Pfizer pays more than 7% of dividends as its shares have fallen in recent years.
Verizon is the highest telecommunications company that causes minimal growth.
Altria is the king of dividends, but the questions about their business arise as the use of tobacco is decreasing.
10 shares we like more than Pfizer ›
Did you know that if you have a reliable income of 6%, you will only need to invest around $ 16,700 to collect $ 1,000 in dividends per year? Medium stocks S&P 500Meanwhile, only 1.2%is obtained and more than $ 83,000 will require investment to obtain the same dividend income rate.
This is a large part of why investors are very attractive to high yield campaigns. However, high yields also sometimes pose a high risk. If the dividend payment is not sustainable, then it may be reduced or suspended. And if this happens, the stock price can also enter the tail. Investors This becomes a double Whammy: lost dividend income and Investment losses.
Here, take a closer look at the three shares that currently provide more than 6%. Let’s see if Pfizer (NYSE: PFE)Is it Verizon Communications (NYSE: VZ)and Altria Group (NYS: MO) Offer safe benefits that you can rely on for a long time.
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The pharmaceutical giant Pfizer gives 7.2%, which looks like an astronomical benefit that has historically been a safe dividend stock. June The company announced a dividend in the third quarter – $ 0.43 per share (payable in early September). And this payment noted the 347th consecutive quarter dividend (nearly 87 years), which Pfizer (or one of the companies with which it combined over the years) made its own story.
Today, however, investors are concerned about whether the payment can remain intact, given that the company is no longer a record number of Covid-19 vaccines. The share price has fallen by 30%over the last five years, increasing its yields in the process. The current Pfizer payment ratio is 90%, but its free cash flows have been $ 12.4 billion in 12 months, which is conveniently higher than $ 9.6 billion, which it paid dividends over that section. Pfizer are challenging, but the company is expanding its business by buying, and the brightest step was the $ 43 billion oncology company Seagen as early as 2023.
Although they are question marks in the future, Pfizer’s pursuit of growing and strong free cash flows make me believe that health care will be great and its dividends will also remain undamaged. The Pfizer may be one of the most underestimated income it currently has.
Other very fertile campaigns that cannot win against investors these days are Verizon. This gives 6.3% and can provide investors with a large number of repetitive income. September The company also announced that it would increase its dividend in the 19th consecutive years.
The Verizon payout ratio is low – 63% of the revenue and its free cash flow is growing. This year, its recommendations require between $ 19.5 and $ 20.5 billion of free cash flows, which is much greater than $ 11.4 billion, which he pays in cash throughout the year.
The modest growth of Verizon’s one -digit income may not be as inspirational, but the business itself remains quite stable. And for investors who want to have only safe and stable income, Verizon checks many basic boxes. This year, with the decline in interest rates, the shares have increased by 8%as investors may be more likely to load into a high fertile investment. And when Verizon sells shares with only 10 prices and income, it is still a fairly cheap investment to upload today.
The tobacco giant Altria rounds this list with its 6.5% dividends. The share payment ratio is about 79%, which indicates that dividends are sustainable. And Altria’s free cash flows in the last four quarters amounted to $ 8.7 billion, which is higher than its annual dividend benefits is $ 6.9 billion.
However, when it comes to Altria, big issues are related to the main business and whether it can eventually be a safe investment, especially because the use of tobacco is decreasing. Although she has tried to diversify products with no mouth and smoke, most of her business is still concentrated on smoked products that create a lion’s share of her income 88%.
Although Altria has no greatest profit on this list, it is the only dividend that I have no confidence for a long time. In the short term, dividends still seem safe, but as the company’s finances may deteriorate due to the decline in demand for its main tobacco products, it may only be a matter of time before this dividend king has to reduce the benefit in the long run.
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David Jagielski has no position in any of the above shares. The Motley fool is a position and recommends Pfizer. The Motley fool recommends Verizon Communications. The Motley fool has a disclosure policy.
These 3 shares pay more than 6%. Is their dividend yield too good to be true? initially released by The Motley Fool
