It’s the holiday season, and maybe you want to treat yourself to a new dividend stock or two.
We manage a large number of equities through a six-factor green zone valuation model. It helps us focus and find the best stock to buy.
But after all, many dividend stocks are not well valued in our model.
That’s good! Chief investment strategist Adam O’Dell has created his own system to find stocks that overwhelm the market, but many dividend payers don’t fit that pattern.
However, some stocks are well valued When Exhale a decent yield.
It’s a combo that’s hard to ignore …
Evaluation of dividend stocks and green zone
The Green Zone Rating System evaluates over 8,000 based on six factors. Three factors are price-based: momentum, size, and volatility. The other three factors are based on the fundamentals of value, quality and growth.
Dividend stocks tend to be valued for their volatility score. High dividend stocks tend to be low volatility stocks.
They are good, stable hard workers who throw away those dividends quarterly and don’t give you drama.
But they no For example, we appreciate the growth rate. Growing companies most often don’t pay much by the method of dividends. They are reinvesting all their profits in growth.
Look at Amazon. Amazon isn’t paying dividends right away. Why? The business is growing like weeds. All the dollars it earns will only be reinvested in the business for further growth. That’s what you should do at this stage.
Therefore, dividend stocks are at another stage. Most often, they are mature cash cows. They tend to be in the middle of the pack in terms of growth.
And that’s ok. You know it will come in.
If dividend stocks are in fashion in the market, they can be valued with momentum. But in general, they don’t go. They tend to be half-hearted at best.
Therefore, low growth scores and often low momentum scores lower high dividend yield stocks. In our model, they are often not very well appreciated.
But sometimes they do. We have compiled a list of three dividend stock candidates that are valued within the Green Zone rating.
I have traded some of these stocks in the past. I think these are stocks that you can buy and hold for a while. You can collect that payout flow and you don’t have to worry about it.
These are low drama stocks that will not give you any problems. And since they are well-rated in our Green Zone Rating System, we expect decent capital gains to come into play.
Now let’s dig into the candidate list.
Holiday Dividend Stock No. 1: Saul Centers Inc. (NYSE: BFS).
I like the sole center.It’s an excellent rating 81 Overall, the yield is about 4.5%. That “bullish” rating means that we expect stocks to triple out of the market in the next 12 months.
What does the sole center do? I own real estate in Washington DC. Owns many strip malls and retail stores.
I don’t know if you’ve noticed, but the government isn’t getting any smaller. It’s like a one-way street. We just move from big government to big government, to big government, to bigger, bigger, bigger government.
You may not like it, but that’s the reality. it is what it is. We would better make money with it.
If, like me, Washington DC grows and believes it won’t change, Sole Center is the way to grow in that market.
Again, this highly valued stock pays a respectful dividend.
I think this is something you can buy, drop in a drawer and not see for years.
Holiday Dividend Stock No. 2: STAG Industrial Inc. (NYSE: Only for men).
STAG Industrial is as boring and grainy as dividend stocks. Owns boring things such as logistics centers and light warehouses. It’s not needed in the backyard, but it’s needed to run the world economy.
Only for men Rating a solid 75 overall, And it brings about 3.2%.
STAG is not the highest yielding stock, Real estate investment trust (REIT). I don’t see any scenario where this inventory will not grow well in the next 5 to 10 years.
Stock prices fluctuate like any other, but the underlying business is strong. I don’t think you’ll lose your warehouse or distribution center purchases in the Amazon era.
And that leads me to my last choice here.
Holiday Dividend Stock No.3: Prologis Inc. (NYSE: PLD).
Similarly, I think Prologis Is one of the best REITs you’ll ever own.
this Rating 67 overall With our Green Zone Rating System.
It only gets about 1.6%.
But this is a REIT that has grown like a weed for years.
Amazon is the largest single tenant. Think about Amazon: You order something on Amazon. Elegant and easy. You can just pick up your phone and … complete it. I ordered a T-shirt in 3 seconds.
But someone has to do it. And there is an entire layer of the economy that most people never see.
All of these Amazon trucks move from one distribution center to another. There are many steps along the way.
That is Prologis. That’s what it does.
The founders of the company recognized this as a great trend in the 90’s. He saw the growth of e-commerce and said, “I want to be part of it.”
The rest is history.
This is a REIT that casts money. Again, the yield is 1.6%. It’s not a super high yield.
But it’s increasing dividends almost every year and I don’t think it will change. So if you need a good, solid income producer that doesn’t cause any problems, Prologis is a great option.
If you like what we’re doing and just want some additional dividend stocks to icing the cake, these three stocks are a solid choice.
a happy holiday!
For safe benefit
Charles Size More
Co-editor, Green Zone Fortune
Charles Size More Is a co-editor of Green Zone Fortune Specializes in income and retirement topics. He is also a frequent guest on CNBC, Bloomberg and Fox Business.
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