Three Dividend Growth Stocks to Generate €200 Monthly Income

“`html

Investing in 3 Growing Dividend Stocks

Investing in three stocks with growing dividends can yield over 200 euros per month, eliminating worries about market fluctuations.
To mitigate excessive risks, it’s advisable to avoid stocks with excessively high dividends, instead targeting a medium dividend yield of 6-7%.

The key lies in carefully selecting companies based on their ability to maintain and increase dividend payments over time.
But how can one assess this? By comparing the anticipated free cash flow yield (forward FCF) with the current dividend yield, investors can determine whether a company can sustain or potentially increase its dividend payments with a safety margin.

Three Stocks to Achieve Monthly Dividend Income

Let’s dive deeper into three growing dividend stocks that can help generate 200 euros per month with an investment of approximately 40,000 euros.

1.
Verizon Communications (VZ)

Verizon is a top choice for income-focused investors due to its robust dividends.
Even though Verizon’s shares, listed on the NYSE, have seen a lackluster performance this year, with less than 10% growth compared to an S&P 500 increase of 14%, the company is optimistic.

Despite not yet seeing significant revenue growth from its consumer wireless segment driven by 5G smartphone users, Verizon anticipates a rise in its enterprise 5G services by 2025.
It has partnered with Amazon Web Services to develop 5G applications for connected industrial devices, collaborating with IBM as well.
Experts believe that 5G technology will significantly impact manufacturing automation, cloud gaming, autonomous vehicles, drones, and telehealth services.

Verizon should benefit from the end of the restrictive interest rate cycle, which had hampered dividend-paying stocks due to high Treasury yields.

• Dividend Yield: 6.52%
• Forward FCF Headroom: 4.61% (Source: FactSet)

Outlook: The company’s strong free cash generation suggests ample room for maintaining, if not increasing, dividend payments.
A $15,000 investment (approximately 13,575€) could yield expected annual dividends of $978, translating into a monthly income of $81.5 (73.76€).

2.
Bristol-Myers Squibb (BMY)

Bristol-Myers Squibb stands as a major global pharmaceutical player.
Although its stock has declined over 40% from its 2022 highs, recent financial results may indicate a turnaround is near, especially with several phase 3 products poised for launch next year.

In Q2, revenue rose by 9%, marking the strongest quarterly results since Q4 2021.
The expected earnings per share (EPS) for the year ranges from $0.60 to $0.70, surpassing earlier estimates of $0.55.
Moreover, the 2025 EPS prediction is $7, boasting one of the lowest multiples in the industry compared to peers such as Pfizer, Sanofi, GSK, AbbVie, and Merck.

• Dividend Yield: 5%
• Forward FCF Headroom: 8.00%

Outlook: With substantial leeway between free cash flow and dividends, Bristol-Myers has excellent capacity to continue increasing dividends.
A $15,000 investment (approximately 13,575€) could yield $750 in annual dividends, equating to a monthly income of $62.5 (56.57€).

3.
AT&T (T)

AT&T, a leader in the telecommunications sector, capitalizes on resilient macroeconomic conditions and gradual price increases.

Since July 2023, AT&T shares have surged by 24.5% year-to-date and 44% over the past year, driven by improving financial forecasts and solid operational trends.
With positive free cash flow and an enhancing balance sheet, the dividend yield stands at 5.4%, and an expected reduction in interest rates from the Fed could further boost its performance.

• Dividend Yield: 5.4%
• Forward FCF Headroom: 7.06%

Outlook: With stable free cash flows, AT&T has a high safety margin for maintaining or increasing dividends over time.
An investment of $15,000 (approximately 13,575€) would yield around $810 annually, resulting in a monthly income of $67.5 (61.09€).

Summary Table

Stock	Invested Capital	Annual Dividend €	Monthly Income €
Verizon Communications	13,579	885.13	73.76
Bristol-Myers Squibb	13,567	678.78	56.57
AT&T	13,538	733.09	61.09
Total	40,684	2,297	191.42

Disclaimer

The information provided in this article should not be used as the sole support for making investment decisions.
Readers retain full freedom in their investment choices and responsibility, as they alone know their risk appetite and time horizon.
The information herein is for informational purposes only and does not constitute an offer or solicitation for public savings.

“`