Companies on My Radar
As a diligent dividend investor (pun intended), I'm always on the look out for the right stocks at the right price. I have been painstakingly searching through pages of companies trying to find the hidden dividend gems in the rough. For the past two weeks now I have finally come across a collection of companies that i'm ready to initiate a position on! as soon as I get the capital that is.
Diamonds In The Rough
I still believe Ford (F) Is in an amazing position right now. The stock price has not jumped super high yet and the yield is very enticing at 5.2% for a very safe stock choice. I will definitely be adding more to my position soon.
I have been watching AT&T for quite some time now. The stock has very little fluctuations in price from day to day. I think the most I have seen the stock move in a day is 1%. This is fantastic as it demonstrates the company has a very solid foundation and investors know where the company is at. Some things that really set this stock apart from other telecommunication companies like verizon, are that they have a solid track record of dividend growth at 31 years. Dividend Yield at current levels is at 5.20%. The payout ratio is a little higher than I like at 67.6% What this means is that the company pays out 67.6% of its profits in Dividends. The Company only invests 32.4% of profits back into the company. This does not leave much room for the company to grow dividends at the current levels. Still, 5.2% Yield is a fantastic level. I would like to see this stock come down a little before making an entry position. I don't really see that happening based on the current trend of the stock though. Why do I want to purchase AT&T over Verizon though? Verizon only has 9 years of dividend growth history. Which isn't bad, but isn't as good as AT&T. Some other aspects I'm not comfortable with is the current price of Verizon (VZ) stock. I would like to see a big pullback from VZ as I feel it is currently inflated.
Take a look at my last article why I want to get in on this company soon. I will be buying this as soon as I get some extra cash flow in as well.
Exxon Mobile (XOM)
I really want to pick up a key position on an oil company when they are at their low. I would love to ride to stock back up and make some great investment income as well as some amazing dividend income. I have studied BP, Exxon and Chevron. Exxon seems to be the company that will last this oil crisis and grow the best. Exxon has 33 years of dividend growth. I don't believe that this oil crisis will cause the company to cut dividends anytime soon. The stock price has fluctuated very little despite all the turmoil that BP and Chevron have been facing. The dividend yield is currently at 3.59%. Payout ratio is a little higher then I like at 73% but no where near where other oil companies are currently at over 150%. Yikes. Not to mention EPS is at $3.85 which is amazing for this company to maintain this currently. Free cash flow is at a whopping 34,299 million. This company has way more cash on reserve than any other oil company. Which means safety for us dividend investors. All in all, I feel this is a solid dividend growth stock. I'm going to wait for the earnings report to be released in april, as I'm sure due to the current oil crisis, will cause a nice pull back. I hopefully will be taking my position on the bottom level support.
Hopefully I have helped add some new stocks to your watch list! Let me know what you think of the current stocks i'm watching. Are they good choices? Feel free to leave a comment below.
Full Disclosure- I'am Long Ford.
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