The presenter analyzes three dividend stocks (Colgate-Palmolive, Proctor & Gamble, and Clorox) for passive income generation. He uses a discounted cash flow valuation model to assess their fair values. For Colgate-Palmolive, the model indicates a fair value of $165.31, compared to its current trading price of $83.28. Proctor & Gamble's fair value is estimated at $223.62, while it is currently trading at $157.90. Clorox shows a fair value of $212.31, with a market price of $123.51. These calculations support the belief that the companies are undervalued and represent investment opportunities. The analysis includes a review of the revenue growth of each company over the last decade, operating profit margins, and return on invested capital, and it also takes into consideration current tariffs.