Our “dividend galaxy” is composed of 449 stocks that have paid ever increasing dividends for a minimum of seven years.
- 7.8% of the stocks are what we consider “Under Index”, meaning that you could get better performance just buying an index fund
- 39.6% of the stocks are pure growth, meaning their dividends are very low, allowing managers to focus funds on creating more growth
- 30% of the stocks are what we consider “Income Stocks,” delivering a yield that is greater than 1.5x that of the S&P500
- 22.6% are what we consider “Growth and Income Stocks,” delivering a total return that beats the SPY index fund, and dividends in excess of the 1.5x that of the S&P500
Averages to Beat
Based on our galaxy, the average values for each sector are shown in the chart below. We recommend that you invest in stocks that have a history of beating the averages.
Stocks on Sale
The market is up in the last few weeks. No one knows if it’s a bounce that will lead to another drop, or the start of a climb. It’s probably wise to stay defensive and focus on dividend stocks that are currently offering value when compared to their historical averages. Here’s our list of “stocks on sale” (just click the link for instant download, login or email not required).
Our favorites from the list are:
- For Growth: MarketAxess Holdings (MKTX) with a 15-year Total Return of 21.41% per year (on average!)
- For Income: T. Rowe Price Group (TROW) with a recent 3.69% yield, 36 years of increasing dividends, 15.25% average dividend growth rate, and a dividend safety rating of 4.64 out of 5.0
- For Growth and Income: We like Cube Smart (CUBE) with a recent yield of 3.55%, a total return average of 14.37% per year, average dividend growth of 12.02% per year, and 13 years of increasing dividends
The Best Rule to Remember
Investing is as much as trying to increase the value of your investment as it is working to protect yourself from loss.