Core Viewpoint - Agree Realty Corporation (ADC) is recognized as one of the highest quality Real Estate Investment Trusts (REITs) in the market, often compared to Realty Income (O) and referred to as "the small O" [1] Company Insights - ADC has a strong performance track record, particularly in dividend investing, which is highlighted as a key strategy for achieving financial freedom [1] - The company operates in various sectors including tech, real estate, software, finance, and consumer staples, which are also areas of personal investment for the analyst [1] Investment Philosophy - The article emphasizes the importance of dividend investing as a straightforward and accessible method for building long-term wealth [1] - The motivation behind sharing insights is to facilitate a collective journey towards financial freedom through shared knowledge and experiences in dividend investing [1]

Core Viewpoint - Many investors are attracted to dividend-paying stocks, particularly real estate investment trusts (REITs), due to their requirement to distribute at least 90% of taxable income as dividends [1] Group 1: Realty Income - Realty Income has been operating for over 50 years and owns more than 15,600 properties, primarily generating rental income from retailers, which account for about 80% of its annual rent [4] - The company maintains a high occupancy rate of 98.6% and has achieved a 3.4% increase in rental renewal rates during the second quarter [5] - Realty Income has a history of consistently increasing dividends, having raised payouts annually for approximately 30 years, with a current annualized dividend rate of $3.23 [6][7] - The stock offers a dividend yield of 5.4%, compared to the FTSE Nareit All Equity REITs Index yield of 4% as of the end of July [9] Group 2: Vici Properties - Vici Properties, established in 2017, focuses on leasing properties to gaming and entertainment companies, which are subject to economic cycle fluctuations [10]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Master's in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]

Core Insights - Occidental Petroleum stands out in Warren Buffett's portfolio due to its solid management, competitive profit margins, and reliable dividend yield of 2.1% [3][14] - Despite challenges in the oil industry, including falling oil prices, Occidental continues to attract investment from Berkshire Hathaway, which holds a 26.9% stake and has regulatory approval to increase its ownership to 50% [3][11] Company Overview - Occidental Petroleum is one of the largest gas and oil producers in the U.S., with operations in the Denver-Julesberg and Permian basins, as well as offshore in the Gulf of Mexico, North Africa, and the Middle East [5] - The company operates across upstream energy production, midstream pipelines, and downstream chemicals and refining, maintaining competitive profit margins compared to larger rivals like ExxonMobil and Chevron [6] Financial Performance - In the second quarter, Occidental reported a net income of $288 million, or $0.26 per share, down from $992 million and $1.03 per share a year ago [9] - The company produced 604 million barrels of oil in the quarter, an increase from 553 million a year ago, but the average price per barrel fell 9% to $63.76 [9] Investment Strategy - Buffett's interest in Occidental began in 2019 with a $10 billion investment in preferred stock to finance the acquisition of Anadarko Petroleum, despite the need to cut dividends at that time [10] - Berkshire Hathaway has been steadily acquiring shares of Occidental, with significant purchases made in 2022 and 2023, reflecting confidence in the company's management and long-term prospects [11][13] Market Context - The oil industry is facing challenges, with oil prices dropping from over $110 per barrel in 2022 to around $65 currently, with expectations of further declines [8] - Despite the current downturn, Occidental's long-term investment narrative remains strong, supported by its growing dividend and effective management [14]

Core Insights - Coca-Cola is a well-established company known for its reliable dividend income, having increased its annual dividend for 63 consecutive years, making it a Dividend King [1][4] Group 1: Dividend Information - The current annual dividend payout for Coca-Cola is $2.04, which translates to $0.51 quarterly [2] - To generate $1,000 in annual income from Coca-Cola's stock, an investor would need to own approximately 490.2 shares, costing around $33,265 at the stock price of $67.86 as of September 9 [2] Group 2: Investment Strategy - Investing in Coca-Cola requires time to realize decent returns, as it is a mature dividend stock that does not typically see high stock price growth [4] - Utilizing a dividend reinvestment plan (DRIP) can enhance the long-term benefits of Coca-Cola's consistent dividend increases, allowing dividends to be automatically reinvested into additional shares [5]

Core Viewpoint - Starbucks Corp. (SBUX) is currently yielding above 3% based on its quarterly dividend, which is annualized to $2.28, making it an attractive option for investors focused on dividends [1] Group 1: Dividend Importance - Historically, dividends have contributed significantly to the total return of the stock market, exemplified by the S&P 500 ETF (SPY) where dividends provided a positive total return of 23.36% despite a decrease in share price over a 13-year period [1] - Collecting a yield above 3% is considered attractive, especially when compared to the average annual total return of about 1.6% when dividends are reinvested [1] Group 2: Dividend Predictability - Dividend amounts are generally unpredictable and fluctuate with the profitability of each company, indicating that the sustainability of Starbucks' recent dividend should be assessed based on its historical performance [2]

Company Overview - Mercantile Bank (MBWM) is headquartered in Grand Rapids and operates in the Finance sector, with a stock price change of 8.65% since the beginning of the year [3]. Dividend Information - The company currently pays a dividend of $0.38 per share, resulting in a dividend yield of 3.14%, which is higher than the Banks - Midwest industry's yield of 2.94% and the S&P 500's yield of 1.49% [3]. - The annualized dividend of $1.52 represents a 7% increase from the previous year, with a historical average annual increase of 6.33% over the last five years [4]. - The current payout ratio is 29%, indicating that the company pays out 29% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - For the fiscal year, MBWM anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $5.23 per share, reflecting a 6.09% increase from the previous year [5]. Investment Appeal - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [5]. - MBWM is characterized as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [6].

Group 1 - The article emphasizes that investing can be simplified through the use of exchange-traded funds (ETFs), which offer various focuses such as industries, company sizes, geographic regions, and investment types [1] - It suggests that for investors with $500 to invest, two Vanguard ETFs are recommended as complementary options for a stock portfolio [2] Group 2 - The Vanguard High Dividend Yield ETF (VYM) is highlighted as a strong option for generating income through dividends, which can provide stability during market downturns [4][8] - VYM currently offers a yield of just over 2.5%, which is more than double the S&P 500 average, and it holds 580 large-cap stocks across major sectors, with financials being the largest sector at 21.6% [5][6] - The article notes the importance of reinvesting dividends to acquire more shares, which can enhance long-term investment growth, despite a $500 investment yielding only $12.50 annually if not reinvested [7]

Core Insights - The article emphasizes the importance of dividend investing as a pathway to financial freedom, highlighting its accessibility and potential for steady income [1]. Group 1: Author's Background and Expertise - The author has 10 years of experience in investment banking, specializing in M&A and business valuation, which includes evaluating numerous businesses and facilitating buy-side and sell-side transactions [1]. - The author engages in financial modeling, commercial and financial due diligence, and negotiating deal terms, indicating a strong grasp of financial health assessment [1]. - The sectors of focus include technology, real estate, software, finance, and consumer staples, which form the core of the author's investment portfolio [1]. Group 2: Purpose and Motivation - The motivation for writing is to deepen personal knowledge and share insights with others pursuing financial freedom through dividend investing [1]. - The author aims to demystify the dividend investing process, making it more approachable for individuals looking to build long-term wealth [1]. - The overarching goal is to facilitate a collective journey towards financial freedom, emphasizing learning and growth in the realm of dividend investing [1].

Core Insights - The article emphasizes the importance of dividend investing as a pathway to financial freedom, highlighting its accessibility and potential for steady income [1] Group 1: Author's Background and Expertise - The author has 10 years of experience in investment banking, specializing in M&A and business valuation, which includes evaluating numerous businesses and facilitating buy-side and sell-side transactions [1] - The author's daily responsibilities involve financial modeling, conducting commercial and financial due diligence, negotiating deal terms, and extensive meetings [1] - The sectors of focus include technology, real estate, software, finance, and consumer staples, which are also the core of the author's investment portfolio [1] Group 2: Purpose and Motivation - The motivation for writing is to deepen personal knowledge and share insights with others pursuing financial freedom through dividend investing [1] - The author aims to demystify the dividend investing process, making it more approachable for individuals looking to build long-term wealth [1] - The ultimate goal is to facilitate a collective journey towards financial freedom, emphasizing learning and growth in the realm of dividend investing [1]