The Best Dividend Stocks | How to Find Them

[@joepiv]

Want to see more videos like this one? Subscribe to our channel using the below link, and you will. (NEW SUB BONUS: Our on-staff Romanian fortune teller will include your portfolio in her prayers this evening.) 🔮 kzbin.info

[@stephengalea9447]

Interesting presentation. I fell into the yield bucket and didn't buy some great companies who were growing dividends year on year. I'm from Australia so I'm going to say my favourite conglomerate, at least in Australia, is Wesfarmers. They do everything from lithium, hardware stores, office supplies, fertilisers and make a good sausage sizzle on weekends. I think i need to do another deep dive on WES after listening to Nanalyse

[@Nanalyze]

That's a very interesting conglomerate we hadn't come across before - quite large too! Thank you for raising. If they have an appropriate track record then we'll see about including them. What we'll probably do is collect all the names that get raised, supplement them with some of our own research, then do a follow up piece.

[@DennisFinancialDoctor]

I like this presentation. It shows your experience as an investor. The “yield-on-cost” explanation was a bit long winded. I’m not entirely a fan of dividend investing although the majority of my holdings pay dividends… but the dividend or lack of dividend is meaningless in my investment thesis. That said, your arbitrary requirement to have a dividend immediately disqualifies Berkshire Hathaway despite the fact that they return significant capital to shareholders, and arguably does so better than any other company in the world. I agree with your assessment of buying a conglomerate if you want to buy one investment and hold it for 50+ years. The discount of what you’re talking about is just a sum-of-all-parts discount and that discount will always be there. Anyone who says the sum-of-all-parts discount is an arbitrage opportunity is wrong. If I had to pick a stock out of all your required parameters, I will pick $BN.

[@Nanalyze]

Really glad you enjoyed the presentation! To be fair, the presenter is known for being long winded, and it's not just cold air he's blowing. The requirement to have a dividend isn't just a requirement to have a dividend, it's a requirement to have not only paid - but increased - a dividend for 25 years in a row AT LEAST. That criteria is hardly arbitrary, it's an indication that a company can demonstrate financial discipline, and the foundation of our entire Quantigence strategy. Others may place less precedence on this 25 year track record dividend, and that's fair enough. Noted on your choice of Brookfield. That might actually make for a very good video!

[@MrMentalpuppy]

He has amazing info, not seen in other videos, and he even takes time to reply! Like & Sub, truly a cut above traditional KZbin investment analysis 👌

[@Nanalyze]

Thank you very much for the kind words and vote of confidence! Comments like this reassure us that we're on track with our goal of helping people become better investors. -Wyatt C.

[@Nanalyze]

Really appreciate the kind words and financial support @MrMentalpuppy! We couldn't do this without the team of people behind the scenes who make it possible. Joe P.

[@SANKOFA_MB]

Great presentation. My favorite conglomerate is $CVS. Its an undervalued gem in the healthcare sector. I would love to hear your thoughts.

[@Nanalyze]

Glad you enjoyed this Michael! If they increased dividends for at least 25 years then we'll include them in the follow up video.

[@robsmitleiden]

My favorite conglomerate is the Japanese firm Itochu, they do just about everything. There are a handful more companies like that; Warren Buffett invested in all of them a year ago, and keeps investing in them. Personally, I only own Itochu and it's been very good to me so far.

[@Nanalyze]

Thank you for this comment! Japan has quite a few conglomerates, no? Might be worth digging into some of these provided we can find some dividend champions. We can't emphasize enough how important that track record is in assuring the company continues to - not only pay, but - grow their dividend over time. Otherwise, the asset starts to look too much like a bond.

[@MrMentalpuppy]

I was trying to think about which one stock I would like to own and came to the conclusion of Google a couple years ago. Mainly due to my belief that AI & Data are the most important factors. I agree with your idea of a well-diversified conglomerate, and perhaps Google doesn’t fit that mark. Maybe I'll just say honeywell, it has the tech component while also being essential. Side question, what filters do you use when search for potential stocks to research? I found piotroski f score + shareholders yield to provide some reliable stocks. I am unable to find screeners for high growth stocks though. Seems that they require a case by case analysis, since the financial don't tell the full picture. Example: Tesla in the early days had horrible financials. At one point it seemed that they might become profitable, but I was never able to justify the price. RXRX (Recursion) is giving me similar vibes. Im not sure how one can determine the right metrics for a "tipping point" in potential hyper growth stocks.

[@MrMentalpuppy]

Just to clarify, I don't believe ratios/screeners alone can provide predictably reliable above average (market) returns, but they are a good starting point to justify research. Also, I like having fun and typical metrics which show that a company is reasonable isn't too fun. So, I usually just see what funds or interesting people (such as yourself) pick, then do my own research. Not sure if there are better ways...

[@Nanalyze]

Honeywell would be considered a conglomerate, excellent choice. We don't use stock screeners at Nanalyze, mainly because we invest in companies, not stocks. If we're looking for exposure to a disruptive technology (Robotics, for example), then we'll start by looking at the largest robotics ETFs, then narrowing down the selections based on our own investment criteria. We're more interested in finding all of the "pure play" stocks for a given theme, then we'll narrow down by other metrics like size, growth, margins, and so on. There are plenty of places to start, but that's what we do. Appreciate the comment! -Wyatt C.

[@MrMentalpuppy]

Wow, I wanted to hear your opinion on this, and boom this video! Awesome.

[@Nanalyze]

We're pretty good at reading minds. Thanks for the kind words!

[@askaneconomist8265]

Johnson and Johnson is strong although after a spinoff might generate less free cash flow. Honeywell and Carlisle Companies. Both of these companies are projected to increase their free cash flow and continue to grow their dividends

[@Nanalyze]

Great choices! Yes, I believe both of those would be considered conglomerates.

[@MarsRacingNetwork]

Always appreciate the hard work,Joe!What are your thoughts on the 3M PFAS Settlement?

[@Nanalyze]

That's a great question, and we're about due for an update on 3M. There's a reason the yield sits at 6%, and it's not a good one. As we saw with VFC, it may be an indication that investors believe the dividend growth track record - raising their dividend for over 60 years in a row - may be in jeopardy. One would hope they're going to do everything possible to avoid ceasing dividend growth.

[@MarsRacingNetwork]

@@Nanalyzei hope so too!

[@henrik4438]

Try to ask Charlie Munger what if you could only hold one stock? 😅 I would own VOO. That, for me, is the best dividend stock ✅

[@Nanalyze]

That's always a classic question! VOO is a solid ETF to hold. You can track the S&P500 for almost nothing - 0.03%.

[@prasvasu4217]

With obvious industrials like Deere etc.; will the larger media companies like Disney, AT&T, Comcast etc. qualify as conglomerates?

[@Nanalyze]

Traditionally, no, because they operate across the same industry. You'd need to thoroughly analyze each and make the case for it if you feel differently.

[@danskisbees7348]

I've always liked JNJ, but their payout ratio is 96.55%. I guess with their AAA credit rating, they can continue to go into debt. What are your thoughts?

[@Nanalyze]

We use a rolling 12 months to calculate payout ratio (last four quarters) and you also need to consider the spinoff and adjust for it. Oil companies are known for dabbling in debt to keep increasing dividend while they get their house in order. Our Quantigence strategy considers payout ratio as one of seven factors for all DGI stocks we invest in.

[@danskisbees7348]

@@Nanalyze Thank you Joe.

[@The135813]

Great video. What about companies like Brookfield Renewables, NextEra and AES?

[@Nanalyze]

Thank you! NextEra is a great example of a dividend champion, but not a conglomerate. The other two would not be considered dividend champions since they haven't increased their dividends for 25 years in a row. It's a tough club to join.

[@Daniel.Filip.]

How about MO or PM?

[@Nanalyze]

Yep- both are dividend champions! Not conglomerates, though. They only operate in one sector: consumer staples.

[@austinparker5155]

G.E. is the best conglomerate

[@Nanalyze]

You need to provide more than that for comments to add value please. Why? Certainly not from where shareholders are sitting. We've looked at their efforts at getting into various disruptive tech niches over the years and they've been dismal at best.

[@jaqueitch]

I love HRZN

[@Nanalyze]

Is it a conglomerate? It's too small to be on our radar.

[@jaqueitch]

@@Nanalyze It is not a conglomerate. It is essentially a corporate bank that lends money to small biotech, technology, etc. firms. It isn't necessarily what you guys are aiming for with this video, but a nice spot to park money.

[@Nanalyze]

@@jaqueitch One might argue, a nice spot to "park money in" would be ETFs or something less risky than a small bank. Lending money to tech firms and biotech firms when the manure is hitting the spinning blades is a bad place to be!

[@Sayilswtor]

I'm a simple man, I just buy SCHD.

[@Nanalyze]

Also a perfectly fine strategy. We prefer to pick stocks ourselves, but if that's not your cup of tea then an ETF is a great choice.

[@xiaoshibo]

SO what about Pfizer, thank you!

[@Nanalyze]

That's been raised a lot and we may cover it in the future!

[@xiaoshibo]

@@Nanalyze great, looking forward to seeing it

[@eddiegill]

Probably Kraft Heinz

[@Nanalyze]

Not technically a dividend champion or a conglomerate, but a solid dividend stock nonetheless.