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5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 9% (May 2025)
Seeking Alpha· 2025-05-03 12:30
Group 1 - The primary goal of the "High Income DIY Portfolios" Marketplace service is to provide high income with low risk and capital preservation for DIY investors [1] - The service offers vital information and portfolio/asset allocation strategies aimed at creating stable, long-term passive income with sustainable yields [1] - The portfolios are specifically designed for income investors, including retirees or near-retirees, and include seven different portfolios: 3 buy-and-hold, 3 rotational portfolios, and a 3-bucket NPP model portfolio [1] Group 2 - The service includes two high-income portfolios, two dividend growth investing (DGI) portfolios, and a conservative NPP strategy portfolio characterized by low drawdowns and high growth potential [1]
3 Super-Safe Dividend Stocks to Buy That Have Been Impervious to the Stock Market Sell-Off So Far
The Motley Fool· 2025-05-03 09:45
Group 1: Coca-Cola (KO) - Coca-Cola stock is up over 16% in 2025, contrasting with a more than 5% decline in the S&P 500 index, indicating its status as a safe haven during market turbulence [3][6] - The stock offers a near 2.8% dividend yield and is relatively insulated from tariffs due to local production and minimal exposure to packaging material costs [4][6] - Coca-Cola's core beverage is considered a consumer staple, making it less vulnerable to economic downturns [5] Group 2: Waste Management (WM) - WM stock has increased over 13% year-to-date, significantly outperforming the S&P 500 [7] - The company reported a 16.7% increase in revenue and a 12.2% growth in adjusted EBITDA for Q1 2025, largely due to the acquisition of Stericycle for $7.2 billion [8][9] - WM benefits from long-term contracts and a diverse customer base, providing insulation from economic fluctuations and trade tensions [10][11] - The company has consistently increased its dividend, with a 10% raise to $3.30 per share, and has reduced its share count by 11% over the last decade [12][13] Group 3: American Electric Power (AEP) - AEP stock has risen over 17% in 2025, outperforming the S&P 500, which has declined more than 5% [14] - The company operates as a regulated utility, ensuring stable returns and predictable financial planning for capital expenditures, including $54 billion for infrastructure upgrades from 2025 to 2029 [16] - AEP has maintained an average payout ratio of 69% over the past five years, balancing shareholder value growth with necessary upgrades [17] - Currently, AEP is valued at 8.9 times operating cash flow, below its five-year average of 9.3, making it an attractive option for income investors [18]
The Smartest Dividend Stocks in Warren Buffett's Portfolio to Buy With $5,000 Right Now
The Motley Fool· 2025-05-03 08:49
Group 1: Berkshire Hathaway's Investment Strategy - Berkshire Hathaway has a massive equities portfolio valued at nearly $277 billion, focusing on companies that buy back stock and pay dividends, providing capital to shareholders without relying heavily on stock price fluctuations [1] - Warren Buffett's investment philosophy includes selecting reliable dividend stocks, which can also benefit retail investors [2] Group 2: Sirius XM - Sirius XM has a dividend yield of 5% and is down about 2% in 2024, outperforming the broader market, with Berkshire Hathaway increasing its stake in anticipation of a turnaround [3][4] - The company aims to add 10 million subscribers to reach approximately 50 million and grow free cash flow by 50% to about $1.8 billion through new pricing options and expanded offerings [4] - Despite a reported loss in 2024 due to a non-cash impairment charge, the dividend payments consumed only about 36% of earnings in 2023, with a free cash flow yield of close to 13% [5] Group 3: Coca-Cola - Coca-Cola has a dividend yield of 2.8% and constitutes about 10.5% of Berkshire's total holdings, being a long-term favorite of Buffett [6] - The company has shown strong performance, with a nearly 17% increase in stock value this year and positive earnings surprises in recent quarters [7] - Coca-Cola has raised its annual dividend for 63 consecutive years and has returned over $93 billion to shareholders since 2010, with a projected free cash flow of about $9.5 billion in 2025 [8]
Allstate: Bulls In Good Hands, As Growth Factors & Reinsurance Offset Q1 Wildfire Losses (Upgrade)
Seeking Alpha· 2025-05-03 06:48
Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms Investing.com and Seeking Alpha, focusing on dividend stocks and general market commentary [1] - Since 2023, Albert Anthony has gained over 1,000 followers and has covered more than 200 companies across multiple sectors [1] - He has experience as an analyst in the IT sector and was part of the IT team at a top 10 financial firm in the US [1] Group 2 - Albert Anthony holds a B.A. from Drew University and has completed coursework through the Corporate Finance Institute and Coursera [1] - In 2025, he plans to launch a new book on Amazon discussing his methodology as an analyst and how he rates stocks [1] - The Albert Anthony brand is owned by Albert Anthony & Co., a sole proprietorship registered in Austin, Texas [1]
4 Dividend Stocks to Buy on the Pullback
The Motley Fool· 2025-05-02 13:42
Take advantage of cheap pricesMy goal is always to buy high quality assets at great valuations. With the recent volatility in the stock market, some great stocks are looking cheap.In today's video, I am going to look at four dividend stocks that appear cheap based on valuation. One of those stock picks is NextEra Energy (NEE 0.15%), a favorite of mine.Watch this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.*Stock prices used were end-of-da ...
There Are 400 Million Reasons Why Warren Buffett Loves This Dividend Stock. Is It a Must-Buy in May?
The Motley Fool· 2025-05-02 12:40
One of Warren Buffett's core investment tenets is to buy high-quality companies that possess economic moats. Having durable competitive strengths helps a business defend itself against existing rivals and new entrants to the industry. Look at Berkshire Hathaway's massive $277 billion public equity portfolio and you'll see this philosophy on full display.The conglomerate has a stake in dozens of companies, but Buffett's firm owns 400 million shares of one top dividend stock. Is it a must-buy in May?Steady pe ...
The Trade War Has Crushed Transportation Companies, But This Dividend-Paying Value Stock Could Still Win
The Motley Fool· 2025-05-02 12:15
The transportation industry is highly sensitive to tariffs. Tariffs can affect freight costs, disrupt supply chains, and lower trade volumes.Union Pacific (UNP -0.75%) is one of the largest railroads in North America. With a focus on the western two-thirds of the U.S., it also connects to Canada's rail systems and serves all six major Mexico gateways.On paper, Union Pacific may appear to be highly sensitive to trade tensions. However, the company reported good earnings in its most recent quarter and held it ...
Meet This Monster Dividend Stock That Continues to Crush the Market in 2025
The Motley Fool· 2025-05-02 08:50
Core Viewpoint - The stock market in 2025 has shifted towards value stocks, with British American Tobacco (BTI) showing resilience and a year-to-date increase of 17% in U.S. dollar terms, outperforming broader market indices [1][2]. Financial Performance - British American Tobacco offers a dividend yield of 7%, significantly higher than the market average, with potential for continued growth in dividend payouts [2]. - The company has maintained healthy free cash flow generation, exceeding $10 billion annually since 2020, with $11.9 billion generated last year and an expected cumulative free cash flow of $67 billion from 2024 to 2030 [4][5]. Market Dynamics - Despite a 5% decline in global cigarette volumes in 2024, British American Tobacco's combustibles segment reported flat organic revenue when adjusted for currency movements, indicating resilience in earnings [4]. - The company is investing in alternative nicotine products, such as pouches and vaping, to adapt to changing market conditions, with nicotine pouches generating around $6 billion in revenue last year [6][7]. Growth Opportunities - The smokeless segment has grown significantly, contributing billions in revenue annually, which is expected to offset declines in cigarette volumes and support free cash flow [8]. - The Vuse brand faces competitive pressure from illicit disposable vaping devices, but potential regulatory crackdowns could facilitate a return to growth for Vuse [7]. Capital Management - British American Tobacco has utilized its free cash flow to pay down debt and engage in share repurchases, reducing shares outstanding by 3.4% over the last four years, which aids in growing the dividend per share [11]. - The company is positioned to sustainably grow its dividend per share due to ample free cash flow accumulation [10][11].
3 No-Brainer Ultra-High-Yield Dividend Stocks That Are Begging to Be Bought in May
The Motley Fool· 2025-05-02 07:51
Core Viewpoint - The article highlights three high-yield dividend stocks with an average yield of 8.63%, presenting them as attractive investment opportunities for income-seeking investors. Group 1: Dividend Stocks Performance - Public companies that regularly pay dividends are typically profitable and capable of long-term growth, supported by historical data [2] - A study by Hartford Funds and Ned Davis Research shows that dividend-paying stocks outperformed non-payers by 9.2% annually over a 51-year period [4] Group 2: Investment Opportunities - Pfizer offers a yield of 7.46%, with sustainable earnings despite concerns over tariff impacts and a decline in COVID-19 therapy sales [7][9] - Verizon Communications has a yield of 6.39%, significantly higher than the S&P 500 average, and is positioned to benefit from the 5G expansion despite facing growth challenges [13][16] - PennantPark Floating Rate Capital boasts a yield of 12.04%, focusing on debt investments in middle-market companies, benefiting from higher market-rate yields due to its variable-rate debt portfolio [20][22] Group 3: Financial Metrics and Growth - Pfizer's revenue increased from $41.9 billion in 2020 to $63.6 billion in 2024, marking a 52% growth [9] - Verizon's broadband connections grew by 13.7% year-over-year, reaching 12.6 million [17] - PennantPark's weighted average yield on debt investments is 10.6%, with a significant portion of its debt securities being first-lien secured [22][23]
Bank of Nova Scotia: Get Paid While You Wait For This Turnaround (Rating Upgrade)
Seeking Alpha· 2025-05-01 14:38
Bank of Nova Scotia (TSX: BNS:CA )(NYSE: BNS ) has disappointed investors over the last decade, trailing many of its peers in total returns. Led by a new CEO and an ambitious turnaround plan, the companyNelson helps investors choose excellent dividend stocks, grow their passive income, and ultimately retire richer. He exited the corporate world in 2022 and has lived on his dividend income ever since.Analyst’s Disclosure: I/we have a beneficial long position in the shares of BNS:CA either through stock owner ...