My Top 3 Dividend Stocks for 2025 - Pfizer, Kraft, Verizon, UPS
Not sure how well received this will be but here it is: My Top 4 Dividend Stocks for 2025.
I'm looking yield that's safe, paid by a company with forward looking growth. That is to say, I want to have my cake & eat it too. Can I company pay 3%+ divi and see 3%+ appreciation in underlying value...I think yes. Here's 4 companies that I think can do it:
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Pfizer - $26.50
Dividend Yield 6.34%
P/E Ratio14.48
Why Buy Now: Extremely beaten down since COVID. Fears of what RFK will do once in office has sent investors running. Fear and uncertainty around the pharma industry has taken this stock to the basement.
Thesis: CEO of Pfizer met with Trump/RFK at Mar-a-Lago & said there'll be no major shift in pharma policy. Pfizer has slowly repositioned itself away from COVID vaccines & into the world's largest Oncology treatment provider. Pfizer has already given 2025 forward guidance & just increased their dividend a month ago. They've also beaten earnings last 5 in a row.
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Kraft - $29.25
Dividend Yield 5.52%
P/E Ratio11.97
Why Buy Now: This is a triple whammy - Inflation, Tariffs, RFK. This triple headwinds have dragged this stock below it's previous support. It's on the verge of pricing in all time new lows.
Thesis: Kraft-Heinz is the third-largest food and beverage firm in North America with massive portfolio of top brands. Further consolidation in Food/Bev will help Kraft continue to capture more and more of the market. Kraft saw in increase with returns on spending & continued to show their strong supply lines helped them navigate recent supply line shocks.
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Verizon - $38.00
Dividend Yield 7.07%
P/E Ratio13.89
Why Buy Now: Verizon's balance sheet & intensive capital investments have soured investors. Combine a weaking balance sheet with attractive high yield low risk assets elsewhere and you've got a tough environment for Verizon.
Thesis: Verizon has the largest customer base in the US, is the most efficient carrier in the industry, and delivers better profits than any of it's industry rivals. As yields elsewhere come down & Verizon strengthens their balance sheet, we should see a recovery in Verizon's share price.
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United Parcel Service - $130.00
Dividend Yield 5.02%
P/E Ratio13.17
Why Buy Now: Union pressure, high wages, tight job market have continued to drag on UPS. Pressure from Amazon's own shipping has forced UPS to take on more & more low-revenue volume. Lower revenue streams combined with higher wages have put pressure on UPS share price.
Thesis: Bank of American just upgraded UPS this week, stating "BofA's proprietary Truck Shipper Survey Demand Indicator ticked up to its highest level in more than three years. The firm takes that as a sign that the shipping market is on the cusp of growth once again." As wage pressure drops & increases in shipping market, should help propel UPS forward in the upcoming year(s).