Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, which can come from various sources including dividends [1][2] Company Overview - Southern Missouri Bancorp (SMBC) is a bank holding company in the Finance sector, with shares experiencing a price change of -16.59% this year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.09%, which is lower than the Financial - Savings and Loan industry's yield of 2.84% and the S&P 500's yield of 1.52% [3] Dividend Performance - SMBC's current annualized dividend of $1.00 represents an 8.7% increase from the previous year, with an average annual increase of 8.50% over the last five years [4] - The company's current payout ratio is 18%, indicating that it paid out 18% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year, SMBC anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $5.61 per share, reflecting an expected increase of 8.30% from the previous year [5] Investment Considerations - SMBC is considered a compelling investment opportunity due to its strong dividend profile, despite the challenges faced by high-yielding stocks during periods of rising interest rates [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6]

Core Insights - The article emphasizes the attractiveness of exchange-traded funds (ETFs) for long-term investors seeking quality investments that generate recurring income through dividends [1] Group 1: Vanguard Dividend Appreciation ETF - The Vanguard Dividend Appreciation ETF offers a dividend yield of 1.6%, slightly above the S&P 500 average of 1.2%, with a focus on dividend growth, making it appealing for long-term investors [3] - The fund has a low expense ratio of 0.05%, which is significant for long-term investing as lower fees can lead to higher returns over time [4] - The ETF holds over 330 quality dividend stocks, with Broadcom, Microsoft, and JPMorgan Chase as the top three holdings, where Broadcom constitutes about 6% of the portfolio, providing good diversification [5] - In 2025, the fund has generated total returns of 11%, which is close to the S&P 500's 14%, indicating potential resilience in down years due to its dividend growth [6] Group 2: Vanguard High Dividend Yield ETF - The Vanguard High Dividend Yield ETF offers a higher yield of around 2.5%, more than double the S&P 500 average, focusing on high-yielding stocks with 579 holdings as of August 31 [7] - The fund has a low expense ratio of 0.06%, making it a cost-effective option for investors [7] - There is some overlap with the Dividend Appreciation ETF, as Broadcom and JPMorgan Chase are also top holdings, while ExxonMobil, with a 3.5% yield, is among the top three in this fund [8] - Despite the higher risk associated with high-yielding stocks, the ETF's diversification mitigates this risk, as no single stock, apart from Broadcom and JPMorgan Chase, accounts for more than 3% of the portfolio [9] - This year, the ETF's returns have been consistent with the Dividend Appreciation ETF, both achieving over 11% returns including payouts, making them strong long-term investment options [10]

Core Insights - The article discusses the appeal of investing in dividend-paying stocks, particularly within the S&P 500 Index, highlighting their potential for long-term capital gains and regular income through dividends [1][2]. Group 1: Dividend Stocks Performance - Dividend stocks have historically been a popular investment strategy, but recent performance has been disappointing, with many stocks underperforming the S&P 500 [3]. - The SPDR S&P 500 High Dividend Portfolio ETF (SPYD) focuses on high-yielding stocks but has struggled to find worthy long-term investments, evidenced by a -9% annualized alpha [4][5]. Group 2: SPYD ETF Characteristics - SPYD holds approximately 80 of the highest-yielding stocks in the S&P 500, with a current yield of 4.5%, significantly higher than the S&P 500's low-1% range [5]. - The ETF has a low expense ratio of 0.07% and trades at under 12 times earnings, indicating potential value [5]. - With $7.7 billion in assets, SPYD is large enough to be significant but not overly large, providing decent long-term upside with a beta around 1.00 [5]. Group 3: Investment Outlook - Despite the current market conditions, the article suggests that fundamentally sound dividend stocks could still offer solid price gains over the next 3-5 years [6]. - A review of the holdings in SPYD indicates that many do not meet the criteria for long-term equity investing based on their weak performance [7].

Core Insights - The S&P 500 has a low dividend yield of 1.2%, making it challenging to find attractive yield stocks [1] - Energy Transfer, Healthpeak Properties, and Verizon are highlighted as top choices for income-seeking investors, with yields ranging from 6.8% to 8% [1] Energy Transfer - Energy Transfer offers the highest yield at 8%, supported by stable cash flows, with 90% of earnings from fee-based sources [3] - The company generated nearly $4.3 billion in distributable cash flow in the first half of the year, covering $2.3 billion in distributions and retaining $2 billion for reinvestment [3][4] - It plans to fund $5 billion in growth capital projects this year and has a strong investment-grade balance sheet, with a leverage ratio in the lower half of its 4.0-4.5 times target [4] - Growth capital projects are expected to enhance cash flows, and the company aims to increase its payout by 3% to 5% annually [5][8] Healthpeak Properties - Healthpeak Properties has a yield of 6.8% and pays dividends monthly, appealing to those seeking regular passive income [6] - The REIT owns a diversified portfolio of healthcare properties leased to high-quality healthcare companies under long-term contracts, providing a stable income stream [7]

Core Insights - Dividend stocks are essential for a reliable income strategy, but not all dividend payers are equal [1] - Different types of dividend stocks serve various roles in a portfolio, balancing income and growth [1] Group 1: Types of Dividend Stocks - **Dividend Aristocrats**: Companies in the S&P 500 that have increased dividends for at least 25 consecutive years [2] - **Dividend Kings**: Companies that have raised dividends for 50 or more consecutive years, demonstrating strong financial discipline and resilience [4][6] - **Dividend "Zombies"**: Companies that have paid dividends for over a century without interruption, providing consistent income [8][9] - **REITs and BDCs**: Offer high yields, often between 5-10% or more, but with slower growth [10]

In this module, you'll learn how to use Guru Focus's professional-grade research tools to identify stocks that meet your unique approach. We'll discuss things like screeners, model portfolios, and trade data from top investors and company insiders. First, we have to talk about stock screeners.Screeners are incredibly powerful tools that let you quickly filter through thousands of stocks and identify just the ones that meet the criteria you're most interested in. By setting different parameters such as valua ...

Company Overview - Mercantile Bank (MBWM) is headquartered in Grand Rapids and has experienced a price change of 2.23% this year [3] - The company is currently paying a dividend of $0.38 per share, resulting in a dividend yield of 3.34%, which is higher than the Banks - Midwest industry's yield of 3.28% and the S&P 500's yield of 1.49% [3] Dividend Performance - The current annualized dividend of Mercantile Bank is $1.52, reflecting a 7% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 6.33% [4] - The current payout ratio is 29%, indicating that the company paid out 29% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Future Outlook - The Zacks Consensus Estimate for 2025 projects earnings of $5.23 per share, representing a year-over-year growth rate of 6.09% [5] - Future dividend growth will depend on earnings growth and the payout ratio [4] Investment Considerations - Mercantile Bank is considered a strong dividend play and is currently rated with a Zacks Rank of 3 (Hold) [6] - The company is positioned as a compelling investment opportunity, especially for income investors [6]

Investment Strategy & Asset Allocation - A great company isn't necessarily a great investment unless it fits an investor's plan, highlighting the importance of a tailored strategy [1] - Asset allocation should be tailored to personal goals, risk tolerance, and time horizon [2] - Time horizon is crucial when deciding asset allocation between stocks and less risky assets like bonds; shorter time horizons may warrant shifting to less risky assets [4][5] - Neither asset allocation nor overall strategy is static; it should evolve as life circumstances change [6] Investment Styles - Common investment philosophies include deep value investing, high-quality investing, growth investing, and dividend investing, each with different places in a portfolio [7][8] - Deep value investing focuses on companies priced significantly below their intrinsic value, even if they are not exceptional companies [9][10] - High-quality investing focuses on financially strong companies with competitive advantages, held for long-term compounding [11][12] - Growth investing targets companies with revenue growth outpacing the broader market, often in technology sectors, but with higher risk [12][13] - Dividend investing prioritizes recurring dividend payments for a steady income stream, typically from larger, more mature companies with less price volatility but slower capital appreciation [14][15]

Company Overview - Kimberly-Clark is a manufacturer of consumer staples, including products like Kleenex, Huggies, and various types of toilet paper [2][8] - The stock has experienced a decline of 20% over the last 52 weeks and 9% year-to-date, currently trading at approximately 16.5 times earnings with a dividend yield of 4.2% [2][3] Investment Thesis - The company is viewed as a defensive play due to its essential product offerings, which are less sensitive to economic fluctuations [3][11] - Despite a general aversion to other investment options, stocks are still considered preferable to cash and bonds, with Kimberly-Clark being highlighted as a strong choice for the fourth quarter [3][4] Market Position and Competitiveness - Kimberly-Clark's products are seen as having less economic sensitivity compared to competitors like Clorox, as consumers are less likely to downgrade from premium products to generic options within the Kimberly brand [10][11] - The company is expected to maintain steady demand for its products, regardless of economic conditions, due to their essential nature [2][10] Sector Comparison - While the utility sector is also considered defensive and has seen significant gains, Kimberly-Clark is preferred due to its lower valuation and consistent demand [4][6][7] - The utility sector is trading at higher earnings multiples (around 23 times earnings) with less attractive growth prospects, making Kimberly-Clark a more appealing option [6][7]

Core Insights - Coca-Cola (NYSE: KO) is highlighted as a favored investment, with a substantial position established over the years, emphasizing the company's strong appeal in the investment community [1]. Investment Strategy - The article discusses the importance of dividend investing as a pathway to financial freedom, suggesting that it is an accessible method for building long-term wealth [1]. - The author combines financial expertise with value investing principles, focusing on sectors such as tech, real estate, software, finance, and consumer staples, which form the core of the investment portfolio [1]. Professional Background - The author has extensive experience in M&A and business valuation, having evaluated numerous businesses and participated in both sell-side and buy-side transactions [1]. - Daily activities include financial modeling, conducting commercial and financial due diligence, negotiating deal terms, and engaging in numerous meetings, showcasing a deep involvement in the financial sector [1].