10 Dividend Stocks Super Investors Own! | Perfect Time To Buy? |

Summary

In this episode, we explore the top 10 stocks held by super investors like Warren Buffett, analyzing their potential as buying opportunities. Alphabet leads with a 15% upside, followed by Microsoft and Meta Platforms. Amazon and Visa show strong buys with significant outperformance over the S&P 500. Apple and UNH are near their intrinsic value, while MasterCard and Wells Fargo offer modest margins of safety. Disney stands out with the highest upside potential at 27%. The analysis includes valuations, dividend yields, and expected EPS growth, providing investors with insights into these market leaders.

Takeaways

• 📈 Alphabet (GOOGL, GOOG) is the most held stock by super investors, with 33 holding GOOGL and 26 holding GOOG.
• 🔢 Alphabet's stock has seen a 15% increase over the last 12 months and a 440% increase over the last 10 years, outperforming the S&P 500.
• 💹 Alphabet's stock is currently trading around the midpoint of the 52-week range and has a forward P/E of 20.9, making it the lowest valued among the Magnificent 7 on this basis.
• 📊 Analysts expect Alphabet to show double-digit increases in earnings per share (EPS) for three of the next four quarters.
• 💰 The intrinsic value of Alphabet is calculated to be $188 using a DCF model, suggesting an 18% upside.
• 💹 Microsoft Corporation is the second most held stock by super investors, with a 31% increase over the last 12 months and a 10% dividend increase announced.
• 💼 Meta Platforms is the third most held stock, with a strong buy rating and a forward P/E of 25.2, slightly higher than Alphabet.
• 🛒 Amazon is ranked fourth, with a 33% increase over the last 12 months and a forward P/E of 39.6, and is considered a strong buy at a 10% margin of safety (MOS).
• 💳 Visa is similar to Microsoft in terms of holding and performance, with a 18% increase over the last 12 months and a forward P/E of 29.4, currently trading near its intrinsic value.
• 🍎 Apple has seen a 24% increase over the last 12 months and is trading at a premium according to the intrinsic value calculation, with a forward P/E of 32.4.
• 🏥 UnitedHealth Group (UNH) is in the portfolio of the presenter, with a 20% increase over the last 12 months and a forward P/E of 21, trading near its intrinsic value.
• 💳 MasterCard has a 20% increase over the last 12 months, a forward P/E of 35, and a 5% MOS, with Wall Street's price target aligning with the intrinsic value.
• 🏰 The Walt Disney Company shows the most upside potential among the top 10 stocks, with a 27% MOS and a forward P/E of just under 19.

Q & A

Which company is the most held stock by super investors according to the script?

Alphabet, with 33 super investors holding GOOGL and 26 holding GOOG.

What is the approximate one-year return for Alphabet based on the script?

Alphabet is up around 15% over the last 12 months.

What is the dividend yield for Alphabet mentioned in the script?

Alphabet recently offered a dividend yield of 0.5%.

What is the forward P/E ratio for Alphabet discussed in the video?

The forward P/E ratio for Alphabet is 20.9.

What is the intrinsic value of Alphabet calculated by the script's analysis?

The intrinsic value of Alphabet is calculated to be $188.

What is the estimated upside for Alphabet if the growth estimate is 10%?

For a 10% growth estimate, Alphabet implies an 18% upside.

What is the second most held stock by super investors as per the script?

The second most held stock by super investors is Microsoft Corporation.

How much dividend increase did Microsoft announce recently, as mentioned in the script?

Microsoft announced a 10% dividend increase.

What is the intrinsic value of Microsoft according to the script?

The intrinsic value of Microsoft is calculated to be $462.

What is the margin of safety for Microsoft at the current price?

The margin of safety for Microsoft at the current price is 5%.

Which stock has the highest dividend yield among those discussed in the script?

Wells Fargo has the highest dividend yield at 3% among the stocks discussed.

What is the forward P/E ratio for Amazon mentioned in the script?

The forward P/E ratio for Amazon is 39.6.

What is the one-year return for Visa as per the script?

Visa has seen an 18% increase over the last 12 months.

What is the margin of safety for Apple at the current price according to the script?

The margin of safety for Apple at the current price is considered to be none, as it's trading at a premium to its intrinsic value.

What is the intrinsic value of Walt Disney calculated by the script's analysis?

The intrinsic value of Walt Disney is calculated to be $66.

What is the estimated upside for Walt Disney if the margin of safety is 10%?

For a 10% margin of safety, Walt Disney is estimated to have a buy price at $111.