sure dividend · 2019-10-13 · dwight has a below-average dividend yield of just 1.3%. we first...

Sure Dividend

LONG-TERM INVESTING IN HIGH-QUALITY DIVIDEND STOCKS

April 2019 Edition

By Ben Reynolds, Nick McCullum, & Bob Ciura

Edited by Brad Beams

Published on April 7th, 2019

2

Table of Contents

Opening Thoughts - The Inverted Yield Curve - ....................................................................... 3

Sell Recommendation: Church & Dwight (CHD) .................................................................... 4

The Sure Dividend Top 10 – April 2019 ..................................................................................... 5

Analysis of Top 10 Stocks ............................................................................................................. 6

Bank OZK (OZK) ....................................................................................................................... 6

AbbVie Inc. (ABBV) ................................................................................................................ 11

Walgreens Boots Alliance Inc. (WBA) .................................................................................... 16

Eaton Vance Corp. (EV) ........................................................................................................... 21

Cardinal Health Inc. (CAH) ...................................................................................................... 26

WestRock Co. (WRK) .............................................................................................................. 31

CVS Health Corp. (CVS).......................................................................................................... 36

AT&T Inc. (T) .......................................................................................................................... 41

Western Digital Corp. (WDC) .................................................................................................. 46

People’s United Financial Inc. (PBCT) .................................................................................... 51

Closing Thoughts - The Differences Between Cash Flows and Earnings -............................ 56

Real Money Portfolio .................................................................................................................. 57

Buying & Ranking Criteria ....................................................................................................... 58

Portfolio Building Guide ............................................................................................................ 59

Examples ................................................................................................................................... 59

Past Recommendations & Sells ................................................................................................. 60

Sell Rules .................................................................................................................................. 60

Current Holds ............................................................................................................................ 60

Pending Sells............................................................................................................................. 62

Sold Positions ........................................................................................................................... 62

List of Stocks by Dividend Risk Score ...................................................................................... 64

List of Stocks by Sector .............................................................................................................. 69

3

Opening Thoughts - The Inverted Yield Curve -

On July 21st, 2005, Alan Greenspan famously said the following about the inverted yield curve, which is known as Wall Street’s original ‘fear gauge’:

“The evidence very clearly indicates that its efficacy as a forecasting tool has diminished very dramatically because of economic events.”

He could not have been more wrong. One year after Greenspan’s statement, the yield curve inverted

and 18 months after that, the economy of the United States entered into its worst recession since the

Great Depression of the 1930s.

Recent events in the bond market have ominously paralleled this development. On March 22nd, the 3-

month T-bill yield exceeded the 10-year U.S. Treasury yield for the first time in more than a decade.

While the inversion lasted a mere five trading days, it was enough to cause a flurry of commentary

from the financial community.

Was Greenspan wrong? Let’s consider the data. As the following image shows, the ability of an

inverted yield curve to predict recessions has been remarkably powerful over time:

Source: The Financial Times

Even beyond the time period shown in the graphic, an inverted yield curve has a perfect track record of predicting recessions. Each time the yield curve has inverted in the past, a recession has followed…

But there will always be another recession.

We do not recommend making any changes to your portfolio based on yield curve alone. While a

recession is certain to happen at some point in the future, we cannot say with any accuracy when.

Moreover, making defensive changes (such as moving to cash) in anticipation will surely hurt your

long-term returns if you are wrong.

To close this month’s Opening Thoughts, we refer to one of our favorite quotes from investing great,

Peter Lynch:

“Far more money has been lost by investors preparing for corrections than has been lost in

corrections themselves.”

https://www.ft.com/content/cf9eb29a-5220-11e9-9c76-bf4a0ce37d49

4

Sell Recommendation: Church & Dwight (CHD)

As a reminder, we are selling up to two securities a month from our past recommendations that have low expected total returns.

Having low expected total returns does not mean the underlying business is weak in any way. In fact, it

could be an incredibly high-quality business that has weak expected total returns due to being significantly overvalued.

That’s certainly the case with Church & Dwight. Church & Dwight is one of the safest businesses

around for both recessions and periods of economic growth. It has trusted disposable consumer products that are unlikely to be replaced by advances in technology. In short, Church & Dwight is the

type of business you want to buy and hold for the long run at the right price.

The problem with Church & Dwight today has nothing to do with the underlying business. Indeed, recent results have been stellar. The company grew its adjusted earnings-per-share 17.0% in fiscal

2018, and the company’s management expects ~8% adjusted earnings-per-share growth in fiscal 2019.

The problem with Church & Dwight is the company’s elevated valuation. The stock is currently trading for 29.5 times expected fiscal 2019 adjusted earnings. For comparison, the company’s long-

term average price-to-earnings ratio is around 21. We expect valuation multiple mean reversion to

cause a 6% to 7% headwind to returns at Church & Dwight over the next five years. This eats up much

of the expected growth of the company over this time period. And the high valuation means Church &

Dwight has a below-average dividend yield of just 1.3%.

We first recommended Church & Dwight in the April 2018 of The Sure Dividend Newsletter, where it

was ranked 10th out of 10. Since that time (approximately 1 year), Church & Dwight shares have gone

on to deliver total returns1 of 50.2% versus 13.7% for the S&P 500.

Our Church & Dwight recommendation has worked out better than expected, trouncing the market by

over 30 percentage points.

Where Returns Came From

With a low dividend yield, the bulk of returns from our Church & Dwight recommendation came from

a mix of growth and valuation multiple expansion. The company’s adjusted earnings-per-share grew

17% in fiscal 2018. Our recommendation doesn’t line up perfectly with this time frame but is close. The real driver of returns here was an expanding valuation multiple. This is something completely out

of an investor’s control.

Performance, Recommendation, & Review

Our Church & Dwight recommendation delivered strong total returns due to the dual tailwinds of solid

earnings-per-share growth and (especially) a rising valuation multiple. When the stock market gifts us

with a sharply increasing valuation multiple, we believe locking in gains and reinvesting into

undervalued securities is appropriate.

It is time to sell Church & Dwight and reinvest the proceeds into a security with better expected total

returns ahead – like any of those in this month’s Top 10. We recommend selling Church & Dwight

shares now.

1 Return data is from mid-morning trading 4/4/19.

5

Return to Top 10 List

The Sure Dividend Top 10 – April 2019

Name & Ticker Div. Risk

Score Price

Fair Value

Exp. Value Ret.

Div. Yield

Payout Ratio

Exp. Growth

ETR

Bank OZK (OZK) A $31 $46 8.8% 2.8% 24% 11.3% 22.9%

AbbVie Inc. (ABBV) A $84 $113 6.5% 5.2% 50% 9.5% 21.2%

Walgreens (WBA) A $55 $78 7.6% 3.3% 30% 6.0% 16.9%

Eaton Vance Corp. (EV) A $42 $54 5.1% 3.3% 42% 6.8% 15.2%

Cardinal Health (CAH) B $47 $71 8.8% 4.1% 28% 5.0% 16.8%

WestRock Co. (WRK) B $40 $54 8.0% 4.7% 40% 4.0% 16.7%

CVS Health Corp. (CVS) B $53 $75 7.1% 3.8% 30% 5.0% 15.9%

AT&T (T) B $32 $43 6.9% 6.4% 55% 2.1% 15.4%

Western Digital (WDC) B $52 $61 3.6% 3.9% 29% 6.5% 14.0%

People’s United (PBCT) B $17 $19 2.3% 4.2% 49% 5.0% 11.5% B

Notes: Data for the table above is from The Sure Analysis Research Database, 2/27/19 spreadsheet, and

general data over the week ending 3/1/19. ‘Div.’ stands for ‘Dividend.’ ‘Exp. Value Ret.’ means expected

returns from valuation. ‘Exp. Growth’ means expected annualized growth rate over the next five years. ‘ETR’

stands for expected total returns and is the sum of the Exp. Value Ret., Div. Yield, and Exp. Growth columns.

Data in the table above might be slightly different than individual company analysis pages due to writing the

company reports throughout the week.

Disclosures: Ben Reynolds is personally long the following from this month’s Top 10: WBA, T, CAH, &

ABBV. Nick McCullum is personally long WBA, T, and CAH. The Real Money Portfolio is long EV, ABBV,

WBA and will buy shares of OZK on Tuesday 4/9/19.

There were two changes in this month’s Top 10. Caterpillar (CAT) and Ameriprise Financial

(AMP) were replaced by CVS Health (CVS) and People’s United Financial (PBCT). The stability

of the top 10 list shows the ranking method is consistent, not based on rapid swings. Securities that

fall out of the top 10 are holds, not sells. Selling occurs rarely; only when a security has expected

total returns below the S&P 500’s, or if it reduces its dividend.

An equally weighted portfolio of the top 10 has the following characteristics:

Dividend Yield: 4.2%

Growth Rate: 6.1%

Valuation Expansion: 6.5%

Expected Annual Total Returns: 16.7%

The return estimates above are just that, estimates. Of the three expected total return factors,

dividend yield is the most reliable. Future growth estimates are notoriously unreliable.

Undervalued stocks tend to outperform in aggregate. However, the timing and nature of valuation

is not a science but an art with a high degree of error. Overall, we expect our recommendations to

outperform the S&P 500 by 1 to 3 percentage points over full economic cycles.

Note: Data for the newsletter was obtained between market open 4/3/19 and market close 4/5/19.

6


Analysis of Top 10 Stocks Bank OZK (OZK) Overview & Current Events

Bank OZK is a regional bank that offers general consumer financial services in the U.S. The bank’s

service territory includes Florida, North Carolina, South Carolina, Alabama, New York, California,

Texas, and Arkansas. It was founded in 1903 and has a current market capitalization of $3.9 billion.

Bank OZK reported its fourth quarter and full year earnings on January 17th, 2019. Revenue rose 4.4%

year-over-year to $256 million. The bank saw growth from a larger loan portfolio in Q4. Indeed, total

loans rose 6.7% in Q4, which helped drive net interest income higher by 6.3%. Net interest income was crimped somewhat by a lower net interest margin performance, as that value fell 17bps year-over-

year to 4.55%. Provisions for loan losses were also lower year-over-year, improving from $9.3 million

in Q4 of 2017 to just $7.3 million in the most recent quarter.

Earnings-per-share came in at $0.89 in Q4, which was the best quarter of 2018 for Bank OZK, and

capped a year of $3.24 in earnings-per-share. Finally, Bank OZK raised its dividend by 4.8% in early

January, and then again in April by another 4.5%; the new quarterly payout is $0.23 per share.

Competitive Advantage & Recession Performance

Bank OZK is performing well in its key markets due to new branches and acquired growth. It is also

expanding into areas of higher growth, such as Texas, Florida, and California. We see Bank OZK’s mix of core market strength and access to growth markets as a competitive advantage.

Bank OZK not only remained profitable during the Great Recession but managed to grow its earnings

as well. This performance speaks to how well-managed Bank OZK is. We believe it will withstand

the next economic downturn quite well.

Growth Prospects, Valuation, & Catalyst

Bank OZK has a very strong history of growth, compounding earnings at an annual rate of nearly 22% from 2009 to 2018. The bank has been able to grow profits at very impressive rates over time through

a combination of organic and acquired growth, and we see this continuing for the foreseeable future.

The bank’s focus on core lending and deposit-taking activities enables it to maintain a strong balance

sheet, which enables it to continue to grow over time. We see a forward growth rate of 11.3% annually in the years to come, which is low by Bank OZK’s own standards, but still quite robust.

We expect the bank to earn $3.56 per share in 2019. Based on this, it is valued at 8.5 times earnings. That compares favorably to our fair value estimate, which is 13 – slightly below the bank’s 10-year

average valuation multiple of 14.1. Should the stock revert to this multiple, shareholders should see an

8.8% tailwind to total annual returns. Combining this with our estimate of earnings growth and the

2.8% yield, we see Bank OZK producing better than 20% total returns annually in the next five years.

Key Statistics, Ratios, & Metrics Maximum Drawdown2: 59.8% 10-Year EPS Growth Rate: 21.8%

Dividend Yield: 2.8% 10-Year Dividend Growth Rate: 22.9%

Most Recent Dividend Increase: 4.5% 10-Year Historical Avg. P/E Ratio: 14.1

Estimated Fair Value: $46 10-Year Annualized Total Return: 20.7%

Dividend History: 22 years of increases Next Ex-Dividend Date: 4/12/19

2 Using the company’s maximum drawdown in the 2007-2009 financial crisis.

7


Income Statement Metrics Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Revenue 118 169 154 211 228 258 346 479 694 929

SG&A Exp. 30 59 55 75 78 84 100 111 163 212

D&A Exp. 4 4 5 7 9 10 13 17 25 34

Net Profit 34 43 64 101 77 91 119 182 270 422

Net Margin 29.0% 25.4% 41.5% 48.0% 33.8% 35.3% 34.3% 38.0% 38.9% 45.4%

Free Cash Flow 18 39 24 -1 -62 49 79 184 197 346

Income Tax 10 13 27 50 34 40 54 94 154 159

Balance Sheet Metrics Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total Assets 3233 2771 3274 3842 4040 4791 6766 9879 18890 21276

Cash & Equivalents 41 78 49 59 208 196 150 91 866 440

Accounts Receivable 19 15 14 13 13 14 20 25 52 65

Goodwill & Int. Ass. 6 6 8 12 12 19 106 152 721 709

Total Liabilities 2906 2498 2950 3414 3529 4159 5855 8412 16095 17812

Accounts Payable N/A N/A N/A 46 28 17 37 52 73 186

Long-Term Debt 490 408 347 367 346 346 256 322 383 364

Shareholder’s Equity 252 269 320 425 508 629 908 1465 2792 3461

D/E Ratio 1.51 1.51 1.08 0.86 0.68 0.55 0.28 0.22 0.14 0.11

Profitability & Per Share Metrics Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Return on Assets 1.2% 1.4% 2.1% 2.8% 2.0% 2.1% 2.1% 2.2% 1.9% 2.1%

Return on Equity 15.5% 16.5% 21.7% 27.2% 16.5% 16.1% 15.4% 15.4% 12.7% 13.5%

ROIC 4.8% 5.8% 9.5% 13.8% 9.3% 9.9% 11.1% 12.3% 10.9% 12.0%

Shares Out. 67.50 67.60 68.18 68.96 69.78 72.40 78.06 87.35 104.70 125.81

Revenue/Share 1.75 2.51 2.26 3.06 3.26 3.57 4.43 5.49 6.63 7.39

FCF/Share 0.27 0.57 0.35 -0.01 -0.89 0.68 1.01 2.11 1.88 2.75

Note: All figures in millions of U.S. Dollars unless per share or indicated otherwise.

8


0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Bank OZK (OZK) Dividend Yield History

9


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8Bank OZK (OZK) Fundamentals

Payout Ratio (TTM) - right axis Dividends (TTM) - left axis Earnings (TTM) - left axis

10


11

9.6

8.1

14.2

18.8

21.3

20.6

15.9

14.4

7.1

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Bank OZK (OZK): Valuation Analysis

Average Annual PE Ratio Current PE 10-Year Average

11


AbbVie Inc. (ABBV) Overview & Current Events

AbbVie is a biotechnology company that is focused on the development and commercializing of treatments in immunology, virology, and oncology. The company was spun off from Abbott Labs in

2013. AbbVie enjoys $33 billion in annual revenue and has a $123 billion market capitalization.

AbbVie reported fourth quarter and full year 2018 earnings on January 25th, 2019. AbbVie’s revenue

rose 7.4% from the comparable quarter in 2017. Revenue growth was due to strong expansion from Imbruvica, which is a drug used to treat certain cancers and experienced revenue growth of 42% in the

quarter. Humira also remained the world’s best-selling drug, but its growth rate in Q4 was just 0.5%.

It remains a critical piece in AbbVie’s portfolio, but the company is diversifying away from it as

patent/license expirations loom in certain parts of the world, including the U.S.

AbbVie earned $1.90 per share in Q4, gaining 28% year-over-year. AbbVie’s revenue and earnings-

per-share slightly missed consensus expectations during the quarter, leading to a negative reaction

causing the share price sell-off. Earnings-per-share for fiscal 2018 came in at $7.91, a whopping 41%

increase from the prior year. AbbVie expects to produce earnings-per-share of about $8.70 in 2019.


AbbVie did not exist as a standalone entity during the last recession, so there is no track record for this

company. However, its former parent, Abbott Labs, did exist during the last recession and it performed

extremely well, continuing to grow its earnings-per-share at impressive rates. We believe AbbVie will follow in Abbott’s footsteps and perform admirably during the next economic downturn.

AbbVie’s competitive advantage is in its Humira drug. The company is losing patent protection in

stages in different geographies around the world in the coming years, so it is hard at work on next-

generation drugs that will eventually replace Humira. Investors should keep in mind that AbbVie has a

portfolio that is robust, deep, and has potential blockbusters waiting in the wings like Imbruvica.


AbbVie’s earnings-per-share compounded at 20% annually from 2013 to 2018. AbbVie has seen

outstanding earnings growth as a public company, and we believe this will continue. While Humira revenue is likely going to decline sharply in the coming years, AbbVie’s R&D is being

used to create new drugs to fill the gap. In addition, AbbVie uses some of is internally-generated cash

to repurchase shares and shrink the float, and we believe this will be a continuous, tailwind for earnings

growth moving forward, driving 9.5% annual expansion.

AbbVie trades for just 9.5 times our earnings-per-share estimate of $8.70 for this year, which compares

very favorably to our estimate of fair value at 13 times earnings. AbbVie, therefore, represents a

unique combination of a very high yield, strong growth prospects, and a deeply undervalued stock that

offers investors 20%+ prospective total annual returns.






3 Using the company’s maximum drawdown 2018.

12



Revenue N/A N/A N/A 17444 18380 18790 19960 22859 25638 28216

Gross Profit N/A N/A N/A 12805 13872 14209 15534 18359 19805 21176

Gross Margin N/A N/A N/A 73.4% 75.5% 75.6% 77.8% 80.3% 77.2% 75.0%

SG&A Exp. N/A N/A N/A 5894 4989 5352 7724 6387 5855 6275

D&A Exp. N/A N/A N/A 1272 1150 897 786 836 1189 1501

Operating Profit N/A N/A N/A 3620 5817 5664 3411 7537 9384 9592

Op. Margin N/A N/A N/A 20.8% 31.6% 30.1% 17.1% 33.0% 36.6% 34.0%

Net Profit N/A N/A N/A 3433 5275 4128 1774 5144 5953 5309

Net Margin N/A N/A N/A 19.7% 28.7% 22.0% 8.9% 22.5% 23.2% 18.8%

Free Cash Flow N/A N/A N/A 5891 6012 5776 2937 7003 6562 9431

Income Tax N/A N/A N/A 235 450 1204 595 1501 1931 2418


Total Assets N/A N/A N/A 19521 27008 29198 27513 53050 66099 70786

Cash & Equivalents N/A N/A N/A 27 5901 9595 8348 8399 5100 9303

Acc. Receivable N/A N/A N/A 3817 4298 3854 3735 4730 4758 5088

Inventories N/A N/A N/A 872 1091 1150 1124 1719 1444 1605

Goodwill & Int. N/A N/A N/A 9010 8453 8167 7375 32877 44313 43344

Total Liabilities N/A N/A N/A 7589 23645 24706 25771 49105 61463 65689

Accounts Payable N/A N/A N/A 417 556 933 1401 1597 1407 1474

Long-Term Debt N/A N/A N/A 48 15672 14723 14977 31671 36842 37368

Total Equity N/A N/A N/A 11932 3363 4492 1742 3945 4636 5097

D/E Ratio N/A N/A N/A 0.00 4.66 3.28 8.60 8.03 7.95 7.33


Return on Assets N/A N/A N/A 16.9% 22.7% 14.7% 6.3% 12.8% 10.0% 7.8%

Return on Equity N/A N/A N/A 24.8% 69.0% 105% 56.9% 181% 139% 109%

ROIC N/A N/A N/A 24.8% 34.0% 21.6% 9.9% 19.7% 15.4% 12.6%

Shares Out. N/A N/A N/A N/A N/A 1590 1590 1610 1590 1590

Revenue/Share N/A N/A N/A 11.04 11.66 11.71 12.40 13.96 15.72 17.60

FCF/Share N/A N/A N/A 3.73 3.81 3.60 1.82 4.28 4.02 5.88


13


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

201

4

201

5

201

6

201

7

201

8

201

9

AbbVie Inc. (ABBV) Dividend Yield History

14


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

AbbVie Inc. (ABBV) Fundamentals


15


13.9

16.7

14.4

12.6

13.4

11.6

0

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

AbbVie Inc. (ABBV): Valuation Analysis


16


Walgreens Boots Alliance Inc. (WBA)

Overview & Current Events

Walgreens Boots Alliance is a large pharmacy retail corporation with over 18,500 stores in 11 countries around the world. It also operates one of the largest global pharmaceutical wholesale and

distribution networks in the world, with more than 390 centers that deliver to nearly 230,000

pharmacies, doctors, health centers and hospitals each year. With 43 years of consecutive dividend

increases, Walgreens is a member of the Dividend Aristocrats Index.

In early April, Walgreens reported (4/2/19) fiscal 2019 second quarter results. Revenue of $34.5

billion increased 4.6% year-over-year but missed analyst expectations by $40 million. Adjusted

earnings-per-share (EPS) also missed, coming in at $1.64 versus expectations of $1.72. Adjusted EPS

declined 5.4% for the quarter. Walgreens attributed the weak quarterly results to significant

reimbursement pressure, lower generic deflation, and weakening overall market conditions in the U.S. and the U.K. Equally concerning, Walgreens reduced its full year outlook. The company now expects

adjusted EPS to be roughly flat in 2019, from previous expectations of 7% to 12% EPS growth.

Competitive Advantages & Recession Performance

Walgreens’ competitive advantage is its leading market share. Its robust retail presence and convenient locations encourage consumers to use Walgreens instead of its competitors. This brand strength means

customers keep coming back to Walgreens, providing the company with stable sales and growth.

Walgreens is very recession-resistant. Consumers are unlikely to cut spending on prescriptions and other healthcare products. Walgreens’ adjusted earnings-per-share declined by just 7% during 2009

– the worst of the global financial crisis – and the company actually grew its adjusted earnings-per-

share from 2007 through 2010, following this up with over 20% earnings growth in 2011.


Despite its weak fiscal second quarter, Walgreens has a positive long-term growth outlook. This is

because pharmacy retail has so far proven to be highly resistant to e-commerce competition. Even in a

difficult period, Walgreens grew its retail pharmacy sales by 7.3% last quarter. Prescriptions and

pharmacy retail will benefit from the aging U.S. population and corresponding need for more

healthcare services. In addition, the company is launching a cost management program that targets $1.5 billion in annual savings to help boost EPS growth starting in 2020.

Based on the company’s revised guidance, Walgreens is expected to generate earnings-per-share of

$6.02 in fiscal 2019. The stock has a price-to-earnings ratio of 9.0, well below our fair value estimate

of 13.0. We view Walgreens as significantly undervalued; expansion of the price-to-earnings ratio to 13.0 over five years could add 7.6% to Walgreens’ annual returns. In addition, we expect Walgreens to

grow earnings by 6% per year, and the stock has a 3.3% dividend yield. Overall, Walgreens stock has

expected returns of nearly 17% per year over the next five years.



Most Recent Dividend Increase: 10% 10-Year Historical Avg. P/E Ratio: 16.7


Dividend History: 43 years of increases Next Ex-Dividend Date: 5/17/19 (est.)

4 Using the company's maximum drawdown during the 2007-2009 financial crisis.

17



Revenue ($B) 63.34 67.42 72.18 71.63 72.22 76.39 103.44 117.35 118.2 131.54

Gross Profit 17613 18976 20492 20342 21119 21569 26753 29874 29162 30792

Gross Margin 27.8% 28.1% 28.4% 28.4% 29.2% 28.2% 25.9% 25.5% 24.7% 23.4%

SG&A Exp. 14366 15518 16561 16878 17543 17992 22400 23910 23740 24569

D&A Exp. 975 1030 1086 1166 1283 1316 1742 1718 1654 1770

Operating Profit 3247 3458 3931 3464 3576 3577 4353 5964 5422 6223

Op. Margin 5.1% 5.1% 5.4% 4.8% 5.0% 4.7% 4.2% 5.1% 4.6% 4.7%

Net Profit 2006 2091 2714 2127 2548 1932 4220 4173 4078 5024

Net Margin 3.2% 3.1% 3.8% 3.0% 3.5% 2.5% 4.1% 3.6% 3.4% 3.8%

Free Cash Flow 2184 2730 2430 2881 3089 2787 4413 6522 5900 6898

Income Tax 1158 1282 1580 1249 1499 1526 1056 997 760 998


Total Assets 25142 26275 27454 33462 35481 37250 68782 72688 66009 68124


Acc. Receivable 2496 2450 2497 2167 2632 3218 6849 6260 6528 6573

Inventories 6789 7378 8044 7036 6852 6076 8678 8956 8899 9565

Goodwill & Int. 2158 3001 3229 3447 3717 3539 28723 25829 25788 28697


Accounts Payable 4308 4585 4810 4384 4635 4315 10088 11000 12494 13566

Long-Term Debt 2351 2401 2409 5392 5047 4490 14383 19028 12935 14397

Total Equity 14376 14400 14847 18236 19454 20513 30861 29880 27466 26007

D/E Ratio 0.16 0.17 0.16 0.30 0.26 0.22 0.47 0.64 0.47 0.55


Return on Assets 8.4% 8.1% 10.1% 7.0% 7.4% 5.3% 8.0% 5.9% 5.9% 7.5%

Return on Equity 14.7% 14.5% 18.6% 12.9% 13.5% 9.7% 16.4% 13.7% 14.2% 18.8%

ROIC 12.9% 12.5% 15.9% 10.4% 10.6% 7.8% 11.9% 8.8% 9.0% 12.2%

Shares Out. 989 939 889 944 947 950 1,090 1,083 1,024 952

Revenue/Share 63.89 68.25 78.08 81.39 75.60 79.15 98.15 107.55 109.61 132.20

FCF/Share 2.20 2.76 2.63 3.27 3.23 2.89 4.19 5.98 5.47 6.93


18


0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

Walgreens Boots Alliance (WBA) Dividend Yield History

19


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$(1.00)

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

Walgreens Boots Alliance (WBA) Fundamentals


20


13.9

15.9

14.8

13.2

16.3

21.8

20.2

18

16.1

11.5

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Walgreens Boots Alliance (WBA): Valuation Analysis


21


Eaton Vance Corp. (EV)


Eaton Vance is an asset management firm based in Boston, Massachusetts. The company’s roots were

founded in 1924 and now it has a $4.8 billion market cap. With offices in North America, Europe,

Asia, and Australia, the company serves its clients by providing closed-end funds (CEFs), mutual

funds, term trusts, and exchange-traded funds (these ETFs trade under the NextShares name).

In late February, Eaton Vance reported (2/26/19) financial results for the first quarter of fiscal 2019. In

the quarter, the company generated revenues of $406 million, which represents a decline of 3.3% over

the same period a year ago. This revenue decline was partially due to declining assets, as consolidated

assets under management (AUM) of $444.7 billion declined by 1% from the $449.2 billion of AUM

reported in the same period a year ago. The AUM decline reflected net inflows (notably rare among non-passive asset managers) of $11.7 billion and market price declines of $16.3 billion. The remainder

of Eaton Vance’s decline in revenue is attributable to lower average management fees.

On the bottom line, Eaton Vance’s performance was similarly weak. Adjusted earnings-per-share of

$0.73 declined by 6% from the $0.78 reported in the same period a year ago, and also decreased by 14% from the fourth quarter of fiscal 2018. Revenue declines impacted earnings, and the company’s

earnings also suffered from seasonal increases in compensation and benefit costs. With that said, Eaton

Vance’s earnings release was in-line with analyst expectations as earnings-per-share came in just a

penny under consensus estimates.


Eaton Vance’s competitive advantage lies in its appealing product offerings and low fees, which are

allowing it to compete in an asset management industry experiencing significant fee compression.

While most asset managers are experiencing net outflows due to the trend towards low-cost ETFs,

Eaton Vance actually saw net inflows of $11.7 billion through the last four quarters.

The asset management industry is not known for its recession resiliency. Stocks in this sector tend to

perform poorly during bear markets as (1) equity markets fall, reducing asset managers’ revenue and

(2) customers withdraw money, further lowering AUM. Still, Eaton Vance performed reasonably well during the last recession, as earnings-per-share declined by 31%, then hit a new high within two years.


Eaton Vance is likely to generate earnings-per-share of ~$3.36 in fiscal 2019. Using this estimate, the company is trading at a price-to-earnings ratio (P/E) of 12.5. Eaton Vance traded at an average P/E

ratio of 16 over the last decade. If the company’s valuation can revert to a price-to-earnings ratio of 16

in five years, this will boost its returns by about 5.1% annually. Eaton Vance is expected to generate

6.8% annualized earnings growth and pays a dividend that yields 3.3%. Overall, we believe that Eaton

Vance could potentially deliver total returns of about 15.2% per year over the next five years.






5 Using the company’s maximum drawdown during the 2007-2009 financial crisis.

22



Revenue 890 1116 1249 1209 1358 1450 1404 1343 1529 1702

Gross Profit 700 873 718 690 776 855 798 738 846 966

Gross Margin 78.6% 78.2% 57.5% 57.0% 57.1% 58.9% 56.9% 54.9% 55.3% 56.7%

SG&A Exp. 315 369 161 161 172 175 234 153 171 141

D&A Exp. 21 25 25 25 25 21 22 20 19 N/A


Operating Margin 26.2% 31.1% 34.1% 32.5% 33.4% 35.8% 28.5% 30.8% 31.6% 32.6%

Net Profit 130 174 215 203 194 304 230 241 282 382

Net Margin 14.6% 15.6% 17.2% 16.8% 14.3% 21.0% 16.4% 18.0% 18.5% 22.4%

Free Cash Flow 118 84 160 174 110 91 208 330 52 N/A

Income Tax 71 126 157 142 144 187 143 154 174 157


Total Assets 1075 1259 1831 1979 2407 1860 2116 1730 2331 3599


Accounts Receivable N/A N/A N/A 134 170 186 188 186 200 237

Goodwill & Int. Ass. 217 209 210 214 303 294 293 295 349 341



Long-Term Debt 514 500 978 947 1100 726 971 572 631 1493


D/E Ratio 1.67 1.22 2.12 1.55 1.64 1.11 1.57 0.81 0.62 1.35


Return on Assets 12.7% 14.9% 13.9% 10.7% 8.8% 14.3% 11.6% 12.5% 13.9% 12.9%

Return on Equity 47.6% 48.6% 49.4% 37.9% 30.2% 45.9% 36.1% 36.5% 32.9% 36.1%

ROIC 16.1% 18.9% 17.1% 13.1% 11.6% 19.3% 15.5% 16.8% 19.3% 18.0%

Shares Out. 117 118 115 116 121 118 116 114 119 121

Revenue/Share 7.38 9.10 10.41 10.50 11.09 11.93 11.88 11.78 13.13 13.85

FCF/Share 0.98 0.68 1.33 1.52 0.90 0.75 1.76 2.89 0.45 N/A


23


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Eaton Vance Corp. (EV) Dividend Yield History

24


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$(1.00)

$(0.50)

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

Eaton Vance Corp. (EV) Fundamentals


25


22.121.7

16.6

15.3

24.8

15.7

17.3

16.4

18.7

13.7

0

5

10

15

20

25

30

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Eaton Vance Corp. (EV): Valuation Analysis


26


Cardinal Health Inc. (CAH)


Cardinal Health is one of the largest healthcare product distributors in the U.S., along with McKesson

(MCK) and AmerisourceBergen (ABC). Cardinal Health’s core business is pharmaceutical

distribution. It also has a medical products distribution segment. The company has operations in over

46 countries with approximately 50,000 employees. With 32 years of consecutive dividend increases,

Cardinal Health is a member of the Dividend Aristocrats Index.

In early February, Cardinal Health released (2/7/19) financial results for the fiscal 2019 second quarter.

Cardinal Health reported quarterly revenue of $37.7 billion, a 7% increase compared to the same

quarter last year. Adjusted earnings-per-share totaled $1.29, down 15% from the same quarter a year

ago. Both operating segments posted 14% declines in operating profit for the quarter. However, Cardinal Health raised its adjusted earnings-per-share guidance for fiscal 2019, to $4.97 to $5.17 (from

$4.90 to $5.15 previously).


The pharmaceutical distribution industry is challenged right now. Our bullish view on Cardinal Health

is based on the company’s entrenched position in the industry, as well as the expected growth of the

U.S. healthcare industry. Cardinal Health serves over 26,000 pharmacies and more than 85% of hospitals in the U.S. and generates $137 billion of revenue. This kind of scale is hard to replicate.

Another benefit of Cardinal Health’s business model is that it is exceptionally resistant to recessions.

Pharmaceutical and medical product distribution enjoys steady demand from year to year. Adjusting

for the CareFusion spin-off, Cardinal Health managed to grow revenue, operating profits, and dividends during the Great Recession. This shows that people will always need to take their

medications, even when the economy enters a downturn.


Cardinal Health’s primary growth catalyst is the aging U.S. population. Rising life expectancies and a

very large population of seniors mean demand for healthcare products should only grow in the U.S.

going forward. Acquisitions have helped Cardinal Health pursue these growth opportunities. For

example, in 2017 Cardinal Health acquired the Patient Recovery business from Medtronic (MDT) for $6.1 billion, which is expected to add $0.55 to Cardinal Health’s earnings-per-share in fiscal 2019.

Cardinal Health stock trades for a price-to-earnings ratio of 9.2, based on expected earnings-per-share

of $5.07 for fiscal 2019. Our fair value estimate for the stock is a price-to-earnings ratio of 14.0,

meaning the stock is significantly undervalued. Valuation changes could add 8.8% per year to shareholder returns. In addition, we expect Cardinal Health to grow earnings-per-share by 5.0% per

year. Adding in the 4.1% dividend yield, total expected returns could reach nearly 18% per year for

Cardinal Health stock over the next five years.

Key Statistics, Ratios, & Metrics Maximum Drawdown6: 63.3% 10-Year EPS Growth Rate: N/A (CareFusion spin-off)





6 Using the company's maximum drawdown during the 2007-2009 financial crisis.

27



Revenue ($B) 95.99 98.50 102.64 107.55 101.09 91.08 102.53 121.55 129.98 136.81

Gross Profit 3748 3781 4162 4541 4921 5161 5712 6543 6544 7181

Gross Margin 3.9% 3.8% 4.1% 4.2% 4.9% 5.7% 5.6% 5.4% 5.0% 5.2%

SG&A Exp. 2334 2397 2528 2677 2875 3028 3240 3648 3775 4596

D&A Exp. 226 254 313 325 397 459 451 641 717 1032



Net Profit 1152 642 959 1069 334 1166 1215 1427 1288 256

Net Margin 1.2% 0.7% 0.9% 1.0% 0.3% 1.3% 1.2% 1.2% 1.0% 0.2%

Free Cash Flow 1016 1874 1104 916 1532 2275 2240 2506 797 2384

Income Tax 402 625 552 628 553 635 755 845 630 -487


Total Assets 25119 19990 22846 24260 25819 26033 30142 34122 40112 39951


Acc. Receivable 5215 5171 6156 6355 6304 5380 6523 7405 8048 7800

Inventories 6833 6356 7334 7864 8373 8266 9211 10615 11301 12308

Goodwill & Int. 2267 2253 4259 4392 5574 5870 6018 9426 9207 12229



Long-Term Debt 366 2129 2502 2894 3854 3972 5492 5539 10395 9013

Total Equity 8725 5276 5849 6244 5975 6401 6256 6554 6808 6059

D/E Ratio 0.04 0.40 0.43 0.46 0.65 0.62 0.88 0.85 1.53 1.49


Return on Assets 4.7% 2.8% 4.5% 4.5% 1.3% 4.5% 4.3% 4.4% 3.5% 0.6%

Return on Equity 14.0% 9.2% 17.2% 17.7% 5.5% 18.8% 19.2% 22.3% 19.3% 4.0%

ROIC 11.1% 7.8% 12.2% 12.2% 3.5% 11.5% 11.0% 12.0% 8.8% 1.6%

Shares Out. 360 356 351 343 340 337 328 322 316 309

Revenue/Share 265.54 272.86 290.78 308.17 293.88 264.01 306.06 368.32 406.18 434.31

FCF/Share 2.81 5.19 3.13 2.62 4.45 6.59 6.69 7.59 2.49 7.57


28


0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Cardinal Health Inc. (CAH) Dividend Yield History

29


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Cardinal Health Inc. (CAH) Fundamentals


30


8.8

15.1

17

13.112.7

17.9

19.1

14.914.4

8.9

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cardinal Health Inc. (CAH): Valuation Analysis


31


WestRock Co. (WRK) Overview & Current Events

WestRock Company was formed in July 2015 by the merger of Rock-Tenn and MeadWestvaco. Today, it is a leading provider of paper and packaging solutions. It operates two major segments:

Corrugated Packaging (55% of revenue) and Consumer Packaging (45% of revenue). WestRock has a

market capitalization of approximately $10.0 billion.

WestRock has reported impressive financial results in recent periods. In early November, WestRock

reported (11/5/18) its financial results for fiscal 2018. WestRock grew revenue by 10% and adjusted

earnings-per-share by 56% for fiscal 2018, driven by especially strong growth in the corrugated

packaging segment, which benefited from increased volumes and price increases.

In late January (1/31/19) WestRock reported fiscal 2019 first quarter results. Net sales increased

14.5% for the quarter, mainly due to a recent acquisition as well as a favorable product mix. However, adjusted earnings-per-share declined 4.6% for the quarter, as revenue growth was more than offset by

cost inflation and a negative impact on production from hurricanes.


WestRock’s main competitive advantage is its industry-leading position. That said, the industry is

highly competitive. In addition, WestRock is not a recession-resistant business. Packaging is an

economically-sensitive industry. If the economy enters a downturn, consumers and businesses would spend less and send fewer packages. However, we would expect WestRock to remain profitable during

a recession, as the company has the flexibility to cut costs.


WestRock will pursue future growth both organically, and with acquisitions. For example, last

November (11/3/18) WestRock completed the acquisition of KapStone Paper for $4.9 billion including

the assumption of KapStone’s debt. The acquisition of KapStone enhanced WestRock’s product

offerings and geographical reach. WestRock is also working to pay down debt, which will help grow earnings by reducing interest expenses. The KapStone deal increased WestRock’s net-debt-to-EBITDA

ratio to 3.9x. The company has set a goal to reduce the leverage ratio to a range of 2.25x to 2.50x this

year. WestRock also expects to produce annual integration synergies of $200 million by 2021.

WestRock is expected to generate earnings-per-share of $4.60 for 2019. Based on this, the stock trades

for a price-to-earnings ratio of 8.5. Since the 2015 merger, WestRock shares have held an average

price-to-earnings ratio of 16.8. The stock appears to be deeply undervalued. Our fair value estimate is

a price-to-earnings ratio of 12.5, meaning an expanding price-to-earnings ratio could boost future returns by 8.0% per year over the next five years. In addition, we expect the company to report 4.0%

annual earnings growth through 2024. Lastly, the stock has a current dividend yield of 4.7%. In total,

we expect annual returns of 16.7% per year for WestRock over the next five years.

Key Statistics, Ratios, & Metrics Maximum Drawdown7: 52.6% 10-Year EPS Growth Rate: 2.8% (since 2015)

Dividend Yield: 4.7% 10-Year Dividend Growth Rate: 5.7% (since 2015)

Most Recent Dividend Increase: 5.8% 10-Year Historical Avg. P/E Ratio: 16.8 (since 2015)

Estimated Fair Value: $54 10-Year Annualized Total Return: -7.0% (since 2015)

Dividend History: Increasing since 2016 Next Ex-Dividend Date: 5/3/19 (est.)


32



Revenue 2812.3 3001.4 5399.6 9207.6 9545.4 9895.1 11125 14172 14860 16285

Gross Profit 762.7 720.1 991.9 1532.7 1846.5 1933.6 2138.3 2758.6 2740.2 3393.9

Gross Margin 27.1% 24.0% 18.4% 16.6% 19.3% 19.5% 19.2% 19.5% 18.4% 20.8%

SG&A Exp. 330.8 339.9 541.2 927.5 954.3 1023.6 1145 1961.9 1661.8 1974.1

D&A Exp. 150 147.4 N/A N/A N/A N/A N/A N/A N/A N/A

Operating Profit 431.9 380.2 450.7 605.2 892.2 910 993.3 796.7 1078.4 1419.8

Op. Margin 15.4% 12.7% 8.3% 6.6% 9.3% 9.2% 8.9% 5.6% 7.3% 8.7%

Net Profit 222.3 225.6 141.1 249.1 727.3 479.7 507.1 -396.3 708.2 1906.1

Net Margin 7.9% 7.5% 2.6% 2.7% 7.6% 4.8% 4.6% -2.8% 4.8% 11.7%

Free Cash Flow 305.7 271.1 262.3 187.3 592.1 617.6 618.1 891.7 1121.9 1421

Income Tax 91.6 64.7 69.5 136.9 -21.8 286.5 233 89.8 159 -874.5


Total Assets 2884 2914.9 10566 10687 10733 11040 25372 23038 25089 25361

Cash & Equivalents 11.8 15.9 41.7 37.2 36.4 32.6 207.8 340.9 298.1 636.8

Accounts Receivable 305.5 333.5 1109.6 1075.6 1134.9 1118.7 1575.4 1592.2 1886.8 2010.7

Inventories 275.1 269.5 849.8 861.9 937.9 1029.2 1761 1638.2 1797.3 1829.6

Goodwill & Int. Ass. 887.7 900.3 2638.8 2660.4 2561.5 2617.5 7442 7377.4 8857.6 8699.6

Total Liabilities 2101 1897.5 7187.4 7280.9 6420.6 6732.3 13589 13208 14703 13878

Accounts Payable 233.9 252.3 780.7 708.9 802.1 812.8 1231.4 1054.4 1492.1 1716.8

Long-Term Debt 1349 1128.9 3445.8 3412.5 2844.8 2984.7 5621.9 5789.2 6554.8 6415.2

Shareholder’s Equity 776.8 1011.3 3371.6 3405.7 4312.3 4306.8 11652 9728.8 10343 11469

D/E Ratio 1.74 1.12 1.02 1.00 0.66 0.69 0.48 0.60 0.63 0.56


Return on Assets 7.5% 7.8% 2.1% 2.3% 6.8% 4.4% 2.8% -1.6% 2.9% 7.6%

Return on Equity 31.4% 25.2% 6.4% 7.4% 18.8% 11.1% 6.4% -3.7% 7.1% 17.5%

ROIC 9.9% 10.5% 3.1% 3.7% 10.4% 6.6% 4.1% -2.4% 4.4% 10.9%

Shares Out. ---- ---- ---- ---- ---- ---- 257.0 251.0 254.5 259.2

Revenue/Share 36.52 38.38 53.46 63.90 65.33 67.77 64.19 54.95 58.11 62.68

FCF/Share 3.97 3.47 2.60 1.30 4.05 4.23 3.57 3.46 4.39 5.47


33


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

201

5

201

6

201

7

201

8

WestRock Co. (WRK) Dividend Yield History

34


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

WestRock Co. (WRK) Fundamentals


35


15.2

16.8

20.3

14.9

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

WestRock Co. (WRK): Valuation Analysis


36


CVS Health Corp. (CVS) Overview & Current Events

CVS Health is an integrated healthcare services company that operates not only the country’s largest chain of retail pharmacies, but also Pharmacy Services and Health Care Benefits segments. The

company has annual revenue approaching $195 billion and a market capitalization of $68 billion.

CVS reported Q4 and full year earnings on February 20th, 2019. Adjusted earnings-per-share came in

at $2.14, beating consensus estimates by a nickel and expanding 11.5% from the comparable quarter a

year ago. Revenue was up 12.5% to more than $54 billion, narrowly missing estimates.

For all of 2018, CVS produced adjusted earnings-per-share of $7.08, representing 19% year-over-year

growth. Revenue was up 5.3% against 2017 thanks to growth from broad-based gains. Pharmacy

services saw 2.7% higher revenue for the year as pricing pressure was more than offset by a 6.1%

increase in claim volumes. Retail revenue rose more than 5% for 2018 as front-of-store revenue was up 23% thanks to health product sales gains. Total prescription volumes rose nearly 9% as well.

Health Care Benefits, which is the legacy Aetna Health Care business, had revenue in excess of $5.5

billion and sported more than 22 million members at the end of 2018.

CVS is using its free cash flow to reduce debt and pay the dividend, which will be flat again this year.

CVS expects adjusted earnings-per-share of $6.68 to $6.88 for 2019, which was well below prior

consensus of $7.35. Higher-than-expected integration costs for the Aetna business were the cause.


CVS’ competitive advantage is that it is highly entrenched in the retail pharmacy business. This industry is highly regulated, and that makes it difficult for new entrants to gain market share. CVS also

has enormous economies of scale given its sheer size, so it can compete on price.

CVS performed well during the last recession and it has continued to grow its earnings-per-share in the

years since. Given that the company’s major exposure is to pharmaceuticals, health products, and the Aetna business, we see it as quite recession-resistant.


CVS has produced an annualized earnings growth rate in the past decade of 9.9%. The dividend has

grown even more quickly, compounding at more than 20% per year. While synergies with Aetna

should be on the horizon, we are cautious. We forecast 5% earnings-per-share growth annually as the

near-term is clouded by Aetna-related dilution and pricing pressures in the pharmacy business.

CVS’ current dividend yield is 3.8% and combined with 5% earnings growth and a high single-digit

(7.1%) tailwind from a rising valuation, we think CVS could produce 16% total annual returns through

2024. The stock trades for just 7.8 times the midpoint of management’s earnings-per-share guidance

for this year, which compares very favorably to our estimate of fair value at 11 times earnings. While

CVS’ current growth rate may not attract some investors, its deep value and high yield make it a buy.



Most Recent Dividend Increase: N/A 10-Year Historical Avg. P/E Ratio: 14.2



8 Using the company’s maximum drawdown from 2015 through 2019.

37



Revenue ($B) 98.22 95.78 107.08 123.12 126.76 139.37 153.29 177.53 184.77 194.58

Gross Profit 20358 20219 20562 22488 23783 25367 26528 28857 28545 31538

Gross Margin 20.7% 21.1% 19.2% 18.3% 18.8% 18.2% 17.3% 16.3% 15.4% 16.2%

D&A Exp. 1389 1469 1568 1753 1870 1931 2092 2475 2479 2718


Op. Margin 6.5% 6.4% 5.9% 5.9% 6.3% 6.3% 6.2% 5.8% 5.2% 5.2%

Net Profit 3696 3427 3462 3864 4592 4644 5237 5317 6622 -594

Net Margin 3.8% 3.6% 3.2% 3.1% 3.6% 3.3% 3.4% 3.0% 3.6% -0.3%

Free Cash Flow 1487 2774 3984 4641 3799 6001 6172 7917 6089 6828

Income Tax 2200 2179 2258 2436 2928 3033 3386 3317 1637 2002


Total Assets 61641 62169 64543 66221 71526 74187 92437 94462 95131 196456


Acc. Receivable 5457 4925 6047 6479 8729 9687 11888 12164 13181 17631

Inventories 10343 10695 10046 11032 11045 11930 14001 14760 15296 16450

Goodwill & Int. 35807 35453 36327 36148 36071 37916 51984 51760 52081 115202



Long-Term Debt 11175 10057 10014 9828 13402 12890 27464 27531 27002 73429

Total Equity 35768 37700 38051 37653 37938 37958 37196 36830 37691 58225

D/E Ratio 0.31 0.27 0.26 0.26 0.35 0.34 0.74 0.75 0.72 1.26


Return on Assets 6.0% 5.5% 5.5% 5.9% 6.7% 6.4% 6.3% 5.7% 7.0% -0.4%

Return on Equity 10.5% 9.3% 9.1% 10.2% 12.1% 12.2% 13.9% 14.4% 17.8% -1.2%

ROIC 7.9% 7.2% 7.2% 8.1% 9.3% 9.1% 9.1% 8.2% 10.3% -0.6%

Shares Out. 1391 1363 1298 1231 1180 1140 1101 1061 1014 1126

Revenue/Share 67.73 69.56 79.50 96.19 103.39 119.22 136.14 164.53 180.43 186.38

FCF/Share 1.03 2.01 2.96 3.63 3.10 5.13 5.48 7.34 5.95 6.54


38


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

CVS Health Corporation (CVS) Dividend Yield History

39


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

CVS Health Corporation (CVS) Fundamentals


40


12 12.112.9 13.2

14.7

17.4

19.7

15.9

13.2

11.1

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CVS Health Corporation (CVS): Valuation Analysis


41


AT&T Inc. (T)


AT&T is a large telecommunications company with over 100 million customers in the U.S. and a

significant presence in Latin America. The company provides a wide range of telecom services,

including wireless, broadband, and television through its cable operations and its DirectTV satellite brand. AT&T generates more than $170 billion in annual revenue and the company has increased its

dividend for 35 consecutive years, qualifying it for inclusion in the Dividend Aristocrats Index.

In late January, AT&T reported (1/30/19) fourth quarter financial results. For the fourth quarter, the

company generated $48.0 billion in revenue, up 15.2% from the year ago period. Revenue growth was primarily driven by the Time Warner acquisition that closed in June of 2018. Adjusted earnings-per-

share (EPS) totaled $0.86 against $0.78 in the same period a year ago, for growth of 10%. For the year,

AT&T reported revenue of $170.8 billion, up 6.4% as compared to 2017. Adjusted earnings-per-share

came in at $3.52 versus $3.05 in 2017, once again driven by the Time Warner acquisition as well as

lower tax rates associated with tax reform.

AT&T also provided an outlook for 2019. The company anticipates free cash flow (FCF) to be in the

$26 billion range, with low single-digit adjusted EPS growth. The dividend payout ratio is anticipated

to be below 60% and end-of-year net debt to adjusted EBITDA in the 2.5x range.


AT&T’s primary competitive advantage is its scale. The U.S. telecom industry is dominated by two

major players, AT&T and rival Verizon. It is all-but-impossible for a new telecom company to build a

network with the necessary scale to compete with the established industry giants. This gives AT&T a wide economic moat and a durable competitive advantage. AT&T’s strong business model served it

well during the Great Recession. The company remained highly profitable each year of the recession

and experienced only a minor dip in earnings-per-share in 2009.


AT&T’s major growth catalyst going forward is media content driven by the $81 billion acquisition of

Time Warner, which owns multiple media brands, including: TNT, TBS, CNN, and HBO. Time

Warner also owns a movie studio and has sports rights across the NFL, NBA, MLB, and NCAA.

AT&T has made additional bolt-on acquisitions to boost its growing content businesses as well and is

working to maximize the advertising capacity of its content.

AT&T expects to generate earnings-per-share of $3.60 in fiscal 2019. Based on this, the stock has a

price-to-earnings ratio (P/E) of just 8.6. Our fair value estimate for AT&T is a price-to-earnings ratio

of 12. If AT&T’s price-to-earnings ratio expands to our fair value estimate, this will boost its returns

by around 6.9% per year over the next five years. With the addition of the 6.4% dividend and 2.1% expected earnings growth, expected total returns could approach 22% over the next five years.







42



Revenue ($B) 124.03 122.51 124.28 126.72 127.43 128.75 132.45 146.80 163.79 160.55

Gross Profit 74472 71942 74023 71819 72206 77561 72302 79755 86902 83167

Gross Margin 60.0% 58.7% 59.6% 56.7% 56.7% 60.2% 54.6% 54.3% 53.1% 51.8%

SG&A Exp. 31526 31427 34986 41314 41066 28414 39697 32919 36347 34917

D&A Exp. 19883 N/A 19379 18377 18143 18395 18273 22016 25847 24387


Op. Margin 18.6% 17.1% 15.8% 9.6% 10.2% 23.9% 10.8% 16.9% 15.1% 14.9%

Net Profit 12867 12138 19864 3944 7264 18418 6442 13345 12976 29450

Net Margin 10.4% 9.9% 16.0% 3.1% 5.7% 14.3% 4.9% 9.1% 7.9% 18.3%

Free Cash Flow 13321 17111 15692 14633 19711 13852 10139 16662 17828 18504

Income Tax 7036 6091 -1162 2532 2900 9328 3619 7005 6479 N/A


Total Assets ($B) 265.25 268.31 269.39 270.44 272.32 277.79 296.83 402.67 403.82 444.10


Acc. Receivable 16047 14845 13610 13231 12657 12918 14527 16532 16794 16522

Goodwill ($B) 135.54 134.41 134.12 130.19 128.55 131.49 136.66 225.28 222.07 219.73

Total Liab. ($B) 168.50 166.32 157.44 164.65 179.62 186.31 206.56 279.03 279.71 302.09


LT Debt ($B) 78.84 76.25 66.17 64.75 69.84 74.79 81.83 126.15 123.51 164.35

Total Equity ($B) 96.35 101.56 111.65 105.53 92.36 90.99 89.72 122.67 123.14 140.86

D/E Ratio 0.82 0.75 0.59 0.61 0.76 0.82 0.91 1.03 1.00 1.17


Return on Assets 4.8% 4.5% 7.4% 1.5% 2.7% 6.7% 2.2% 3.8% 3.2% 6.9%

Return on Equity 12.2% 12.3% 18.6% 3.6% 7.3% 20.1% 7.1% 12.6% 10.6% 22.3%

ROIC 7.2% 6.9% 11.1% 2.3% 4.4% 11.2% 3.8% 6.3% 5.2% 10.6%

Shares Out. 5,893 5,902 5,911 5,927 5,581 5,226 5,187 6,145 6,139 6,139

Revenue/Share 20.82 20.68 20.93 21.30 21.89 23.91 25.37 26.00 26.46 25.97

FCF/Share 2.24 2.89 2.64 2.46 3.39 2.57 1.94 2.95 2.88 2.99


43


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

AT&T Inc. (T) Dividend Yield History

44


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

AT&T Inc. (T) Fundamentals


45


12.1

11.7

13.4

14.514.2

13.8

12.6

13.8

12.7

8.1

0

2

4

6

8

10

12

14

16

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

AT&T Inc. (T): Valuation Analysis


46


Western Digital Corp. (WDC) Overview & Current Events

Western Digital is a technology hardware manufacturer. It produces data storage products, such as hard disk drives (HDDs) and solid-state drives (SDDs). Western Digital is also engaged in the flash

memory business. The stock trades with a market capitalization of approximately $14.9 billion.

In late January, Western Digital reported (1/24/19) its second quarter earnings results. The company

reported revenues of $4.23 billion for the second quarter, which represents a decline of 20.8% compared to the prior year’s quarter. This revenue decline was anticipated. Western Digital’s top line

actually met analyst consensus estimates. Western Digital’s earnings-per-share totaled $1.45 during

the second quarter, which was slightly less than what the analyst community had forecasted. Earnings

per-share declined by more than half from the prior year’s level of $3.95, which was not surprising due

to the current down cycle in data storage demand that has hurt pricing.

Western Digital had forecast that second quarter results would be relatively weak, and the company

also forecasts that this year’s third quarter will not be overly strong. The company guides for revenues

of $3.6 billion to $3.8 billion during the third quarter, while earnings-per-share are forecasted to fall

into a range of $0.40 to $0.60. Management also points out that its long-term outlook remains very positive, as capacity enterprise storage growth is seen at 40% annually in the long run while NAND (a

type of flash memory) demand bit growth is forecasted in a 36% to 38% range over the long run.


It is difficult for technology companies to establish competitive advantages, particularly when it comes

to hardware manufacturing which tends to become commoditized. Trends change rapidly, and the

storage industry is highly volatile. Fortunately, Western Digital holds a top position in the HDD

industry, with Seagate Technologies as its only major competitor. Western Digital invested over $2.4

billion in research and development in fiscal 2018 to maintain its competitive advantages.

Investors should not expect Western Digital to fare well during a recession. Its fundamental cyclicality

means it is leveraged to economic cycles. For example, Western Digital’s earnings-per-share declined

46% in fiscal 2009. This indicates the sensitivity Western Digital has to recessions.


Based on expected earnings-per-share of $8.10 for fiscal 2019, Western Digital shares trade for a price-

to-earnings ratio of just 6.3. In the past 10 years, Western Digital held an average price-to-earnings

ratio of 8.1. Our fair value estimate is a price-to-earnings ratio of 7.5, slightly below the 10-year

average. Expansion of the price-to-earnings ratio to fair value would add approximately 3.6% to Western Digital’s annual returns if it occurred over the next five years. In addition, we expect annual

earnings growth of 6.5% through 2024. Lastly, Western Digital’s high dividend yield of 3.9% will also

contribute to shareholder returns. In all, we expect annual returns of 14% over the next five years.


Dividend Yield: 3.9% 10-Year Dividend Growth Rate: 12% (since 2012)

Most Recent Dividend Increase: 67% 10-Year Historical Avg. P/E Ratio: 8.1


Dividend History: Steady/increasing since 2012 Next Ex-Dividend Date: 6/28/19 (est.)


47



Revenue 7453 9850 9526 12478 15351 15130 14572 12994 19093 20647

Gross Profit 1337 2401 1791 3638 4363 4360 4221 3435 6072 7705

Gross Margin 17.9% 24.4% 18.8% 29.2% 28.4% 28.8% 29.0% 26.4% 31.8% 37.3%

SG&A Exp. 201 265 282 518 706 813 788 997 1445 1473

D&A Exp. 479 510 602 825 1233 1244 1114 1154 2128 2056



Net Profit 470 1382 726 1612 980 1617 1465 242 397 675

Net Margin 6.3% 14.0% 7.6% 12.9% 6.4% 10.7% 10.1% 1.9% 2.1% 3.3%

Free Cash Flow 786 1205 877 2350 2167 2188 1630 1399 2859 3370

Income Tax 31 138 54 145 242 135 112 -89 372 1410


Total Assets 5291 7328 8118 14206 14036 15499 15170 32862 29860 29235


Accounts Receivable 926 1256 1206 2364 1793 1989 1532 1461 1948 2197

Inventories 376 560 577 1210 1188 1226 1368 2129 2341 2944

Goodwill & Int. Ass. 228 234 222 2774 2559 3013 3098 14985 13837 12755



Long-Term Debt 482 400 294 2185 1955 2438 2556 16994 13151 11172


D/E Ratio 0.15 0.08 0.05 0.28 0.25 0.28 0.28 1.52 1.15 0.97


Return on Assets 9.2% 21.9% 9.4% 14.4% 6.9% 10.9% 9.6% 1.0% 1.3% 2.3%

Return on Equity 16.0% 35.0% 14.2% 24.5% 12.6% 19.3% 16.2% 2.4% 3.5% 5.9%

ROIC 13.7% 31.5% 13.3% 20.6% 9.9% 15.3% 12.7% 1.2% 1.5% 2.9%

Shares Out. 225 231 233 246 237 234 230 284 294 296

Revenue/Share 32.98 42.27 40.54 50.93 62.40 62.52 61.49 53.69 64.50 67.25

FCF/Share 3.48 5.17 3.73 9.59 8.81 9.04 6.88 5.78 9.66 10.98


48


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

201

3

201

4

201

5

201

6

201

7

201

8

Western Digital Corp. (WDC) Dividend Yield History

49


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$(8.00)

$(6.00)

$(4.00)

$(2.00)

$-

$2.00

$4.00

$6.00

$8.00

$10.00

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

Western Digital Corp. (WDC) Fundamentals


50


7.9

6.3

10.4

3.9

5.3

9.7

12.8

11.7

7.4

5.9

0

2

4

6

8

10

12

14

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Western Digital Corp. (WDC): Valuation Analysis


51


People’s United Financial Inc. (PBCT)


People’s United Financial is a diversified financial services company. Its commercial segment provides commercial real estate lending, equipment financing, cash management, deposit gathering,

and other services for businesses. Its retail arm offers mortgages, home equity lending, and other

consumer loans, along with consumer deposits and merchant services. People’s United also engages in

life insurance, brokerage, wealth management, and financial advisory.

In mid-January (1/17/19) the company reported fourth quarter and full year financial results. For the

fourth quarter, People’s United increased its earnings-per-share by 16% from the year-ago quarter,

mostly due to the acquisition of First Connecticut and a boost from tax reform. The acquisition helped

grow loans and deposits by 9% year-over-year. For the full year, earnings-per-share increased 26%.

People’s United also increased its dividend in 2018, for the 25th consecutive year. This placed People’s United on the list of Dividend Aristocrats.


For People’s United, its major competitive advantage is its industry positioning. The company has a

network of over 400 branches, with total assets of $48 billion. Strong financial performance is critical to retaining and growing its asset base.

People’s United is not a recession-resistant company. As a financial services provider, its profits are

highly correlated to economic growth. For example, from 2007-2010, earnings-per-share declined 54% as the Great Recession took its toll. That said, the company remained profitable throughout, and

continued to increase its dividend through the Great Recession, while so many other banks reported

massive losses and cut their dividends. Today, People’s United has a highly secure dividend. The

company reported operating earnings-per-share of $1.31 in 2018; the current dividend payout stands at

$0.70 per share, for a 2018 dividend payout ratio of 53%.


People’s United has a positive growth outlook going forward. Acquisitions will help the company

expand its geographic reach and customer base. People’s United Financial recently acquired VAR

Technology Finance, which focuses on serving the technological sector. People’s United Financial also announced the acquisition of BSB Bancorp in November. This acquisition will enhance the

presence of the company in the Greater Boston area. We expect 5% earnings growth through 2024.

We expect People’s United to generate earnings-per-share of $1.45 in 2019, for a price-to-earnings

ratio of 11.6. Our fair value estimate is a price-to-earnings ratio of 13.0, due to the company’s growth

potential and dividend history. Expansion of the valuation multiple could boost annual returns by 2.3%

through 2024. Combined with 5.0% expected annual earnings growth and the 4.2% dividend yield, we

expect total returns of 11.5% per year for People’s United Financial stock over the next five years.







52



Revenue 940 885.9 964 1221 1249.1 1230.3 1242.1 1275.3 1314.9 1453.4

SG&A Exp. 368.5 371.5 418.2 488.6 485.4 494.7 510.9 521.3 525.4 584.6

D&A Exp. 61.3 65.7 73.2 65 65.9 66.5 64.4 63.2 60.5 69.1

Net Profit 137.8 101.2 82.5 192.4 245.3 232.4 251.7 260.1 281 337.2

Net Margin 14.7% 11.4% 8.6% 15.8% 19.6% 18.9% 20.3% 20.4% 21.4% 23.2%

Free Cash Flow 174.2 42 148 131.1 429.4 295.4 296.5 248 293.2 573

Income Tax 67 43.1 39.5 93 124 115.2 128.9 130.4 128.5 129.9


Total Assets 20168 21257 25037 27558 30324 33214 35997 38947 40610 44453

Cash & Equivalents 345.1 3418 354.7 748.8 470 453.3 971.6 668.5 602.2 845.5

Goodwill & Int. 1535.8 1515.2 1962 2174.2 2153.5 2127.3 2102.5 2087.8 2142.1 2560


Long-Term Debt 368.4 196.6 690.5 519.1 1838.3 4369.9 3326.2 4496.9 4126.6 3883.8

Total Equity 5173.8 5100.7 5219.3 5215.4 5038.8 4568.4 4633.1 4731.6 4897.8 5575.8

D/E Ratio 0.0712 0.0385 0.1323 0.0995 0.3648 0.9565 0.7179 0.9504 0.8025 0.6673


Return on Assets 0.8% 0.5% 0.4% 0.7% 0.8% 0.7% 0.7% 0.7% 0.7% 0.8%

Return on Equity 2.9% 2.0% 1.6% 3.7% 4.8% 4.8% 5.5% 5.6% 5.8% 6.4%

ROIC 2.7% 1.9% 1.5% 3.3% 3.9% 2.9% 3.0% 3.0% 3.0% 3.6%

Shares Out. 330.1 332.3 352.6 348.7 338.4 312.0 298.3 300.4 304.0 332.9

Revenue/Share 2.85 2.67 2.73 3.50 3.69 3.94 4.16 4.25 4.33 4.37

FCF/Share 0.53 0.13 0.42 0.38 1.27 0.95 0.99 0.83 0.96 1.72


53


0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

People's United Financial (PBCT) Dividend Yield History

54


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$(1.50)

$(1.00)

$(0.50)

$-

$0.50

$1.00

$1.50

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8People's United Financial (PBCT) Fundamentals


55


22.3

1719

17.5 18.2 17.319

13.8

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

People's United Financial (PBCT): Valuation Analysis


56

Disclaimer

Nothing presented herein is, or is intended to constitute, specific investment advice. Nothing in this newsletter should be construed as a recommendation to follow any

investment strategy or allocation. Any forward-looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. While Sure Dividend has used reasonable efforts to

obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability or completeness of third-party information presented

herein. No guarantee of investment performance is being provided and no inference to the contrary should be made. There is a risk of loss from an investment in securities.

Past performance is not a guarantee of future performance.

Closing Thoughts - The Differences Between Cash Flows and

Earnings -

One of the beneficial components of dividend investing is the ability to generate a rising cash flow

from your investment portfolio over time. In order to generate portfolio-level cash flow, however, the

companies you own must in turn generate their own cash. In this month’s Closing Thoughts, we want

to explain a few ways that a company’s earnings and cash flows might differ materially.

To begin, let’s discuss factors that would cause a company’s earnings to exceed its cash flows. In

general, this happens when a company records movement of cash within the business before it actually occurs. An example would be a company that sells its inventory to customers on a credit system.

When the company delivers the product to clients, it records the revenue, cost of goods sold, and

earnings on its income statement. The transaction results in an accounts receivable increase on the

company’s balance sheet, but the sale will only be reflected on the statement of cash flows once payment is made and the account is settled. Ballooning accounts receivable balances and weak

operating cash flows should be a major red flag for investors.

On the other hand, there are also a number of ways that a company’s free cash flow (FCF) could

actually exceed earnings. This occurs through two types of non-cash accounting charges.

The first is amortization, a non-cash expense that serves to reduce the goodwill account on a

company’s balance sheet. Goodwill builds up over time as a company acquires other businesses at

prices above their book value. For example, if a company acquires a competitor with a book value of

$2 million for $4 million in an all-cash transaction, then their cash account is reduced by $4 million and

both their goodwill account and shareholders’ equity account will increase by $2 million. Every year

thereafter, the “definite life” portfolio of their goodwill will record a small non-cash amortization

expense until the goodwill is reduced to zero. There is a separate “indefinite” portion of the intangible

asset that may never need to be amortized to zero, depending on the nature of the asset in question.

The second is depreciation, which is similar to amortization but reduces the value of a company’s fixed

assets over time (think factories, refineries, machinery, and other long-lived assets). When a company

invests in a long-lived asset, it does not record an expense right away. Instead, this is called a capital

expenditure and results in a decrease in the cash account and a corresponding increase in the long-term asset account. Over time, this long-term asset account is reduced by non-cash depreciation charges.

Dividends are paid with actual cash, not accounting earnings. As a result, cash flows are an important part of assessing dividend safety and the overall health and safety of an investment – especially for

dividend growth investors.

The next newsletter publishes on Sunday, May 5th, 2019

57

Real Money Portfolio

The Sure Dividend Real Money Portfolio tracks our actual investment decisions in real time,

with real money.

Each month we will save and invest $1,000 to show the actual progress of building and

maintaining a dividend growth portfolio.

Our buy decisions will be the highest ranked stock in the Top 10 that we either do not own or

own the least in our portfolio. We will not place buys that push the portfolio over 30% in any

one sector (after the portfolio reaches a reasonable number of positions) to prevent over-

concentration in any sector. The portfolio will hold up to 30 stocks. Once 30 stocks are

reached, it will buy the highest ranked stock already in the portfolio up to 10% of the portfolio’s

value. Sell decisions are based on the same sell criteria used in The Sure Dividend Newsletter.

We are using Interactive Brokers as our brokerage for this portfolio. Limit buy orders for our

trades will be placed the second trading day after The Sure Dividend Newsletter is published.

This gives our readers who are following the real money portfolio, a full trading day to make

the same trade we would in advance of us.

Our next buy will be Bank OZK (OZK), which is the highest ranked stock in this month’s

newsletter. See our section on Bank OZK for more on the company.

The screenshot from our brokerage account below shows our current 3 holdings in The Real

Money Portfolio.

Performance will become meaningful as both the number of holdings in our portfolio grows,

and the amount of time each security has been held increases. Note: Performance data is through the morning of 4/5/19.

58

Buying & Ranking Criteria

The method we use to come up with the Top 10 buys for The Sure Dividend Newsletter is as

follows:

Note: Ranking data is from Wednesday’s Sure Analysis data update.

1. Filter our Sure Analysis Research Database universe of securities for:

- 10%+ Expected Total Returns

- A & B Dividend Risk Scores

- U.S. securities only (no international securities, REITs, MLPs, or BDCs, etc.)

- All companies must have their dividend covered by cash flows

2. Sort by Expected Total Return (highest first)

3. No more than three companies per sector

4. Veto any securities from the Top 10 as necessary after qualitative analysis

5. The Top 10 is the 10 highest Expected Total Return securities from steps 1 through 4

6. “A” Dividend Risk Score securities rank ahead of “B” Dividend Risk Score securities

within the Top 10

To receive an “A” Dividend Risk Score, a security must be in the top 20% for dividend safety.

To receive a “B” Dividend Risk Score, a security must be in the top 40% for dividend safety.

The formula for the Dividend Risk Score is below:

Dividend Risk Score (Raw) = Payout Ratio x 100 – # Years of Steady or Rising Dividends + 50 if

deemed risky during a recession

We view securities with A and B Dividend Risk Scores as generally having secure dividends that are very unlikely to be reduced in the near future.

Our formula for Expected Total Return is calculated as the sum of 5-year expected returns from growth

on a per share basis, 5-year expected returns from valuation multiple changes, and the current dividend yield.

The combination of expected total returns and low dividend risk creates a screen to find high-quality

dividend growth securities with strong return potential.

Note that our expected total returns are based on the idea that the economy will continue forward ‘as is’

for the foreseeable future, and not encounter a recession. Recessions happen, of course, and we seek to

recommend securities likely to pay steady or rising dividends during recessions. Recession safety factors into our Dividend Risk Scores, and in turn our rankings for The Sure Dividend Newsletter.

https://www.suredividend.com/sure-analysis-subscribe/

59

Portfolio Building Guide

The process of building a high-quality dividend growth portfolio is not complex: Each month invest in the

top-ranked security in which you own the smallest dollar amount out of the Top 10. Over time, you will

build a well-diversified portfolio of great businesses purchased at attractive prices. Alternatively, the Top 10

list is also useful as an idea generation tool for those with a different portfolio allocation plan. If you are

looking to add additional yield to your portfolio, The Sure Retirement Newsletter offers a Top 10 list with 4%+

dividend yields. The Sure Dividend International Newsletter provides additional geographic diversification.

Examples Portfolio 1 Portfolio 2

Ticker Name Amount Ticker Name Amount

OZK Bank OZK $ 1,002 OZK Bank OZK $ 4,374

ABBV AbbVie Inc. $ - ABBV AbbVie Inc. $ 4,878

WBA Walgreens Boots Alliance $ - WBA Walgreens Boots Alliance $ 4,353

EV Eaton Vance $ - EV Eaton Vance $ 7,428

T AT&T Inc. $ - T AT&T Inc. $ 3,309

CAH Cardinal Health Inc. $ - CAH Cardinal Health Inc. $ 8,099

WRK WestRock $ - WRK WestRock $ 5,629

CVS CVS Health Corp. $ - CVS CVS Health Corp. $ 2,176

WDC Western Digital Corp. $ - WDC Western Digital Corp. $ 1,079

PBCT People’s United Financial $ - PBCT People’s United Financial $ 4,864

- If you had portfolio 1, you would buy ABBV, the top-ranked security you own least.

- If you had portfolio 2, you would buy WDC, the top-ranked security you own least.

If you have an existing portfolio or a large lump sum to invest, you may wish to switch over to the Sure

Dividend Strategy over a 20-month period. Each month take 1/20 of your initial portfolio value and buy the

top-ranked security you own the least out of the Top 10. When you sell a security, use the proceeds to purchase

the top-ranked security you own the least. Reinvest dividends in the same manner.

This simple investing process will build a diversified portfolio of high-quality dividend securities over a period

of less than 2 years. Further, higher ranked securities will receive proportionately more investment dollars as

they will stay in the Top 10 rankings longer. You will build up large positions in the highest-quality securities

over your investing career.

If your portfolio grows too large to manage comfortably (for example, you are not comfortable holding 40+

securities – which would happen after around 4 years of using the Sure Dividend System), you will need to sell

holdings. I recommend eliminating positions that have the lowest yields if you are in or near retirement. If you

are not near retirement, eliminate positions that rank the lowest in the newsletter until you are comfortable with

the number of positions in your portfolio. Reinvest the proceeds into the highest-ranked securities you currently

own, until your highest-ranked holding makes up 10% of your portfolio’s total value. Then add to the next

highest-ranked holding, and so on.

https://www.suredividend.com/retirement-subscribe/

https://www.suredividend.com/international-subscribe/

60

Past Recommendations & Sells

Every past Sure Dividend Newsletter recommendation from the Top 10 is shown in this section12. The sell rules

that govern this newsletter are below.

Sell Rules Sell Rule #1, Dividend-Based Sell Rules: Any past recommendation that reduces or eliminates its dividend is

automatically a pending sell. We review and analyze these securities to determine when to initiate the final

sale. Secondly, any past recommendation that has an “F” Dividend Risk Score is reviewed as a potential sell.

Sell Rule #2, Valuation-Based Sell Rules: Sell past recommendations with expected total returns below the

expected total returns of the S&P 500 over the next several years. This sell rule replaces our previous

valuation-based sell rule of selling securities with an adjusted P/E ratio of 40 or higher. We calculate our

estimate of the long-term returns of the S&P 500 as the S&P 500’s dividend yield plus nominal (not inflation

adjusted) GDP growth, less valuation multiple mean reversion over 10 years. We currently estimate long-term

U.S. nominal GDP growth at 5.5%, the S&P 500’s dividend yield at 1.9%, and valuation multiple mean

reversion at -3.1% (S&P 500 fair value P/E of 15.7 versus current P/E of 21.6) for an expected total return sell

threshold of 4.3%. Past recommendations at or below this sell threshold are bolded and in green in the

table below. We will only recommend up to two valuation-based sells a month so that the reinvestment of sale

proceeds is not concentrated in a short time frame.

Current Holds Name Ticker 1st Rec. Date DR Score

Performance (Total Return)13

5 Year Forward Expected Tot. Ret.

People's United Financial PBCT 4/8/2019 B N/A 11.6%

WestRock WRK 3/4/2019 B 4% 15.3%

T. Rowe Price Group TROW 2/4/2019 A 10% 11.0%

Western Digital WDC 2/4/2019 B 10% 13.5%

Hanesbrands HBI 1/7/2019 B 40% 10.8%

Bank OZK OZK 1/7/2019 A 23% 22.7%

Eaton Vance EV 1/7/2019 A 19% 15.1%

Whirlpool WHR 1/7/2019 B 17% 13.8%

Newell Brands NWL 1/7/2019 C -17% 18.1%

S&P Global SPGI 12/3/2018 B 16% 7.9%

Illinois Tool Works ITW 11/5/2018 A 18% 8.6%

United Parcel Service UPS 11/5/2018 B 9% 14.3%

Northrop Grumman NOC 11/5/2018 B -1% 13.8%

Franklin Resources BEN 4/2/2018 A 6% 4.7%

Invesco IVZ 3/5/2018 C -35% 16.1%

12 This does not include our past “special recommendations” or international recommendations from years ago because they are

outside the scope of the regular Sure Dividend Newsletter strategy and Top 10. We are not tracking when to sell or performance of

those recommendations. 13 All performance data for holds and pending sells is through the morning of 4/5/19.

61

Universal Corporation UVV 2/5/2018 B 32% 5.7%

Southwest Airlines LUV 2/5/2018 A -5% 13.9%

ONEOK OKE 1/8/2018 F 31% 11.0%

Axis Capital AXS 1/8/2018 B 17% 5.2%

Leggett & Platt LEG 1/8/2018 A -6% 10.9%

HNI Corporation HNI 12/4/2017 C 14% 15.2%

Kohl's KSS 9/5/2017 C 92% 8.9%

Royal Dutch Shell RDS.B 7/3/2017 D 32% 14.2%

Occidental Petroleum OXY 6/5/2017 D 23% 9.4%

Ameriprise Financial AMP 6/5/2017 A 18% 17.6%

Qualcomm QCOM 6/5/2017 C 5% 5.8%

CVS Health CVS 6/5/2017 B -28% 15.8%

Lowe's LOW 5/8/2017 A 38% 8.6%

Macy's M 5/8/2017 D 1% 13.3%

IBM IBM 5/8/2017 B 1% 11.9%

Mondelez MDLZ 4/3/2017 C 21% 6.3%

Medtronic MDT 12/5/2016 A 32% 5.3%

VF Corp. VFC 11/7/2016 A 74% 4.9%

Boeing BA 10/3/2016 C 216% 12.2%

AbbVie ABBV 10/3/2016 A 45% 21.1%

Walgreens Boots Alliance WBA 9/6/2016 A -29% 16.8%

Phillips 66 PSX 7/5/2016 B 35% 9.1%

Disney DIS 6/6/2016 C 22% 10.4%

Cardinal Health CAH 5/2/2016 B -35% 17.7%

General Dynamics GD 3/7/2016 A 36% 9.5%

Flowers Foods FLO 3/7/2016 D 31% 7.4%

Archer-Daniels-Midland ADM 2/8/2016 A 42% 8.8%

Verizon VZ 12/7/2015 C 48% 10.4%

Procter & Gamble PG 12/7/2015 A 46% 4.8%

Johnson Controls JCI 12/7/2015 F 27% 14.2%

Cummins CMI 11/2/2015 B 70% 10.5%

Computer Services CSVI 11/2/2015 A 65% 7.1%

Johnson & Johnson JNJ 11/2/2015 A 47% 8.7%

Eaton ETN 9/8/2015 C 66% 6.6%

Caterpillar CAT 8/3/2015 A 103% 14.9%

United Technology UTX 8/3/2015 B 47% 3.2%

62

BCE, Inc. BCE 8/3/2015 D 31% 6.8%

W.W. Grainger GWW 7/6/2015 A 47% 9.9%

Altria MO 4/6/2015 C 26% 13.1%

Deere & Company DE 1/5/2015 B 111% 7.1%

Kellogg K 12/8/2014 C -3% 12.5%

J.M. Smucker SJM 8/4/2014 C 30% 6.0%

Becton, Dickinson BDX 6/2/2014 A 132% 8.7%

Philip Morris PM 6/2/2014 C 22% 11.9%

AT&T T 6/2/2014 B 16% 14.6%

General Mills GIS 6/2/2014 C 8% 8.0%

3M MMM 5/5/2014 A 74% 6.0%

Genuine Parts Company GPC 5/5/2014 A 55% 6.2%

McDonald's MCD 4/7/2014 A 127% 6.3%

AFLAC AFL 4/7/2014 A 79% 5.6%

PepsiCo PEP 4/7/2014 B 68% 5.5%

Target TGT 4/7/2014 A 59% 8.5%

Coca-Cola KO 4/7/2014 B 41% 5.0%

Kimberly-Clark KMB 4/7/2014 B 35% 6.7%

ExxonMobil XOM 4/7/2014 B 2% 8.5%

Pending Sells Owens & Minor (OMI): We first recommended Owens & Minor to be purchased on January 8th, 2018. The

company announced a dividend reduction on October 31st, 2018 (and has since cut its dividend yet again),

triggering an automatic pending sell recommendation. Upon review, we believe Owens & Minor should be sold

when it reaches our estimate of a fair valuation; a price-to-earnings ratio of 10 ($6.80/share at current EPS). It

has generated total returns of -78.1% at current prices and will go down as the worst recommendation in Sure

Dividend’s history by a wide margin.

Church & Dwight (CHD): See this month’s sell recommendation analysis on Church & Dwight.

Sold Positions Chubb (pre-merger CB, not current CB): We first recommended Chubb on April 7th, 2014. We

recommended selling Chubb on July 6th, 2015, due to its merger with ACE which was announced on July 1st,

2015. It generated total returns of 32.1%, versus 14.9% for the S&P 500 (SPY).

Baxalta (BXLT, no longer publicly traded): We first recommended Baxalta on July 6th, 2015. We

recommended selling Baxalta on February 8th, 2016, due to its proposed merger with Shire plc which was

announced on January 11th, 2016. It generated total returns of 15.4%, versus -9.3% for the S&P 500 (SPY).

ConocoPhillips (COP): We first recommended ConocoPhillips on December 8th, 2014. We issued a pending

sell recommendation for the company on February 8th, 2016, due to its dividend reduction announcement on

February 4th, 2016. We issued our final sell recommendation on October 8th, 2018, when the price of oil was

63

around its 10-year historical average price. It generated total returns of 34.4%, versus 50.8% for the S&P

500 (SPY).

Vector Group (VGR): We first recommended Vector Group on August 7th, 2017. We recommended selling

Vector Group on December 3rd, 2018 due to an “F” Dividend Risk Score. It generated total returns of

-28.7%, versus 15.3% for the S&P 500 (SPY).

Helmerich & Payne (HP): We first recommended Helmerich & Payne on February 2nd, 2015. We

recommended selling Helmerich & Payne on December 3rd, 2018 due to an “F” Dividend Risk Score. It

generated total returns of 17.5%, versus 48.9% for the S&P 500 (SPY).

Hormel Foods (HRL): We first recommended Hormel Foods to be purchased on December 5th, 2016. Due to

low expected total returns, we recommend selling Hormel Foods on January 7th, 2019. Hormel generated total

returns of 30.2% versus returns of 20.3% for the S&P 500 (SPY).

Abbott Labs (ABT): We first recommended Abbott Labs to be purchased on July 7th, 2014. Due to low

expected total returns, we recommend selling Abbott Labs on January 7th, 2019. Abbott generated total

returns of 83.6% versus 40.9% for the S&P 500 (SPY).

Wal-Mart (WMT): We first recommended Wal-Mart to be purchased on April 7th, 2014. Due to low expected

total returns, we recommended selling Wal-Mart on February 4th, 2019. Wal-Mart generated total returns of

43.4% versus 66.8% for the S&P 500 (SPY).

EcoLab (ECL): We first recommended EcoLab to be purchased on October 6th, 2014. Due to low expected

total returns, we recommended selling EcoLab on February 4th, 2019. Ecolab generated total returns of

70.4% versus 66.8% for the S&P 500.

Clorox (CLX): We first recommended Clorox to be purchased on April 7th, 2014. Due to low expected total

returns, we recommended selling Clorox on March 4th, 2019. Clorox generated total returns of 100.5%

versus 72.6% for the S&P 500 (SPY).

Nike (NKE): We first recommended Nike to be purchased on May 8th, 2017. Due to low expected total

returns, we recommended selling Nike on March 4th, 2019. Nike generated total returns of 61.6% versus

25.0% for the S&P 500 (SPY).

64

List of Stocks by Dividend Risk Score

Each of the securities in The Sure Analysis Research Database are grouped according to Dividend

Risk Score and sorted (from highest to lowest) by Expected Total Returns. Dividend or distribution

yield is included next to each security’s ticker symbol. The Dividend Risk Score uses payout ratio,

dividend history, and recession resiliency to measure a company’s dividend safety. You can learn

more about how the score is calculated at The Sure Analysis Glossary.

A-Rated Dividend Risk Stocks 1. Bank OZK (OZK): 2.9%

2. AbbVie Inc. (ABBV): 5.2%

3. Walgreens Boots Alliance Inc. (WBA): 3.2%

4. Eaton Vance Corp. (EV): 3.4%

5. Leggett & Platt Inc. (LEG): 3.6%

6. T. Rowe Price Grp. Inc. (TROW): 2.9%

7. Community Trust Bancorp Inc. (CTBI): 3.5%

8. Tompkins Financial Corp. (TMP): 2.6%

9. United Bankshares Inc. (UBSI): 3.7%

10. Archer-Daniels-Midland Co. (ADM): 3.3%

11. Illinois Tool Works Inc. (ITW): 2.7%

12. Target Corp. (TGT): 3.2%

13. Federal Realty Inv. Trust (FRT): 3%

14. Johnson & Johnson (JNJ): 2.6%

15. Computer Services Inc. (CSVI): 2.5%

16. Infosys Ltd (INFY): 2.9%

17. Emerson Electric Co. (EMR): 2.8%

18. Genuine Parts Co. (GPC): 2.7%

19. 3M Co. (MMM): 2.7%

20. Franklin Resources Inc. (BEN): 3.1%

21. The Procter & Gamble Co. (PG): 2.8%

22. Black Hills Corp. (BKH): 2.8%

23. WEYCO Grp. Inc. (WEYS): 2.9%

24. Ameriprise Financial Inc. (AMP): 2.6%

25. AmerisourceBergen Corp. (ABC): 2.2%

26. Caterpillar Inc. (CAT): 2.5%

27. Imperial Oil Ltd (IMO): 2.1%

28. Farmers & Merchants Bancorp (FMCB): 1.9%

29. 1st Source Corp. (SRCE): 2.4%

30. Commerce Bancshares Inc. (CBSH): 1.8%

31. W.W. Grainger Inc. (GWW): 1.8%

32. PPG Industries Inc. (PPG): 1.7%

33. Carlisle Companies Inc. (CSL): 1.3%

34. Parker-Hannifin Corp. (PH): 1.7%

35. Sysco Corp. (SYY): 2.4%

36. General Dynamics Corp. (GD): 2.4%

37. Lowe's Companies Inc. (LOW): 1.8%

38. Stanley Black & Decker Inc. (SWK): 1.9%

39. Pentair plc (PNR): 1.6%

40. UMB Financial Corp. (UMBF): 1.9%

41. ABM Industries Inc. (ABM): 1.9%

42. McDonald's Corp. (MCD): 2.5%

43. Dover Corp. (DOV): 2%

44. H.B. Fuller Co. (FUL): 1.3%

45. The Travelers Companies Inc. (TRV): 2.3%

46. V. F. Corp. (VFC): 2.4%

47. Sonoco Products Co. (SON): 2.7%

48. The Gorman-Rupp Co. (GRC): 1.6%

49. Aflac Inc. (AFL): 2.2%

50. RPM Intl. Inc. (RPM): 2.4%

51. Medtronic plc (MDT): 2.2%

52. UGI Corp. (UGI): 2%

53. Tennant Co. (TNC): 1.5%

54. SJW Grp. (SJW): 2%

55. Walmart Inc. (WMT): 2.2%

56. Bemis Co. Inc. (BMS): 2.3%

57. Abbott Laboratories (ABT): 1.6%

58. Hormel Foods Corp. (HRL): 2%

59. Colgate-Palmolive Co. (CL): 2.5%

60. Connecticut Water Service Inc. (CTWS): 1.8%

61. Cincinnati Financial Corp. (CINF): 2.6%

62. Lancaster Colony Corp. (LANC): 1.7%

63. American States Water Co. (AWR): 1.6%

64. The Goldman Sachs Grp. Inc. (GS): 1.6%

65. Southwest Airlines Co. (LUV): 1.2%

66. Perrigo Co. plc (PRGO): 1.6%

67. Textron Inc. (TXT): 0.2%

68. Canadian Pacific Railway Ltd (CP): 0.9%

69. American Express Co. (AXP): 1.4%

70. Donaldson Co. Inc. (DCI): 1.5%

71. FedEx Corp. (FDX): 1.4%

72. A. O. Smith Corp. (AOS): 1.6%

73. The Sherwin-Williams Co. (SHW): 1%

74. Becton, Dickinson & Co. (BDX): 1.2%

75. Ross Stores Inc. (ROST): 1.1%

76. CSX Corp. (CSX): 1.3%

77. Dillard's Inc. (DDS): 0.6%

78. Brady Corp. (BRC): 1.8%

79. Brookfield Asset Mgmt. Inc. (BAM): 1.4%

80. The TJX Companies Inc. (TJX): 1.5%

81. Nordson Corp. (NDSN): 1%

82. Church & Dwight Co. Inc. (CHD): 1.3%

83. McCormick & Co. Inc. (MKC): 1.5%

84. MSA Safety Inc. (MSA): 1.5%

85. Brown-Forman Corp. (BF.B): 1.3%

86. Stepan Co. (SCL): 1.1%

87. Ecolab Inc. (ECL): 1%

88. Advance Auto Parts Inc. (AAP): 0.1%

89. Roper Technologies Inc. (ROP): 0.5%

90. Atmos Energy Corp. (ATO): 2.1%

91. Cintas Corp. (CTAS): 1%

92. Middlesex Water Co. (MSEX): 1.8%

93. Tootsie Roll Industries Inc. (TR): 1%

https://www.suredividend.com/sure-analysis-research-database/

https://www.suredividend.com/procedures-glossary-definitions/

65

94. MGE Energy Inc. (MGEE): 2%

95. California Water Service Grp. (CWT): 1.5%

96. West Pharmaceutical Srvcs. Inc. (WST): 0.5%

97. RLI Corp. (RLI): 1.2%

98. Aon plc (AON): 0.9%

99. Mastercard Inc. (MA): 0.6%

100. Visa Inc. (V): 0.6%

101. NVIDIA Corp. (NVDA): 0.4%

102. Costco Wholesale Corp. (COST): 1%

B-Rated Dividend Risk Stocks 1. AT&T Inc. (T): 6.5%

2. Cardinal Health Inc. (CAH): 4%

3. WestRock Co. (WRK): 4.7%

4. CVS Health Corp. (CVS): 3.8%

5. Western Digital Corp. (WDC): 4%

6. People's United Financial Inc. (PBCT): 4.2%

7. Vermilion Energy Inc. (VET): 8.3%

8. Tanger Factory Outlet Centers Inc. (SKT): 7.1%

9. International Business Machines Corp. (IBM): 4.4%

10. National Bank of Canada (NA.TO): 4.2%

11. Fortis Inc. (FTS.TO): 3.7%

12. Chevron Corp. (CVX): 3.8%

13. MetLife Inc. (MET): 3.8%

14. Enterprise Products Partners LP (EPD): 5.9%

15. International Paper Co. (IP): 4.2%

16. Exxon Mobil Corp. (XOM): 4%

17. Kimberly-Clark Corp. (KMB): 3.4%

18. Universal Corp. (UVV): 5.2%

19. Pembina Pipeline Corp. (PPL.TO): 4.6%

20. The Coca-Cola Co. (KO): 3.4%

21. United Parcel Service Inc. (UPS): 3.4%

22. Polaris Industries Inc. (PII): 2.9%

23. Whirlpool Corp. (WHR): 3.4%

24. MSC Industrial Direct Co. Inc. (MSM): 3%

25. John Wiley & Sons Inc. (JW.A): 3%

26. Omnicom Grp. Inc. (OMC): 3.5%

27. U.S. Bancorp (USB): 3%

28. HP Inc. (HPQ): 3.3%

29. The Kroger Co. (KR): 2.4%

30. Eagle Financial Srvcs. Inc. (EFSI): 3.1%

31. Domtar Corp. (UFS): 3.5%

32. Hanesbrands Inc. (HBI): 3.4%

33. Foot Locker Inc. (FL): 2.5%

34. Cummins Inc. (CMI): 2.8%

35. HollyFrontier Corp. (HFC): 2.7%

36. Phillips 66 (PSX): 3.4%

37. Lockheed Martin Corp. (LMT): 2.9%

38. Everest Re Grp. Ltd (RE): 2.6%

39. Novartis AG (NVS): 3%

40. MDU Resources Grp. Inc. (MDU): 3.2%

41. Bed Bath & Beyond Inc. (BBBY): 3.8%

42. Community Bank System Inc. (CBU): 2.5%

43. Conagra Brands Inc. (CAG): 3.1%

44. PepsiCo Inc. (PEP): 3.1%

45. AXIS Capital Holdings Ltd (AXS): 2.9%

46. Air Products & Chemicals Inc. (APD): 2.4%

47. Nucor Corp. (NUE): 2.7%

48. The Clorox Co. (CLX): 2.4%

49. Consolidated Edison Inc. (ED): 3.5%

50. Northwest Natural Holding Co. (NWN): 3%

51. M&T Bank Corp. (MTB): 2.5%

52. Snap-on Inc. (SNA): 2.4%

53. Northrop Grumman Corp. (NOC): 1.8%

54. Molson Coors Brewing Co. (TAP): 2.7%

55. UnitedHealth Grp. Inc. (UNH): 1.5%

56. Intel Corp. (INTC): 2.3%

57. Comcast Corp. (CMCSA): 2.1%

58. Calvin B. Taylor Bankshares Inc. (TYCB): 2.6%

59. América Móvil SAB de CV (AMX): 2.2%

60. Apple Inc. (AAPL): 1.5%

61. Deere & Co. (DE): 1.9%

62. Oracle Corp. (ORCL): 1.8%

63. The Hershey Co. (HSY): 2.5%

64. Ingersoll-Rand plc (IR): 1.9%

65. Raytheon Co. (RTN): 2%

66. First Financial Corp. (THFF): 2.4%

67. Corning Inc. (GLW): 2.4%

68. Chesapeake Financial Shares Inc. (CPKF): 2.2%

69. Chubb Ltd (CB): 2.1%

70. McGrath RentCorp (MGRC): 2.6%

71. Assurant Inc. (AIZ): 2.5%

72. L3 Technologies Inc. (LLL): 1.6%

73. United Technologies Corp. (UTX): 2.2%

74. Aqua America Inc. (WTR): 2.4%

75. Union Pacific Corp. (UNP): 2.1%

76. Automatic Data Processing Inc. (ADP): 2%

77. NACCO Industries Inc. (NC): 1.7%

78. Constellation Brands Inc. (STZ): 1.7%

79. Kansas City Southern (KSU): 1.2%

80. Fresenius Medical Care AG & Co. KGaA (FMS): 1.5%

81. Domino's Pizza Inc. (DPZ): 1.1%

82. Tractor Supply Co. (TSCO): 1.3%

83. SAP SE (SAP): 1.5%

84. Stryker Corp. (SYK): 1.1%

85. The Toro Co. (TTC): 1.3%

86. Dollar General Corp. (DG): 1%

87. Cognizant Technology Solutions Corp. (CTSH): 1.1%

88. SEI Investments Co. (SEIC): 1.2%

89. Jack in the Box Inc. (JACK): 2%

90. S&P Global Inc. (SPGI): 1.1%

91. Microsoft Corp. (MSFT): 1.5%

92. ResMed Inc. (RMD): 1.4%

93. Xylem Inc. (XYL): 1.2%

94. Morningstar Inc. (MORN): 0.9%

95. Franklin Electric Co. Inc. (FELE): 1.1%

96. Norfolk Southern Corp. (NSC): 1.8%

97. Honeywell Intl. Inc. (HON): 2%

98. Nike Inc. (NKE): 1%

99. Canadian National Railway Co. (CNI): 1.8%

100. Moody's Corp. (MCO): 1.1%

101. Waste Mgmt. Inc. (WM): 2%

102. Jack Henry & Associates Inc. (JKHY): 1.1%

103. CAE Inc. (CAE.TO): 1.3%

104. Badger Meter Inc. (BMI): 1.1%

66

C-Rated Dividend Risk Stocks 1. The Bank of Nova Scotia (BNS.TO): 4.9%

2. Invesco Ltd (IVZ): 6.1%

3. Canadian Imperial Bank of Commerce (CM): 5.2%

4. Energy Transfer LP (ET): 7.9%

5. The Kraft Heinz Co. (KHC): 5%

6. Enbridge Inc. (ENB): 6.1%

7. Altria Grp. Inc. (MO): 5.6%

8. Hospitality Properties Trust (HPT): 8%

9. Newell Brands Inc. (NWL): 6%

10. Micro Focus Intl. plc (MFGP): 4.4%

11. HNI Corp. (HNI): 3.2%

12. Carnival Corp. (CCL): 3.8%

13. ABB Ltd (ABB): 4.3%

14. Nordstrom Inc. (JWN): 3.4%

15. Total SA (TOT): 5.2%

16. Royal Bank of Canada (RY.TO): 4%

17. Siemens AG (SIEGY): 3.9%

18. Kellogg Co. (K): 4%

19. H&R Block Inc. (HRB): 4.1%

20. Sanofi (SNY): 4.2%

21. Gilead Sciences Inc. (GILD): 3.8%

22. The Toronto-Dominion Bank (TD.TO): 4%

23. Philip Morris Intl. Inc. (PM): 5.2%

24. BlackRock Inc. (BLK): 3%

25. Verizon Communications Inc. (VZ): 4.1%

26. Amgen Inc. (AMGN): 3%

27. Bank of Montreal (BMO.TO): 3.9%

28. Kohl's Corp. (KSS): 3.8%

29. The Western Union Co. (WU): 4.2%

30. Simon Property Grp. Inc. (SPG): 4.5%

31. General Mills Inc. (GIS): 3.8%

32. Urstadt Biddle Properties Inc. (UBA): 5.3%

33. Eaton Corp. plc (ETN): 3.4%

34. Host Hotels & Resorts Inc. (HST): 4.1%

35. Edison International (EIX): 3.9%

36. QUALCOMM Inc. (QCOM): 4.3%

37. Great-West Lifeco Inc. (GWO.TO): 5.1%

38. Universal Health Realty Income Trust (UHT): 3.5%

39. National Retail Properties Inc. (NNN): 3.7%

40. Entergy Corp. (ETR): 3.9%

41. Old Republic Intl. Corp. (ORI): 3.8%

42. Texas Instruments Inc. (TXN): 2.8%

43. Sempra Energy (SRE): 3%

44. NetApp Inc. (NTAP): 2.3%

45. The Home Depot Inc. (HD): 2.8%

46. Digital Realty Trust Inc. (DLR): 3.6%

47. CenterPoint Energy, Inc. (CNP): 3.7%

48. American Electric Power Co. Inc. (AEP): 3.2%

49. CF Industries Holdings Inc. (CF): 2.9%

50. Campbell Soup Co. (CPB): 3.7%

51. Unilever plc (UL): 3.1%

52. The J. M. Smucker Co. (SJM): 2.9%

53. National Fuel Gas Co. (NFG): 2.8%

54. Taiwan Semiconductor Mfg. Co. Ltd (TSM): 3.3%

55. Cracker Barrel Old Country Store Inc. (CBRL): 3.2%

56. DTE Energy Co. (DTE): 3.1%

57. Rogers Communications Inc. (RCI.B.TO): 2.8%

58. Cisco Systems Inc. (CSCO): 2.5%

59. Merck & Co. Inc. (MRK): 2.6%

60. NextEra Energy Inc. (NEE): 2.6%

61. Hasbro Inc. (HAS): 3.2%

62. Nestlé SA (NSRGY): 2.6%

63. Hawaiian Holdings Inc. (HA): 1.8%

64. Halliburton Co. (HAL): 2.4%

65. The Boeing Co. (BA): 2.1%

66. Arthur J. Gallagher & Co. (AJG): 2.2%

67. The Walt Disney Co. (DIS): 1.6%

68. Keurig Dr Pepper Inc. (KDP): 2.2%

69. Starbucks Corp. (SBUX): 1.9%

70. Telephone & Data Systems Inc. (TDS): 2.1%

71. Tiffany & Co. (TIF): 2.1%

72. Mondelez Intl. Inc. (MDLZ): 2.1%

73. Rockwell Automation Inc. (ROK): 2.1%

74. Fastenal Co. (FAST): 2.6%

75. Yum! Brands Inc. (YUM): 1.7%

76. Otter Tail Corp. (OTTR): 2.9%

77. Dunkin' Brands Grp. Inc. (DNKN): 2%

78. Diageo plc (DEO): 1.7%

79. Thomson Reuters Corp. (TRI): 2.4%

80. Linde plc (LIN): 2%

81. Erie Indemnity Co. (ERIE): 2%

82. Eli Lilly & Co. (LLY): 2%

83. Mckesson Corp. (MCK): 1.4%

84. ArcelorMittal (MT): 0.9%

85. American Airlines Grp. Inc. (AAL): 1.2%

86. Sony Corp. (SNE): 0.6%

87. Yamana Gold Inc. (AUY): 0.8%

88. Petróleo Brasileiro SA - Petrobras (PBR): 0.6%

89. General Electric Co. (GE): 0.4%

D-Rated Dividend Risk Stocks 1. AmeriGas Partners LP (APU): 11.1%

2. Sunoco LP (SUN): 10.4%

3. Brookfield Property REIT Inc. (BPR): 6.3%

4. Holly Energy Partners LP (HEP): 9.8%

5. Magellan Midstream Partners LP (MMP): 6.5%

6. Vodafone Grp. Plc (VOD): 9.3%

7. Royal Dutch Shell plc (RDS.B): 5.8%

8. BT Grp. plc (BT): 6.5%

9. Targa Resources Corp. (TRGP): 8.6%

10. British American Tobacco plc (BTI): 6.5%

11. Brookfield Property Partners LP (BPY): 6.3%

12. Imperial Brands plc (IMBBY): 7.1% 13. Main Street Capital Corp. (MAIN): 6.4%

14. Omega Healthcare Investors Inc. (OHI): 7%

15. ARMOUR Residential REIT Inc. (ARR): 11.6%

16. BP plc (BP): 5.6%

17. Iron Mountain Inc. (IRM): 6.8%

18. Occidental Petroleum Corp. (OXY): 4.7%

19. Apple Hospitality REIT Inc. (APLE): 7.3%

20. Patterson Companies Inc. (PDCO): 4.7%

21. BCE Inc. (BCE): 5.3%

22. TELUS Corp. (T.TO): 4.4%

67

23. The Southern Co. (SO): 4.7%

24. W. P. Carey Inc. (WPC): 5.3%

25. PPL Corp. (PPL): 5.2%

26. DowDuPont Inc. (DWDP): 4.2%

27. Manulife Financial Corp. (MFC): 4.3%

28. Principal Financial Grp. Inc. (PFG): 4.2%

29. KeyCorp (KEY): 4.1%

30. Macy's Inc. (M): 6.1%

31. Waddell & Reed Financial Inc. (WDR): 5.7%

32. Huntington Bancshares Inc. (HBAN): 4.3%

33. LyondellBasell Industries NV (LYB): 4.5%

34. Seagate Technology plc (STX): 5.2%

35. Legg Mason Inc. (LM): 4.8%

36. General Motors Co. (GM): 4%

37. Prudential Financial Inc. (PRU): 4.2%

38. Navient Corporation (NAVI): 5.4%

39. Kinder Morgan Inc. (KMI): 4%

40. Store Capital Corp. (STOR): 4%

41. Dominion Energy Inc. (D): 4.5%

42. Honda Motor Co. Ltd (HMC): 3.5%

43. Valero Energy Corp. (VLO): 4.3%

44. Flowers Foods Inc. (FLO): 3.4%

45. Duke Energy Corp. (DUK): 4.2%

46. Public Storage (PSA): 3.7%

47. Ventas Inc. (VTR): 5%

48. Suncor Energy Inc. (SU.TO): 3.8%

49. Realty Income Corp. (O): 3.7%

50. HCP Inc. (HCP): 4.7%

51. Welltower Inc. (WELL): 4.5%

52. POSCO (PKX): 3%

53. BB&T Corp. (BBT): 3.3%

54. Consolidated Water Co. Ltd (CWCO): 2.7%

55. Synchrony Financial (SYF): 2.6%

56. Comerica Inc. (CMA): 3.5%

57. Magna Intl. Inc. (MGA): 2.9%

58. Bank of America Corp. (BAC): 2.1%

59. Applied Materials Inc. (AMAT): 2.1%

60. Citigroup Inc. (C): 2.8%

61. Harley-Davidson Inc. (HOG): 4%

62. Sun Life Financial Inc. (SLF): 3.8%

63. Royal Caribbean Cruises Ltd (RCL): 2.4%

64. Alaska Air Grp. Inc. (ALK): 2.4%

65. Discover Financial Services (DFS): 2.2%

66. Broadcom Inc. (AVGO): 3.5%

67. Canadian Natural Resources Ltd (CNQ.TO): 3.7%

68. Ryder System Inc. (R): 3.4%

69. Dine Brands Global Inc. (DIN): 3%

70. Wells Fargo & Co. (WFC): 3.7%

71. Bristol-Myers Squibb Co. (BMY): 3.5%

72. Williams-Sonoma Inc. (WSM): 3.3%

73. Marathon Petroleum Corp. (MPC): 3.5%

74. The Bank of New York Mellon Corp. (BK): 2.2%

75. Ally Financial Inc. (ALLY): 2.4%

76. Autoliv Inc. (ALV): 3.2%

77. Xerox Corp. (XRX): 3%

78. KLA-Tencor Corp. (KLAC): 2.5%

79. JPMorgan Chase & Co. (JPM): 3%

80. Best Buy Co. Inc. (BBY): 2.8%

81. PetroChina Co. Ltd (PTR): 2.1%

82. Popular Inc. (BPOP): 2.2%

83. PACCAR Inc. (PCAR): 1.9%

84. The Allstate Corp. (ALL): 2.1%

85. Restaurant Brands Intl. Inc. (QSR): 3.1%

86. Copa Holdings SA (CPA): 3.1%

87. Pfizer Inc. (PFE): 3.4%

88. Delta Air Lines Inc. (DAL): 2.5%

89. Methanex Corp. (MEOH): 2.2%

90. Westamerica Bancorporation (WABC): 2.6%

91. R.R. Donnelley & Sons Co. (RRD): 2.5%

92. Paychex Inc. (PAYX): 2.8%

93. Kulicke & Soffa Industries Inc. (KLIC): 2.1%

94. Owens & Minor Inc. (OMI): 0.2%

95. National Oilwell Varco Inc. (NOV): 0.7%

96. Aptiv plc (APTV): 1.1%

97. ConocoPhillips (COP): 1.8%

98. Logitech Intl. SA (LOGI): 1.7%

99. MGM Resorts Intl. (MGM): 1.9%

100. Scholastic Corp. (SCHL): 1.5%

101. Accenture plc (ACN): 1.7%

102. Ferrari NV (RACE): 0.6%

103. Telefonaktiebolaget LM Ericsson (ERIC): 1.2%

F-Rated Dividend Risk Stocks 1. GameStop Corp. (GME): 15.1%

2. Suburban Propane Partners LP (SPH): 10.6%

3. Global Net Lease Inc. (GNL): 11.1%

4. Senior Housing Properties Trust (SNH): 15.4%

5. Genesis Energy LP (GEL): 9.4%

6. Vector Grp. Ltd (VGR): 15%

7. HSBC Holdings plc (HSBC): 10%

8. Aegon NV (AEG): 6.7%

9. China Petroleum & Chemical Corp. (SNP): 10.7%

10. EQM Midstream Partners LP (EQM): 9.6%

11. Apollo Global Mgmt. LLC (APO): 7.9%

12. Six Flags Entertainment Corp. (SIX): 6.6%

13. Compass Diversified Holdings (CODI): 9%

14. Ladder Capital Corp. (LADR): 8.1%

15. Macquarie Infra. Corp. (MIC): 9.7%

16. Buckeye Partners LP (BPL): 8.6%

17. Artisan Partners Asset Mgmt. Inc. (APAM): 8.7%

18. WPP plc (WPP): 7.3%

19. Spark Energy Inc. (SPKE): 7.9%

20. New Residential Inv. Corp. (NRZ): 11.7%

21. MPLX LP (MPLX): 7.8%

22. Banco Santander SA (SAN): 6.2%

23. Brookfield Infra. Partners LP (BIP): 4.8%

24. Macerich Co. (MAC): 6.9%

25. Ford Motor Co. (F): 6.7%

26. CenturyLink Inc. (CTL): 8.2%

27. Nielsen Holdings plc (NLSN): 5.8%

28. Brookfield Renewable Partners LP (BEP): 6.5%

29. Daimler AG (DDAIF): 7.3%

30. The Blackstone Grp. LP (BX): 6.7%

31. B&G Foods Inc. (BGS): 8.1%

32. Eni SpA (E): 5.4%

33. Telefónica SA (TEF): 5.4%

68

34. ONEOK Inc. (OKE): 4.9%

35. Ares Capital Corp. (ARCC): 9.2%

36. Summit Hotel Properties Inc. (INN): 6.2%

37. L Brands Inc. (LB): 4.4%

38. Apollo Comml. Real Estate Finance Inc. (ARI): 10.1%

39. Medical Properties Trust Inc. (MPW): 5.3%

40. GlaxoSmithKline plc (GSK): 5.7%

41. Starwood Property Trust Inc. (STWD): 8.5%

42. Taubman Centers, Inc. (TCO): 5%

43. OUTFRONT Media Inc. (OUT): 6%

44. Seaspan Corp. (SSW): 5.5%

45. Kimco Realty Corp. (KIM): 6.1%

46. Orchid Island Capital Inc. (ORC): 14.6%

47. Annaly Capital Mgmt. Inc. (NLY): 12%

48. TC PipeLines LP (TCP): 7%

49. Gladstone Inv. Corp. (GAIN): 6.8%

50. Stage Stores Inc. (SSI): 20%

51. Lazard Ltd (LAZ): 4.7%

52. Bayer AG (BAYRY): 4.9%

53. Fiat Chrysler Automobiles NV (FCAU): 4.8%

54. Schlumberger Ltd/NV (SLB): 4.5%

55. Johnson Controls Intl. plc (JCI): 2.9%

56. Toyota Motor Corp. (TM): 2.9%

57. Ping An Insurance Grp. Co. of China Ltd (PNGAY): 2.9%

58. Tenaris SA (TS): 2.9%

59. TransCanada Corp. (TRP): 4.9%

60. Crown Castle Intl. Corp. (CCI): 3.5%

61. Ambev SA (ABEV): 5.5%

62. China Mobile Ltd (CHL): 4.1%

63. Deutsche Telekom AG (DTEGY): 4.8%

64. Abercrombie & Fitch Co. (ANF): 3%

65. STAG Industrial Inc. (STAG): 4.8%

66. Baker Hughes, a GE Co. (BHGE): 2.7%

67. Lamar Advertising Co. (LAMR): 4.8%

68. Weyerhaeuser Co. (WY): 5.1%

69. Anheuser-Busch InBev NV (BUD): 3.9%

70. CNOOC Ltd (CEO): 3.9%

71. Shaw Communications Inc. (SJR.A.): 4.1%

72. Las Vegas Sands Corp. (LVS): 4.8%

73. Canon Inc. (CAJ): 5.2%

74. Boston Properties Inc. (BXP): 2.8%

75. Helmerich & Payne Inc. (HP): 5%

76. Nokia Corp. (NOK): 4.1%

77. Rio Tinto plc (RIO): 5.9%

78. Williams Companies (WMB): 5.2%

79. BHP Billiton Ltd (BHP): 4.2%

80. Equity Residential (EQR): 3%

81. AvalonBay Communities Inc. (AVB): 3%

82. Meredith Corp. (MDP): 4.1%

83. Mercury General Corp. (MCY): 5%

84. AstraZeneca plc (AZN): 3.4%

85. Apache Corp. (APA): 2.9%

86. TechnipFMC plc (FTI): 2.2%

87. Pearson plc (PSO): 2.2%

88. Novo Nordisk A/S (NVO): 2.4%

89. Patterson-UTI Energy Inc. (PTEN): 1.1%

90. Nabors Industries Ltd (NBR): 1.1%

91. Wynn Resorts Ltd (WYNN): 2.2%

92. Melco Resorts & Entertainment Ltd (MLCO): 2.5%

93. The Wendy's Co. (WEN): 2.2%

94. Koninklijke Philips NV (PHG): 2.5%

95. Garmin Ltd (GRMN): 2.6%

96. Newmont Mining Corp. (NEM): 1.6%

97. Barrick Gold Corp. (GOLD): 2.1%

98. Wheaton Precious Metals Corp. (WPM): 1.5%

69

List of Stocks by Sector

Each of the securities in The Sure Analysis Research Database are grouped according to sector and

Dividend Risk Score and sorted (from highest to lowest) by Expected Total Returns. Dividend or

distribution yield is included next to each security’s ticker symbol. The Dividend Risk Score uses

payout ratio, dividend history, and recession resiliency to measure a company’s dividend safety.

You can learn more about how the score is calculated at The Sure Analysis Glossary.

Basic Materials A-Ranked Dividend Risk 1. PPG Industries Inc. (PPG): 1.7%

2. The Sherwin-Williams Co. (SHW): 1%

3. H.B. Fuller Co. (FUL): 1.3%

4. RPM Intl. Inc. (RPM): 2.4%

5. Stepan Co. (SCL): 1.1%

6. Ecolab Inc. (ECL): 1%

B-Ranked Dividend Risk 1. NACCO Industries Inc. (NC): 1.7%

2. Domtar Corp. (UFS): 3.5%

3. MDU Resources Grp. Inc. (MDU): 3.2%

4. International Flavors & Fragrances Inc. (IFF): 2.2%

5. Air Products & Chemicals Inc. (APD): 2.4%

6. Nucor Corp. (NUE): 2.6%

C-Ranked Dividend Risk 1. ArcelorMittal (MT): 0.9%

2. Yamana Gold Inc. (AUY): 0.8%

3. CF Industries Holdings Inc. (CF): 2.8%

4. Linde plc (LIN): 1.9%

D-Ranked Dividend Risk 1. DowDuPont Inc. (DWDP): 4.1%

2. POSCO (PKX): 3%

3. LyondellBasell Industries NV (LYB): 4.4%

4. Methanex Corp. (MEOH): 2.2%

F-Ranked Dividend Risk 1. Weyerhaeuser Co. (WY): 5.1%

2. Rio Tinto plc (RIO): 5.9%

3. BHP Group Ltd (BHP): 4.2%

4. Newmont Mining Corp. (NEM): 1.6%

5. Barrick Gold Corp. (GOLD): 2.1%

6. Wheaton Precious Metals Corp. (WPM): 1.5%

Communication Services A-Ranked Dividend Risk 1. N/A

B-Ranked Dividend Risk 1. Comcast Corp. (CMCSA): 2.1%

2. América Móvil SAB de CV (AMX): 2.2%%

C-Ranked Dividend Risk 1. Verizon Communications Inc. (VZ): 4.1%

2. Telephone & Data Systems Inc. (TDS): 2.1%

3. Rogers Communications Inc. (RCI.B.TO): 2.8%

D-Ranked Dividend Risk 1. Vodafone Grp. Plc (VOD): 9.2%

2. BT Grp. plc (BT): 6.4%

3. BCE Inc. (BCE): 5.3%

4. TELUS Corp. (T.TO): 4.4%

F-Ranked Dividend Risk 1. CenturyLink Inc. (CTL): 8.1%

2. Telefónica SA (TEF): 5.4%

3. Deutsche Telekom AG (DTEGY): 4.7%

4. China Mobile Ltd (CHL): 4.1%

5. Shaw Communications Inc. (SJR.A.): 4.1%

Consumer Cyclical A-Ranked Dividend Risk 1. Leggett & Platt Inc. (LEG): 3.6%

2. Lowe's Companies Inc. (LOW): 1.7%

3. Ross Stores Inc. (ROST): 1.1%

4. McDonald's Corp. (MCD): 2.5%

5. Genuine Parts Co. (GPC): 2.7%

6. V. F. Corp. (VFC): 2.3%

7. Dillard's Inc. (DDS): 0.6%

8. Sonoco Products Co. (SON): 2.7%

9. The TJX Companies Inc. (TJX): 1.7%

10. WEYCO Grp. Inc. (WEYS): 2.9%

11. Bemis Co. Inc. (BMS): 2.3%

12. Advance Auto Parts Inc. (AAP): 0.1%

B-Ranked Dividend Risk 1. WestRock Co. (WRK): 4.6%

2. Whirlpool Corp. (WHR): 3.5%

3. Polaris Industries Inc. (PII): 2.8%

https://www.suredividend.com/sure-analysis-research-database/

https://www.suredividend.com/procedures-glossary-definitions/

70


4. John Wiley & Sons Inc. (JW.A): 3%

5. Omnicom Grp. Inc. (OMC): 3.5%

6. Hanesbrands Inc. (HBI): 3.4%

7. Foot Locker Inc. (FL): 2.5%

8. Tractor Supply Co. (TSCO): 1.3%

9. Domino's Pizza Inc. (DPZ): 1%

10. International Paper Co. (IP): 4.2%

11. Jack in the Box Inc. (JACK): 2%

12. Bed Bath & Beyond Inc. (BBBY): 3.8%

13. Nike Inc. (NKE): 1%

C-Ranked Dividend Risk 1. Carnival Corp. (CCL): 3.8%

2. Nordstrom Inc. (JWN): 3.3%

3. H&R Block Inc. (HRB): 4.1%

4. The Walt Disney Co. (DIS): 1.6%

5. Kohl's Corp. (KSS): 3.8%

6. The Home Depot Inc. (HD): 2.7%

7. Starbucks Corp. (SBUX): 1.9%

8. Tiffany & Co. (TIF): 2.1%

9. Yum! Brands Inc. (YUM): 1.7%

10. Cracker Barrel Old Country Store Inc. (CBRL): 3.2%

11. Dunkin' Brands Grp. Inc. (DNKN): 2%

12. Hasbro Inc. (HAS): 3.2%

D-Ranked Dividend Risk 1. Magna Intl. Inc. (MGA): 2.8%

2. Macy's Inc. (M): 6.1%

3. Harley-Davidson Inc. (HOG): 4%

4. Royal Caribbean Cruises Ltd (RCL): 2.4%

5. Dine Brands Global Inc. (DIN): 3%

6. Aptiv plc (APTV): 1%

7. Williams-Sonoma Inc. (WSM): 3.3%

8. General Motors Co. (GM): 4%

9. Autoliv Inc. (ALV): 3.1%

10. Best Buy Co. Inc. (BBY): 2.8%

11. Honda Motor Co. Ltd (HMC): 3.5%

12. Restaurant Brands Intl. Inc. (QSR): 3%

13. MGM Resorts Intl. (MGM): 1.9%

14. Scholastic Corp. (SCHL): 1.5%

15. Ferrari NV (RACE): 0.6%

F-Ranked Dividend Risk 1. GameStop Corp. (GME): 15.8%

2. Six Flags Entertainment Corp. (SIX): 6.6%

3. Fiat Chrysler Automobiles NV (FCAU): 4.8%

4. WPP plc (WPP): 7.1%

5. Ford Motor Co. (F): 6.6%

6. Toyota Motor Corp. (TM): 2.9%

7. Daimler AG (DDAIF): 7.2%

8. Abercrombie & Fitch Co. (ANF): 3.1%

9. L Brands Inc. (LB): 4.5%

10. Pearson plc (PSO): 2.2%

11. Las Vegas Sands Corp. (LVS): 4.8%

12. Wynn Resorts Ltd (WYNN): 2.2%

13. Melco Resorts & Entertainment Ltd (MLCO): 2.5%

14. The Wendy's Co. (WEN): 2.2%

15. Meredith Corp. (MDP): 4.1%

16. Stage Stores Inc. (SSI): 19.8%

Consumer Defensive A-Ranked Dividend Risk 1. Walgreens Boots Alliance Inc. (WBA): 3.2%

2. Sysco Corp. (SYY): 2.4%

3. Archer-Daniels-Midland Co. (ADM): 3.3%

4. Target Corp. (TGT): 3.2%

5. Costco Wholesale Corp. (COST): 0.9%

6. The Procter & Gamble Co. (PG): 2.8%

7. Church & Dwight Co. Inc. (CHD): 1.3%

8. McCormick & Co. Inc. (MKC): 1.5%

9. Brown-Forman Corp. (BF.B): 1.3%

10. Walmart Inc. (WMT): 2.2%

11. Hormel Foods Corp. (HRL): 2%

12. Colgate-Palmolive Co. (CL): 2.5%

13. Tootsie Roll Industries Inc. (TR): 1%

14. Lancaster Colony Corp. (LANC): 1.7%

B-Ranked Dividend Risk 1. The Kroger Co. (KR): 2.4%

2. Molson Coors Brewing Co. (TAP): 2.7%

3. Constellation Brands Inc. (STZ): 1.7%

4. Dollar General Corp. (DG): 1%

5. The Hershey Co. (HSY): 2.5%

6. Kimberly-Clark Corp. (KMB): 3.4%

7. Universal Corp. (UVV): 5.1%

8. Conagra Brands Inc. (CAG): 3.1%

9. PepsiCo Inc. (PEP): 3.1%

10. The Coca-Cola Co. (KO): 3.5%

11. The Clorox Co. (CLX): 2.5%

C-Ranked Dividend Risk 1. Newell Brands Inc. (NWL): 6%

2. Altria Grp. Inc. (MO): 5.9%

3. The Kraft Heinz Co. (KHC): 5%

4. Kellogg Co. (K): 4%

5. Philip Morris Intl. Inc. (PM): 5.3%

6. General Mills Inc. (GIS): 3.9%

7. Keurig Dr Pepper Inc. (KDP): 2.2%

8. Campbell Soup Co. (CPB): 3.8%

9. Mondelez Intl. Inc. (MDLZ): 2.1%

10. The J. M. Smucker Co. (SJM): 3%

11. Unilever plc (UL): 3.1%

12. Diageo plc (DEO): 1.7%

13. Nestlé SA (NSRGY): 2.6%

D-Ranked Dividend Risk 1. Imperial Brands plc (IMBBY): 7.3%

2. British American Tobacco plc (BTI): 6.7%

3. Flowers Foods Inc. (FLO): 3.4%

F-Ranked Dividend Risk 1. Vector Grp. Ltd (VGR): 15.1%

2. B&G Foods Inc. (BGS): 8.2%

3. Ambev SA (ABEV): 5.5%

71


4. Anheuser-Busch InBev NV (BUD): 3.9%

Energy A-Ranked Dividend Risk 1. Imperial Oil Ltd (IMO) – 2.1%

B-Ranked Dividend Risk 1. Vermilion Energy Inc. (VET): 8.4%

2. HollyFrontier Corp. (HFC): 2.7%

3. Chevron Corp. (CVX): 3.8%

4. Phillips 66 (PSX): 3.4%

5. Enterprise Products Partners LP (EPD): 5.9%

6. Exxon Mobil Corp. (XOM): 4.1%

7. Pembina Pipeline Corp. (PPL.TO): 4.6%

C-Ranked Dividend Risk 1. Total SA (TOT): 5.2%

2. Energy Transfer LP (ET): 7.9%

3. Halliburton Co. (HAL): 2.4%

4. Enbridge Inc. (ENB): 6.1%

5. Petróleo Brasileiro SA - Petrobras (PBR): 0.7%

6. National Fuel Gas Co. (NFG): 2.8%

D-Ranked Dividend Risk 1. Sunoco LP (SUN): 10.5%

2. Holly Energy Partners LP (HEP): 9.9%

3. Magellan Midstream Partners LP (MMP): 6.5%

4. Targa Resources Corp. (TRGP): 9%

5. Royal Dutch Shell plc (RDS.B): 5.8%

6. National Oilwell Varco Inc. (NOV): 0.7%

7. Canadian Natural Resources Ltd (CNQ.TO): 3.7%

8. ConocoPhillips (COP): 1.9%

9. Marathon Petroleum Corp. (MPC): 3.5%

10. Kinder Morgan Inc. (KMI): 4%

11. BP plc (BP): 5.6%

12. Occidental Petroleum Corp. (OXY): 4.7%

13. PetroChina Co. Ltd (PTR): 2.1%

14. Valero Energy Corp. (VLO): 4.3%

15. Suncor Energy Inc. (SU.TO): 3.9%

F-Ranked Dividend Risk 1. Genesis Energy LP (GEL): 9.5%

2. China Petroleum & Chemical Corp. (SNP): 10.8%

3. EQM Midstream Partners LP (EQM): 9.6%

4. Buckeye Partners LP (BPL): 8.7%

5. Schlumberger Ltd/NV (SLB): 4.6% 6. MPLX LP (MPLX): 7.8%

7. Apache Corp. (APA): 3%

8. TechnipFMC plc (FTI): 2.2%

9. Tenaris SA (TS): 2.9%

10. Eni SpA (E): 5.4%

11. ONEOK Inc. (OKE): 5%

12. TransCanada Corp. (TRP): 4.9%

13. Baker Hughes, a GE Co. (BHGE): 2.7%

14. CNOOC Ltd (CEO): 3.9%

15. Helmerich & Payne Inc. (HP): 5.1%

16. Patterson-UTI Energy Inc. (PTEN): 1.2%

17. TC PipeLines LP (TCP): 7%

18. Nabors Industries Ltd (NBR): 1.1%

19. Williams Companies (WMB): 5.3%

Financial Services A-Ranked Dividend Risk 1. Bank OZK (OZK): 2.8%

2. Ameriprise Financial Inc. (AMP): 2.6%

3. Eaton Vance Corp. (EV): 3.4%

4. The Goldman Sachs Grp. Inc. (GS): 1.6%

5. Farmers & Merchants Bancorp (FMCB): 1.9%

6. 1st Source Corp. (SRCE): 2.4%

7. American Express Co. (AXP): 1.4%

8. Commerce Bancshares Inc. (CBSH): 1.8%

9. T. Rowe Price Grp. Inc. (TROW): 2.9%

10. Tompkins Financial Corp. (TMP): 2.6%

11. Community Trust Bancorp Inc. (CTBI): 3.5%

12. United Bankshares Inc. (UBSI): 3.7%

13. Aon plc (AON): 0.9%

14. Mastercard Inc. (MA): 0.6%

15. Visa Inc. (V): 0.6%

16. UMB Financial Corp. (UMBF): 1.9%

17. The Travelers Companies Inc. (TRV): 2.3%

18. Aflac Inc. (AFL): 2.2%

19. Brookfield Asset Mgmt. Inc. (BAM): 1.4%

20. Franklin Resources Inc. (BEN): 3%

21. Cincinnati Financial Corp. (CINF): 2.6%

22. RLI Corp. (RLI): 1.2%

B-Ranked Dividend Risk 1. M&T Bank Corp. (MTB): 2.5%

2. U.S. Bancorp (USB): 3%

3. People's United Financial Inc. (PBCT): 4.2%

4. Eagle Financial Srvcs. Inc. (EFSI): 3.1%

5. National Bank of Canada (NA.TO): 4.2%

6. MetLife Inc. (MET): 3.8%

7. Calvin B. Taylor Bankshares Inc. (TYCB): 2.6%

8. SEI Investments Co. (SEIC): 1.2%

9. Everest Re Grp. Ltd (RE): 2.6%

10. S&P Global Inc. (SPGI): 1.1%

11. Community Bank System Inc. (CBU): 2.5%

12. First Financial Corp. (THFF): 2.4%

13. Chubb Ltd (CB): 2.1%

14. Chesapeake Financial Shares Inc. (CPKF): 2.2%

15. AXIS Capital Holdings Ltd (AXS): 2.9%

16. Assurant Inc. (AIZ): 2.5%

17. Moody's Corp. (MCO): 1.1%

C-Ranked Dividend Risk 1. The Bank of Nova Scotia (BNS.TO): 4.9%

2. Invesco Ltd (IVZ): 6%

3. Canadian Imperial Bank of Commerce (CM): 5.1%

4. Old Republic Intl. Corp. (ORI): 3.8%

5. Royal Bank of Canada (RY.TO): 4%

6. Arthur J. Gallagher & Co. (AJG): 2.2%

7. The Toronto-Dominion Bank (TD.TO): 4%

72


8. BlackRock Inc. (BLK): 3%

9. Bank of Montreal (BMO.TO): 3.9%

10. The Western Union Co. (WU): 4.2%

11. Great-West Lifeco Inc. (GWO.TO): 5%

12. Thomson Reuters Corp. (TRI): 2.4%

13. Erie Indemnity Co. (ERIE): 2%

D-Ranked Dividend Risk 1. BB&T Corp. (BBT): 3.4%

2. Manulife Financial Corp. (MFC): 4.3%

3. Synchrony Financial (SYF): 2.6%

4. Comerica Inc. (CMA): 3.5%

5. Principal Financial Grp. Inc. (PFG): 4.1%

6. Bank of America Corp. (BAC): 2.1%

7. KeyCorp (KEY): 4.1%

8. Citigroup Inc. (C): 2.8%

9. Waddell & Reed Financial Inc. (WDR): 5.8%

10. Sun Life Financial Inc. (SLF): 3.8%

11. Huntington Bancshares Inc. (HBAN): 4.2%

12. Discover Financial Services (DFS): 2.2%

13. Main Street Capital Corp. (MAIN): 6.4%

14. Wells Fargo & Co. (WFC): 3.7%

15. Legg Mason Inc. (LM): 4.7%

16. The Bank of New York Mellon Corp. (BK): 2.2%

17. Ally Financial Inc. (ALLY): 2.4%

18. Prudential Financial Inc. (PRU): 4.2%

19. Navient Corporation (NAVI): 5.3%

20. JPMorgan Chase & Co. (JPM): 3%

21. Popular Inc. (BPOP): 2.2%

22. The Allstate Corp. (ALL): 2.1%

23. Westamerica Bancorporation (WABC): 2.6%

F-Ranked Dividend Risk 1. Lazard Ltd (LAZ): 4.7%

2. HSBC Holdings plc (HSBC): 9.9%

3. Aegon NV (AEG): 6.6%

4. Apollo Global Mgmt. LLC (APO): 7.8%

5. Artisan Partners Asset Mgmt. Inc. (APAM): 8.6%

6. Banco Santander SA (SAN): 6.2%

7. Ping An Insurance Grp. Co. of China Ltd (PNGAY):

2.8%

8. The Blackstone Grp. LP (BX): 6.7%

9. Ares Capital Corp. (ARCC): 9.2%

10. Gladstone Inv. Corp. (GAIN): 6.8%

11. Mercury General Corp. (MCY): 5%

Healthcare A-Ranked Dividend Risk 1. AbbVie Inc. (ABBV): 5.2%

2. AmerisourceBergen Corp. (ABC): 2.1%

3. Perrigo Co. plc (PRGO): 1.6%

4. Becton, Dickinson & Co. (BDX): 1.2%

5. Johnson & Johnson (JNJ): 2.6%

6. Medtronic plc (MDT): 2.3%

7. Abbott Laboratories (ABT): 1.6%

8. West Pharmaceutical Srvcs. Inc. (WST): 0.5%

B-Ranked Dividend Risk 1. Cardinal Health Inc. (CAH): 4.1%

2. CVS Health Corp. (CVS): 3.8%

3. UnitedHealth Grp. Inc. (UNH): 1.5%

4. Fresenius Medical Care AG & Co. KGaA (FMS):

1.5%

5. Stryker Corp. (SYK): 1.1%

6. Novartis AG (NVS): 3%

7. ResMed Inc. (RMD): 1.4%

C-Ranked Dividend Risk 1. Mckesson Corp. (MCK): 1.4%

2. Sanofi (SNY): 4.2%

3. Gilead Sciences Inc. (GILD): 3.8%

4. Amgen Inc. (AMGN): 3%

5. Merck & Co. Inc. (MRK): 2.6%

6. Eli Lilly & Co. (LLY): 2%

D-Ranked Dividend Risk 1. Bristol-Myers Squibb Co. (BMY): 3.5%

2. Patterson Companies Inc. (PDCO): 4.7% 3. Pfizer Inc. (PFE): 3.4%

F-Ranked Dividend Risk 1. Owens & Minor Inc. (OMI): 0.3%

2. Bayer AG (BAYRY): 4.8%

3. GlaxoSmithKline plc (GSK): 5.7%

4. Novo Nordisk A/S (NVO): 2.5%

5. Koninklijke Philips NV (PHG): 2.5%

6. AstraZeneca plc (AZN): 3.4%

Industrials A-Ranked Dividend Risk 1. Caterpillar Inc. (CAT): 2.5%

2. Southwest Airlines Co. (LUV): 1.2%

3. Textron Inc. (TXT): 0.2%

4. Canadian Pacific Railway Ltd (CP): 0.9%

5. Donaldson Co. Inc. (DCI): 1.5%

6. FedEx Corp. (FDX): 1.4%

7. W.W. Grainger Inc. (GWW): 1.8%

8. Carlisle Companies Inc. (CSL): 1.3%

9. General Dynamics Corp. (GD): 2.4%

10. A. O. Smith Corp. (AOS): 1.6%

11. Parker-Hannifin Corp. (PH): 1.7%

12. Stanley Black & Decker Inc. (SWK): 1.9%

13. Illinois Tool Works Inc. (ITW): 2.7%

14. Pentair plc (PNR): 1.6%

15. ABM Industries Inc. (ABM): 2%

16. CSX Corp. (CSX): 1.3%

17. Emerson Electric Co. (EMR): 2.8%

18. Dover Corp. (DOV): 2%

19. 3M Co. (MMM): 2.7%

20. The Gorman-Rupp Co. (GRC): 1.6%

21. Brady Corp. (BRC): 1.8%

73


22. Nordson Corp. (NDSN): 1%

23. Tennant Co. (TNC): 1.5%

24. MSA Safety Inc. (MSA): 1.4%

25. Roper Technologies Inc. (ROP): 0.5%

26. Cintas Corp. (CTAS): 1%

B-Ranked Dividend Risk 1. United Parcel Service Inc. (UPS): 3.4%

2. Northrop Grumman Corp. (NOC): 1.8%

3. Snap-on Inc. (SNA): 2.4%

4. MSC Industrial Direct Co. Inc. (MSM): 3%

5. Kansas City Southern (KSU): 1.2%

6. Cummins Inc. (CMI): 2.8%

7. Lockheed Martin Corp. (LMT): 3%

8. The Toro Co. (TTC): 1.3%

9. Raytheon Co. (RTN): 2.1%

10. Deere & Co. (DE): 1.9%

11. Ingersoll-Rand plc (IR): 1.9%

12. Xylem Inc. (XYL): 1.2%

13. Morningstar Inc. (MORN): 0.9%

14. Franklin Electric Co. Inc. (FELE): 1.1%

15. Norfolk Southern Corp. (NSC): 1.8%

16. Honeywell Intl. Inc. (HON): 2.1%

17. McGrath RentCorp (MGRC): 2.6%

18. L3 Technologies Inc. (LLL): 1.7%

19. Canadian National Railway Co. (CNI): 1.8%

20. United Technologies Corp. (UTX): 2.2%

21. Waste Mgmt. Inc. (WM): 2%

22. Jack Henry & Associates Inc. (JKHY): 1.1%

23. Union Pacific Corp. (UNP): 2.1%

24. Automatic Data Processing Inc. (ADP): 2%

25. CAE Inc. (CAE.TO): 1.3%

C-Ranked Dividend Risk 1. Hawaiian Holdings Inc. (HA): 1.7%

2. HNI Corp. (HNI): 3.2%

3. ABB Ltd (ABB): 4.2%

4. American Airlines Grp. Inc. (AAL): 1.2%

5. The Boeing Co. (BA): 2.1%

6. Siemens AG (SIEGY): 3.8%

7. Eaton Corp. plc (ETN): 3.4%

8. Fastenal Co. (FAST): 2.6%

9. Rockwell Automation Inc. (ROK): 2.1%

10. General Electric Co. (GE): 0.4%

D-Ranked Dividend Risk 1. Alaska Air Grp. Inc. (ALK): 2.4%

2. Ryder System Inc. (R): 3.4%

3. Iron Mountain Inc. (IRM): 6.8%

4. PACCAR Inc. (PCAR): 1.9%

5. Copa Holdings SA (CPA): 3.1%

6. Delta Air Lines Inc. (DAL): 2.5%

7. R.R. Donnelley & Sons Co. (RRD): 2.6%

8. Paychex Inc. (PAYX): 2.8%

F-Ranked Dividend Risk 1. Compass Diversified Holdings (CODI): 9.1%

2. Macquarie Infra. Corp. (MIC): 9.6%

3. Johnson Controls Intl. plc (JCI): 2.9%

4. Nielsen Holdings plc (NLSN): 5.4%

5. Seaspan Corp. (SSW): 5.5%

6. Canon Inc. (CAJ): 5.2%

Real Estate A-Ranked Dividend Risk 1. Federal Realty Inv. Trust (FRT) - 3%

B-Ranked Dividend Risk 1. N/A

C-Ranked Dividend Risk 1. Tanger Factory Outlet Centers Inc. (SKT): 7%

2. Hospitality Properties Trust (HPT): 8%

3. Digital Realty Trust Inc. (DLR): 3.6%

4. Simon Property Grp. Inc. (SPG): 4.5%

5. Urstadt Biddle Properties Inc. (UBA): 5.3%

6. Host Hotels & Resorts Inc. (HST): 4.2%

7. National Retail Properties Inc. (NNN): 3.7%

8. Universal Health Realty Income Trust (UHT): 3.5%

D-Ranked Dividend Risk 1. Brookfield Property REIT Inc. (BPR): 6.3%

2. Brookfield Property Partners LP (BPY): 6.3%

3. AGNC Investment Corp. (AGNC): 12%

4. Omega Healthcare Investors Inc. (OHI): 7.1%

5. ARMOUR Residential REIT Inc. (ARR): 11.6%

6. Store Capital Corp. (STOR): 4%

7. Apple Hospitality REIT Inc. (APLE): 7.2%

8. Public Storage (PSA): 3.7%

9. Ventas Inc. (VTR): 5.1%

10. Realty Income Corp. (O): 3.8%

11. HCP Inc. (HCP): 4.7%

12. Welltower Inc. (WELL): 4.5%

13. W. P. Carey Inc. (WPC): 5.2%

F-Ranked Dividend Risk 1. Senior Housing Properties Trust (SNH): 15.6%

2. Ladder Capital Corp. (LADR): 8.1%

3. New Residential Inv. Corp. (NRZ): 12.1%

4. Macerich Co. (MAC): 6.9%

5. Crown Castle Intl. Corp. (CCI): 3.5%

6. Global Net Lease Inc. (GNL): 11.2%

7. Summit Hotel Properties Inc. (INN): 6.2% 8. STAG Industrial Inc. (STAG): 4.8%

9. Apollo Comml. Real Estate Finance Inc. (ARI):

10.1%

10. Lamar Advertising Co. (LAMR): 4.8%

11. Medical Properties Trust Inc. (MPW): 5.3%

12. Starwood Property Trust Inc. (STWD): 8.5%

13. Taubman Centers, Inc. (TCO): 5.1%

14. OUTFRONT Media Inc. (OUT): 6%

15. Kimco Realty Corp. (KIM): 6.2%

16. Orchid Island Capital Inc. (ORC): 14.6%

74


17. Annaly Capital Mgmt. Inc. (NLY): 12%

18. Boston Properties Inc. (BXP): 2.8%

19. Equity Residential (EQR): 3%

20. AvalonBay Communities Inc. (AVB): 3%

Technology A-Ranked Dividend Risk 1. NVIDIA Corp. (NVDA): 0.3%

2. Computer Services Inc. (CSVI): 2.5%

3. Infosys Ltd (INFY): 2.9%

B-Ranked Dividend Risk 1. Western Digital Corp. (WDC): 3.9%

2. HP Inc. (HPQ): 3.2%

3. International Business Machines Corp. (IBM): 4.4%

4. Intel Corp. (INTC): 2.3%

5. SAP SE (SAP): 1.5%

6. Cognizant Technology Solutions Corp. (CTSH): 1.1%

7. Apple Inc. (AAPL): 1.5%

8. Oracle Corp. (ORCL): 1.8%

9. Microsoft Corp. (MSFT): 1.5% 10. Corning Inc. (GLW): 2.3%

11. Badger Meter Inc. (BMI): 1.1%

C-Ranked Dividend Risk 1. Micro Focus Intl. plc (MFGP): 4.3%

2. Texas Instruments Inc. (TXN): 2.7%

3. Sony Corp. (SNE): 0.6%

4. NetApp Inc. (NTAP): 2.2%

5. QUALCOMM Inc. (QCOM): 4.3%

6. Taiwan Semiconductor Mfg. Co. Ltd (TSM): 3.2%

7. Cisco Systems Inc. (CSCO): 2.5%

D-Ranked Dividend Risk 1. Applied Materials Inc. (AMAT): 2%

2. Broadcom Inc. (AVGO): 3.5%

3. Seagate Technology plc (STX): 5.1%

4. Xerox Corp. (XRX): 3%

5. KLA-Tencor Corp. (KLAC): 2.4%

6. Logitech Intl. SA (LOGI): 1.7%

7. Accenture plc (ACN): 1.7%

8. Telefonaktiebolaget LM Ericsson (ERIC): 1.1%

9. Kulicke & Soffa Industries Inc. (KLIC): 2.1%

F-Ranked Dividend Risk 1. Nokia Corp. (NOK): 4%

2. Garmin Ltd (GRMN): 2.6%

Utilities A-Ranked Dividend Risk 1. UGI Corp. (UGI): 2%

2. Black Hills Corp. (BKH): 2.8%

3. SJW Grp. (SJW): 2%

4. Connecticut Water Service Inc. (CTWS): 1.8%

5. Atmos Energy Corp. (ATO): 2.1%

6. Middlesex Water Co. (MSEX): 1.8%

7. MGE Energy Inc. (MGEE): 2%

8. American States Water Co. (AWR): 1.6%

9. California Water Service Grp. (CWT): 1.5%

B-Ranked Dividend Risk 1. Fortis Inc. (FTS.TO): 3.6%

2. Aqua America Inc. (WTR): 2.4%

3. Consolidated Edison Inc. (ED): 3.5%

4. Northwest Natural Holding Co. (NWN): 2.9%

C-Ranked Dividend Risk 1. Sempra Energy (SRE): 3%

2. CenterPoint Energy Inc. (CNP): 3.8%

3. American Electric Power Co. Inc. (AEP): 3.2%

4. Otter Tail Corp. (OTTR): 2.9%

5. Edison International (EIX): 3.9%

6. DTE Energy Co. (DTE): 3.1%

7. NextEra Energy Inc. (NEE): 2.6%

8. Entergy Corp. (ETR): 3.9%

D-Ranked Dividend Risk 1. AmeriGas Partners LP (APU): 10.9%

2. Consolidated Water Co. Ltd (CWCO): 2.7%

3. Dominion Energy Inc. (D): 4.5%

4. Duke Energy Corp. (DUK): 4.2%

5. The Southern Co. (SO): 4.7%

6. PPL Corp. (PPL): 5.2%%

F-Ranked Dividend Risk 1. Suburban Propane Partners LP (SPH): 10.5%

2. Spark Energy Inc. (SPKE): 7.9%

3. Brookfield Infra. Partners LP (BIP): 4.9%

4. Brookfield Renewable Partners LP (BEP): 6.5%

sure dividend · 2019-10-13 · dwight has a below-average dividend yield of just 1.3%. we first...

Documents