The 5 Best Dividend Stocks to Buy Right Now
Wonderful companies at fair prices. Including a 6% yielder and the world's largest regulated utility.
The June issue of 5 Best Buys Now is here.
Five companies I would buy at today’s prices. Each one comes with a Buy Below number so you know what to pay, a Dividend Safety Score from my model so you know how safe the payout is, and a short watch-list of what would confirm the thesis or break it.
Here is the shape of this month’s list.
Three are compounders, the kind of high-quality business I want to own for a decade, all trading below what they are worth right now.
One is a utility about to become the largest regulated power company in the world, buying its way straight into the data-center boom.
One is a luxury empire marked down because shoppers in China paused, with brands that are not going anywhere.
One is a financial-data near-monopoly trading at its cheapest earnings multiple in a decade.
One is the income anchor. A landlord you have heard of, paying a yield north of 6%, with rent locked in for the next 40 years.
One is a dividend-growth machine. A small yield today, compounding near 20% a year, in a business that quietly taxes the entire index-fund industry.
Every name gets the full treatment: the thesis, the dividend-safety breakdown, the reverse-DCF valuation with a Buy Below price, the risks, and the 5 and 3 green and red flags to watch each quarter.
How I score the safety
Each pick carries a Dividend Safety Score from 0 to 100. It weighs payout coverage on both earnings and free cash flow, the balance sheet, the quality of the cash flow, and how the dividend behaved in past recessions. One hard rule sits on top: if a company’s most recent free cash flow is negative, the score is capped, because a dividend paid out of debt is not a safe dividend.
This month’s five range from 70 to 85, all in Safe or Very Safe territory.
The rest is for members
So which five, at what prices, and how safe is each one? You just saw the shape of the list: three compounders, an income anchor, and a dividend-growth machine, each scored and priced. The names, the Buy Below levels, and the full analysis are below.
If you want the list every month, with the math shown and a price to buy under on every name, this is the whole reason Dividend School exists. Join us and read the rest.
