Dividend Stock Thoughts

An Investment in Knowledge Pays the Best Interest

Benjamin Franklin

6.3% Dividend Yield for a Refocused AT&T

• 6.3% Dividend Yield.
• TV and Media business units have been divested.
• Fiber and cellular 5G are the focus.
• Pullback in price marked an attractive entry point for dividend-seeking investors.
• Fiber expansion offers a growth opportunity.

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JNJ’s Reliable Dividend of 2.9% with Steady Growth

• 2.9% yield with 60 consecutive years of dividend increases.
• Spending 15% of revenue on R&D, over 50 drugs in the 5-year approval pipeline. Strong blockbuster portfolio, with 3 novel therapies expected to be approved in FY23.
• Spin-off of consumer segment, repositioning primary JNJ business unit to be more pharmaceutical and medical device oriented.
• Potential settlement on the horizon for Talc lawsuit, the independent legal unit reportedly has the 75% of claimants required for bankruptcy to move forward.

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Video: Big 7.7% Dividend Yield for Undervalued Stellantis

• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.

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3.25% Yield and Healthcare Repositioning for CVS Health

• 3.25% dividend yield, strong free cash generation.
• Oak Street acquisition projected to add $2 billion in EBITDA by 2026.
• Expects significant volume growth at pharmacies with the introduction of several biosimilar and generic drugs in FY23.
• Modest FY23 guidance targeting 7% EPS growth despite some sustained headwinds in retail.

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Big 7.7% Dividend Yield for Undervalued Stellantis

• Strong Auto Brands include Chrysler, Jeep, Dodge, Peugeot, Fiat.
• 7.7% Dividend Yield is the highest among peers.
• Compelling valuation with a 4.3x P/E compared to sector median of 15.0x.
• 2030 Strategic plan emphasizes global EV (Electrical Vehicles) capacity huge global base to pull from.
• Realizing consumer gains from IRA (Inflation Reduction Act) in North America, focusing on larger utility vehicles in the United States.

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Video: 8 Compelling Energy Stocks. SPR (Strategic Petroleum Reserve) Reversing Soon. Russian Oil Sales. LNG.

PR (Strategic Petroleum Reserve) depletion is ending. The US is draining this reserve by about 700,000 barrels per day. Eventually, this will need to be replaced and could increase demand by 700,000 to 1,000,000 barrels a day as the SPR is refilled. A possible swing in the supply-demand balance of 1.4 to 1.7 million barrels per day. This is significant for commodity pricing when one looks at the US demand of 19-20 million barrels per day.

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Video: 120 Consecutive Years of Dividends for National Fuel Gas (NFG). An attractive pullback from $76 high.

• 3.3% Yield, paying out $1.90 per year per share.
• The vertically integrated network includes 774,000 retail customers, with incoming price adjustments to account for weather conditions and demand.
• Efficiency program underway, replacement of older pipes for ones with higher throughput and earnings potential.
• Attractive cost structure takes advantage of high prices in the energy markets and a no-lease-cost development area.
• Compelling Valuation as stock has pulled back from $76.

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120 Consecutive Years of Dividends for National Fuel Gas

• 3.3% Yield, paying out $1.90 per year per share.
• The vertically integrated network includes 774,000 retail customers, with incoming price adjustments to account for weather conditions and demand.
• Efficiency program underway, replacement of older pipes for ones with higher throughput and earnings potential.
• Attractive cost structure takes advantage of high prices in the energy markets and a no-lease-cost development area.
• Compelling Valuation as the stock has pulled back from $76.

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4.2% Dividend Yield and 7-10% Growth for Comstock Resources

• 4.2% dividend yield.
• Growing production reached a record high of 1,400 MMcf/day.
• Sustainable EPS and FCF (Free Cash Flow) growth.
• Lowest-in-the-industry cost structure which helps generate 80% EBITDA margins.
• Huge FCF growth of 218% to $286 million for 3Q22.
• Delevering program to reduce Debt-to-EBITDA to 0.9x.

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