I'm excited to share a really cheap dividend stock with a 5%+ starting dividend yield that I'm buying right now in July, 2025. This ancillary position is trading at a PE in the 10s, and I see it as a contrarian value stock investment. (A possible turnaround.) It boosts my current income. #dividend #value #investing
Timestamps: 0:00 INTRODUCTION 2:29 TODAY'S VALUE STOCK: THE CAMPBELL'S COMPANY (CPB) 2:50 They acquired Sovos Brands, which makes Rao's tomato sauce. 3:12 THE CAMPBELL'S COMPANY (CPB) DIVIDEND STOCK ANALYSIS 3:15 The stock has fallen -42% off its 52-week high. 3:30 I like to buy value stocks, as a contrarian investor. 3:59 EPS is shrinking. 4:06 The forward PE is in the 10s. 4:28 Starting dividend yield of 5.1% (qualified dividend). 4:33 Payout ratio is only 53%. 4:52 They are growing the dividend by 2.2% per year, on average. 5:10 Market cap is $9.29 billion, which makes it a possible takeover target. 5:57 MY DIVIDEND INVESTING STRATEGY: THE DIVIDEND SNOWBALL 6:49 CPB (A HIGH-YIELDER) VS. SCHD (A DIVIDEND GROWTH ETF) ANALYSIS 7:05 MY GOAL: I'm trying to grow my dividend cash flow by about 13% per year, to double in about 6 or so years. 8:22 In year 5, CPB and SCHD reach parity on a simple yield-on-cost perspective. It takes time for SCHD's simple yield-on-cost to reach parity with CPB. 8:59 5-years for me, righty now, is a lot of time. 9:28 What if dividend growth slows down? Then, it would take until year 6 for CPB and SCHD to reach parity on dividend yield. 10:48 CAMPBELL'S COMPANY (CPB) FINANCIAL ANALYSIS 11:00 Fiscal Q3, 2025 11:05 Top-line revenue is growing 11:41 Balance Sheet Analysis 13:01 Statement of Cash Flows Analysis (Cash flows look good to me, dividends appear to be adequately covered) 14:48 I see this as a value, turnaround stock. 15:07 CPB RISK FACTORS 16:10 Value, turnaround opportunities don't last forever. 16:25 MY INVESTING THESIS WITH CPB STOCK 17:20 I have succeeded time-and-time again buying quality stocks trading on value. 17:24 PEP, PFE, BTI, and MO are some recent examples 18:04 I'm good at buying turnaround situation dividend stocks. 18:34 CONNECT WITH ME ON BLOSSOM SOCIAL (Disclosure: I'm an affiliate of Blossom. I'm long Blossom.) 19:05 DISCLOSURE AND DISCLAIMER
DISCLOSURE: I'm long SCHD, The Campbell's Company (CPB), PepsiCo (PEP), Pfizer (PFE), British American (BTI), and Altria (MO). I own this ETF and these stocks in my personal stock portfolio.
DISCLOSURE: I'm an affiliate of Blossom Social. I'm compensated for Blossom sign-ups. I'm long Blossom.
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