iltoskov @iltoskov: "𝐀𝐫𝐞 𝐲𝐨𝐮 𝐨𝐧 𝐭𝐡𝐞 𝐥𝐨𝐨𝐤𝐨𝐮𝐭..."

Bulgaria

𝐀𝐫𝐞 𝐲𝐨𝐮 𝐨𝐧 𝐭𝐡𝐞 𝐥𝐨𝐨𝐤𝐨𝐮𝐭 𝐟𝐨𝐫 𝐡𝐢𝐠𝐡-𝐲𝐢𝐞𝐥𝐝𝐢𝐧𝐠 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐭𝐡𝐚𝐭 𝐟𝐨𝐥𝐥𝐨𝐰 𝐖𝐚𝐫𝐫𝐞𝐧 𝐁𝐮𝐟𝐟𝐞𝐭𝐭'𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐩𝐡𝐢𝐥𝐨𝐬𝐨𝐩𝐡𝐲? Look no further than these 13 Deep Value Dividend Aristocrats, offering up to 9% yields. Take advantage of the opportunity to invest in these top-performing stocks and reap the rewards of long-term, profitable investments. ☝ Combining quality factors with Free Cash Flow yield, considered the best value metric for the last 33 years, you can potentially find great investment opportunities. ☝ These dividend aristocrats have an average yield of 9%. ☝ They have a BBB+ credit rating and a 10% consensus growth rate. They are expected to have a 28% fundamentally justified upside potential the following year. ☝ These aristocrats have had a historical income growth of 13.5% since 1998, which is expected to continue. Ben Graham used to search for "cigar butts" - poorly managed companies with more net cash on their balance sheets than their market cap. Buffett learned this style of deep-value investing from Graham. Today, data are abundant, but companies have had to request annual reports in the past. Graham's strategy was to find companies trading for steep discounts to book value, acquire them, and liquidate their assets to make a low-risk profit. 𝗧𝗵𝗲 𝗣𝗿𝗼𝗯𝗹𝗲𝗺 𝗪𝗶𝘁𝗵 𝗖𝗶𝗴𝗮𝗿 𝗕𝘂𝘁𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗧𝗼𝗱𝗮𝘆 Graham changed his recommendation in The Intelligent Investor from book value cigar butt investing to price/fundamentals. This was because the world had changed by the 1970s, with Wall Street evolving, thousands of analysts covering companies, and relatively accurate forecasts available. In contrast, no historical stock market data existed in the 1930s and 1940s. Stocks yielded more than bonds because people were uncertain whether equity risk was worth it, and dividends were the only way to measure potential future returns. 𝗪𝗵𝘆 𝗩𝗮𝗹𝘂𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗜𝘀𝗻'𝘁 𝗗𝗲𝗮𝗱...𝗝𝘂𝘀𝘁 𝗛𝗮𝗿𝗱𝗲𝗿 Investors have different goals and use other strategies. The efficient market hypothesis would be correct if everyone had the same goals. But humans are not identical robots. Day traders, pension funds, endowment funds, retirees, and high-growth investors have different goals. In the short term, valuations can become disconnected from fundamentals due to momentum, sentiment, and luck. 𝗪𝗵𝗼 𝗮𝗿𝗲 𝘁𝗵𝗲 𝟭𝟯 𝗕𝘂𝗳𝗳𝗲𝘁𝘁-𝘀𝘁𝘆𝗹𝗲 𝗱𝗲𝗲𝗽 𝘃𝗮𝗹𝘂𝗲 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝗔𝗿𝗶𝘀𝘁𝗼𝗰𝗿𝗮𝘁𝘀 𝘆𝗶𝗲𝗹𝗱𝗶𝗻𝗴 𝗮𝘀 𝗺𝘂𝗰𝗵 𝗮𝘀 𝟵%? ➤★ $NFG (National Fuel Gas Company) ➤★ $MO (Altria Group Inc) ➤★ $ORI (Old Republic International Corp) ➤★ $CFR (Cullen/Frost Bankers Inc.) ➤★ $CVX (Chevron) ➤★ $CBU (Community Bank System Inc) ➤★ $NVS (Novartis ADR) ➤★ $APD (Air Products & Chemicals Inc) ➤★ $CINF (Cincinnati Financial Corp) ➤★ $CHRW (C.H.Robinson Worldwide Inc) ➤★ $NEE (NextEra Energy Inc) ➤★ $AWR (American States Water Company) ➤★ $PPG (PPG Industries Inc) 𝗥𝗶𝘀𝗸𝘀 𝗧𝗼 𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿 This is not a complete portfolio but a sector-concentrated approach to showcase a bucket approach. Remember that high FCF yield aristocrats may not always perform well every year. Despite rising fundamentals, Realty and EPD fell during the tech bubble. However, this mini ETF strategy aims to diversify your portfolio. 𝗩𝗮𝗹𝘂𝗲 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗡𝗲𝘃𝗲𝗿 𝗦𝘁𝗼𝗽𝗽𝗲𝗱 𝗪𝗼𝗿𝗸𝗶𝗻𝗴, 𝗬𝗼𝘂 𝗡𝗲𝗲𝗱 𝗧𝗼 𝗨𝘀𝗲 𝗧𝗵𝗲 𝗥𝗶𝗴𝗵𝘁 𝗠𝗲𝘁𝗿𝗶𝗰 When value-oriented ETFs such as VTV hold a significant amount of non-value stocks like WMT and AVGO, it's not difficult to understand why "value" had been underperforming. However, when you use the most potent valuation metrics, such as EV/FCF and FCF yield, the value never stops working, not even in the raging tech bull market of the FANG/Mag 7 era. This does not imply deep-value funds, portfolios, or even portfolio buckets will always perform well. They are still equities, and no strategy is risk-free or goes up consistently in a bear market. Any stock you may have invested in that soared during the pandemic, like Clorox (CLX), was lucky, but it does not indicate that some stocks are actual bond alternatives. However, the takeaway is that applying the powerful tool of FCF yield to the dividend aristocrats and some other common-sense quality screens is an excellent way to find desirable bargains today. According to $SPX500, these bargains yield 4% on average but up to 9% from companies with robust balance sheets, growing sales and cash flows, and above-average risk management. And all for 50% lower valuations than the S&P. This is what I mean by "blue-chip bargains are always on sale if you know where to look." If I told you that I could give you 13 companies trading at half the market's multiple, you'd think I were throwing out "cigar butts." But these aren't cigar butts; they are thriving dividend aristocrats. They have historically beaten the market and are expected to continue doing so while offering double-digit income growth in all economic and market conditions.

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NFG

National Fuel Gas Company