Grab These 2 Dividend Kings Now for Huge Gains


Investor Insights:

  • I looked at companies that have raised their payouts for at least 25 years in a row.
  • I also screened for the names that have beaten the market for the past three years.
  • In the end, two names stuck out to me.

Running stock screens is a valuable thing for all investors to do.

I run screens every day to get ideas.

By this, I mean I generate a list of stocks by putting certain criteria into a screening system.

I use Bloomberg to create most of my screens, but there are free versions on the Banyan Hill Stock Ticker Section, Yahoo Finance or CNBC too.

Most online brokers offer them as well. The important thing is to find one that you like and will use.

For example, if the gold price is moving higher, I can run a screen that shows me the companies that produce the most gold and their cost to do so.

Gold miners that produce the most at the lowest price should benefit when gold prices are rising.

That’s just one example, though. The potential is almost limitless.

For example, I’m a big fan of dividend-paying stocks. I’d like to share something with you about them.

Here’s how I found two of the most consistent payers that deliver returns along with payments. (I name names at the end…)

The Stock-Screening Process

I started with companies that pay dividends.

But I didn’t want just any dividend-payers, because I know you guys don’t want average. I looked at companies that have raised their payouts for at least 25 years in a row.

These stocks aren’t average.

And I know there’s a lot of worry out there today. These stocks will appease investors who don’t want to miss out on stock market gains, but don’t want to chase returns.

These companies are going to pay dividends regardless of the economy. That’s what they’ve been doing for a least a quarter century. Seven names on the list have increased their dividends for at least 60 years.

Starting with these longtime payers gives me comfort. But there were 90 names on the list. That’s too many.

I wanted to limit the list so I could find a name or two to recommend. So I searched for the stocks that have outperformed the S&P 500 Index so far this year. That cut the list down to 35 names.

Then I screened for the names that have beaten the market for the past three calendar years as well. There were 22 left.

Now we’re talking.

Valuation Is Always Important

These stocks have been moving higher, but we don’t want to pay too much.

So I further reduced the number by only considering the stocks with the highest free cash flow (FCF) yield.

FCF is the cash a company has left after deducting its capital expenditures in a given period. I talked about it in this article.

FCF yield is free cash flow divided by market cap.

I looked at the names that yielded at least 4%. That cut the list down to 12.

Finally, I looked at the stocks’ enterprise-value-to-EBITDA ratio.

Enterprise value is the market cap and net debt (debt minus cash) of a company — its total value, if you will.

EBITDA is a company’s earnings before interest, taxes, depreciation and amortization. It’s a commonly used metric in the financial industry.

I compared the ratio to the stocks’ average. I ignored names that were higher than average because I don’t want to pay too much for these stocks.

In the end, two names stuck out to me.

Crowning the Dividend Kings

As investors become fearful of missing out on these amazing gains, wealth manager Eaton Vance Corp. (NYSE: EV) will shine.

It pays a 3.1% yield, which it just increased in July. And it has increased its dividend for 38 years in a row.

Carlisle Companies Inc. (NYSE: CSL) makes engineered products for industrial markets. In the year that ended in September, it generated the greatest free cash flow it ever had.

Its dividend yield is 1.2%, and it has grown its per-share payout for 42 years in a row.

Carlisle also buys back a lot of shares.

It has reduced its share count by more than 12% since 2016. And it paid much less than current prices to do so. Buying inexpensive shares is a solid use of excess capital.

I suggest you look into both of these names. They pay dividends with cautious abandon … and they offer profits for the right price.

I also recommend you run some screens yourself. Try out several different screeners so you can find one you like.

If you’re reading this article, you’ve already taken responsibility for your investments. Screening for ideas is a logical next step if you’ve never done it before.

Good investing,

Brian Christopher

Editor, Profit Line

P.S. I recorded a video with my colleague Ian King about an incredible new $400 billion tech market. You can watch it now by clicking on the image below:

Previous Post
Next Post

Comments

stornobrzinol

This is very interesting, You are a very skilled blogger. I have joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your site in my social networks!

Denson

[url=http://oxlpharm.com/]plaquenil nz[/url] [url=http://pharmacyomni.com/]big pharmacy online[/url] [url=http://tadalafilmtab.com/]tadalafil 20 mg no rx[/url] [url=http://wbapharmacy.com/]rx pharmacy no prescription[/url] [url=http://viagrabuycheap.com/]viagra generic over the counter[/url]

Paulson

[url=https://worxtabs.com/]ivermectin 18mg[/url]

Markson

[url=https://ivermectinbestbuy.com/]stromectol tab[/url]

RonaldVep

viagra online us pharmacys viagra super active generic – buy viagra no prescription overnight shipping

FloydSkene

doxycycline 50mg order doxycycline – doxycycline order online

Lisason

[url=https://tadalafilorderonline.com/]generic for cialis[/url]

RonaldPlene

ivermectin cost canada ivermectin for humans – purchase stromectol online

t.co

Hello colleagues, its fantastic paragraph concerning educationand fully defined, keep it up all the time.

MauriceDen

stromectol cost ivermectin – ivermectin 5 mg

http://t.co/

I’d like to thank you for the efforts you have put in penning
this site. I really hope to see the same high-grade content
by you in the future as well. In truth, your creative writing abilities has inspired me to
get my own site now 😉

what scoliosis surgery

Hi there just wanted to give you a brief heads up and let you know a few of the images
aren’t loading properly. I’m not sure why but I think
its a linking issue. I’ve tried it in two different web browsers and both show the same results.

MauriceDen

propecia finasteride buy propecia – propecia online

http://bit.ly/

I loved as much as you will receive carried out right here.
The sketch is attractive, your authored subject matter stylish.
nonetheless, you command get bought an shakiness over that you wish be delivering
the following. unwell unquestionably come further formerly again as exactly the same nearly very often inside case you shield this
increase.

asmr is

We’re a group of volunteers and opening a new scheme in our community.

Your web site offered us with valuable info to work on. You’ve done
an impressive job and our whole community will be grateful to you.

MauriceDen

propecia prescription online propecia generic – generic propecia no prescription

j.mp

If you want to improve your experience just keep visiting this website and be
updated with the newest news posted here.

asmr the

I pay a visit every day a few websites and sites to read content, but this
weblog presents feature based writing.

scoliosis surgery it

Pretty! This was a really wonderful article. Thank you for
providing these details.

app.gumroad.com

Way cool! Some extremely valid points! I appreciate you penning this article
plus the rest of the site is very good. asmr https://app.gumroad.com/asmr2021/p/best-asmr-online asmr

there quest bars

Nice post. I used to be checking continuously this blog and I’m impressed!
Very useful info particularly the ultimate phase :
) I deal with such info much. I used to be looking for this
certain info for a very long time. Thanks and good luck.
quest bars http://j.mp/3jZgEA2 quest bars

http://bitly.com/3C42OCu

Undeniably imagine that that you said. Your favorite reason seemed to be at the net the simplest thing to have in mind of.

I say to you, I definitely get irked at the same time as other folks think about issues that they plainly do not realize about.

You managed to hit the nail upon the highest and outlined out the
whole thing without having side-effects , people can take a signal.
Will likely be again to get more. Thanks cheap flights http://1704milesapart.tumblr.com/ cheap
flights

coub.com

Good day! I simply would like to offer you a huge thumbs up for the
excellent info you’ve got here on this post. I will be
returning to your website for more soon. scoliosis surgery
https://coub.com/stories/962966-scoliosis-surgery scoliosis surgery

j.mp

Normally I do not read post on blogs, but I wish
to say that this write-up very compelled me to check out and do
it! Your writing taste has been surprised me. Thank you, quite great
post. scoliosis surgery https://0401mm.tumblr.com/ scoliosis
surgery

bit.ly

Howdy would you mind letting me know which webhost you’re using?
I’ve loaded your blog in 3 different browsers and I must say this
blog loads a lot quicker then most. Can you recommend
a good hosting provider at a honest price? Thanks, I appreciate it!

ps4 games https://bit.ly/3nkdKIi ps4

www.iherb.com

Very descriptive blog, I liked that bit. Will there be a part 2?
quest bars https://www.iherb.com/search?kw=quest%20bars quest bars

Leave a Reply

Your email address will not be published.