The top 25% of dividend payers in the United States, right now, pay a dividend of 4% or
higher.
I've identified 5 healthy, consistent dividend-paying companies within that top 25% that you might
want to keep an eye on!
Coming up…
Hey everybody, I hope you are doing well and are ready to be introduced to some great opportunities
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Now I dug deep to find you some amazing dividend stock opportunities.
Unlike many YouTubers, I am actually also a registered investment advisor.
So it's important to me (and the SEC) that you understand that these are not recommendations
in any way.
I don't know you.
I don't know your particular circumstances.
I'm just going to point out some facts about these companies - they are interesting to
me right now - and if they seem interesting to you, you should definitely conduct your
own research and analysis to decide if they fit in your portfolio and make sense for you
specifically.
Most dividend payers are… boring.
For one to be "interesting" to me, it has to pay a high dividend, it has to have
a good track record of paying dividends, and it needs to be relatively healthy, I want
to be as confident as possible in its continued ability to pay those elevated dividends.
Also, my selection here, today, is extremely diversified.
Each of these five is from a different sector.
And they are all different sizes.
Let's dive in!
Representing the large-caps, we have AT&T, ticker symbol: T. A part of the telecom sector,
it currently has a dividend of 6.2%.
I'm sure this one's not new to you.
A lot of people are talking about this one (I haven't heard anyone talking about the
other 4 though, so stay tuned!).
I already talked about this one in my 90-second analysis comparing the company to Verizon.
AT&T was finally approved for its Time Warner acquisition, which has caused its share price
to fall even further, perhaps on concerns about the company's post-acquisition debt
level.
This most recent dip presents another potential buying opportunity.
Now there are some technicals that indicate further downward pressure, but if you're
in it for the long term, I think the AT&T just got more interesting.
After completing this deal, the company is going to be a media giant.
It'll be fascinating to see what they do.
And considering the government's recent efforts to "connect America," the amount of money
it has been throwing at that project, and the integral role AT&T currently plays in
that initiative...
I don't think they're going anywhere.
The company's market capitalization is $198B. Its share price is $32.
It's PE is 6.5 versus the industry's 16.2 and the market's 18.5.
It's PB is 1.4, to the industry and market's 1.8.
Its debt-to-equity is 1.1.
The debt has been increasing over the last 5 years (I mean, they are purchasing a massive
company in an up-market… so… yeah, it's relatively expensive).
But the debt is pretty well covered by operating cash flow at around 24% of total debt.
And with an EBIT around 3.5 times interest, their payments on debt are well covered by
earnings.
AT&T's net profit is about 2.5 times the size of its dividend.
And the company is a Dividend Aristocrat.
And when you know what that is, you realize how significant that is to our case here.
The Aristocrats are S&P 500 constituents that have increased their dividend payouts for
25 consecutive years or more!
AT&T joined that exclusive list in 2012.
Obviously, paying a dividend (increasing it, in fact) is extremely important to the identity
of this stock so you can bet they'll do it, if at all possible because regaining that
status if they were to lose it, would require another 25 years at least!
And representing the mid-caps: weighing in at $3.9B, with a share price of $162, and
a current dividend yield of 5.4%, all the way from the consumer services sector...
Cracker Barrel!
Ticker: CBRL.
That's right not too pretty to look at on the outside… but her financials are pretty
sweet!
The company is healthy.
They've reduced debt over the last five years, dropping their debt-to-equity from
0.9 to 0.6 today.
Their debt service coverage ratio is great, at 85% of total debt.
And their EBIT is enough to cover interested payments more than 20 times over.
Their dividend history is pretty fantastic.
It's been stable and increasing for more than a decade.
And their net profit is about 2 times the size of their dividend.
So definitely one to watch.
And if you're interested in researching this one further, you should get on that,
because you have about 25 days to get in if you'd like to receive their next dividend
payment.
All this talk about dividends… it's making me hungry.
I'm going to go perform so market research!
Representing the small-caps: with a $1.1B market capitalization, a $12 share price,
and a current dividend yield of 7.4%, from the energy sector…
Hi-Crush Partners!
Ticker: HCLP.
Now, I'm not going to spend a ton of time on this one, because I did an entire deeper
dive video on this company explaining everything it has going for it.
I'll link out to that in the description and in a card.
Their net profit is almost 3 times their dividend.
You should definitely note that they stopped paying a dividend for a couple years after
the most recent oil scare.
Other than that, they've always paid a very handsome dividend, but they've only been
a public company since 2012.
They're super healthy (especially for this sector), with a debt-to-equity of 0.2, a debt
service coverage ratio of 82%, and their EBIT is 13 times their interest payment.
But they are in the oil industry, they do support the fracking industry… just a couple
things to keep in mind.
Our micro-cap representative today is…
Elmira Savings Bank.
Not this bank, or that bank, or that bank…
Elmira, ticker ESBK, is in New York.
It has a $71MM market cap and a price per share of $20.
Its current dividend yield is 4.3%.
They've maintained a stable, gradually increasing dividend over the last decade and have a very
healthy balance sheet for a Bank.
And finally rounding out our five is our little baby nano-cap.
A company with a $15MM market cap, $15 share price, and over 17% dividend.
It's not always that high.
They are a specialty REIT and so occasionally will have larger payouts like that when they
sell things.
Their normal dividend is around 4%.
But their history of special dividends every other year or so is important to keep in mind.
I'm talking about HMG/Courtland Properties.
Ticker: HMG.
This is a company I featured last month in my private group.
It's a Company whose net assets are actually worth more than the market value itself, meaning
if you could buy the entire company, all shares outstanding, even after paying off all the
debt, you would still have some cash left over.
You would profit from the purchase.
The problem is you can't do that because there is a majority shareholder who maintains control.
But it does presumably offer some reasonable downside protection.
Which, if you keep up with me, you know I love a Stock with limited downside!
Now, you should definitely do your own in-depth analysis if you plan to get into this one.
Know what you're getting into.
But I think it's worth a look if you're interested.
So that's it, five dividend stocks to watch.
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