Welcome to the second edition of the The Fourth Quarter Dividend. The first edition can be found here.
This month I will choose from the "5"s of my portfolio. (Meaning, each of these stocks are roughly target allocated for 5% of my total portfolio.) The candidate stocks are:
Alphabet (GOOGL)
Facebook (FB)
Microsoft (MSFT)
Of course, MSFT wins by default; the other two do not pay dividends. Just for fun though, let's compare all three by the same dividend-related metrics.
GOOGL: $123.9B revenue, 26% revenue growth, $41.9B operating cash flow, $21.7B free cash flow
MSFT: 1.7% dividend yield, 69% payout ratio, $110.4B revenue, 18% revenue growth, $43.9B operating cash flow, $25.1B free cash flow
FB: $48.5B revenue, 42% revenue growth, $28.0B operating cash flow, $11.3B free cash flow
Both GOOGL and FB could easily support dividends whenever they are ready. I expect GOOGL will declare a quarterly dividend in the next five years.
Here's my current portfolio (buy and hold). As always, I believe in all of these stocks - until I sell them.
Tesla (TSLA) 14.74%
Amazon (AMZN) 14.25%
Apple (AAPL) 14.11%
NVIDIA (NVDA) 13.07%
Alphabet (GOOGL) 6.27%
Intuitive Surgical (ISRG) 4.18%
Microsoft (MSFT) 4.06%
Facebook (FB) 3.86%
Adobe Systems (ADBE) 2.59%
Nike (NKE) 2.28%
Salesforce.com (CRM) 2.16%
Visa (V) 1.89%
UnitedHealth Group (UNH) 1.76%
Intel (INTC) 1.63%
Starbucks (SBUX) 1.54%
Waste Management (WM) 1.45%
Costco Wholesale (COST) 1.35%
Booking Holdings (BKNG) 1.27%
Chubb Limited (CB) 1.22%
BlackRock (BLK) 1.20%
Autodesk (ADSK) 0.91%
Comcast (CMCSA) 0.63%
Activision Blizzard (ATVI) 0.53%
American Water Works (AWK) 0.51%
Norfolk Southern (NSC) 0.49%
CSX (CSX) 0.48%
Union Pacific (UNP) 0.43%
Canadian National Railway (CNI) 0.42%
Aqua America (WTR) 0.39%
Kansas City Southern (KSU) 0.33%
