![]() This month, we highlight three groups with five stocks each that have an average dividend yield (as a group) of 3.04%, 5.49%, and 6.97%, respectively. We also demand that the selected companies have an established business model, solid dividend history, manageable debt, and investment-grade credit rating. In addition to dividend safety, we also seek cheaper valuations. From thereon, by using various data elements, including dividend history, payout ratios, revenue growth, debt ratios, EPS growth, etc., we calculate a 'Dividend Quality Score' for each stock that measures the relative safety and sustainability of the dividend. ![]() By using our filtering criteria, the initial list is quickly narrowed down to roughly 700 stocks, which are mostly dividend-paying and dividend-growing stocks. exchanges, including over-the-counter (OTC) networks. Besides, every month, this analysis is able to highlight a few companies that otherwise would not be on our radar.Įvery month, we start with roughly 7,500 stocks that are listed and traded on U.S. The purpose is to keep our buy list handy and dry powder ready so that we can use the opportunity when the time is right. ![]() These lists are not necessarily recommendations to buy, but a shortlist of probable candidates for further research. These DGI stocks are not going to make anyone rich overnight, but if your goal is to attain financial freedom by owning stocks that would grow dividends over time, meaningfully and sustainably, then you are at the right place. In addition, we demand that these companies support strong fundamentals, carry low debt, and are offered at a relatively cheaper valuation. The main goal of this series of articles is to shortlist and highlight companies that have a solid history of paying and raising dividends. At the same time, we believe it is not possible to catch the exact bottom (or the peak), so it is best to invest regularly and consistently in good, solid dividend-paying stocks when their valuations are attractive. Against this backdrop, it is important to keep some cash reserves and dry powder ready to be able to deal with any scenario. In a nutshell, this period of economic uncertainty may last longer than we thought earlier. In fact, a third view has been emerging of 'no landing' at all, meaning inflation stays relatively high while the economy keeps growing, albeit at a slower pace. Most investors believe that we are going to have some kind of recession by the end of 2023 or early 2024 but are divided over the scope of the recession in terms of hard landing versus soft landing. The market is, at best, conflicted right now. All eyes are now on the next CPI report, due to be released on 14th March. Since mid-February, the market has given back more than half of its gains from January. This gave rise to the perception that the Fed's battle with inflation is not over yet, and they are likely to keep rates higher and longer than expected earlier. ![]() The CPI (consumer price index) report in February came in a bit higher than expected, while employment remained reasonably solid. The market gained some positive momentum early this year, but recently, it has lost steam. Regular readers of this series could skip such sections to avoid repetitiveness. This is intentional as well as unavoidable, as this is necessary for the new readers to be able to conceptualize the process. Some of the sections in the article, like 'Selection Process/Methodology,' are repeated each month with few changes. exchanges and use our proprietary filtering criteria to select five stocks that are relatively safe and maybe trading cheaper compared to their historical valuations. We scan the entire universe of roughly 7,500 stocks that are listed and traded on U.S. Author's Note: This is our monthly series on Dividend Stocks, usually published in the first week of every month.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |