Based on the latest information provided, both AT&T and Pfizer are considered “no-brainer” dividend stocks for long-term, income-oriented investors due to their high yields and attractive valuations. Here’s a closer look at why these stocks are worth considering:
AT&T:
– Drivers of positive outlook: Significant reductions in customer churn, growth in revenue per subscriber, and a decrease in customer disconnections.
– Fair-value estimate: Morningstar analyst Michael Hodel’s recent fair-value estimate of $23 suggests an upside potential of 33.9% from the current price.
– Valuation: Currently valued at 9x trailing earnings, significantly lower than the S&P 500’s multiple of nearly 25x.
– Risks: Industry disruption by tech-savvy entities with deep pockets, but substantial investments in 5G technology and fiber optics should provide a safeguard.
Pfizer:
– Strategic pivot: Focus on oncology as the primary growth driver, driven by an aging global population leading to increased cancer rates.
– Valuation: Trading at just 12.7x forward earnings, presenting a significant opportunity for investors.
– Dividend yield: Near an all-time high, providing additional income potential.
It’s important to note that although both companies face risks, such as industry disruption for AT&T and uncertain future sales for Pfizer’s COVID-19 products, these stocks are considered “no-brainer” dividend plays due to their high yields, attractive valuations, and promising growth prospects. Investors should conduct further research and analysis before making any investment decisions.
Leave a Reply