Buy 3 No-Brainer Stocks with $200 Now (Part-2)

York Water Pennsylvania water utility York Water (NASDAQ: YORW) is another $200 no-brainer stock. York shares have fallen more than 30% in three years as the Federal Reserve's aggressive monetary policy has boosted other income sources. As Treasury bond yields rise, income investors may have a safer investment than utility equities. Don't expect this dynamic to last.

Fed chair Jerome Powell supported the widespread estimate that the central bank would lower rates three times in 2024 earlier this year. Treasury yields fall when interest rates fall. Thus, utility companies with high yields are more appealing.

York Water pays the strongest dividend of any publicly traded corporation. Its dividends have remained uninterrupted since 1816, notwithstanding its low yield. York's 208-year dividend record is six decades longer than any other U.S. public firm and shows how stable its operating cash flow has been.

Regulation is one of York's biggest advantages. By "regulated," I mean it needs PPUC approval to boost rates. York avoids volatile wholesale prices by being regulated. Revenue rose to $71 million in 2023 from $60 million in 2022 when the PPUC raised rates in January.

York is worth less than 21 times Wall Street's 2025 consensus profit prediction, making it an attractive value offer. This discount is 35% from York Water's trailing-five-year prospective P/E multiple.

Starbucks Starbucks (NASDAQ: SBUX) is the third $200 no-brainer stock. Starbucks shares have dropped 25% since peaking nearly three years ago. China has been a problem with labor and input inflation. Since lifting its controversial COVID-19 mitigation scheme in December 2022, the world's second-largest economy hasn't grown as expected. Nearly 38,600 Starbucks outlets are in China, including 6,975

Conversely, China's economy may recover. As China reduces its harsh and unpredictable lockdowns, supply chain issues may improve. Starbucks hasn't had to worry about inflation due to its devoted customers and brand power. Consumer price increases have offset labor costs and product inflation.

Starbucks' success has come from growing its Rewards Member base. The company had 34.3 million active Rewards Members on Dec. 31, up 13% from the previous year. Rewards Members purchase more and are more likely to load their credit card details on their mobile device and use mobile ordering, which reduces drive-thru and in-store wait times. Rewards Members improve Starbucks' shop efficiency for a complimentary drink or meal occasionally.

Management revamped the drive-thru and menu during the pandemic. Personalizing the drive-thru ordering display with video and promoting high-margin food and drink combinations has helped.

Starbucks shares are available for 19 times Wall Street's consensus earnings for the year. This is Starbucks' lowest forward P/E in at least a decade and a 32% discount to its average forward-year earnings multiple over the trailing five years.

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