The Dividend School Pro Universe we built currently outperforms the S&P 500 on the metrics we believe are most important to dividend investors.
Dividend Yield
Dividend Growth
Revenue Growth
Operating Margin
Return on Invested Capital
EPS growth
It consists of 30 high-quality businesses that also pay dividends. We selected these 30 companies on a strict screening process.
Last Thursday I published the five September Best Buys.
Three of the five names sit behind the wall, along with every Buy Below price. I am not giving those away here.
So what can I show you? Everything else.
Stock 1. Compounder. 3.4% yield. 4.6 / 5, Safe. Trading 17% below my Buy Below. Twenty-one straight annual raises since 2005, and $12.6 billion of free cash flow against $4 billion of dividends paid. That is a 32% payout ($4B / $12.6B).
Stock 2. Compounder. 2.4% yield. 4.2 / 5, Safe. Trading 14% below my Buy Below. Fifty-one consecutive annual increases, which makes it a Dividend King, with number fifty-two due in November.
Stock 3. High Yield. 7% yield. 4.3 / 5, Safe. Trading 17% below my Buy Below. A REIT that has raised eight years running since its 2018 IPO, with AFFO per share up 7.8% last quarter and guidance raised twice this year.
Stock 4. High Yield. 4.1% yield. 4.6 / 5, Safe. Trading 19% below my Buy Below. Property revenue up 6.3% year over year and full-year AFFO guidance raised to $11.08 a share.
Stock 5. Dividend Growth. 0.9% yield. 4.5 / 5, Safe. Trading 24% below my Buy Below. Thirty-two consecutive annual raises on a payout of 15% of adjusted earnings, the lowest in the Universe.
Two notes on how we read that list.
AFFO is the REIT version of free cash flow. Where it turns up on stocks 3 and 4 is the number the dividend comes out of, doing the same job free cash flow does in a normal business.
And the safety score runs 0 to 5. It measures the dividend as it appears in the latest filings and forecasts nothing.
Every one of the five trades is under my Buy Below price right now. That will not hold.
Members have the names, the full write-up on each, and the exact Buy Below prices. Through Sunday, 30% off, and the price stays the same for as long as the membership runs. Seven days free first. Plus a 30-day-back guarantee- what do you have to lose?
Until next time, take care and be safe out there,
Dave