How Sure Dividend Makes Investing Simple
By Floyd Saunders
Sure Dividend's Investing Philosophy Is A Simple Approach to Investing
I believe in making investing as simple as possible. One way I do that is consistently invest in stocks that pay out increasing dividends each year. This very select list of stocks are known as Dividend Kings. Companies with a long history of increasing dividends every year for more that 50 years. Not very many companies can do that, making the list is a challenge for many companies, but using the list to invest is a simple approach for getting started building your wealth. I this blog post, I am highlighting a site I use all of the time for research on stocks to buy for the long-term. If you are into day trading then this article is not for you. But if you focus is on buying high quality stocks with a tradition of buying shareholders, increasing dividends (that can then be reinvesting for faster compounding of returns, read on.
Key Takeaways:
Sure Dividend’s Core Strategy is a focus on expected total returns and dividend risk to help investors find stable, income-generating stocks, avoiding low-quality investments.
Dividend Kings are companies with over 50 years of consecutive dividend increases, are a key category in the Sure Dividend database. Examples include Johnson & Johnson, Procter & Gamble, and Coca-Cola, valued for their stability and reliable growth.
Expected Total Return Framework is based on dividends, earnings growth, and valuation multiple changes to forecast a stock's performance over the next five years, allowing for consistent comparisons between securities.
Dividend Risk Scores evaluates the safety of a company's dividend based on factors like recession performance, payout ratio, and dividend history, helping investors assess dividend security.
The Sure Analysis Research Database includes reports on over 900 income securities, providing metrics like buy/hold/sell ratings and retirement suitability scores, updated quarterly for relevance.
Getting Started with Sure Dividend: you can subscribe to access in-depth reports, tools, and comparisons for building an income-focused portfolio aligned with retirement or long-term goals.
Risks in Dividend Investing: Every investment has risks, and despite a focus on reliable stocks like Dividend Kings, dividend investing carries risks related to market changes and economic downturns, making diversification important.
Long-Term Income Strategy: By emphasizing dividend safety and expected returns, Sure Dividend aims to create a balanced, income-producing portfolio suited for sustainable cash flow, especially in retirement.
The Sure Dividend Investing Method: A Reliable Approach for Building Income with Dividend Stocks
The Sure Dividend investing method can help you find the best income-producing securities. The strategy emphasizes two factors: expected total returns and dividend risk.
You really want to focus on both expected total returns as a forecast of sorts and the risk of the dividend growing. This gives you a basis for selecting some of the best stocks in America to buy and hold for the long-term.
Sure Dividend uses the Sure Analysis Research Database, which compares income securities like Dividend Kings, Dividend Aristocrats, REITs, and high-yield stocks across multiple metrics. This comparative analysis is particularly useful for long-term, income-focused investors looking to generate sustainable cash flow for retirement or other financial goals.
Sure Dividend provides investors with a streamlined approach to selecting income-producing securities that offer reliable returns and reduced risk.
The Sure Analysis Advantage
The Sure Analysis Research Database, available on Sure Dividend, contains in-depth reports on over 900 income securities, including Dividend Kings, REITs, MLPs, and blue-chip dividend stocks. Each report is updated quarterly, ensuring that investors have access to current data and insights.
Dividend Kings: High-Quality Stocks with Proven Track Records
Within the Sure Dividend investing approach, the focus on quality and stability identifies stocks in Dividend Kings list a simple choice. Dividend Kings are companies that have increased their dividends for at least 50 consecutive years. This long track record of dividend growth demonstrates both financial stability and a commitment to returning value to shareholders, even though varying economic cycles.
Some well-known examples of Dividend Kings include Johnson & Johnson (JNJ), Hormel Foods Corporation (HRL) and Coca-Cola (KO). These companies offer decades of increasing dividend returns and have proven resilient over decades, offering consistent returns to shareholders, even in times of economic downturn.
For instance, Johnson & Johnson has raised its dividend annually for over 60 years, reflecting its strong balance sheet and diversified business model. Procter & Gamble, a leader in consumer goods, has been able to grow its dividend for over 65 years, thanks to its broad product range and global market reach. Coca-Cola, known worldwide for its beverage brand, has over 60 years of dividend increases, benefiting from brand loyalty and global distribution. Sure Dividend keeps track of these and other Dividend Kings to help investors identify stocks with high-quality dividend growth potential.
The Expected Total Returns Framework
Sure Dividend’s expected total return framework is designed to assess where a security’s returns will likely come from over the next five years. This calculation considers three main sources: dividends, growth on a per-share basis, and valuation multiple changes (often measured by changes in the price-to-earnings ratio).
By calculating a five-year forward expected total return, Sure Dividend allows investors to compare the return potential of different stocks on an apples-to-apples basis. This can be particularly useful for those looking to balance high-yielding stocks with those that may offer lower yields but more growth potential. The Dividend Kings, for example, may not always have the highest yields, but their reliable dividend growth can offer steady, compounding returns over time.
The Importance of Dividend Risk Scores
Expected total returns are essential, but they’re only one part of the equation. The Sure Dividend method also emphasizes dividend risk, which refers to the likelihood that a company will reduce or eliminate its dividend. Dividend cuts can be detrimental to income-focused investors, especially those in retirement.
Sure Dividend assigns Dividend Risk Scores to each security in its database, which helps investors gauge the safety of a company’s dividend. The score considers factors like recession performance, dividend history, and payout ratio. The longer a company has increased its dividend, the more resilient its payout history is during recessions, and the lower its payout ratio, the better its Dividend Risk Score.
Dividend Kings typically score well on the Dividend Risk metric due to their long histories of consistent dividend growth. For example, 3M (MMM) and Lowe’s (LOW) have maintained and grown their dividends through multiple economic cycles, which Sure Dividend tracks and ranks favorably in their database. These Dividend Kings tend to have stable cash flows, strong market positions, and management teams committed to shareholder returns.
Getting Started with Sure Dividend
To get started, investors can subscribe to Sure Dividend's premium services, which include access to the Sure Analysis Research Database and newsletters like the Sure Dividend Newsletter and Sure Retirement Newsletter. These resources offer detailed stock reports, top recommendations, and updates on dividend changes, ensuring subscribers stay informed and can make adjustments as needed. Additionally, following Sure Dividend’s “8 Rules of Dividend Investing” can provide investors with structured guidance on selecting and managing their portfolio.
Risks and Considerations
Although Sure Dividend’s approach is conservative, it’s not without risks. High-yield stocks can be vulnerable to economic cycles, and unexpected dividend cuts could impact income. Furthermore, while the Dividend Risk Score aims to mitigate risk, no scoring system can entirely predict future market behavior. Investors are encouraged to diversify within their portfolio and maintain a realistic view of potential returns, particularly in periods of economic uncertainty.
For more on Sure Dividend’s strategy and access to their premium services, you can visit their website at
Companies in traditional industries (like manufacturing or consumer goods) may face competition from innovative newcomers or changes in consumer behavior, potentially impacting their long-term performance. Diversifying across different sectors and not relying on dividends alone for income can help mitigate these risks.
Conclusion
The Sure Dividend approach offers a methodical way to build an income-focused investment portfolio with a strong emphasis on expected total returns and dividend safety. By focusing on established income securities, including Dividend Kings, investors can create a portfolio that generates sustainable income while managing risk. Through the Sure Analysis Research Database, investors have the tools to compare securities, assess dividend risk, and make well-informed investment decisions.
For those looking to secure their retirement or generate steady cash flow, Sure Dividend’s research and framework provide an effective way to approach dividend investing with confidence. This approach is particularly valuable for investors aiming to build a stable, income-focused portfolio.
About Floyd Saunders Floyd Saunders has more than 35 years of experience in the financial services industry. Floyd’s diverse background includes experience in retail banking, investment banking, insurance, investments, annuities, financial planning, and tax preparation.
He is the author of Five Paths to Wealth and host of the Really Simple Investing Podcast. He has been an adjunct faculty member for Baker University, St. Mary’s College, Moraga, California, and Community Colleges in California, teaching courses in personal money management, managerial finance, money and banking, and principles of banking.
He has worked for Bank of America, JP Morgan and JPMorgan Chase, TransAmerica, Wells Fargo, Citibank, WoltersKluwer/CCH, H.R. Block and as a consultant in the financial services industry.
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