Dividend Strategists Rewind: 4 Dividend Aristocrats with Favorable Valuations

The latest dividend news, strategies and investing ideas.

3 Dividend Stocks On My Buy List

While the market is trading at very high levels for a while, investors have difficulty finding value. I bet you think you are better off waiting on the sideline for the next market crash, right? But what if it happens in 3 years? Did you think of your opportunity cost?

It doesn't mean you must jump in the market blind and buy anything you see. Some stocks have been going sideways recently. They are missing the latest bull trend, which could be a good opportunity for you to grab those shares. Let's look at three companies on our DSR buy list. READ MORE

4 Dividend Aristocrats With Favorable Valuations

Last week I presented 3 Dividend Kings With Favorable Valuations. Today, I’m repeating the same exercise for the S&P 500 Dividend Aristocrats, an elite list of companies that have paid higher dividends every year for at least 25 consecutive years.

The list of Dividend Aristocrats is maintained by S&P Dow Jones Indices and is updated annually in January. To be included in the list, stocks must be in the S&P 500, have dividend increase streaks of 25 years or more, and have a market capitalization of at least $3 billion. Presently, there are only 65 stocks Dividend Aristocrats. READ MORE

How To Compare Two Stocks

When we look at a promising industry, we often tend to see all companies through rose colored glasses. Remember, everybody looks great on their Prom night. Today’s newsletter is all about making the right decisions without getting stuck in the classic paralysis by analysis syndrome.

The canvas I’ll describe can be used to compare two or more companies in the same industry. This methodology can be used during your buying process as well as your selling process. READ MORE

7 Best Materials Sector Dividend Stocks

One way to diversify your portfolio is to invest in different sectors. This article series is intended to help investors identify high-quality stocks in each GICS sector.

To assess the quality of dividend growth stocks, I use DVK Quality Snapshots to assign quality scores. The system employs five quality indicators and assigns 0-5 points to each quality indicator, for a maximum of 25 points. To rank stocks, I sort them by descending quality scores and using tie-breaking metrics where necessary. My watch list for dividend growth stocks is Dividend Radar, a free resource for dividend growth investors. Dividend Radar maintains a list of stocks trading on U.S. Exchanges with a streak of at least five years of higher annual dividend payouts. Dividend Radar is updated and published every Friday and is available for download here. The latest edition (dated September 10, 2021) contains 749 stocks. Only 49 of these stocks fall in the Materials sector. READ MORE

3 Dividend Kings With Favorable Valuations

The Dividend Kings are companies that have increased their annual dividend payouts for at least 50 consecutive years. This is a remarkable achievement over a time frame that included economic recessions, market crashes, technological revolutions, and shifting consumer tastes.

Dividend Radar is my watch list of dividend growth stocks. Updated and published weekly, Dividend Radar is an automatically generated spreadsheet listing stocks with five years or more dividend streaks. The latest edition (September 3, 2021) contains 752 dividend growth stocks and only 34 are Dividend Kings. READ MORE

What Is A Good Payout Ratio For Dividend Stocks?

Many investors tend to discount companies showing a payout ratio over 100%. In some cases, the pickiest investors will aim at a 75%-80% payout ratio. I will answer the question about high payout ratios later on this article, but for now, let’s concentrate on what a good payout ratio is.

In an ideal world, a payout ratio under 80% would give enough flexibility to the company to pursue its growth objectives while increasing its dividend annually. This is assuming the company can increase its revenue and earnings consistently. You now may better understand the reason why I focus so much on the dividend triangle. READ MORE

Questions, Ideas, Thoughts?

Feel free to reach out by replying to this e-mail or commenting below. Your question or idea might be used in a future newsletter!

If You Love Dividends, How About Dividend ETFs?

On our sister site, ETF Focus on TheStreet, we also talk about dividend income, high yield and investing strategies, but in the context of exchange-traded funds instead of individual stocks.

If you’re interested in expanding your dividend research, please check out the site and sign up for its own Substack newsletter, the ETF Focus Rewind, where every week we publish our “2 ETFs To Buy & 1 To Avoid” column along with our chart of the week!