Group 1: Investment Strategy - The combination of high free cash flow yield and dividends is a powerful investment strategy that has been proven over 30 years of data across multiple market cycles [2][26][27] - From 1990 to 2016, stocks in the top quintile for both dividend yield and free cash flow yield generated an annual excess return of 6.03% compared to the market [3][16] - High dividend yield stocks without free cash flow produced only a 0.10% excess return, while high free cash flow yield stocks without dividends achieved 3.57% [4][16] Group 2: Importance of Free Cash Flow - Free cash flow is a more reliable indicator than earnings, as it reflects actual cash available for dividends [8][10] - Companies that generate strong free cash flow but do not pay dividends often waste cash on unproductive projects, which can destroy shareholder value [9][10] - High free cash flow dividend payers have shown superior characteristics, including lower leverage and higher returns on equity [10][11] Group 3: Payout Ratios and Dividend Growth - The optimal payout ratio for dividends is around 40 to 50% of free cash flow, allowing for sustainable dividend growth [12][13] - Companies with a 40 to 50% payout ratio can maintain dividends during economic downturns, while those with higher ratios are at risk of cuts [15][21] - The Pacer Cash Cows Index, focusing on high free cash flow yield companies, has delivered annual dividend growth of 9.2% while maintaining a sustainable payout ratio [13][18] Group 4: Performance During Market Cycles - High free cash flow dividend payers recover faster from market downturns, averaging 15 months compared to 28 months for non-payers [11][22] - The S&P study from 1990 to 2017 found that the top quintile combining dividend yield and free cash flow yield outperformed 75% of the time [16] - During bear markets, this strategy provided meaningful downside protection, outperforming 50% of the time [16] Group 5: Company Examples - Archer-Daniels-Midland (ADM) has a dividend yield of 3.4% and a payout ratio of 24%, demonstrating stability and strong free cash flow generation [28][31] - HNI Corp. has a dividend yield of approximately 3.3% with a payout ratio of 43 to 45%, showing resilience despite market uncertainties [33][37] - OneSpan operates in digital security with a dividend yield of 4.03% and a low payout ratio under 8%, indicating strong cash flow and growth potential [39][41] - Luxfer Holdings has a dividend yield of approximately 4.3% and a payout ratio of 43%, focusing on high-performance materials with steady demand [45][48]

Worranan Junhom / Shutterstock.com Investors certainly don't have any shortage of dividend exchange traded funds (ETFs) to choose from. According to an interesting source I found, there are currently more than 15,000 ETFs in existence, with the majority of these paying some sort of dividend yield (small or large). Quick Read The Schwab U.S. Dividend Equity ETF (SCHD) yields 3.8% and tracks the Dow Jones U.S. Dividend 100 Index of high-quality large-cap stocks. SCHD provides significant exposure to co ...

Core Insights - The article reflects on the author's early experiences with technology, specifically an Apple computer, highlighting the personal connection to the brand and its significance in the author's life [1]. Company Insights - Apple (AAPL) is mentioned as a pivotal company in the author's childhood, indicating its long-standing influence in the technology sector [1]. Analyst Background - The lead analyst for Dividend Kings, Scott Kaufman, has over a decade of experience in the financial sector, focusing on high-quality dividend growth and undervalued investment opportunities [1]. - The goal of the analysis is to achieve strong capital gains and a robust total return through cash dividends [1].

I can still remember the first computer that we had in our house when I was a child. It was an Apple ( AAPL ) computer. For years, my father diligently processed our taxesScott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, ...

Core Insights - The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) offers a trailing yield of 4.46%, making it an attractive option for investors seeking passive income through dividends [2][4]. - To generate $500 in annual dividend income from SPYD, an investment of approximately $11,210 is required, based on the current share price of $43.86 [2][4]. - SPYD tracks the top 80 high-dividend-yielding companies in the S&P 500, providing exposure to a diversified portfolio across all major U.S. sectors [4][6]. Investment Details - SPYD's current price is $43.40, with a day's range between $43.37 and $43.70, and a 52-week range from $37.92 to $46.18 [5]. - The ETF has a low expense ratio of 0.07%, equating to a cost of $0.70 per $1,000 invested, which is offset by the dividends received [6]. - The dividend yield of SPYD is nearly four times higher than the average yield of the S&P 500, enhancing its appeal for income-focused investors [6].

Core Insights - The article discusses the best American stocks for long-term investment, emphasizing the shift in investor strategies towards diversification and away from traditional portfolios [1][2] Long-term Investment Trends - A significant portion of investors, approximately 60%, believe that long-term discipline is essential in today's market, with 70% expressing greater patience for investment growth compared to their initial investing experiences [2] - The trend towards dividend investing aligns with long-term strategies, as 80.9% of S&P 500 companies pay dividends, with an average yield of 1.93% among Dow Jones Industrial Average constituents [3] Methodology for Stock Selection - The article outlines a methodology for selecting US companies that provide regular dividends, focusing on those with over 9% revenue growth over five years and positive analyst sentiment, resulting in a list of 14 hedge fund-favored companies [6][7] Company Highlights - **Atmos Energy Corporation (NYSE:ATO)**: - Holds 32 hedge fund positions and has a 5-year revenue growth of 9.92% - Recently increased its quarterly dividend by 15%, marking 41 consecutive years of dividend growth, with capital expenditures of $3.6 billion in FY25, primarily for safety and reliability [8][10][11] - **CF Industries Holdings, Inc. (NYSE:CF)**: - Holds 41 hedge fund positions and boasts a 5-year revenue growth of 15.96% - Focused on decarbonizing production with low-carbon ammonia, reporting a trailing twelve-month operating cash flow of $2.63 billion and free cash flow of $1.7 billion [12][13][14] - **Diamondback Energy, Inc. (NASDAQ:FANG)**: - Holds 42 hedge fund positions with a remarkable 5-year revenue growth of 36.06% - Benefits from low-cost production in the Permian Basin, generating 15% higher free cash flow per share despite a 14% decline in oil prices, and is nearing its $1.5 billion net debt target [15][17][18]

Core Viewpoint - The best income stocks are those that build a larger cash machine over time, rather than just those with the highest dividends [1] Group 1: Investment Strategy - The approach to identifying consistent income stocks begins with the Dividend Kings list, which includes companies that have raised dividends for over 50 consecutive years [1] - Many investors seek not only longevity but also strong earnings growth, as dividends are ultimately based on rising profits [2] - The focus is on resilient companies with a strong backing from Wall Street analysts, rated as "Strong Buy" [2] Group 2: Stock Screening Process - The stock screening process utilized Barchart's Stock Screener to identify the highest-yielding companies [3] - The results were sorted by yield from highest to lowest to create a list of the best-rated Dividend Kings to buy [4] Group 3: Company Profile - Coca-Cola - Coca-Cola Company (KO) is a well-known manufacturer and supplier of beverages, serving over 2.2 billion drinks daily in over 200 countries [7] - The company is advancing sustainability efforts through initiatives like AI-based leak detection for water projects [7] Group 4: Financial Performance - Coca-Cola reported a 5.1% year-over-year increase in sales to $3.70 billion, with net income rising 30% to $3.70 billion [8] - The company's five-year earnings growth stands at 36.49%, indicating strong and consistent earnings performance [8]

Core Insights - The Marketplace service, Hidden Dividend Stocks Plus, targets undercovered and undervalued income vehicles with high dividend yields [1] - The service identifies income opportunities with dividend yields between 6% and over 10%, supported by strong earnings [1] - A recent position was closed in October 2025, achieving a total return of 27% since inception [1] Summary by Categories Investment Focus - The service emphasizes finding solid income opportunities in both US and global markets [1] - It specializes in special high yield situations that are often overlooked [1] Performance Metrics - The targeted dividend yield range is between 6% to 10% or more, indicating a focus on high-yield investments [1] - The recent closure of a position yielded a total return of 27%, showcasing the effectiveness of the investment strategy [1] Content Offering - Exclusive articles with unique investing ideas are published weekly for the HDS+ site [1] - The content is designed to provide insights that are not available elsewhere [1]

Core Thesis - National Beverage (FIZZ) is positioned as a strong long-term dividend stock, with a history of paying out most of its income as special dividends [1] Company Overview - The company has consistently focused on returning value to shareholders through special dividends, making it an attractive option for long-term investors [1] Investment Strategy - The investment approach emphasizes holding stocks for several years, targeting growth opportunities and valuation metrics within the food and beverage sector [1]

Core Insights - The article emphasizes the importance of having survival tools for investment, suggesting that preparedness is crucial in the financial sector [1] Group 1: Investment Philosophy - The lead analyst for Dividend Kings, Scott Kaufman, focuses on identifying high-quality dividend-growing and undervalued opportunities to achieve strong total returns through cash dividends and capital gains [1]