Second-quarter results were mixed, due to lower COVID-19 vaccine and treatment sales Conover notes that Pfizer has contingency plans in place to cut costs if COVID-related sales don’t improve in the third quarter. We don’t think the market fully appreciates the pharmaceutical giant’s ability to offset major patent losses over the next five years, argues Morningstar director Damien Conover. We think Pfizer stock is worth $48 per share, and it currently trades about 25% below that. Hodel observes that 50% to 60% of Verizon’s free cash flow is committed to the dividend. Verizon posted solid second-quarter results, and Hodel expects margins and cash flow to move higher as network projects are completed and the promotional environment eases. We think the market is overly focused on Verizon’s challenges to add postpaid consumer wireless customers and its exposure to lead-sheathed cabling, says Morningstar director Mike Hodel. This cheap dividend stock (which is also the third-largest holding in the index) is trading a whopping 38% below our fair value estimate of $54 per share. Verizon tops our list of the best dividend stocks. Morningstar Economic Moat Rating: Narrow.Here’s a little bit about each cheap dividend stock, along with some key Morningstar metrics. The dividend stocks on this list are among the index’s constituents, and they were also undervalued, trading in 4- and 5-star range as of Aug. To find the best dividend stocks, we turn to the Morningstar Dividend Yield Focus Index. After all, quality companies have the financial stability to maintain their dividends during questionable economic periods, and price risk is reduced when investors can buy the stocks of these companies on the cheap. Given ongoing economic uncertainty and stock market volatility, investors looking for the best dividend stocks today might consider adding undervalued, quality dividend stocks to their portfolios. “A moat rating does not guarantee dividends, of course, but we have seen some very strong correlations between economic moats and dividend durability,” Harrell says. David Harrell, the editor of Morningstar DividendInvestor, suggests focusing on companies with management teams that are supportive of their dividend strategies and favoring companies with competitive advantages, or economic moats.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |