4.8% increase in annual dividend58 consecutive years of annual dividend increasesMore than 80 consecutive years of dividend payments SAN JOSE, Calif., Jan. 26, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of H2O America (NASDAQ: HTO) has declared a quarterly cash dividend of $0.44 per share payable on March 2, 2026, to all shareholders of record at the close of business on Feb. 9, 2026. The March dividend will represent a 4.8% increase over the dividend paid in December 2025. The 2026 annualized dividend ...

Core Viewpoint - The article discusses the author's skepticism towards high-yield dividend stocks, emphasizing that higher yields often correlate with increased risk, which is a common concern among investors [1]. Group 1: Author's Perspective - The author expresses a long-term investment strategy focused on macro analysis and identifying durable businesses with strong cash-flow potential [1]. - The author has a passion for dividend growth and high-quality compounders, indicating a preference for stable and reliable investment opportunities [1]. Group 2: Research and Analysis - The article highlights the importance of combining macroeconomic analysis with bottom-up stock research to uncover actionable investment ideas for long-term investors [1].

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .Leo Nelissen is a long-term investor and macro-focused strategist with a passion for dividend growth, high-quality compounders, and structural investment themes. He combines big-picture macro analysis with bottom-up stock research to identify durable businesses with strong cash- ...

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 achieve a total return that aligns with the performance of the S&P index, indicating a balanced focus on both growth and income [1].

Core Viewpoint - The recent decline in Visa's stock presents a buying opportunity for investors, as the drop was driven by market fears rather than the company's fundamentals [3]. Business Model - Visa operates as a payment network rather than a lender, processing 329 billion transactions across 220 countries in the year ending September 30 [4]. - The company collects a fee on each transaction, making it resilient against regulatory changes regarding credit card interest rates [5]. Stock Performance - Visa's stock has underperformed the S&P 500 over the past year, with a gain of just over 7% compared to the market's 20% [5]. - The company's dividend yield remains around 0.5%, with a recent dividend hike of 13.6% [6]. Consumer Spending Trends - Despite economic concerns, American consumer spending remains strong, with retail sales increasing by 0.6% in November [8]. - The University of Michigan's consumer sentiment indicator rose for the second consecutive month in January, indicating potential for increased transactions for Visa [8]. Growth Opportunities - Visa is positioning itself to benefit from the growth of stablecoins, which are pegged to the US dollar and facilitate international transactions [9]. - The company launched stablecoin settlement in the US, achieving a monthly settlement volume of $3.5 billion annualized as of November 30 [10]. Financial Health - Visa's management has engaged in significant share buybacks, repurchasing 9% of the company's float over the last five years, which supports earnings per share and dividend growth [12]. - The company maintains a strong balance sheet with $23.2 billion in cash and investments, nearly offsetting its $25.9 billion debt, providing a cushion for continued dividend payments [13].

Core Viewpoint - The article emphasizes the importance of finding common ground among readers regarding investment strategies, particularly in the context of lower-yielding growth stocks [1]. Group 1: Analyst Background - Leo Nelissen is identified as a long-term investor and macro-focused strategist, specializing in dividend growth and high-quality compounders [1]. - The analyst combines macro analysis with bottom-up stock research to identify businesses with strong cash-flow potential [1]. - Leo also contributes to Main Street Alpha, providing in-depth research and actionable investment ideas for long-term investors [1].

Core Insights - The First Trust Rising Dividend Achievers ETF (RDVY) targets U.S. common stocks that demonstrate consistent dividend growth and maintain balance-sheet discipline [1] Group 1: Eligibility Criteria - Stocks must be among the top ~750 by market capitalization and have a 3-month average daily trading volume (ADVT) of at least USD 5 million [1] - Eligible stocks must pay regular cash dividends and show both 3-year and 5-year dividend-per-share growth compared to the prior 12-month period [1] - The dividend payout ratio must be 65% or lower, and cash to debt ratio must exceed 50% [1] Group 2: Selection and Ranking - Candidates are ranked based on dividend growth and payout sustainability, with a selection of up to 50 names [1] - At least 33 of the selected stocks must be large-cap, and a maximum of 15 can come from any single ICB industry to reduce concentration risk [1] - Constituents of the index are equal-weighted [1] Group 3: Rebalancing and Reconstitution - The index undergoes reconstitution and rebalancing on a quarterly basis, specifically in March, June, September, and December [1] - Buffers are implemented to limit unnecessary turnover and corporate-action drift between reviews [1]

Group 1 - The article emphasizes the importance of in-depth research on various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting the value of a free trial for potential investors [1] - Leo Nelissen is identified as a long-term investor and macro-focused strategist, known for his focus on dividend growth and high-quality compounders, combining macro analysis with stock research to find durable businesses [1] Group 2 - The article does not provide specific financial data or performance metrics related to any company or industry [2][3]

Core Viewpoint - The choice between the Vanguard Dividend Appreciation ETF (VIG) and the Schwab U.S. Dividend Equity ETF (SCHD) hinges on the investor's perspective on the current market rotation, particularly between dividend growth and high yield strategies [1][2]. Group 1: ETF Characteristics - The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index, focusing on large-cap stocks that have increased their annual dividends for at least 10 consecutive years, while excluding the top 25% of yields to avoid yield traps [3][4]. - The Schwab U.S. Dividend Equity ETF follows the Dow Jones U.S. Dividend 100 Index, targeting companies of all sizes that have paid dividends over the past decade, using metrics like return on equity (ROE) and cash flow to debt to select the top 100 stocks [5][6]. Group 2: Performance and Strategy - The Vanguard ETF's market-cap-weighting strategy has led to significant holdings in major tech companies like Broadcom, Microsoft, and Apple, contributing to its past performance, but raises concerns if the market shifts away from tech [7]. - The Schwab ETF has underperformed in the past three years due to its strategy being out of favor, but its approach of incorporating dividend growth history and quality metrics is seen as beneficial for identifying high-quality stocks [7][8]. Group 3: Current Market Positioning - The Schwab ETF is viewed as a better investment currently, given the uncertainties in the economy and labor market, suggesting a potential shift towards more defensive investments [8].

Core Insights - Numerous companies are expected to increase their dividends in the upcoming quarterly earnings season, with many of these increases being minimal to satisfy shareholders, while larger increases are being sought after [2][3] Dividend Growth Companies - Companies with the potential for significant dividend increases, specifically those capable of raising distributions by at least 39%, are highlighted as attractive investment opportunities [3] - Lockheed Martin (LMT) serves as an example of a company that has consistently aligned its stock performance with its dividend growth, resulting in a yield on cost exceeding 18% for long-term holders [3][4] Primerica (PRI) - Projected dividend yield of 1.6% with a 39% increase expected in 2025, following a trend of doubling its payout over the past four years [5][6] - The company has shown steady revenue growth for over a decade, with earnings per share (EPS) expected to rise by low double digits in 2025, despite pressures from higher living costs [7] - Anticipation surrounds the upcoming dividend hike announcement in early February, with significant stock buyback programs also in place [8] Yum China Holdings (YUMC) - Projected dividend yield of 2.0% with a 50% increase expected in 2025, as the company continues to expand aggressively in the Chinese market [9][10] - Yum China plans to return $3 billion to shareholders between 2025 and 2026, with a notable increase in dividends from 10 cents per share in 2017 to 24 cents per share in 2025 [11][12] Comfort Systems (FIX) - Projected dividend yield of 0.2% with a 60% increase expected in 2025, reflecting a significant growth in dividends of approximately 471% since 2020 [13][15] - The company is well-positioned to benefit from growth in the technology sector, particularly in artificial intelligence, which drives demand for its services [14] Penske Automotive Group (PAG) - Projected dividend yield of 3.4% with a 40.2% increase expected in 2025, maintaining a history of quarterly dividend hikes for over a decade [16][19] - The company operates a diverse range of dealerships and has a significant presence in commercial vehicle retail, although net income has been declining recently [18][21] Howmet Aerospace (HWM) - Projected dividend yield of 0.2% with a 100% increase expected in 2025, following a substantial growth in dividends over the past five years [21][22] - The company is focused on advanced engineered products for aerospace and transportation, with a recent acquisition expected to drive revenue growth [23][24]