Stock Review: W.P. Carey, Verizon, and Pfizer Dividend Insights

Investors are eyeing W.P. Carey, Verizon, and Pfizer as dividends remain promising despite recent stock price dips. A report highlights the potential for increased payouts, making these stocks attractive for income-focused portfolios.

Date: 18-09-2024

AI Rating: 7

The report discusses three stocks: W.P. Carey, Verizon, and Pfizer, which have experienced stock price declines but continue to offer attractive dividend yields and management plans for future growth.

W.P. Carey

W.P. Carey is a diversified REIT currently yielding 5.5%. Despite a dividend payout decrease in 2023, management expects adjusted funds from operations (a proxy for earnings used to evaluate REITs) between $4.63 and $4.73 per share, covering a dividend set at $3.48 per share. The company is also gearing up to expand its portfolio through substantial investments.

Rating: 7 - Slightly positive due to strong coverage for dividends and growth potential.

Verizon

Verizon boasts a 6.1% dividend yield and increased its dividend payout for the 18th consecutive year. Although equipment sales have declined, consistent monthly service payments and a 3.5% rise in Q2 wireless service revenue to $19.8 billion are promising. Q2 free cash flow was $8.5 billion, with only $5.6 billion required for dividends.

Rating: 7 - Slightly positive due to reliable cash flow and dividend growth.

Pfizer

Pfizer's stock is down 51% from its 2021 peak, largely due to a decline in COVID-19 vaccine sales. However, excluding these sales, Q2 revenue rose by 14%. Pfizer maintains a 5.6% dividend yield and raised its payout for the 15th consecutive year, reflecting potential for future earnings thanks to a robust development pipeline with nine new medicines approved last year.

Rating: 7 - Slightly positive considering dividend reliability and solid revenue growth excluding COVID-19 products.

Stocks: WPC VZ PFE