7 Most Popular Dividend Stocks | Summary and Q&A

TL;DR

This video analyzes the dividend stocks of Pfizer, Apple, Microsoft, Coca-Cola, Bank of America, Starbucks, and AT&T based on their dividend yield, dividend history, and valuation compared to industry averages.

Key Insights

• 🥳 Pfizer appears undervalued compared to industry averages based on its dividend yield and forward P/E ratio.
• ✋ Apple and Microsoft have stable dividends supported by strong earnings, with Apple showing higher earnings growth than dividends.
• 🙂 Coca-Cola's dividend seems slightly overvalued compared to industry averages, with stagnant earnings posing potential risks.
• 🌎 Bank of America has a gradually increasing dividend and reasonable valuation compared to industry averages.
• 🥳 Starbucks appears overvalued based on its high forward P/E ratio and recent pause in dividend growth.

Transcript

hi i'm jimmy in this video we're going to look at seven of the most popular dividend stocks that are owned right now we're going to go through each of the dividend stocks we're going to look at what their dividend yield is we're going to look at their dividend history compare that to the profits of the company see how sustainable the dividend is we... Read More

Questions & Answers

Q: Why does the speaker consider Pfizer to be potentially undervalued?

Pfizer's dividend yield of 4.3% and forward P/E ratio of 11x suggest it could be undervalued compared to industry averages. Further analysis is needed to determine if it is a good buy.

Q: How has Apple's dividend performed compared to its earnings?

Apple's dividend has been growing steadily since its initiation in 2012. Earnings have consistently covered dividends, and the company's earnings growth outpaces the dividend growth, indicating stability and potential for future growth.

Q: What factors have prevented the speaker from buying Microsoft stock?

Microsoft has a dividend yield of 1% and a higher forward P/E ratio than industry averages. These factors have deterred the speaker from buying the stock, despite its gradually increasing dividend and earnings coverage.

Q: Why does the speaker suggest a deeper analysis of Coca-Cola's plan to increase profits?

Coca-Cola has a dividend yield of 3% but a higher forward P/E ratio compared to industry averages. Concerns arise from the stagnant earnings per share over the past decade, suggesting a need for a clear plan to boost profitability.

Summary & Key Takeaways

• Pfizer has a dividend yield of 4.3%, with a forward P/E ratio of 11x, suggesting it could be undervalued compared to industry averages.

• Apple has a dividend yield of around 1%, with a forward P/E ratio in line with the market and industry averages. Its dividend has been growing steadily, supported by strong earnings.

• Microsoft has a dividend yield of 1% and a higher forward P/E ratio than industry averages, which has deterred the speaker from buying the stock. However, the company's dividend history shows consistent growth and strong earnings coverage.

• Coca-Cola has a dividend yield of 3% but has a higher forward P/E ratio compared to industry averages, indicating potential overvaluation. The speaker suggests a deeper analysis of the company's plan to increase profits.

• Bank of America has a dividend yield of 2% and a slightly higher forward P/E ratio than industry averages. Its dividend history has been gradually increasing, supported by healthy earnings.

• Starbucks has a dividend yield of 1.7% and the highest forward P/E ratio on the list. The stock appears overvalued compared to market and industry averages. The company paused its dividend growth in 2020 due to the impact of the pandemic on revenues and profits.

• AT&T has the highest dividend yield of 7% and a low forward P/E ratio compared to its sector. However, the company's dividend history and fluctuating profits raise concerns about the stability of its business.