Our friends at The Successful Investor (TSI) have recently introduced a new product to their line-up, a product that is in alignment with one of my main investment strategies – Dividend Investing.
The newsletter is called “Dividend Advisor” and provides dividend investors with recommendations on the top dividend stocks available in the market. While you can get a general idea of top dividend stocks on the web, even this blog, this newsletter goes a step further as to “why” they like the stock along with providing diversified dividend portfolios depending on your goals.
Dividend Ranking System
What I appreciate about this newsletter is that they choose their dividend stocks based on a quantitative and systematic ranking system that they have created.
Here are the details of their 8 key factors to determine whether a company is likely to keep on paying, and raising its dividend:
- 2 points for a long-term record of dividend payment. Steady dividends are the prime measure of strength and stability. We trace a company’s dividend record over the past 10 years.
- 2 points for a recent dividend increase. We trace increases over 5 years, to get a timely reading on the company’s commitment to dividend increases.
- 1 point for management’s public commitment to a dividend. Executives don’t like to be called out by the media or shareholders for failing to keep their word.
- 1 point for being in a non-cyclical industry. Resource and Manufacturing stocks are more likely to reduce their dividends when the economic cycle is against them. Stocks in more stable sectors get an extra point.
- 1 point for limited exposure to exchange rate/political risk. Exchange rate risk can often be offset by strong revenues. But we shun political risk.
- 2 points for an attractive balance sheet. We insist on a strong balance sheet with a manageable level of debt. How a company spends its money is important, too.
- 2 points for a record of earnings and cash flow. A strong balance sheet can only be maintained with a regular revenue and earnings to generate steady cash flow.
- 1 point for industry prominence. Companies that anticipate advances in their industry and withstand strong competition also have the confidence to pay dividends year after year.
With these ratings, you have accurate measurements you can use for dividend stocks in three categories:
- 10 points or better, stocks with the Highest Sustainability Rating;
- 7 to 9 points, stocks with Above Average Dividend Sustainability;
- 4 to 6 points, stocks with an Average Dividend Sustainability Rating.
Not only will the newsletter offer their top-ranked dividend stocks, they will put them together for you into portfolios sorted from most conservative to more aggressive. Personally, I’m between an income growth investor and a conservative growth investor.
- Income Growth Dividend Payer. The stocks in this portfolio have a history of providing investors with steady income. They have paid dividends for years, and have regularly raised their dividends (each has raised its dividend for at least the past 10 years).
- Conservative Growth Dividend Payer. This portfolio contains well-established stocks with a pattern of steady revenue and earnings. Investors can generally look forward to routine growth in capital gains as well.
- High-Growth Dividend Payer. In this portfolio you will find stocks that enjoy rising share prices as well as significant growth spurts. Because they pay steady dividends as well, they can offer an attractive combination of income and rising capital gains.
- Cyclical Dividend Paying Stocks. Stocks in cyclical industries often see their share prices fluctuate. The best of them stand to rise significantly with recovery—and reward investors with dividends that grow steadily in all markets. You also get our top choices among Real Estate Investment Trusts (REITs) and income trusts.
I was given a complimentary subscription to evaluate the service. You may assume that this newsletter is geared towards the beginner dividend investor, but even as a dividend investor who has been following this strategy for over 10 years, I will admit that I look forward to the weekly updates and the monthly newsletter.
I appreciate the systematic approach and the periodic news updates from the dividend positions that I hold. For me, it helps reinforce my ideas of what I think are great dividend stocks and also provides ideas for new positions that I haven’t considered before.
There is really no risk to try out the subscription as they allow a free trial for 30 days (more below).
The Million Dollar Journey Exclusive Promotion
Now onto the deal! I’ve been guaranteed by the kind folks at TSI that Million Dollar Journey readers get the absolute lowest price available on the web. The current promo price on their website is $97 per year ($100 off their regular price of $197).
The Deal: For MDJ readers only and for a limited time, TSI is offering new subscribers a one-year digital subscription for $67 ($130 off their regular price)! This includes 12 monthly digital newsletters, 3 premium reports you can download free, weekly hotlines, and access to back issues and hotlines. If you prefer a paper subscription, the one-year special price is $85 (print + digital).
Risk-Free: To top it off, they are offering a free trial for the first 30 days. You can review both options here. If at any time you aren’t satisfied with the purchase, you can get a refund for the unused portion of the subscription.
Sign-up: If you’re interested in this exclusive limited time offer, you can sign up here. This offer will expire in about 4 weeks and I don’t know if or when this offer will come back again.If you would like to read more articles like this, you can sign up for my free newsletter service below (we will not spam you).