hi i'm jimmy in this video we're looking
for some of the top dividend stocks
especially as the stock market is pulled
back i'm thinking that there must be
some good dividend stocks out there now
all these dividend stocks came off of
some of the live streams we've we've
done you might have seen a recent live
stream we did where we went and valued a
whole bunch of companies we do these
every week in our private investing
community now if you'd like to sign up
to get access to the private investing
community and to the coming website
which will essentially do the
calculations i'm about to show you well
if you'd like to sign up i'll leave a
link in the description below in the
meantime let's not waste any time jump
right in first one i like is verizon
communications so verizon's got a
dividend yield right now of a bid over
five percent that's with a 47.42
stock price we're getting a fair value
using seven and a half percent of about
62 bucks per share so right now the
stock looks like it it is fairly well
valued now just so we're on the same
page the way this website will work or
the way this right now we're using excel
but we're building it over and on to a
website should be up and running by the
end of june
well the way it works is analyst
estimates get pulled down from different
data sources those are then calculated
into those uh we discount those back to
today to get the fair value we're using
seven and a half percent but you can see
using the company's own weight average
cost of capital which is kind of low of
four point six percent we still get a
fair value of 209 bucks per share
now one of the issues with stocks like
verizon is how much debt they have look
at over here they got 180 billion
dollars in debt well you take their debt
you subtract their cash and we can see
that their net debt per share is
fifty 42.50
well our sixty two dollar fair value
calculation is already accounting for
that forty two dollars so if you didn't
wanna use
uh net debt from this you could add that
to the sixty two bucks there you go
hundred some odd dollars per share
either way even accounting for their
debt they still look like they're
undervalued five percent dividends yield
is looking mighty good okay next up
we've got a machinery company in
cummings incorporated ticker symbol cmi
right now the stock is trading at about
193 bucks per share using our own
required rate of return of seven and a
half percent we get a fair value of 330
but even if we use the company's
weighted average cost of capital well
their whack is at six point or seven
point six percent and the stock still
looks under failure even if we wanted to
use ten percent well the stock looks
undervalued because the fair value comes
in at 216 per share
analyst estimates we've got plenty of
them over here we could see how many
analysts are projecting each year's
number we take the average
the growth for those years that we're
looking at 2.2 billion 2.4 2.5 billion
very reasonable growth numbers the stock
is paying in almost 3 dividend yield so
if we'd like some exposure to the
machinery sector this looks like this
could be a good one for us to do a
deeper dive on okay now for our next one
we're switching over to a real estate
company that pays an over five percent
dividend yield this is the simon
property group now discount of free cash
flow is actually not the best way to
value this company
by far a better way to value this type
of company a real estate investment
trust that invests in properties is
something those known as price to
adjusted funds from operations so this
is simon properties price to adjusted
funds from operations and this is
actually one of the features we're going
to be adding to the website inverse in
like 1.2 or 1.3 shortly after but
basically if you punch in a ticker for
something like simon properties where
discounted cash flow isn't the best
valuation method it'll warn you say hey
this isn't the best valuation method
come over here check out price to funds
from operations but either way we can
see this history goes back to 2012
and over that time period the average
price to adjusted funds from operations
is about 15.6 x that means we would pay
15.6 dollars for every one dollar of
adjusted funds from operations now if
we're curious adjusted funds from
operations for a reit is something like
uh price to earnings for a company it's
sort of like the profit that way it
removes if they were to sell a bill if
they were to sell a property they were
to buy a property it removes that those
adjustments that you need to make and it
adjusts it to how much money are we
earning on the properties that we own
there's a much better valuation method
and we can see with that valuation
method it looks like simon properties
could be undervalued at this point now i
know many of us know what happened to
simon properties in 2020 where we had a
big dip
right in that area at a big dip in simon
properties earning of earnings per share
or adjusted funds from operations
so we're probably not too surprised that
the stock is pulled back but the
question is do we think it'll stay that
way over the next decade or so if we
don't this could be a good dividend
stock for us to consider right now okay
our next dividend stock has a four
percent dividend yield and that is
walgreens boots alliance ticker symbol
wba we could see that the current price
is about 43 bucks per share we're
getting a fair value using our 7.5
required return of about 56 and using
their even lower cost of capital of six
point two three percent or six point
three percent we get a fair value of
almost ninety dollars per share so
overall looks like walgreens could be a
good dividend stock to look at today now
i've researched
walgreens and cvs in the past and they
both look like good businesses and
overall these seems like these seem like
good uh companies that give us exposure
to some retail and some healthcare
aspects
that being said the next stock is cvs
now cvs doesn't have quite as high of a
dividend yield coming in about two
percent 2.1 percent
but they too look undervalued so whether
we like walgreens or cvs
both look like stocks that could move
higher on us
and they look like stocks that we could
continue to collect dividends and feel
fairly comfortable with the price that
we're paying if they're good buys but
we've got to do deep dives in all these
stocks please let me know in the
comments below which of these five
stocks you think we should do a deeper
dive on next that way we can see how
truly undervalued they really are
that being said if you'd like to sign up
to get access to our website i will
leave a link right here i'll leave a
link in the description below and thank
you so much for sticking with me all the
way to the end of the video i really do
appreciate it thank you and i'll see in
the next video