Wolfe Research's Chris Senyak sees companies that have long paid out dividends profiting from tech uncertainties. He has nine picks. ...

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, focusing on high-quality dividend stocks that provide long-term growth potential and reliable income [1]. - By integrating various asset types, the company aims to create a robust portfolio that not only generates income but also captures total returns in line with the S&P 500 [1].

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a diversified approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with other asset types to maximize income potential [1]. - The strategy aims to create a balance between growth and income, allowing investors to capture total returns that align with the performance of the S&P 500 [1].

Quick Read PepsiCo (PEP) hiked its quarterly dividend distributions by 5% last year and is likely due for another dividend raise. Lowe’s (LOW) has a steady record of product sales and hiked its dividend by 4.3% in 2025. Emerson Electric (EMR) grew its net sales to $18.106 billion in fiscal 2025 and currently offers a respectable 1.46% dividend yield. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. ...

Core Insights - Business development companies are facing challenges in a high interest rate environment, leading to many high-quality businesses, including Gladstone Capital, trading at new lows [1] Group 1: Market Environment - The current high interest rate environment is negatively impacting business development companies [1] - Many high-quality businesses are experiencing significant declines in their stock prices [1] Group 2: Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with business development companies, REITs, and closed-end funds can enhance investment income [1] - This approach aims to achieve total returns comparable to traditional index funds like the S&P [1]

Core Insights - The article discusses the significance of insider buying in dividend stocks amidst concerns over a recent executive order affecting CEO pay, dividends, and stock buybacks in the U.S. defense sector [2][3][4] Group 1: Insider Buying and Market Sentiment - Insider buying is highlighted as a reliable indicator for investors, as insiders possess first-hand information about their companies [4] - The article references Peter Lynch's philosophy that insiders buy shares when they believe the price will rise, emphasizing the importance of insider transactions [5] Group 2: Methodology for Stock Selection - The list of 12 dividend stocks with high insider buying was compiled using the Finviz stock screener, focusing on stocks with insider ownership of 10% or more [8] - The stocks were ranked based on insider ownership and included data on hedge fund holdings from Q3 2025 to provide additional insights into investor interest [8][10] Group 3: Company-Specific Insights - Paychex, Inc. (NASDAQ:PAYX) has a dividend yield of 4.45% and insider ownership of 10.32%, with significant insider purchases made on February 5, 2026 [11] - Kinder Morgan, Inc. (NYSE:KMI) has a dividend yield of 3.72% and insider ownership of 12.79%, with notable insider activity including a purchase by a director on February 3, 2026, and a dividend increase of 2% announced for Q4 2026 [15][18]

Market Overview - Market indices are retreating from all-time highs due to uncertainty surrounding technology markets and the impact of AI on businesses [1] Investment Strategy - The company emphasizes the importance of a solid base of classic dividend growth stocks, complemented by Business Development Companies, REITs, and Closed End Funds to enhance investment income [1] - A hybrid investment system that balances growth and income can achieve total returns comparable to traditional index funds like the S&P [1]

Core Thesis - The performance of dividend stocks in the current year has raised concerns about sustainability and potential market implications [1] Group 1: Dividend Stock Performance - Dividend stocks have shown significant gains this year, leading to a sense of fatigue among investors regarding continuous winning [1] - The current trend raises questions about the long-term viability of such performance in the market [1]

Core Viewpoint - The article highlights two dividend stocks, Hormel and McCormick, which are positioned well for potential market corrections due to their strong dividend histories and consumer staple products [6][10]. Company Analysis - Hormel, known for products like Spam and Skippy peanut butter, has a strong track record of outperforming the S&P 500 during market downturns, particularly since 2008 [6][7]. - McCormick, a spice manufacturer, also shows resilience during economic slowdowns, as consumers tend to cook at home more and use spices to enhance basic meals [8][10]. Dividend Performance - Hormel is classified as a Dividend King, having increased its dividend for 59 consecutive years, with a current yield of 4.69% [10]. - McCormick has raised its dividend for 39 straight years, offering a yield of 2.85% [10]. Market Outlook - Analysts project a median price target of $27.50 for Hormel, indicating a potential upside of 12%, while McCormick has a target of $73, suggesting an 8% return over the next 12 months [11].

Group 1: UnitedHealth Group - UnitedHealth Group operates the largest private health insurer in the U.S. and a health services platform called Optum, which provides various healthcare services [2] - The company anticipates losing up to 2.8 million members due to increased rates in response to rising medical costs [2] - The stock recently dropped 20% following Q4 results, attributed to a rising medical care ratio (MCR) of 91.5%, the highest since last year's cost spike [3] - A proposed 0.09% increase for 2027 Medicare Advantage rates was below industry expectations, adding to uncertainty [3] - Despite challenges, the company maintains a safe 3.2% dividend, supported by $16 billion in free cash flow, funding the payout nearly twice over [4] - Management expects earnings per share (EPS) growth of around 8.5% this year, with the stock trading at 15.5 times next year's earnings target of $17.75 per share [4] Group 2: Ryman Hospitality Properties - Ryman Hospitality Properties is a REIT that owns large-scale convention resorts and iconic country music venues, including five of the seven largest non-gaming convention hotels in the U.S. [5] - In Q3, Ryman reported a 15.5% drop in adjusted funds from operations (AFFO) per unit due to planned renovations, a shift to lower-margin groups, and increased cancellations [7] - Bookings are up nearly 8% for the year, and the stock offers a 4.8% yield with a 57% payout ratio, producing nearly double the cash needed for its dividend [8] - Shares trade at just 12 times AFFO per unit expectations for fiscal year 2025, providing compelling exposure to the growing country music scene in Nashville [8] Group 3: ONEOK - ONEOK has transformed from a regional NGL business into a fully integrated platform through three major deals worth over $25 billion, creating a 60,000-mile network for transporting gas and crude [9] - Adjusted EBITDA increased by 37% year over year to $2.1 billion in Q3, driven by contributions from EnLink and Medallion assets, as well as higher processing volumes [10] - The stock is up nearly 15% over the past month, trading at just 11 times EBITDA with a yield of 5.1% [11] - Current spending on integration and pipeline repairs keeps free cash flow payout around 100%, but this is expected to improve as major projects complete this year [11]