Core Viewpoint - The article discusses stocks categorized into "Naughty" and "Nice" lists based on the pricing of their options, highlighting those with inflated premiums to avoid and those with attractive pricing to consider for buying options. Naughty List - Stocks on the Naughty List have options prices that are significantly inflated, making them risky for trading calls or puts due to high premiums [2] - Oracle Corp. (NYSE:ORCL) has seen its implied volatility rise from 24 to 64, indicating overpriced options ahead of earnings [4] - Lululemon athletica Inc. (NASDAQ:LULU) shows options priced above normal, making it difficult to justify long calls or puts [5] - Paychex Inc. (NASDAQ:PAYX) has inflated options that do not align with its consistent performance, stacking odds against buyers [7] - Ciena Corp. (NYSE:CIEN) has overpriced options despite solid stock movement, making it a red flag for potential buyers [8] - FactSet Research Systems Inc. (NYSE:FDS) has options trading at rich premiums, affecting the risk-reward balance for traders [10] Nice List - Stocks on the Nice List have options trading at or near their lowest levels of the year, providing opportunities for buying time premium without overpaying [11] - Uber Technologies Inc. (NYSE:UBER) has seen its implied volatility drop from 80 to 30, making it an attractive option for bullish plays [12] - Rubrik Inc. (NYSE:RBRK) is trading at the bottom of its implied volatility range, presenting a good opportunity for call buying [13] - Tempus AI Inc. (NASDAQ:TEM) is also at low option premium levels, making it a smart choice for potential moves [14] - Ross Stores Inc. (NASDAQ:ROST) has equal high and low volatility levels, indicating a new low in options pricing, which could be favorable for long calls [15] - Ventas Inc. (NYSE:VTR) has dropped premiums near year-lows, making it an attractive option for buyers if a catalyst appears [16]

Core Investment Strategy - The focus on building a 5% portfolio emphasizes high-quality dividend stocks, with Enterprise Products Partners (NYSE: EPD) highlighted for its 6.64% dividend yield and $2.18 annual dividend, supported by a fee-based business model that ensures steady revenue and consistent dividend distribution for 27 years [1] - A 5% income portfolio is designed to provide recurring income while minimizing the need to sell shares during market downturns, contrasting with the traditional 4% spending rule for retirement [2][3] Portfolio Composition - A well-structured 5% portfolio aims to balance ambition and safety, relying on a diversified mix of dividend stocks, high-quality bonds, and REITs to generate meaningful cash flow without chasing high-risk yields [3][4] - The strategy is particularly appealing in a volatile market environment, where consistent income is prioritized over speculative investments [4][5] Dividend Stocks - Automatic Data Processing (NASDAQ: ADP) is noted for its subscription-based revenue model, providing a predictable earnings stream with a 2.62% yield and a $6.80 annual dividend, contributing to overall portfolio income [7] - The JPMorgan Equity Premium Income ETF (NYSE: JEPI) offers an 8.19% dividend yield with a $4.69 annual dividend, utilizing an options overlay to enhance income and reduce volatility [8] - The Global X SuperDividend ETF (NYSE: SDIV) invests in the 100 highest-yielding companies globally, currently yielding 9.68% with a $2.31 annual dividend, providing diversified income sources [9] Bond ETFs - The Fidelity Total Bond ETF (NYSE: FBND) has a yield of 4.63% and an annual dividend of $2.14, focusing on a mix of corporate, government, and securitized debt to enhance yield while maintaining investment-grade quality [10] - The Janus Henderson AAA CLO ETF (NYSE: JAAA) offers a 5.33% yield with a $2.69 annual dividend, investing in AAA-rated collateralized loan obligations, which historically show low default risk [11] REITs - Realty Income (NYSE: O), known as "The Monthly Dividend Company," has a 5.66% dividend yield and a history of annual dividend increases for 21 years, with an annual payout of $3.23 per share [12] - NNN REIT (NYSE: NNN) features a yield of around 6.05% and an annual dividend of $2.40, with a focus on long-term net leases that stabilize cash flow and a 36-year history of increasing dividends [13]

Core Insights - Dividend investors often focus on well-known companies like Pepsi, Johnson & Johnson, and Procter & Gamble, but this approach overlooks numerous other opportunities that may offer better returns [1][2] - There are lesser-known dividend stocks that operate in stable industries, consistently raise their payouts, and outperform larger, more popular dividend stocks [2][4] - The current market volatility has prompted investors to seek companies that can grow without relying on ideal market conditions, making these under-the-radar dividend stocks appealing for their stability and potential upside [4][5] Company Summaries - **Rexford Industrial Realty**: Operates industrial properties in Southern California, the largest supply-constrained industrial market in the U.S. The company has achieved a compound growth rate of 16% in funds from operations over the past five years, nearly double that of its peers. The stock yields 4.21%, with an annual return of $1.72 per share, and has increased dividends for 12 consecutive years [8][9] - **Automatic Data Processing (ADP)**: Known for payroll and HR services, ADP has raised its dividends for 51 years. The stock yields 2.60% with an annual dividend of $6.80. The company maintains a moderate payout ratio, indicating potential for future increases, and benefits from predictable cash flow due to high client retention [11][12][13] - **Williams Sonoma**: A well-known retail name that has successfully navigated supply chain challenges and changing consumer habits. The company has a consistent dividend growth supported by strong operating cash flow. The stock yields 1.49% with an annual dividend of $2.64 and a payout ratio of 27.98%, making it an attractive option for investors [15][16]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Paychex, Inc. has raised its adjusted earnings growth guidance for fiscal 2026 while maintaining its annual revenue growth outlook [1] Group 1: Earnings Guidance - For fiscal 2026, the company projects adjusted earnings per share growth in the range of 9 to 11 percent, an increase from the previous range of 8.5 to 10.5 percent [1] - The guidance implies adjusted earnings in a range of $5.43 to $5.53 per share based on adjusted earnings of $4.98 per share reported for fiscal 2025 [2] Group 2: Revenue Outlook - The company continues to expect total revenue growth of 16.5 to 18.5 percent for fiscal 2026 [1] - Total revenues for fiscal 2026 are projected to be between $6.49 billion and $6.60 billion [2] Group 3: Analyst Expectations - Analysts currently expect the company to report earnings of $5.47 per share with revenue growth of 17.66 percent, totaling approximately $6.56 billion for the year [3]

Core Insights - ADP has launched ADP® Embedded Payroll, a solution designed for SMB software providers to offer integrated payroll solutions tailored to small business clients [1][4] - The platform supports payroll processing, payments, and tax compliance, leveraging ADP's technology and expertise [1][4] Company Overview - ADP has over 75 years of experience in HR and payroll solutions, continuously addressing business challenges for clients [4][6] - The company serves more than 1.1 million clients across over 140 countries, providing a range of services including HR, Talent, Time Management, Benefits, Compliance, and Payroll [6] Product Features - ADP Embedded Payroll integrates payroll directly into existing business platforms, reducing operational friction and saving time for small business owners [2][4] - The solution offers flexible implementation options, including developer-friendly APIs and ready-to-deploy user interfaces, to accelerate time-to-market for partners [4][5] - It includes enterprise-grade APIs for secure, real-time data exchange, an easy-to-use interface for payroll tasks, and dedicated service teams for customer support [5] Market Positioning - The partnership with Clover enhances the platform's capabilities, allowing small businesses to operate more efficiently and meet customer expectations [2][4] - ADP's omni-channel service is available 24/7, providing partners with go-to-market support and sales tools to improve client retention and overall value proposition [2][4]