There’s nothing like a good dividend to perk up your day…
Working at Publix for a few years after high school, I amassed a modest sum of shares in its private stock.
Now, almost 20 years later, my face still lights up every time I see that quarterly check in my mailbox.
My next Publix cash bump should hit my mailbox any day now, and that got me thinking about investing in more dividend stocks. (Maybe I’ll use that Publix bonus to bolster my dividend portfolio instead of buying chicken tender subs…)
And of course, I’ve got the best resources to help me find the strongest dividend stocks for today’s market: our chief research analyst, Matt Clark, and our easy-to-use Green Zone Power Ratings system.
A Dividend ETF X-Ray
I’ll be honest. Finding well-rated stocks that also boast a solid yield takes some time. That’s partly because Adam’s proprietary system doesn’t prioritize dividends in its analysis of a stock’s future potential.
But that’s actually a strength. Green Zone Power Ratings is such an incredible tool for analyzing any stock, dividend or not. When we find a well-rated stock that happens to have a dividend, that means we’re set for price growth alongside a nice yield bonus.
And we can avoid poorly rated dividend stocks, where your capital losses would offset any dividend gains.
Matt recently ran the entire Schwab U.S. Dividend Equity ETF (NYSE: SCHD) through the system, using our “ETF x-ray.” All of the stocks in the fund pay a dividend — but that’s no guarantee of their quality.
The analysis revealed 15 stocks that rate “Strong Bullish”… which is a great shopping list!
These names are set to outperform the broader market by 3X and give us yield along the way. I’d strongly suggest adding at least one of these stocks to your portfolio today…
Strong Bullish Dividend Payers in SCHD
Of course, almost 50 of the 102 stocks within the fund rate “Neutral” or worse…
But that’s why we’re using Green Zone Power Ratings to be more selective with our investments.
Let’s look a little closer at two of the top stocks…
Furnish Your Dividend Portfolio With ETD
My wife and I just got back from a trip up the coast to Cocoa Beach. And the best part of our weekend away was totally unexpected…
We stumbled across a beautiful midcentury modern dining room set. With little hesitation, we swiped our card and crammed a table and six chairs into our SUV for the trek home.
And it seems like we aren’t the only ones splurging on furniture if you go by Ethan Allen Interiors Inc.’s (NYSE: ETD) Green Zone Power Ratings.
ETD’s Green Zone Power Ratings in August 2023.
All six factors of this Strong Bullish stock rate in the green, which is not something you see often.
Its market capitalization of $787 million puts this stock squarely in small-cap territory, which is reflected in its 75 rating on the Size factor. Smaller stocks in our system historically outperform larger stocks with similar ratings on other factors.
ETD also boasts a strong Value rating of 95. Its price-to-earnings ratio is 7.6 compared to its industry peer average of 10.5.
With a solid Growth factor rating of 72, and a 6.2% dividend yield as I write, this looks like a strong consideration for your income portfolio. I know I’m taking a closer look at it!
Nothing Wrong With Boring
A lot of the time, when looking for dividend payers we want boring, steady businesses.
Explosive tech growth is great and all … until that growth fizzles and that quarterly payout you’re relying on gets slashed to bits.
I’d say printing services falls into “boring and steady.” But that’s A-OK when Ennis Inc. (NYSE: EBF) boasts a “Strong Bullish” 96 out of 100 on Green Zone Power Ratings.
EBF’s Green Zone Power Ratings in August 2023.
Ennis prints marketing materials, so the next time you find your mailbox jampacked with real estate offers and coupon books, you know who to thank!
But it’s clearly working, as its stock scores an 85 or higher on Value, Quality, Size and Volatility in our system. That’s the mark of a steady stock that won’t blow up your portfolio.
And as far as its dividend goes, it pays out $0.25 per share each quarter right now, which translates to a 4.7% yield.
So you’re getting a respectable payout and a stock that’s slated to outperform the broader market over the next 12 months.
Feel free to run some of those other tickers in the table above through our Green Zone Power Ratings system if you’re looking for other potential dividend investments. Just go to www.MoneyandMarkets.com and type any ticker or company name into the search bar.
And if you’re looking for more income strategies, mark your calendar for next Tuesday, August 29.
The Money & Markets team is about to publish a new book: Endless Income: 50 Secrets for a Happier, Richer Life.
Inside you’ll find 50 secrets the ultra wealthy use to unlock nearly effortless streams of extra income.
And you’ll get a free copy of the book, just for trying out Green Zone Fortunes risk-free.
I hope you have a fantastic weekend. Maybe you’ll stumble upon that dream piece of furniture like we did!
Until next time,
Chad Stone
Managing Editor, Money & Markets