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.
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.
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.
Amazon: 100 Top Growth Stocks, Ranked
2022 was an ugly year for growth stocks. And it’s going to get worse for many of them. In this report, we rank 100 top growth stocks based on the financial metrics we consider most important in the current market environment. We have a special focus on Amazon, comparing it to peers on these same financial metrics, but also diving into its specific business fundamentals, including competitive advantages, risks and valuation. We conclude with our strong opinion on Amazon and investing in select growth stocks in the current market environment.
2023 Outlook: 10 Investments Worth Considering
2022 was a very different year for investors. The stock and bond markets were both down significantly, and as monetary policies shifted from dovish towards hawkish—and fiscal pandemic stimulus evaporated—investors were left with the giant sucking sound of high inflation. And making matters worse, central bankers pushed the economy towards recession by dramatically hiking interest rates in an effort to stifle the high inflation problem they helped create. Further still, the dramatic shift in markets may just be starting. In this report, we review what looks to be the beginning of a new market paradigm and review 10 top investment ideas that investors may want to consider going forward.
Top 10 Big-Dividend Healthcare Stocks
Healthcare is a diverse sector. And recent performance has been wide ranging (see data below). This is creating select, highly-attractive big-dividend opportunities ranging from individual pharmaceutical stocks, to healthcare-focused CEFs and even “healthcare” REITs, to name just a few. In this report, we rank our top 10 big-dividend healthcare opportunities, starting with number 10 and counting down to our top ideas.
A Top Healthcare Industry Stock Worth Considering
Given the challenging macroeconomic backdrop (high inflation, recession looming), if you had to list the top characteristics you’d like to see in a stock market investment right now, it might include things like: high profit margins, no debt, tons of cash and a sticky client base that is economically non-cyclical. The healthcare stock we review in this report has all of those things, plus a very high revenue growth rate, a large total addressable market opportunity, a wide economic moat and basically no competition. Plus the shares have sold off significantly this year, thereby creating a more attractive entry point. This is NOT a dividend stock, but rather a very attractive long-term growth stock. Your future self may thank you profusely if you pick up a few shares now.
Attractive Healthcare Stock: 3.5% Yield Aristocrat, Significant Upside
The current yield on this healthcare dividend aristocrat is near all-time highs as frustrated investors lose patience with the slower-than-expected pace of the post-pandemic recovery. And despite risks (which we will cover), the business remains healthy (profitable with tons of cash flow) and growth will return. If you are an income-focused contrarian investor (that likes long-term price appreciation), this impressive dividend grower is absolutely worth considering. We are long.
100 Big-Yield CEFs: Ranking Our Top 5
13.4% Yield CEF: Despite Big Premium, Steady Monthly Income Is Compelling
If you are an income-focused investor, you’re likely familiar with Closed-End Funds (“CEFs”) because they can offer big steady dividend income. However, they also present unique risks and opportunities because they often trade at significant premiums and discounts to the net asset value (“NAV”) of their underlying holdings. The monthly-pay CEF we review in this report is very large and hugely popular, and its large price premium (as compared to NAV) isn’t as unattractive as some investors think. In this report, we review the fund and then conclude with our opinion on investing.
Tempting 17.4% Yield BDC: 20% Discount to Book, But Know the Risks
The tempting Business Development Company (“BDC”) we review in this report offers a 17.4% dividend yield (the shares are down 38% this year) and it trades at a 20% discount to its book value. However, it faces significant risks including industry-wide BDC headwinds (yes—rising rates help net interest margins, but also increase portfolio-company default risks, especially with the economy heading towards recession) and company-specific challenges (the business strategy is somewhat unique). In this report, we review the business, the risks, the dividend and the valuation, and then conclude with our opinion on investing.
2023 Risks and Opportunities: It Can Still Get Worse
As 2022 winds down (it’s been an ugly year so far), things can still get worse in 2023. In this report, we review overall market valuations, macro risks (e.g. monetary policy and recession) and the growing risks related to specific investment styes (e.g. growth versus value, small versus large cap, and various sector opportunities). We also share a handful of specific investment opportunities and then conclude with a few critical takeaways for investors.