{"id":10913,"date":"2022-09-22T17:58:51","date_gmt":"2022-09-22T22:58:51","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10913"},"modified":"2022-09-22T17:58:53","modified_gmt":"2022-09-22T22:58:53","slug":"dollar-general-tops-morningstar-list-of-dividend-stocks","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10913","title":{"rendered":"Dollar General Tops Morningstar List of Dividend Stocks"},"content":{"rendered":"\n

Morningstar has put together a list of the Top 10 dividend stocks that are widely held by its ‘ultimate stock-pickers.’<\/em><\/strong><\/p>\n\n\n\n

Given all the turmoil in financial markets recently, you may be interested in the regular income stream and possible\u00a0capital gains<\/a>\u00a0of\u00a0dividend<\/a>\u00a0stocks.<\/p>\n\n\n\n

The Vanguard High Dividend Yield Index ETF  (VYM<\/a><\/strong>) , has slid 7% year to date, vastly outperforming the S&P 500<\/a>, which has dropped 20%.<\/p>\n\n\n\n

Morningstar has put together a list of the Top 10<\/a> dividend stocks that are widely held by its \u201cultimate stock-pickers\u201d \u2014 26 top money managers.<\/p>\n\n\n\n

The research firm screens for companies it believes have sustainable competitive advantages. Those are advantages that \u201cshould allow them to generate the excess returns necessary to maintain their dividends over the longer term,\u201d according to a commentary by Morningstar analysts Verushka Shetty and Eric Compton.<\/p>\n\n\n\n

\u201cWe also look for firms, where there is lower uncertainty on our analysts’ part regarding their future cash flows,\u201d the analysts said.<\/p>\n\n\n\n

\u201cWe accomplish this by screening for holdings that are widely held by \u2026 our top managers, are yielding more than the S&P 500, have wide or narrow economic moats, and have uncertainty ratings of either low or medium.\u201d<\/p>\n\n\n\n

The Top 10 Roster<\/strong><\/p>\n\n\n\n

Morningstar\u2019s list includes:<\/p>\n\n\n\n

1. Dollar General<\/strong>  (DG<\/a><\/strong>) , held by seven funds. Dividend yield: 0.9%.<\/p>\n\n\n\n

2. Verizon<\/strong>  (VZ<\/a><\/strong>) , held by seven funds. Dividend yield: 6.4%.<\/p>\n\n\n\n

3. Automatic Data Processing<\/strong>  (ADP<\/a><\/strong>) , held by four funds. Dividend yield: 1.8%.<\/p>\n\n\n\n

4. Gilead Sciences<\/strong>  (GILD<\/a><\/strong>) , held by four funds. Dividend yield: 4.5%.<\/p>\n\n\n\n

5. Colgate-Palmolive<\/strong>  (CL<\/a><\/strong>) , held by four funds. Dividend yield: 2.5%.<\/p>\n\n\n\n

6. AstraZeneca <\/strong> (AZN<\/a><\/strong>) , held by four funds. Dividend yield: 2.5%.<\/p>\n\n\n\n

7. Sysco <\/strong> (SYY<\/a><\/strong>) , held by four funds. Dividend yield: 2.5%.<\/p>\n\n\n\n

8. GSK<\/strong>  (GSK<\/a><\/strong>) , held by four funds. Dividend yield: 8.2%.<\/p>\n\n\n\n

9. Altria<\/strong>  (MO<\/a><\/strong>) , held by four funds. Dividend yield: 8.8%.<\/p>\n\n\n\n

10. Archer-Daniels Midland<\/strong>  (ADM<\/a><\/strong>) , held by three funds. Dividend yield: 1.8%.<\/p>\n\n\n\n

Morningstar\u2019s take on Dollar General<\/strong><\/p>\n\n\n\n

Morningstar analyst Zain Akbari assigns the company a narrow moat and puts fair value for the stock at $227. It recently traded at $241.<\/p>\n\n\n\n

\u201cDespite intensifying competition that we believe is diminishing its competitive edge, Dollar General’s advantageously located store network, low-priced items, and leverageable supply and distribution capabilities should allow it to deliver economic returns,\u201d he wrote in a commentary.<\/p>\n\n\n\n

The company benefits from a footprint focused on thinly populated areas that can\u2019t support numerous retailers, Akbari said.<\/p>\n\n\n\n

Morningstar\u2019s take on Verizon<\/strong><\/p>\n\n\n\n

Morningstar analyst Michael Hodel gives Verizon a narrow moat and puts fair value for the stock at $59. It recently traded at $39.48.<\/p>\n\n\n\n

\u201cVerizon has taken steps to ensure it remains well positioned in the traditional wireless business,\u201d he wrote in a commentary.<\/p>\n\n\n\n

\u201cWe believe Verizon will deliver consistent results over the long term, but growth will likely be modest. Rivals AT&T\u00a0\u00a0(T<\/a><\/strong>)\u00a0\u00a0and T-Mobile\u00a0\u00a0(TMUS<\/a><\/strong>)\u00a0\u00a0offer comparable services and sell at similar prices, which we expect will diminish Verizon’s\u00a0market share<\/a>\u00a0lead over time.\u201d<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Morningstar has put together a list of the Top 10 dividend stocks that are widely held by its ‘ultimate stock-pickers.’<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[3736,3431,3734,888,3425,3735,3665],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10913"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10913"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10913\/revisions"}],"predecessor-version":[{"id":10914,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10913\/revisions\/10914"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10913"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}