3 Dividend Stocks for October 2024 [Video]

#Morningstar  #VerizonStock #DividendStocks

These three dividend payers have an average yield of more than 4.5%.

00:00 Introduction

00:10 Bristol-Myers Squibb BMY

00:45 Polaris PII

01:04 Verizon VZ

David Harrell: Hi. I’m David Harrell, editor of the Morningstar DividendInvestor newsletter. In this monthly series, we take a look at the dividend prospects of three stocks that are popular with income investors.

Yielding around 4.5%, Bristol-Myers Squibb has grown its dividend at a solid 7.5% annualized over the past five years, and the stock trades at a 15% discount to its fair value estimate. While Morningstar analysts forecast a tough fiscal 2024 for the pharmaceutical firm, they believe the dividend is sustainable and forecast dividend growth over the next four years, with the current annual dividend of $2.40 a share rising to $2.55 a share by 2028. They also note that the firm’s payout ratio is well below 50%.

Trading at a 30% discount to fair value, powersports manufacturer Polaris yields 3.2%, but recent dividend growth has been paltry at 1.6% annualized over the past five years, as the company has raised its quarterly dividend rate by a penny each year since 2018.

Verizon has the largest cellular customer base in the US, and it recently raised its dividend by 1.9%, bringing its yield to 6.0%. Verizon’s dividend growth over the past five years has been modest, at 2% annualized. Given the recently announced Frontier deal—Verizon will acquire Frontier Communications in an all-cash transaction, which will push Verizon’s debt-reduction goal further off—it seems extremely likely that future dividend growth will remain similarly modest. The stock currently trades at a 15% discount to its $53 Morningstar fair value estimate.

I’m David Harrell from Morningstar DividendInvestor. Thanks for watching, and we’ll see you next month.

What to watch from Morningstar.

3 Dividend Stocks for September 2024 https://youtu.be/ltH1k4xv0qQ?si=nudIWX-lo7q-yjbg

3 Dividend-Growth Stocks That a Top-Rated Vanguard Fund Manager Likes https://youtu.be/ws80Nbgmr-M?si=0FQExdIMKXKVRX_a

3 Dividend Stocks for August 2024 https://youtu.be/YwwVDcW55ts?si=5MtR5EylNMGsrghd

2 Undervalued Dividend Stocks the Best Managers Are Buying https://youtu.be/v5ov4hvN-tw?

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David Harrell https://www.morningstar.com/authors/212/david-harrell

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