Susan Dziubinski: Hi. I'm Susan Dziubinski with Morningstar.
Each quarter, we take a look at the holdings of some of the best money managers around today—who we call our Ultimate Stock-Pickers. Today, we're focusing on the two dividend-paying stocks that are most widely held among this group of fine investors.
2 Dividend Stocks Top Managers Like
These companies with Morningstar Economic Moat Ratings of wide and narrow are popular with income investors. Data as of Oct. 7, 2022.
- Verizon Communications VZ
- Dollar General DG
The first stock is Verizon. Verizon is the largest wireless carrier in the United States. Verizon’s wireless business generates more than 80% of the company’s revenue. We expect Verizon to continue to deliver consistent results over the long term, though growth will likely be modest, given competition from the likes of AT&T and T-Mobile. With a forward yield topping 6%, Verizon stock looks undervalued according to our metrics. We think shares are worth $59.
The second dividend-paying stock top managers like is Dollar General. Dollar General effectively delivers convenience and affordability to its largely modest-income customer base. The company has embraced the digital wave of retail with its mobile app and has introduced a rapidly changing nonconsumable assortment that should help drive foot traffic. The stock's forward yield is modest at less than 1%, and shares are trading around fair value of $227.
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Watch "3 Dividend Stocks for October 2022" for more from this series. Watch "3 Recession-Resistant Stocks" for more from Susan Dziubinski.