The markets continue to hit all time highs and they feel very expensive to me. This is also visible in my portfolio, because the total value continues to increase while the current dividend yield continues to decrease.
This should come as no surprise, because its simply a result of price appreciation outpacing earnings growth and dividend growth.
And this is not normal and this time isn’t different. One day we’ll notice a larger pull back again or it will take many years for the earnings to grow into their prices again.
Either way, it can take some time!
That’s why lately I’ve been focusing a bit more on understanding the dividend yield in my portfolio. This analysis brought to my attention that I’m lacking a bit of High Yield dividend stocks .
And that’s where I thought, I’m probably not the only one!
Hence, today I decided to share with you 3 High Yield Dividend Stocks to spice up your Dividend Income.
They all trade currently at more than 7% Dividend yield.
These are 3 stocks with solid business models and their risk profiles are not too different compared to other stocks. In this video I will run them through my regular analysis template based on 6 criteria:
- Moat / Catalyst
- Earnings growth
- Free Cash Flow growth
- Solid balance sheet
- Dividend safety
- Valuation
Enjoy this video and let me know what you think in the comment section below.
Chapters (quick links can be found in the description of the video on YouTube):
- 00:00 – Intro
- 00:43 – 6 Criteria explained
- 02:45 – High Yield dividend stock #1
- 08:57 – High Yield dividend stock #2
- 15:40 – High Yield dividend stock #3
References:
1️⃣ British American Tobacco stock analysis: http://europeandgi.com/stock-analysis/british-american-tobacco-will-it-help-you-in-building-a-better-tomorrow-bat-shares/
2️⃣ Link to Discounted Cash Flow analysis in this video: https://docs.google.com/spreadsheets/d/1DfBd1SxitVa9P7qcAms-8gRp_tMudGIyX3aPzfm9Y1A/edit?usp=sharing
Yours Truly,
European Dividend Growth Investor
