Close-End Funds (“CEFs”) are often an income-investor favorite thanks to their big yields (often 6.0% to 11.0%, or higher) which are frequently paid monthly. In this report, we share updated data on over 100 big-yield CEFs (sorted by style, and including a variety of important data points), and then we countdown our top 10 big-yield CEFs (starting with #10 and finishing with our top ideas) for you to consider.
Top 20 Dividend-Growth Stocks, Ranked
In this report, we countdown our top 20 dividend-growth stocks. These may not be the biggest current dividend yields (no yield traps here!), but they present some of the best and biggest long-term income opportunities based on their impressive trajectories of dividend growth (all have at least 10 consecutive years of dividend increases) and ongoing price appreciation potential. We’ve selected these 20 from a list of over 150 top dividend-growth stocks (the 150 stock list is included in this report, along with lots of important data on each of the 150 stocks for your consideration). We also explain the important concept of “yield on cost,” and explain why dividend-growth stocks are particularly compelling right now (i.e. macro conditions). Finally, we rank our top 20, providing explanations for each, starting with #20 and counting down to our top ideas.
SCHD: 100 Top-Dividend Growth Stocks, These 3 Worth Considering
Dividend growth stocks are particularly compelling in the current market environment because many of them have ample financial wherewithal to easily survive the Fed’s recent sharp interest rates hikes (whereas a lot of volatile pure-growth stocks do not). In this report, we explain the construction methodology behind the popular 100-stock Charles Schwab US Dividend ETF (SCHD), including data on all 100 stocks in that fund. Then we review three specific stocks from SCHD that are particularly attractive. We conclude with a critically important takeaway about the attractiveness (and risks) of investing in specific dividend-growth stocks in the current market environment.
Top 10 Dividend Growth Stocks - Down Big
In this report, we rank our top 10 dividend-growth stocks that have recently sold off hard. We include stocks that have increased their dividend for at least 10 years in a row, and we have a special focus on the concept of “Yield on Cost” whereby stocks that appear to offer mediocre current yields actually end up paying much more income over the long term. We also share comparative data on over 100 top dividend growth stocks, followed by an explanation on why dividend growth investing is particularly attractive right now (i.e. macroeconomic conditions). After counting down our top 10 dividend growth stocks (starting with #10 and finishing with our top ideas), we conclude with an important takeaway for investors to consider.
Powerful Dividend Growth: Attractive Mega-Cap Stock, Underappreciated
A lot of investors still think of this mega-cap stock as a high-growth opportunity. In reality, it’s a stable value stock with an impressive track record of dividend growth, and the shares are trading at a compelling valuation. The current yield remains low because the share price has risen even faster than the dividend over the years. In this report, we review the business, competitive advantages, growth trajectory, cash flows, dividend, share repurchases, valuation and risks. We conclude with our opinion on who might want to invest.
Compelling 8.2% Yield, Consumer Staples Stock
You might think a stock yielding over 8% is a red flag (perhaps a company in distress), but the one we review in this report is surprisingly compelling if you are an income-focused investor. The industry is in a slow secular decline, but revenues and the dividend are set to keep growing steadily and the shares offer some margin of safety relative to the current valuation. In this report, we review the business, consider the cash flows (including dividends and share repurchases), the valuation and the risks. We conclude with our opinion on investing.
Railcars: 3.8% Yield, 10+ Years Dividend Growth
With the economy still barreling towards recession (courtesy of high inflation and interest rate hikes), the industrials company (focused on railcars) that we review in this report is attractive for a variety of reasons, including its stable cash flows, ongoing long-term growth potential, hard assets (book value), operational efficiencies, attractive current valuation and its 10+ year history of dividend growth (the current yield is 3.8%). We review all the details in this report, and then conclude with our opinion on investing.
3.1% Yield Tech Stock: 10+ Years Dividend Growth
The tech stock we review in this report has a lot of attractive qualities, including a healthy well-covered dividend, an attractive valuation, and a business positioned to benefit from legacy networking and future industry growth (including hybrid cloud solutions). It also has high margins, growing subscription revenues, high customer switching costs, a strong balance sheet, incredible cash flows and an attractive share price (relative to valuation). We review the details in this report and conclude with our opinion on investing.
Chemicals Co: Attractive 5.2% Yield Dividend Grower
Anytime you invest in a commodity-related business, there are likely significant risks related to commodity prices. However, given the financial strength and competitive advantages of the company we review in this report, combined with current and projected commodity prices and demand (respectively), the business appears undervalued and remains in a good position to keep growing its already large dividend payments (which have been increased for 11 years in a row) and share repurchases. If you are an income-focused investor that likes to invest across market sectors, this one is worth considering for a materials sector (chemicals) allocation in your prudently-diversified long-term portfolio.
Dividend Growth Screener - Updated Data
Dividend Growth Stock Data: Sharing updated data tables, sorted by sector (then industry) for stocks that have increased their dividend for at least 10 years straight (over 300 stocks). The table includes other metrics such as 1-year total return, current dividend yield, dividend coverage, valuation metrices (and rankings), expected growth and more. We’ll be digging into this data deeper this week with the goal of sharing top dividend growth stock ideas trading at attractive prices. We’ve also included a downloadable Excel file for those that like to sort the data differently.
Major Auto Manufacturers: Mkt Cap, Margins, Valuations
Major Car Maker Comparisons: Just a quick “chart break” to share comparative data on the major auto makers in terms of market caps, margins, valuations and growth rates. There’s been a lot of talk about how disproportionately large Tesla’s market cap is to other car makers, but when you take into consideration Tesla’s strong margins and higher growth rate, the story becomes very different. Here is the chart.
Attractive Materials Company: Deep Value, Growing Dividend, Compelling Entry Point
Like much of the economy, materials companies were impacted dramatically by pandemic disruption. In particular, lockdowns in the US and internationally caused demand to halt and share prices to plummet. However, with countries and companies continuing to reopen, and share prices still depressed, highly compelling opportunities exist. In this report, we review an attractive materials company that offers a strong and growing dividend (currently yielding 2.5%) plus attractive share price appreciation potential.
Tesla: 20 Top Growth Stocks Ranked
Tesla shares are down more than 70%, and it’s going to get worse. For starters, the “woke mob” is ticked at CEO Elon Musk. Next, growth stocks in general are getting hammered as interest rates rise and there is no “fed put” in sight. In this report, we rank Tesla (based on fundamental metrics) versus 20 top growth stocks sourced from the top 10 holdings of two popular active growth ETFs, Future Fund (FFND) and Ark Innovation (ARKK), both have very large positions in Tesla. After digging deeper into the details on Tesla (including its tangled business history with the woke mob, future growth potential, profitability, valuation and risks), we conclude with our strong opinion about investing in Tesla and growth stocks in general.
New Year: Same Story, Growth Leading Lower
Market carnage continues this year, with tech & growth stocks down more than value. The story remains the same: rates are higher (harder to fund growth) and the economy is slowing (teetering on recession) as the fed keeps hiking rates to fight inflation. The good news is inflation will likely slow (knock on wood) as the pandemic stimulus falls further into the past. Going forward, the top growth stocks are not coming back to prior levels (at least not anytime soon) and value will lead (higher rates are here to stay), and value stocks remain undervalued relative to growth. Here are a few updated growth-versus-value charts (as of 12/31) for perspective…
Top 10 Big-Yields: CEFs, REITs, BDCs and MLPs
In this report, we share data on over 100 big-yield investments, including CEFs, REITs, BDCs and MLPs. We provide high-level information and market commentary on each category, and then countdown our top 10 most attractive (with yields ranging from 5% to well over 10%), starting with #10 and finishing with our top ideas.