Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a me ...

Core Viewpoint - AGNC (NASDAQ: AGNC) offers a high forward yield of 12.8%, but its earnings are declining, raising concerns about the sustainability of its dividend [1][2] Group 1: AGNC Overview - AGNC is a mortgage real estate investment trust (mREIT) that generates income by buying mortgages and mortgage-backed securities (MBS) [2] - The projected EPS for AGNC is $1.51, which covers its forward dividend rate of $1.44, indicating a potential for dividend sustainability [1] - AGNC's current trading discount is attributed to declining earnings, which may lead to challenges in maintaining its dividend if the payout ratio exceeds 100% [2][3] Group 2: Interest Rate Impact - AGNC's profitability relies on the Fed's short-term rates being lower than long-term rates; however, recent interest rate cuts have not effectively reduced MBS yields and borrowing costs [2] - The company has been forced to take out loans at higher rates to purchase lower-yielding MBS, creating an ongoing imbalance if the real estate market remains weak [2] Group 3: Comparison with Vici Properties - Vici Properties (NYSE: VICI) is presented as a more stable investment option compared to AGNC, as it operates as an equity REIT that owns physical properties and has a consistent occupancy rate [3][4] - Vici has maintained a 100% occupancy rate since its IPO in 2018 by locking tenants into long-term leases, which are indexed to the Consumer Price Index (CPI) [5] - Vici's business model allows it to raise rents in line with inflation, and it has successfully increased its dividend every year since its IPO, currently offering a forward yield of 6% [6]

Company Overview - American International Group (AIG) is headquartered in New York and operates in the Finance sector [3] - The stock has experienced a price decline of 12.33% since the beginning of the year [3] Dividend Information - AIG currently pays a dividend of $0.45 per share, resulting in a dividend yield of 2.4%, which is higher than the Insurance - Multi line industry's yield of 1.52% and the S&P 500's yield of 1.36% [3] - The annualized dividend of $1.80 represents a 2.9% increase from the previous year [4] - Over the past 5 years, AIG has increased its dividend 3 times, averaging an annual increase of 6.78% [4] - The current payout ratio is 28%, indicating that AIG pays out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for AIG's earnings in 2026 is $7.81 per share, reflecting a year-over-year growth rate of 10.16% [5] Investment Considerations - AIG is considered a strong dividend investment opportunity, especially for income investors, as it offers a compelling yield and has a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Income investors prioritize generating consistent cash flow, primarily through dividends, which significantly contribute to long-term returns [2]. Company Overview - Air Products and Chemicals (APD) is located in the Basic Materials sector and has experienced a price change of 14.77% since the beginning of the year [3]. - The company currently pays a dividend of $1.79 per share, resulting in a dividend yield of 2.53%, which is higher than the Chemical - Diversified industry's yield of 1.69% and the S&P 500's yield of 1.36% [3]. Dividend Performance - The annualized dividend of $7.16 has increased by 0.6% from the previous year, with a historical average annual increase of 6.01% over the last five years [4]. - The current payout ratio for Air Products and Chemicals is 58%, indicating that 58% of its trailing 12-month earnings per share (EPS) is distributed as dividends [4]. Earnings Growth Expectations - For the fiscal year, APD anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 at $13.01 per share, reflecting an expected increase of 8.15% from the previous year [5]. Investment Considerations - APD is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy), despite the general trend of high-yielding stocks struggling during rising interest rates [6].

Company Overview - Univest (UVSP) is headquartered in Souderton and operates in the Finance sector, with a year-to-date stock price change of 2.08% [3] - The company currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.63%, which is higher than the Banks - Northeast industry's yield of 2.42% and the S&P 500's yield of 1.36% [3] Dividend Performance - Univest's annualized dividend of $0.88 has increased by 1.1% from the previous year [4] - Over the last five years, the company has raised its dividend twice on a year-over-year basis, achieving an average annual increase of 1.61% [4] - The current payout ratio is 29%, indicating that the company distributes 29% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for Univest's earnings in 2026 is projected at $3.31 per share, reflecting an expected increase of 5.75% from the previous year [5] - Future dividend growth will depend on earnings growth and the payout ratio [4] Investment Considerations - Univest is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - Income investors are attracted to dividends for various reasons, including tax advantages and reduced overall portfolio risk [5]

Company Overview - WaFd (WAFD) is based in Seattle and operates in the Finance sector, with a year-to-date share price change of 4.62% [3] - The company is the holding entity for Washington Federal Savings Bank and currently pays a dividend of $0.27 per share, resulting in a dividend yield of 3.22% [3] Dividend Information - WaFd's current annualized dividend of $1.08 has increased by 0.9% from the previous year [4] - Over the past five years, WaFd has raised its dividend five times, achieving an average annual increase of 4.27% [4] - The company's payout ratio stands at 40%, indicating that it distributes 40% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for WaFd's earnings in 2026 is projected at $3.06 per share, reflecting a year-over-year earnings growth rate of 12.50% [5] Investment Considerations - WaFd is considered a strong dividend investment opportunity, especially in the context of rising interest rates, where high-yielding stocks may face challenges [6] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a stable investment outlook [6]

RESPONSIBLE CARE® OUR COMMITMENT TO SUSTAINABILITY Refer to the Appendix for additional notices of caution regarding forward looking information. 2 TSX: CHE.UN 2026 Guidance 2026 Guidance: 2026 GUIDANCE Chemtrade Logistics Income Fund (TSX: CHE.UN) January 8, 2026 CAUTION REGARDING FORWARD- LOOKING STATEMENTS Certain statements contained in this presentation constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements ...

Core Viewpoint - Deutsche Bank AG has outlined a structured plan to increase its return on tangible equity (RoTE) above 13% by 2028 through revenue growth, cost discipline, capital optimization, and higher shareholder payouts [1] Revenue Growth - The bank aims to achieve an additional €5 billion ($5.8 billion) in revenues by expanding its Global Hausbank across asset gathering, payments servicing, and advisory [2] - Deutsche Bank plans to generate €2 billion ($2.3 billion) of this growth in Germany by leveraging its home-market leadership and capitalizing on fiscal stimulus, structural reforms, private-sector investment, and long-term transformation spending [2] Cost Control and Efficiency - Deutsche Bank targets a cost-income ratio of below 60% by 2028, an improvement from previous goals [3] - This improvement is expected to be driven by €2 billion in gross cost efficiencies through process simplification, automation, and increased use of digital and AI-enabled platforms [3] Capital Management - The bank intends to maintain its Common Equity Tier 1 (CET1) ratio at 13.5-14%, balancing resilience with return optimization [4] - Starting in 2026, Deutsche Bank plans to increase its payout ratio to 60% of net profit attributable to shareholders, up from the current 50% target for 2025 [4] - Higher dividends and share buybacks are aimed at enhancing shareholder returns and reinforcing management's confidence in sustainable earnings [4] Market Performance - Over the past six months, Deutsche Bank shares have increased by 35.5% on the NYSE, outperforming the industry growth of 24.8% [9]

Core Insights - The article discusses the importance of low payout ratios in dividend stocks and highlights companies with strong upside potential and sustainable dividends [1][2][3] Dividend Payout Ratios - A high payout ratio indicates that a large portion of earnings is distributed to shareholders, leaving less for reinvestment [1] - Historical data shows that companies in the second quintile of payout ratios (averaging 40%) have outperformed those in the first quintile (averaging 75%) over multiple decades [2] - Companies with lower payout ratios are less likely to cut dividends during earnings declines, as they have more margin for error [3] Investment Methodology - The selection process involved screening for companies with a 5-year average payout ratio below 60%, indicating a strong cash position [6] - Stocks were further filtered to include those with a minimum upside potential of 25% based on analysts' targets as of December 24 [6] - The final list included 15 companies favored by hedge funds, as per Insider Monkey's database for Q3 2025 [6][7] Company Highlights - **Houlihan Lokey, Inc. (NYSE:HLI)**: - 5-Year Average Payout Ratio: 40.94% - Upside Potential: 26.3% - Recent revenue of $659 million, up from $575 million year-over-year, with net income rising to $112 million [9][10][11] - **Weyerhaeuser Company (NYSE:WY)**: - 5-Year Average Payout Ratio: 59.1% - Upside Potential: 32.1% - Recent initiatives include a joint venture with Aymium to produce sustainable biocarbon, with plans to convert over 7 million tons of wood fiber annually [13][15][16][17] - **Bunge Global SA (NYSE:BG)**: - 5-Year Average Payout Ratio: 22.6% - Upside Potential: 33.2% - Recent earnings per share reported at $0.86, with adjusted segment EBIT rising to $924 million [18][20][21]

Core Insights - The Global X SuperDividend ETF (SDIV) offers a high dividend yield of 9.7%, significantly higher than the Vanguard High Dividend Yield ETF (2.5%) and Schwab U.S. Dividend Equity ETF (3.7%) [1] - SDIV's high yield is primarily derived from its holdings in mortgage REITs and international stocks, but this comes with sustainability concerns due to high payout ratios [2][3] Group 1: Yield and Performance - SDIV's yield is more than triple that of VYM and over double that of SCHD, tracking 100 of the highest-yielding equities globally [1] - The fund has a high expense ratio of 0.58%, nearly ten times that of its peers, and a portfolio turnover rate of 93%, indicating frequent trading [2] Group 2: Dividend Sustainability - The monthly dividend has decreased from $0.255 in early 2023 to $0.19, marking a 25% reduction, which highlights structural challenges within the fund [2] - Key holdings like Annaly Capital Management, AGNC Investment, and Invesco Mortgage Capital exhibit unsustainable payout ratios, with Annaly at 122%, AGNC at 215%, and Invesco at 296% [3][4] Group 3: Alternative Options - For investors seeking more sustainable income, the JPMorgan Equity Premium Income ETF (JEPI) offers an 8.2% yield through a covered call strategy, with a more manageable payout ratio of 61% [6][7] - JEPI's monthly distributions have been more consistent compared to SDIV, providing better downside protection without the risks associated with emerging markets [7]