Today, we review two highly-ranked stocks with solid fundamentals and Treasury-topping dividend yields that might be worth buying…

Rent-A-Center, Inc. (RCII Quick Quote RCII - Free Report)

Rent-A-Center is a lease-to-own retail giant that enables people to slowly pay off everything from furniture and appliances to TVs and more. The company’s sales climbed over 5% in 2020 and it topped our Q4 sales estimates in late February. RCII’s adjusted fourth earnings surged nearly 80% and its sales jumped 7%, as its second-half growth improved significantly from a coronavirus-impacted first half of 2020.

RCII in February also closed its acquisition of Acima Holdings to help improve its e-commerce offerings in a world where many companies now offer payment plans on everything from electronics to shoes. “E-commerce and digital payments are enhancing our engagement with our customers, and we have a strategic advantage compared to other firms competing in the virtual lease-to-own (‘LTO’) industry to further leverage our last-mile capabilities,” CEO Mitch Fadel said in prepared Q4 remarks.

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