sure dividend

Sure Dividend

LONG-TERM INVESTING IN HIGH-QUALITY DIVIDEND SECURITIES

February 2021 Edition

By Ben Reynolds, Bob Ciura, Josh Arnold, Eli Inkrot, & Samuel Smith

Edited by Brad Beams

Published on February 7th, 2021

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Table of Contents

Opening Thoughts - The GameStop Bubble - ............................................................................ 3

The Sure Dividend Top 10 – February 2021 .............................................................................. 4

Analysis of Top 10 Securities ....................................................................................................... 5

L3Harris Technologies Inc. (LHX) ............................................................................................ 5

Northrop Grumman Corp. (NOC) .............................................................................................. 8

Unum Group (UNM) ................................................................................................................ 11

National Fuel Gas Co. (NFG) ................................................................................................... 14

Ameriprise Financial Inc. (AMP) ............................................................................................. 17

Polaris Inc. (PII) ........................................................................................................................ 20

Atmos Energy Corp. (ATO) ..................................................................................................... 23

Bristol-Myers Squibb Co. (BMY) ............................................................................................ 26

Lockheed Martin Corp. (LMT) ................................................................................................. 29

Telephone & Data Systems Inc. (TDS) .................................................................................... 32

Closing Thoughts - Cash Flows & Payout Ratios - .................................................................. 35

Real Money Portfolio .................................................................................................................. 36

Buying & Ranking Criteria ....................................................................................................... 38

Portfolio Building Guide ............................................................................................................ 39

Examples ................................................................................................................................... 39

Past Recommendations & Sells ................................................................................................. 40

Sell Rules .................................................................................................................................. 40

Unsold Past Recommendations ................................................................................................ 40

Pending Sells ............................................................................................................................. 43

Sold Positions ........................................................................................................................... 44

List of Securities by Dividend Risk Score ................................................................................. 46

List of Securities by Sector ......................................................................................................... 52

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Opening Thoughts - The GameStop Bubble -

GameStop (GME) is not the type of security you’d expect to get swept up in a bubble. It has more in common with defunct Blockbuster than it does with most of the other significantly hyped stocks in today’s market.

With GameStop’s future in question, the company’s stock attracted short sellers. The company’s stock has had a relatively high percent of shares sold short for much of the last decade. Short sellers piled onto GameStop even more heavily in 2019 and 2020.

Short selling works by borrowing shares now to sell, and then buying them back later. If the stock declines, short sellers profit the difference between when they bought and sold, less interest costs on the borrowed shares.

Partly because of the number of shares being sold short, but also because of the company’s real-world struggles, GameStop was priced at deep value levels. Shares briefly traded under $3 in early April and fluctuated around $4 a share for much of the first quarter of 2020. At these prices, the company’s stock had a price-to-sales ratio of around 0.05 which is extremely cheap from a sales valuation perspective.

The extremely high percentage of shares being sold short made it possible to create a short squeeze in GameStop stock. A short squeeze occurs when short sellers are forced to buy back shares by the lender that lent them shares, and buying pressure causes the price of the underlying shares to surge.

Paradoxically, GameStop’s poor business performance eventually led to a massive upswing in its share price. Poor performance caused more and more short selling from opportunistic investors looking to profit from GameStop’s slow anticipated demise. This in turn led other opportunistic investors to begin piling into GameStop stock in an attempt to cause a short squeeze.

What was noteworthy about this short squeeze were the players involved. The ‘squeezers’ were mainly large numbers of younger investors from the wallstreetbets reddit community. The ‘squeezed’ short sellers were largely hedge funds. Many of the investors in the reddit community participated for political and emotional reasons rather than financial; to ‘stick it to the man’.

GameStop stock peaked at more than $400 per share – up more than 100x in less than one year. Note that few investors made these large gains; the stock wasn’t trendy when trading at its lows, and you’d likely need a time machine to sell near peak prices. Shares then quickly declined to under $100 per share, about a 75% drawdown in a matter of days.

Note that the vast majority of this movement has nothing to do with GameStop itself. GameStop remains an uncertain business. There’s no logical business reason for shares to have surged 100x and then declined by 75%. GameStop as a business certainly doesn’t merit these wild swings in value. These swings show the rampant speculation in the security.

Fortunately, there’s absolutely no need for investors to try to guess on the timing of high-profile bubble stocks. Charlie Munger says regarding short selling that “It isn’t that hard to make money somewhere else with less irritation.”

Short selling comes with the possibility for unlimited losses. And short squeezes are highly uncertain as well. We prefer to sidestep bubbles altogether at Sure Dividend and invest in ‘boring’ dividend growth stocks of quality businesses likely to pay rising dividend income over time.

https://www.dividendgrowthinvestor.com/2021/01/selling-stocks-short-has-ruined-lot-of.html

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The Sure Dividend Top 10 – February 2021

Name & Ticker Div. Risk

Score Price

Fair Value

Exp. Value Ret.

Div. Yield

Payout Ratio

Exp. Growth

ETR

L3Harris Technologies (LHX) A $183 $205 2.2% 1.9% 29.2% 10.0% 14.0%

Northrop Grumman (NOC) A $299 $351 3.2% 1.9% 24.8% 8.0% 12.9%

Unum Group (UNM) A $23 $34 7.0% 4.6% 24.2% 2.0% 12.4%

National Fuel Gas (NFG) A $42 $57 6.2% 4.3% 47.8% 2.0% 11.4%

Ameriprise Financial (AMP) A $211 $224 1.3% 2.0% 21.4% 8.0% 11.2%

Polaris (PII) A $119 $138 3.0% 2.1% 28.8% 6.0% 10.9%

Atmos Energy (ATO) A $89 $96 1.6% 2.8% 49.5% 6.5% 10.7%

Bristol-Myers Squibb (BMY) B $61 $101 10.3% 3.2% 26.9% 3.0% 15.6%

Lockheed Martin (LMT) B $337 $418 4.4% 3.1% 39.8% 8.0% 15.1%

Telephone & Data (TDS) B $20 $29 7.8% 3.3% 64.1% 1.5% 11.8%

Notes: Data for the table above is from the 2/5/21 Sure Analysis Research Database spreadsheet and from

manual calculations. Numbers for the Top 10 table and the individual reports may not perfectly match as

reports and Sure Analysis uploads are completed throughout the week. ‘Div.’ stands for ‘Dividend.’ ‘Exp.

Value Ret.’ means expected annualized returns from valuation changes over the next five years. ‘Exp. Growth’

means expected annualized growth rate over the next five years. ‘ETR’ stands for Expected Annual Total

Returns.

Disclosures: Eli Inkrot is long UNM. Samuel Smith is long UNM and ATO. The Real Money Portfolio will

buy shares of LHX on Tuesday 2/9/21 and is long NOC, UNM, AMP, BMY, LMT, & TDS.

There was significant volatility in this month’s Top 10 versus last month’s Top 10. This is due to

earnings season. Walgreens (WBA), Gilead (GILD), AT&T (T), Huntington Ingalls (HII), Altria

(MO), and Intel (INTC) were replaced by L3Harris Technologies (LHX), Unum Group (UNM),

National Fuel Gas (NFG), Ameriprise Financial (AMP), Polaris (PII), and Atmos Energy (ATO).

Remember: securities that fall out of the Top 10 are holds, not sells.

An equally weighted portfolio of the Top 10 has the following future expected total return estimate

characteristics:

Top 10 S&P 500

Dividend Yield: 2.9% 1.5%

Growth Rate: 5.5% 5.5%

Valuation Expansion: 4.7% -8.7%

Expected Annual Total Return1: 12.6% -1.7%

Note: Data for this newsletter is from 2/3/21 through 2/5/21.

1 Expected annual total returns for our Top 10 is calculated as the average of each individual stock’s expected total returns from the

Sure Analysis Research Database. Expected annual total returns for the S&P 500 uses the simplified method of calculating expected

total returns and is the sum of dividend yield, expected growth, and expected returns from valuation changes.

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Return to Top 10 List

Analysis of Top 10 Securities L3Harris Technologies Inc. (LHX)

Overview & Current Events

L3Harris Technologies is a $39 billion market cap aerospace and defense business that is the result of a

merger between L3 Technologies and Harris Corporation. The company reports under four segments:

Integrated Mission Systems; Communication Systems; Space & Airborne Systems; and Aviation

Systems. The vast majority of their sales are to the U.S. Government and defense contractors.

On January 29th, 2021 L3Harris Technologies released FY and Q4 2020 results. For the quarter,

revenue declined 3.6% to $4.7B and diluted adjusted earnings-per-share (EPS) increased 10% to $3.14

on a year-over-year basis. For the year, companywide revenue increased 0.5% to $18.2B and diluted

adjusted earnings-per-share increased 13% to $11.60. Revenue for Integrated Missions Systems was

flat at $1.5B, revenue for Space & Airborne Systems rose 4.3% to $1.3B, revenue for Communications

Systems increased 2.1% to $1.1B, and revenue for Aviation Systems fell 22% to $845M.

The company issued 2021 guidance of between 3% and 5% organic revenue growth and between

$12.60 and $13.00 in earnings-per-share.

Competitive Advantage & Recession Performance

As a prime U.S. defense contractor, L3Harris Technologies has an entrenched position in many of its

end markets. As a result, it benefits from extensive regulatory knowledge, a significant intellectual

property portfolio, and deep relationships within the Department of Defense that make it very

challenging for a new entrant to compete with them for contracts. Additionally, the fact that the vast

majority of its revenues come from the government makes it quite recession resistant. During the Great

Financial Crisis, L3Harris Technologies’ combined companies continued to raise their dividends each

year.

Growth Prospects, Valuation, & Catalyst

Over the past decade, the combined L3Harris Technologies companies grew earnings-per-share by a

9.7% average yearly rate. This impressive result was driven by a top line that grew by 3.3% annually,

while the company’s net profit margin declined from 7.3% to 6.2% and the share count grew by an

average of 5.8% per year. However, the net profit margin improved significantly through 2019, and

the share count declined through 2019 before expenses and share issuance related to the merger and

COVID-19 headwinds temporarily distorted results in 2020.

Moving forward we anticipate 10% annual EPS growth, with many of the same factors contributing to

this thesis. We expect L3Harris Technologies to generate earnings-per-share of $12.80 in 2021. Based

on this, the stock is currently trading at a price-to-earnings ratio (P/E) of 14.3. Our fair value estimate

is a P/E of 16.0, which means expansion of the P/E multiple could add 2.2% per year to annual returns.

When combined with the 10% expected growth rate and 1.9% dividend yield, total return potential

comes to 14.0% per year over the next five years.

Key Statistics, Ratios, & Metrics Years of Dividend Increase: 20 5-Year Growth Estimate: 10.0%

Dividend Yield: 1.9% 5-Year Valuation Return Estimate: 2.2%

Most Recent Dividend Increase: 20% 5-Year CAGR Estimate: 14.0%

Estimated Fair Value: $205 Dividend Risk Score: A

Stock Price: $183 Retirement Suitability Score: B


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Income Statement Metrics Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Revenue 13154 13107 11420 10986 9231 9210 9573 10244 6801 18194

Gross Profit 1441 1308 1117 1012 862 2245 2551 2707 2334 5308

Gross Margin 11.0% 10.0% 9.8% 9.2% 9.3% 24.4% 26.6% 26.4% 34.3% 29.2%

SG&A Exp. N/A N/A N/A N/A N/A 1287 1520 1601 1242 3315

D&A Exp. 230 228 202 214 203 198 225 241 258 1032

Operating Profit 1441 1308 1117 1012 862 958 1031 1106 1092 1993

Op. Margin 11.0% 10.0% 9.8% 9.2% 9.3% 10.4% 10.8% 10.8% 16.1% 11.0%

Net Profit 958 784 751 664 -240 710 677 1005 949 1119

Net Margin 7.3% 6.0% 6.6% 6.0% -2.6% 7.7% 7.1% 9.8% 14.0% 6.2%

Free Cash Flow 1297 1096 1059 968 930 831 878 800 1024 2422

Income Tax 296 360 264 227 132 171 102 103 160 234

Balance Sheet Metrics Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Total Assets 15508 13800 14007 13715 12069 11865 12729 13518 10117 36960

Cash & Equivalents 764 349 500 442 207 363 662 1066 530 1276

Acc. Receivable 1093 968 991 803 746 700 723 919 457 1344

Inventories 317 358 366 288 333 330 389 879 360 973

Goodwill & Int. 7780 8090 8081 6707 6480 6603 6907 7190 6210 26784

Total Liabilities 8784 8273 7951 8355 7640 7241 7578 7611 6754 16119

Accounts Payable 395 505 535 346 297 419 531 699 525 1406

Long-Term Debt 4125 3629 3630 3939 3626 3325 3330 3321 3522 6918

Total Equity 6635 5451 5981 5285 4355 4553 5083 5839 3363 20841

D/E Ratio 0.62 0.67 0.61 0.75 0.83 0.73 0.66 0.57 1.05 0.3

Profitability & Per Share Metrics Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Return on Assets 6.2% 5.4% 5.4% 4.8% -1.9% 5.9% 5.5% 7.7% 9.5% 3.0%

Return on Equity 14.3% 13.0% 13.1% 11.8% -5.0% 15.9% 14.1% 18.4% 28.6% 5.2%

ROIC 8.8% 7.8% 8.0% 7.0% -2.8% 8.9% 8.2% 11.4% 13.6% 3.9%

Shares Out. 123 112 107 106 124 125 120 118 121 216

Revenue/Share 124.56 134.29 125.36 125.13 112.71 116.88 120.26 128.69 56.44 84.27

FCF/Share 12.28 11.23 11.62 11.03 11.36 10.55 11.03 10.05 8.50 11.22

Notes: All figures in millions of U.S. Dollars unless per share or indicated otherwise. Table numbers before 2020 are pre-merger and the fiscal year ends at the end of June. For 2020 and forward, the fiscal year ends at the end of December.

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8

Northrop Grumman Corp. (NOC) Overview & Current Events

Northrop Grumman is a $50 billion market cap aerospace and defense business. The company reports

under four segments: Aeronautics Systems (aircraft and UAVs); Mission Systems (radars, sensors and

systems for surveillance and targeting); Defense Systems (information technology, sustainment and

modernization, directed energy, tactical weapons); and Space Systems (missile defense, space systems,

hypersonics, and space launchers). They make the B-2 Spirit stealth bomber, E-2D Advanced

Hawkeye and E-8C JSTARS and provide content on the F-35 Lightening II and F/A-18 Super Hornet.

On January 28th, 2021 Northrop Grumman released FY and Q4 2020 results. For the quarter,

companywide revenue increased 17% to $10.2B and diluted adjusted earnings-per-share (EPS)

increased 16% to $6.59 on a year-over-year basis. For the year, companywide revenue increased 9% to

$36.8B and diluted adjusted earnings-per-share increased 11.5% to $23.65. Revenue for Aeronautics

Systems increased 24% to $3.5B, revenue for Defense Systems rose 2% to $1.9B, revenue for Mission

Systems increased 10% to $2.7B, and revenue for Space Systems increased 31% to $2.6B.

The company won $52.9B in contracts in 2020 with a book-to-bill ratio of 1.4 and total backlog

increased 25% to $81.0B at year end. Northrop Grumman is selling its IT Services business for $3.4B,

which will be used for share buybacks and retiring debt. The company issued 2021 guidance of

between $35.1B and $35.5B in sales and between $23.15 and $23.65 in earnings-per-share.


As a prime U.S. defense contractor, Northrop Grumman has an entrenched position in many of its end

markets. Of note are the B-2, B-21, E-2D, E-8C, Global Hawk and Triton platforms. These platforms

have decades-long life cycles and Northrop Grumman has the expertise to perform sustainment and

modernization. These characteristics allow for a good deal of ballast in lesser times. During the last

recession, Northrop Grumman generated earnings-per-share of $5.32, $4.87, $5.80 and $7.41 between

2008 and 2011, while the company continued to increase its dividend.


Over the past decade, Northrop Grumman grew its earnings-per-share by a 12.3% average yearly rate.

This impressive result was driven by a top line that grew by 3.4% annually, while the company’s net

profit margin increased from 8.0% to 8.7% and the share count was reduced by an average of 4% per

year. Moving forward we anticipate 8% annual EPS growth, with many of the same factors

contributing to this thesis. We expect Northrop Grumman to generate earnings-per-share of $23.40 in

2021. Based on this, the stock is currently trading at a price-to-earnings ratio (P/E) of 12.8. Our fair

value estimate is a P/E of 15.0, which means expansion of the P/E multiple could add 3.2% per year to

annual returns. When combined with the 8.0% expected growth rate and 1.9% dividend yield, total

return potential comes to 13.0% per year over the next five years.



Most Recent Dividend Increase: 9.9% 5-Year CAGR Estimate: 12.9%




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Revenue 26412 25218 24661 23979 23526 24706 26004 30095 33841 36799

Gross Profit 5626 5580 5379 5601 5642 5909 5930 6791 7259 7478

Gross Margin 21.3% 22.1% 21.8% 23.4% 24.0% 23.9% 22.8% 22.6% 21.5% 20.3%

SG&A Exp. 2350 2450 2256 2405 2566 2632 2712 3011 3290 3413

D&A Exp. 544 510 495 462 467 456 475 800 1018 1267


Op. Margin 12.4% 12.4% 12.7% 13.3% 13.1% 13.3% 12.4% 12.6% 18.8% 11.0%

Net Profit 2118 1978 1952 2069 1990 2043 2869 3229 2248 3189

Net Margin 8.0% 7.8% 7.9% 8.6% 8.5% 8.3% 11.0% 10.7% 10.7% 8.7%

Free Cash Flow 1623 2309 2119 2032 1691 1893 1685 2578 3033 2885

Income Tax 997 987 911 868 800 638 1360 513 300 539


Total Assets 25411 26543 26381 26572 24424 25614 35128 37653 41089 44469


Acc. Receivable 2964 2858 2685 2806 2841 3299 1054 1448 1326 1501

Inventories 873 798 698 742 807 816 398 654 783 759

Goodwill & Int. 12374 12431 12438 12466 12460 12450 12507 20044 19748 18301



Long-Term Debt 3935 3930 5928 5925 6386 7058 14399 13883 12770 14261

Total Equity 10336 9514 10620 7235 5522 5259 7132 8187 8819 10579

D/E Ratio 0.38 0.41 0.56 0.82 1.16 1.34 2.02 1.70 1.45 1.3


Return on Assets 7.5% 7.6% 7.4% 7.8% 7.8% 8.2% 9.4% 8.9% 5.7% 7.5%

Return on Equity 17.7% 19.9% 19.4% 23.2% 31.2% 37.9% 46.3% 42.2% 26.4% 32.9%

ROIC 13.0% 14.3% 13.0% 13.9% 15.9% 16.9% 17.0% 14.8% 10.3% 13.7%

Shares Out. 253.9 237.1 216.7 198.4 181.3 175.1 174.1 170 167 168

Revenue/Share 93.79 99.52 105.43 113.06 122.79 136.88 148.09 172.37 199.06 219.56

FCF/Share 5.76 9.11 9.06 9.58 8.83 10.49 9.60 14.77 17.84 17.21

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


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11


Unum Group (UNM) Overview & Current Events

Headquartered in Chattanooga, TN, Unum Group is an insurance holding company providing a broad

portfolio of financial protection benefits and services. The company operates through its Unum US,

Unum UK, Unum Poland and Colonial Life businesses; providing disability, life, accident, critical

illness, dental and vision benefits to millions of customers. In 2020 the $4.8 billion company generated

$13 billion in revenue and paid out nearly $9 billion in benefits.

On January 15th, 2021 Unum declared a $0.285 dividend, the seventh straight quarter at this rate.

On February 4th, 2021 Unum reported Q4 and full-year results for the period ending December 31st,

2020. For the quarter, Unum generated revenue of $4.27 billion compared to $3.03 billion in Q4 2019.

However, this was due to $1.3 billion in net investment gains, as $2.32 billion in premium income

represented a decline of 1.4%. Adjusted earnings-per-share (EPS) equaled $1.15 versus $1.41 in Q4

2019.

For the year, Unum generated revenue of $13.16 billion, a gain of 9.7% compared to 2019’s $12.0

billion. Once again, 2020 benefited from a large investment gain ($1.2 billion) as premium income of

$9.38 billion was only up 0.1%. Adjusted earnings-per-share equaled $4.93 compared to $5.44 in

2019. Unum expects a modest decline in adjusted operating income for 2021.


For decades now, Unum has demonstrated a strong operating history in good times or bad. During the

recession stretching from 2007 through 2010, the company posted earnings-per-share of $2.19, $2.51,

$2.57 and $2.71. Furthermore, the dividend kept increasing during this time as well.

With that being said, it’s hard to gain a competitive advantage within the industry as insurance products

are commodity-like in nature. Still, we are encouraged by the solid results of the company in all

operating environments, the conservative dividend payout ratio, and the focus on share repurchases,

2020 notwithstanding. Moreover, we prefer the slow and steady long-term growth of the business over

chasing short-term results.


In the 2010 through 2019 stretch, Unum grew its earnings-per-share by an average compound growth

rate of 7.8% per year. More impressive is the fact that earnings-per-share grew every single year

during this period. Results were helped by an average business growth rate of around 3% annually,

aided by a significant share repurchase program, retiring nearly 5% of the share count each year. We

are cautious with our growth assumption, forecasting 2% annual improvement from 2021.

We expect Unum to generate earnings-per-share of $4.80 in 2021. Based on this, the stock is currently

trading at a price-to-earnings ratio (P/E) of 5.0. Our fair value estimate is a P/E ratio of 7.0, which

means expansion of the P/E multiple could increase returns by 7.0% per year. When combined with

the 2% expected EPS growth rate and 4.6% yield, total return potential comes to 12.4% per year.

Key Statistics, Ratios, & Metrics Years of Dividend Increases: 12 5-Year Growth Estimate: 2.0%




Stock Price: $23 Retirement Suitability Score: A


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Revenue 10193 10278 10515 10369 10525 10731 11047 11287 11599 11999

SG&A Exp. 776 808 787 790 821 835 839 852 886 898

D&A Exp. 75 81 84 85 88 100 102 103 101 110

Net Profit 879 284 894 847 402 867 931 994 523 1100

Net Margin 8.6% 2.8% 8.5% 8.2% 3.8% 8.1% 8.4% 8.8% 4.5% 9.2%

Free Cash Flow 1197 1096 1274 926 1109 1192 1037 1059 1392 1591

Income Tax 441 49 355 373 140 371 416 410 104 282


Total Assets 57308 59555 62236 59404 62450 60564 61942 64013 61876 67013


Accounts Receivable 1666 6527 6475 6454 6541 6324 6470 6545 6278 6384

Goodwill & Int. Ass. 201 232 225 220 214 255 367 367 447 440


Long-Term Debt 2856 2883 3211 2612 2781 2801 2999 2938 2971 3327

Shareholder’s Equity 8944 8170 8613 8659 8522 8664 8968 9575 8622 9965

D/E Ratio 0.32 0.35 0.37 0.30 0.33 0.32 0.33 0.31 0.34 0.33


Return on Assets 1.6% 0.5% 1.5% 1.4% 0.7% 1.4% 1.5% 1.6% 0.8% 1.7%

Return on Equity 10.1% 3.3% 10.7% 9.8% 4.7% 10.1% 10.6% 10.7% 5.8% 11.8%

ROIC 7.7% 2.5% 7.8% 7.3% 3.6% 7.6% 7.9% 8.1% 4.3% 8.8%

Shares Out. 316.6 297.7 269.8 259.5 251.4 240.9 229.8 222.6 214.6 202.9

Revenue/Share 31.15 33.86 37.32 38.99 41.01 43.30 46.81 49.65 52.71 57.18

FCF/Share 3.66 3.61 4.52 3.48 4.32 4.81 4.39 4.66 6.33 7.58

Note: All relevant figures in millions of U.S. Dollars unless per share or indicated otherwise. Data for fiscal 2020 was not

yet available from our data provider at the time of this newsletter publication.

13



14

National Fuel Gas Co. (NFG)


National Fuel Gas is a diversified energy company with upstream, midstream, and downstream

operations. The company’s upstream assets located in the Marcellus and Utica shale formations have

production capacity of more than 800 million cubic feet of gas per day. Upstream represents

approximately 40% of the company’s annual earnings before interest, taxes, depreciation, and

amortization (EBITDA). Meanwhile, the midstream operations include pipeline infrastructure, and

represent 39% of company EBITDA. Finally, NFG’s downstream utility segment provides utility

services to over 740,000 customers and represents 21% of total EBITDA.

In early February, National Fuel Gas reported (2/4/21) financial results for the first quarter of fiscal

2021. The company grew its production by an impressive 36% over the prior year’s quarter, primarily

thanks to the acquisition of Appalachian assets. This offset an 8% decline in the average price of

natural gas. Adjusted earnings-per-share (EPS) increased 5% year-over-year, to $1.06.

Management expects strong production growth in fiscal 2021 and raised its guidance for a second

consecutive quarter, thanks to higher expected prices and lower production costs. It now expects full-

year earnings-per-share in a range of $3.65 to $3.95, versus previous guidance of $3.55 to $3.85. At

the midpoint of revised guidance, the company expects adjusted EPS growth of 30% for fiscal 2021.

Competitive Advantages & Recession Performance

National Fuel Gas’ competitive advantage is its combination of regulated and stable businesses

(pipelines and utilities) with cyclical business lines (exploration & production). This allows the

company to endure difficult operating environments and downturns, such as the coronavirus pandemic,

with less difficulty than its peers which focus exclusively on more cyclical areas of energy.

Despite operating in the highly cyclical and economically sensitive energy industry, National Fuel Gas

performed very well during the Great Recession. Earnings-per-share increased 10% from 2007-2009,

with continued growth in the years after. This recession-resilience has allowed the company to

increase its dividend for 50 consecutive years.


We expect 2.0% annual earnings-per-share growth over the next five years. Higher commodity prices

would be a meaningful boost, but even in the current environment we believe National Fuel Gas can

produce modest growth. The recent acquisition of Shell’s integrated upstream and midstream assets in

Pennsylvania for $541 million is expected to boost natural gas production by 215 million to 230

million cubic feet per day.

Based on expected fiscal 2021 adjusted EPS of $3.80, National Fuel Gas shares currently trade for a

price-to-earnings ratio of 11.2. Our fair value estimate for National Fuel Gas stock is a P/E ratio of

15.0, meaning the stock appears to be significantly undervalued. An expanding P/E ratio from 10.7 to

15 could boost annual returns by 6.2% per year, over the next five years. In addition, 2% annual EPS

growth and the 4.3% dividend yield result in total expected returns of 11.4% per year through 2026.







15


Revenue 1,779 1,627 1,830 2,113 1,761 1,452 1,580 1,593 1,693 1,546

Gross Profit 924 940 1,042 1,123 1,075 1,055 1,080 1,014 1,031 568

Gross Margin 51.9% 57.8% 57.0% 53.2% 61.0% 72.6% 68.4% 63.7% 60.9% 36.7%


Operating Margin 24.8% 27.5% 28.3% 27.0% 29.3% 36.6% 37.6% 32.6% 30.2% 31.0%

Net Profit 258 220 260 299 (379) (291) 283 392 304 (124)

Net Margin 14.5% 13.5% 14.2% 14.2% -21.5% -20.0% 17.9% 24.6% 18.0% -8.0%

Free Cash Flow (160) (376) 35 (5) (165) 7 234 31 (94) (482)

Income Tax 164 151 173 190 (319) (233) 161 (7) 85 19


Total Assets 5,221 5,935 6,218 6,728 6,565 5,636 6,103 6,036 6,462 6,965



Inventories 82 78 94 67 65 71 74 78 80 85

Goodwill & Int. Ass. 5 5 5 5 5 5 5 5 5 5

Total Liabilities 3,329 3,975 4,024 4,317 4,539 4,109 4,400 4,099 4,323 4,993


Long-Term Debt 1,089 1,570 1,649 1,723 2,084 2,086 2,384 2,131 2,189 2,660

Shareholder’s Equity 1,892 1,960 2,195 2,411 2,025 1,527 1,704 1,937 2,139 1,972

D/E Ratio 0.58 0.80 0.75 0.71 1.03 1.37 1.40 1.10 1.02 1.35


Return on Assets 5.0% 3.9% 4.3% 4.6% -5.7% -4.8% 4.8% 6.5% 4.9% -1.8%

Return on Equity 14.2% 11.4% 12.5% 13.0% -17.1% -16.4% 17.5% 21.5% 14.9% -6.0%

ROIC 8.6% 6.8% 7.1% 7.5% -9.2% -7.5% 7.4% 9.6% 7.2% -2.8%

Shares Out. 82.9 83.3 83.7 84.2 84.6 85.1 85.5 86.0 86.8 88.0

Revenue/Share 21.26 19.43 21.69 24.87 20.87 17.12 18.37 18.43 19.51 17.58

FCF/Share (1.92) (4.49) 0.42 (0.06) (1.95) 0.09 2.72 0.36 (1.09) (5.47)



16


17

Ameriprise Financial Inc. (AMP) Overview & Current Events

Ameriprise Financial is an asset manager with a $24.7 billion market cap and over $1 trillion in assets

under management (AUM). Ameriprise Financial’s operating segments include: Advice & Wealth

Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other.

Ameriprise Financial reported earnings results for the fourth quarter and full year on 1/27/21. Fourth-

quarter revenue declined 3.3% to $3.2 billion and was $50 million less than expected. Adjusted

earnings-per-share (EPS) improved 8% to $4.53, which was $0.01 below estimates. For the year,

revenue declined 6.8% to $11.8 billion and EPS fell 12% to $13.92. Total assets under management

reached an all-time high of $1.1 trillion.

By segment, Advice & Wealth Management’s client assets grew 14% to $732 billion. Segment

revenue grew 10% and adjusted operating earnings improved 19% due to strong inflows, transactional

activity and cost controls. Asset Management AUM were up 11% to $547 billion, while revenue

increased 4%. Global Retail net flows were higher by 48% to $7.7 billion. Lastly, Retirement &

Protection revenue grew 2%, adjusted operating earnings were higher by 1%, and expenses fell 2%.


Ameriprise Financial’s biggest competitive advantage is its brand strength within the asset

management industry. Strong financial performance is critical to retaining and growing its assets under

management. That said, like other asset managers, Ameriprise Financial is not immune to recessions.

A recession and resulting decline in stock values would both be headwinds for AUM. Ameriprise’s

earnings-per-share declined 13% from 2007-2009 during the Great Recession. Fortunately, the

company snapped back in 2010 with 42% earnings growth. Ameriprise would likely see earnings

decline during a recession but should remain profitable and continue to pay dividends.

Ameriprise’s dividend is highly secure. Using expected earnings-per-share of $19.45 for 2021,

Ameriprise is likely to have a dividend payout ratio of 21.4% for the year. This is a very low payout

ratio that leaves plenty of room for Ameriprise’s high rate of dividend increases to continue.


Ameriprise’s future growth will be derived from rising AUM, which drives revenue, and share

repurchases. Assets under management reached an-all time high last quarter, boosted by inflows as

well as strong stock market performance. The company also repurchases its own shares, which will

help grow future earnings-per-share. Ameriprise reduced its fourth-quarter diluted share count by 6%

from the same quarter the previous year. We expect 8% annual EPS growth through 2026.

Based on 2021 expected earnings-per-share of $19.45, Ameriprise stock trades for a price-to-earnings

ratio of 10.8. This is below our fair value estimate; a price-to-earnings ratio (P/E) of 11.5. The stock

appears to be slightly undervalued. Expansion of the P/E could boost annual returns by 1.3% through

2026. The combination of valuation multiple expansion, 8% annual earnings-per-share growth, and the

2.0% dividend yield results in expected annual returns of 11.2% over the next five years.







18


Revenue 9582 10239 10259 11230 12296 12200 11839 12180 12924 12890

SG&A Exp. 4802 5569 5687 5981 6331 6358 6284 6555 6808 7097

D&A Exp. 110 110 225 239 254 248 248 234 198 183

Net Profit 1097 1116 1029 1334 1619 1562 1313 1480 2098 1893

Net Margin 11.4% 10.9% 10.0% 11.9% 13.2% 12.8% 11.1% 12.2% 16.2% 14.7%

Free Cash Flow 1716 1928 1368 1259 2286 2558 2239 1361 2435 2198

Income Tax 350 377 335 492 545 455 278 734 386 339


Total Assets 131214 132307 134729 144576 148810 145339 139821 147480 137216 151828


Acc. Receivable 4440 4315 4610 5027 5274 5310 5787 6185 7210

Total Liab. 119929 122613 125017 135344 139505 136960 133529 141485 131628 146099

Long-Term Debt 8249 8075 7885 8956 10129 10363 5387 5259 4786 4869

Total Equity 10725 8988 9092 8192 8124 7191 6292 5995 5588 5729

D/E Ratio 0.77 0.90 0.87 1.09 1.25 1.44 0.86 0.88 0.86 0.85


Return on Assets 0.9% 0.8% 0.8% 1.0% 1.1% 1.1% 0.9% 1.0% 1.5% 1.3%

Return on Equity 11.0% 11.3% 11.4% 15.4% 19.8% 20.4% 19.5% 24.1% 36.2% 33.5%

ROIC 6.9% 6.0% 5.8% 7.5% 8.6% 8.2% 8.6% 12.9% 19.4% 18.1%

Shares Out. 257 241 219 203 192 171 155 147 137 131

Revenue/Share 36.53 41.57 46.05 54.23 63.06 66.23 70.39 77.73 87.50 94.78

FCF/Share 6.54 7.83 6.14 6.08 11.72 13.89 13.31 8.69 16.49 16.16

Note: All figures in millions of U.S. Dollars unless per share or indicated otherwise. Data for fiscal 2020 was not yet available from our data provider at the time of this newsletter publication.


19


20

Polaris Inc. (PII)

Founded in 1954 and headquartered in Medina, Minnesota; Polaris designs, engineers, and

manufactures snowmobiles, all-terrain vehicles (ATVs) and motorcycles. The company operates under

30+ brands including Polaris, Ranger, RZR, Sportsman, Indian Motorcycle, Slingshot and

Transamerican Auto Parts. The global powersports maker, serving over 100 countries, generated $7

billion in sales in 2020 and has a $7.3 billion market capitalization.

On January 26th, 2021, Polaris released Q4 and full-year 2020 results for the period ending December

31st, 2020. For the quarter, sales increased 24.2% to $2.16 billion, as the company continues to bounce

back from previous weakness related to the COVID-19 pandemic. Results were led by a 29%

improvement in Off-Road Vehicles and Snowmobiles, which make up the lion’s share of revenue. Net

income equaled $198.8 million or $3.15 per share compared to $99.0 million or $1.58 per share in Q4

2019. On an adjusted basis earnings-per-share (EPS) equaled $3.34 versus $1.83 prior.

For the year, Polaris generated sales of $7.03 billion, a 3.6% increase compared to 2019. On an

adjusted basis, earnings-per-share equaled $7.74 versus $6.32 in 2019, exceeding prior guidance.

Polaris also provided a 2021 outlook. For this year the company anticipates $7.95 billion to $8.15

billion in sales and adjusted net income of $8.45 to $8.75.


Polaris enjoys a competitive advantage through its brand names, low-cost production and long history

in its various industries, allowing the company to be the leader in ATVs and number two in

snowmobiles and domestic motorcycles. That being said, the company does face a number of notable

challenges: formidable competitors such as Harley-Davidson and Honda, a big-ticket sales item that

depends on the economy, a product line that is dependent on weather (snowmobiles), and company-

specific issues to deal with such as recalls over the last few years. During the last recession, Polaris

generated earnings-per-share of $1.75, $1.53 and $2.14 in 2008 through 2010.


From 2008 through 2018, Polaris was able to grow earnings-per-share by an average compound rate of

14% per year. However, growth fell off dramatically in 2016 as the company dealt with recalls and

restoring confidence in the brand. In the last couple of years Polaris has managed to improve its brand

image, and earnings have once again improved, with 2020 being a standout amidst the pandemic. Over

the long-term, Polaris can formulate growth via the ongoing replacement need for ATVs and

snowmobiles, growth in international markets, and with acquisitions. We are anticipating 6% annual

growth.

We expect Polaris to generate earnings-per-share of $8.60 in 2021. Based on this, the stock is currently

trading at a price-to-earnings ratio (P/E) of 13.8. Our fair value estimate is a P/E of 16.0, which means

expansion of the P/E multiple could increase returns by 3.0% per year. When combined with the 6%

expected EPS growth rate and 2.1% yield, total return potential comes to 10.9% per year.







21


Revenue 2,657 3,210 3,777 4,480 4,719 4,517 5,428 6,079 6,783 7,028

Gross Profit 741 925 1,121 1,319 1,339 1,106 1,325 1,501 1,649 1,710

Gross Margin 27.9% 28.8% 29.7% 29.4% 28.4% 24.5% 24.4% 24.7% 24.3% 24.3%

SG&A Exp. 309 353 450 518 526 649 803 842 953 904

D&A Exp. 66 71 92 128 152 168 191 211 235 261



Net Profit 228 312 377 454 455 213 172 335 324 125

Net Margin 8.6% 9.7% 10.0% 10.1% 9.6% 4.7% 3.2% 5.5% 4.8% 1.8%

Free Cash Flow 218 313 241 324 191 380 401 252 404 805

Income Tax 119 168 193 245 230 100 146 94 84 17


Total Assets 1,228 1,489 1,685 2,075 2,386 3,100 3,090 4,125 4,431 4,633



Inventories 298 345 418 566 710 747 784 970 1,121 1,178

Goodwill & Int. Ass. 78 107 230 224 236 793 781 1,518 1,490 1,084

Total Liabilities 728 798 1,150 1,214 1,404 2,233 2,158 3,258 3,322 3,488


Long-Term Debt 100 100 281 203 442 1,124 895 1,946 1,679 1,436

Shareholder’s Equity 500 691 536 861 981 867 932 867 1,108 1,145

D/E Ratio 0.20 0.14 0.52 0.24 0.45 1.30 0.96 2.25 1.52 1.25


Return on Assets 19.9% 23.0% 23.8% 24.1% 20.4% 7.8% 5.6% 9.3% 7.6% 19.9%

Return on Equity 52.3% 52.5% 61.5% 65.0% 49.4% 23.0% 19.2% 37.3% 32.8% 52.3%

ROIC 38.9% 44.9% 47.0% 48.3% 36.6% 12.5% 9.0% 14.5% 11.6% 38.9%

Shares Out. 68 69 66 66 65 63 63 61 62 63

Revenue/Share 37.39 45.21 53.54 65.66 69.93 69.32 84.58 95.05 108.88 37.39

FCF/Share 3.07 4.41 3.41 4.75 2.83 5.84 6.25 3.94 6.48 3.07



22

23


Atmos Energy Corp. (ATO)


Atmos Energy was founded in 1906 in Texas. Since that time, it has grown organically and through

mergers to an $11.4 billion market capitalization. Atmos is a utility that distributes and stores natural

gas in eight states, serves over 3 million customers, and generates more than $3 billion in revenue

annually. The company operates more than 71,000 miles of underground distribution and transmission

mains, as well as more than 5,000 miles of gas transmission lines. Atmos also has an exceptional 37-

year streak of dividend increases.

Atmos reported first-quarter earnings on February 2nd, and results were mixed, as has been typical of

recent reports for Atmos. Revenue rose 4.4% year-over-year to $915 million but was $70 million

lower than expectations. The company reiterated guidance for 2021, but investors sold the stock to a

new post-pandemic recovery low.

On a segment basis, distribution operating income was up $29 million to $210 million, while pipeline

and storage operating income rose $17 million to $89 million. Gains were accrued from increases in

rates and customer growth, but were slightly offset by depreciation and property taxes, as well as

declining service revenues. Nonrecurring declines in operating and maintenance expenses bolstered

the Pipeline business as well, and overall, operating earnings were up $46 million year-over-year.

Earnings-per-share came to $1.71 in the first quarter, which was a strong improvement from $1.47 in

the year-ago period. Our current estimate for 2021 is earnings-per-share of $5.05.


Atmos has a similar competitive advantage to other utilities in that it lacks direct competition in its

service areas. Atmos’ core business is natural gas, and discretionary use of it is low, meaning

economic downturns don’t tend to impact it one way or the other. Atmos has a diversifying impact on

an investor’s portfolio for this reason; earnings hold up quite well during recessions.


We expect 6.5% earnings-per-share growth annually for Atmos in the coming years as it continues to

grow organically, and through acquisitions. This growth could accrue from continued improvements in

operating margins, which were present in Q1 results. In addition, Atmos makes acquisitions from time

to time that are complementary to its existing business, as well as filing rate cases with local authorities

that help it boost prices over time.

We see Atmos producing $5.05 in earnings-per-share in 2021, and with the share price at $89, the stock

trades for a price-to-earnings ratio of 17.6. That is below our fair value estimate of 19 times earnings,

and we therefore see a modest tailwind to total returns from a rising valuation over time. The dividend

is currently $2.50 per share annually, good for a 2.8% yield. Finally, we see 6.5% annual earnings-per-

share growth, totaling 10.7% in total annual returns projected for the next five years. Atmos is quite

cheap compared to recent years, and we see the stock as a buy.






24



Revenue 4286 3436 3875 4941 2927 2455 2760 3116 2902 2,821

Gross Profit 1301 1324 1412 1582 1631 1708 1834 1948 2043 2,162

Gross Margin 30.3% 38.5% 36.4% 32.0% 55.7% 69.6% 66.5% 62.5% 70.4% 76.6%

D&A Exp. 233 247 238 254 275 293 320 361 391 430



Net Profit 208 217 243 290 315 350 396 603 511 601

Net Margin 4.8% 6.3% 6.3% 5.9% 10.8% 14.3% 14.4% 19.4% 17.6% 21.3%

Free Cash Flow -40 -146 -232 -92 -152 -292 -270 -343 -725 (898)

Income Tax 107 98 143 187 190 197 221 8 139 145


Total Assets 7283 7496 7934 8595 9075 10011 10750 11874 13368 15,359



Inventories 294 262 250 285 249 185 189 174 136 119

Goodwill & Int. Ass. 740 741 741 742 743 727 730 730 731 731

Total Liabilities 5027 5136 5354 5508 5880 6548 6851 7104 7617 8,568


Long-Term Debt 2415 2527 2824 2653 2895 3269 3515 3644 3994 4,523

Shareholder’s Equity 2255 2359 2580 3086 3195 3463 3899 4770 5750 6,791

D/E Ratio 1.07 1.07 1.09 0.86 0.91 0.94 0.90 0.76 0.69 0.67


Return on Assets 3.0% 2.9% 3.2% 3.5% 3.6% 3.7% 3.8% 5.3% 4.1% 4.2%

Return on Equity 9.4% 9.4% 9.8% 10.2% 10.0% 10.5% 10.8% 13.9% 9.7% 9.6%

ROIC 4.5% 4.5% 4.7% 5.2% 5.3% 5.5% 5.6% 7.6% 5.6% 5.7%

Shares Out. 90 90 90 91 100 101 104 106 117 123

Revenue/Share 47.28 37.69 42.26 50.62 28.73 23.71 26.01 28.06 24.70 22.96

FCF/Share -0.44 -1.60 -2.53 -0.94 -1.49 -2.82 -2.54 -3.09 -6.17 -7.31


25


26


Bristol-Myers Squibb Co. (BMY)


Bristol-Myers Squibb was created when Bristol-Myers and Squibb merged in October of 1989, with

Bristol-Myers tracing its corporate beginnings back to 1887. Today this $138 billion market

capitalization company is a leading drug maker of cardiovascular and anti-cancer therapeutics with

annual revenue of about $46 billion. Bristol-Myers’ late-2019 acquisition of Celgene is helping near-

term results, but about two-thirds of Celgene’s revenue is at risk of patent expiration in 2022.

Bristol-Myers reported strong fourth-quarter and full-year earnings on February 4th. Revenue was up

40% year-over-year to $11.1 billion, which was primarily from the Celgene acquisition, but is part of

the comparable base going forward, and increases will be much smaller. Bristol-Myers saw Revlimid

revenue unchanged at $3.3 billion, Eliquis up 12% to $2.7 billion, and Opdivo up 2% to $1.8 billion.

On an adjusted basis, earnings-per-share came to $1.46 in Q4, which was 20% higher than the same

period last year. We expect Bristol-Myers to produce $7.50 in earnings-per-share for 2021, which

takes into account Celgene revenue for the full year.

The company said it expects to see mid-40 percent adjusted operating margins through 2023 in a sign

that profits should remain robust. In addition, it expects to generate up to $50 billion in cumulative

cash flow through 2023.


Bristol-Myers’ competitive advantage is its ability to either create (through research & development) or

acquire patents for pharmaceuticals with high potential revenue. Two of Bristol-Myers’ top selling

pharmaceuticals, Opdivo and Eliquis, are expected to see high peak annual sales. Opdivo did suffer a

setback in December with its brain cancer study, but revenue was still nearly $2 billion in Q4.

During the last recession, Bristol-Myers reported earnings-per-share of $1.59, $1.63, and $1.79 during

the 2008 through 2010 stretch. The dividend was held steady and ultimately increased during that

time. Even in a recession, people seek treatment for health problems, especially with respect to cancer.


In the 2010 through 2019 period, Bristol-Myers saw its revenue and adjusted earnings-per-share grow

by an average annual compound rate of 3.3% and 11.3% per year respectively. We are forecasting 3%

medium-term growth, as the expectation for significantly higher earnings in 2021 is weighed against

the fact that results have moved up and down over the years. Celgene is also facing a revenue cliff in

the coming quarters.

We expect Bristol-Myers to generate $7.50 in adjusted earnings-per-share this year. Based on the

current share price of $61, shares are presently trading at 8.3 times expected earnings. Our fair value

estimate is 13.5, implying the potential for a 10.3% annualized benefit from a higher valuation over the

next half decade. When combined with a 3% growth rate and the 3.2% dividend yield, total expected

returns come to 15.6% per year over the next five years.




Estimated Fair Value: $101 Dividend Risk Score: B


27



Revenue 19,484 21,244 17,621 16,385 15,879 16,560 19,427 20,776 22,561 26,145

Gross Profit 14,207 15,646 13,011 11,766 11,947 12,651 14,458 14,682 16,014 18,067

Gross Margin 72.9% 73.6% 73.8% 71.8% 75.2% 76.4% 74.4% 70.7% 71.0% 69.1%

SG&A Exp. 4,691 5,170 5,175 5,104 5,699 5,001 4,979 4,751 4,551 4,871

D&A Exp. 607 628 681 763 467 376 382 789 637 1,746

Operating Profit 5,950 6,637 3,932 2,931 1,714 1,730 4,467 3,449 5,118 5,913

Op. Margin 30.5% 31.2% 22.3% 17.9% 10.8% 10.4% 23.0% 16.6% 22.7% 22.6%

Net Profit 3,102 3,709 1,960 2,563 2,004 1,565 4,457 1,007 4,920 3,439

Net Margin 15.9% 17.5% 11.1% 15.6% 12.6% 9.5% 22.9% 4.8% 21.8% 13.2%

Free Cash Flow 4,067 4,473 6,393 3,008 2,622 1,285 1,843 4,220 4,989 7,231

Income Tax 1,558 1,721 (161) 311 352 446 1,408 4,156 1,021 1,515


Total Assets 31,076 32,970 35,897 38,592 33,749 31,748 33,707 33,551 34,986 129,944

Cash & Equivalents 5,033 5,776 1,656 3,586 5,571 2,385 4,237 5,421 6,911 12,346

Acc. Receivable 2,250 1,708 1,690 2,100 2,948 3,774 4,347 4,636 6,476

Inventories 1,204 1,384 1,657 1,498 1,560 1,221 1,241 1,166 1,195 4,293

Goodwill & Int. 8,603 8,710 16,413 9,414 8,780 8,300 8,260 8,073 7,629 86,457

Total Liabilities 15,438 17,103 22,259 23,356 18,766 17,324 17,360 21,704 20,859 78,246

Accounts Payable 1,983 2,603 2,202 2,559 2,487 1,565 1,664 2,248 1,892 2,445

Long-Term Debt 5,445 5,491 7,394 8,340 7,832 6,689 6,708 7,962 7,349 46,733

Total Equity 15,713 15,956 13,623 15,154 14,852 14,266 16,177 11,741 14,031 51,598

D/E Ratio 0.35 0.34 0.54 0.55 0.53 0.47 0.41 0.68 0.52 0.91


Return on Assets 10.0% 11.6% 5.7% 6.9% 5.5% 4.8% 13.6% 3.0% 14.4% 4.2%

Return on Equity 20.3% 23.4% 13.3% 17.8% 13.4% 10.7% 29.3% 7.2% 38.2% 10.5%

ROIC 14.7% 17.5% 9.2% 11.5% 8.6% 7.1% 20.2% 4.7% 23.8% 5.7%

Shares Out. 1699 1685 1630 1641 1662 1661 1664 1625 1623 1918

Revenue/Share 11.28 12.37 10.44 9.86 9.51 9.86 11.56 12.58 13.78 15.27

FCF/Share 2.36 2.61 3.79 1.81 1.57 0.77 1.10 2.55 3.05 4.22


28


29


Lockheed Martin Corp. (LMT) Overview & Current Events

Lockheed Martin is the world’s largest defense company. Roughly 60% of the company’s revenues

come from the U.S. Department of Defense, with other U.S. government agencies (10%) and

international clients (30%) making up the remainder. The company consists of four business segments:

Aeronautics (~40% sales) - which produces military aircraft like the F-35, F-22, F-16 and C-130;

Rotary and Mission Systems (~26% sales) - which includes combat ships, naval electronics and

helicopters; Missiles and Fire Control (~16% sales) - which creates missile defense systems; and Space

Systems (~17% sales) - which produces satellites. The $94 billion market cap company generated

$65.4 billion in revenue in 2020.

Lockheed Martin reported another quarter of strong results for Q4 and FY 2020 on January 26th, 2021.

FY 2020 net sales increased by 9% to a record $65.4 billion and GAAP diluted earnings-per-share

(EPS) increased 12% to a record $24.50. Q4 companywide net sales increased 7% to $17B from

$15.9B and diluted GAAP earnings-per-share increased to $6.38 from $5.29 on a year-over-year basis.

All four business segments increased net sales. The Aeronautics segment increased net sales 5% to

$6.7B, the Missiles and Fire Control segment increased sales 4% to $2.9B, the Rotary and Mission

Systems net sales increased 8% to $4.2B, and the Space segment sales increased 14% to $3.2B.

Lockheed Martin’s backlog is approximately $147.13B and their outlook for 2021 shows revenue

coming in-between $67.1B and $68.5B and diluted EPS coming in-between $26.00 and $26.30.


Lockheed Martin is an entrenched military contractor. It produces aircraft and other platforms that

serve as the backbone for the U.S. military and other militaries around the world. This leads to a

competitive advantage as any new technologies would have to significantly outperform existing

platforms. These platforms have decades long life cycles and Lockheed Martin has expertise and

experience to perform sustainment and modernization. These characteristics lead to a good degree of

recession resistance. During the 2008 through 2011 period, Lockheed Martin generated earnings-per-

share of $7.86, $7.78, $7.23 and $7.82, while the dividend kept on increasing.


Over the past decade Lockheed Martin has grown its earnings-per-share by a 12.1% average annual

compound rate. This result was driven by 3.5% yearly revenue growth that was significantly aided by

the net profit margin increasing from 5.7% to 10.4% and a share count that declined by 1.6% per year.

Moving forward we expect 8% annual EPS growth, with help from many of the same factors. We

expect Lockheed Martin to generate earnings-per-share of $26.15 in 2021. Based on this, the stock is

currently trading at a price-to-earnings ratio (P/E) of 12.9. Our fair value estimate is a P/E of 16.0,

which means expansion of the P/E multiple could increase returns by 4.4% per year. When combined

with the 8% anticipated EPS growth rate and 3.1% starting yield, total return potential comes to 15.1%

per year over the next half decade.






30



Revenue 46499 47182 45358 39946 40536 47248 51048 53762 59812 65398

Gross Profit 3744 4196 4187 4683 4492 5062 5548 7274 8367 8654

Gross Margin 8.1% 8.9% 9.2% 11.7% 11.1% 10.7% 10.9% 13.5% 14.0% 13.2%

D&A Exp. 1008 988 990 994 1026 1215 1195 1161 1189 1290


Op. Margin 8.6% 9.4% 9.9% 12.5% 11.6% 11.7% 11.6% 13.6% 14.0% 13.2%

Net Profit 2655 2745 2981 3614 3605 5302 2002 5046 6230 6833

Net Margin 5.7% 5.8% 6.6% 9.0% 8.9% 11.2% 3.9% 9.4% 10.4% 10.4%

Free Cash Flow 3266 619 3710 3021 4162 4126 5299 1860 5827 6417

Income Tax 964 1327 1205 1424 1173 1133 3340 792 1011 1347


Total Assets 37908 38657 36188 37046 49304 47806 46521 44876 47528 50710


Acc. Receivable 6064 6563 5834 5877 7254 8202 8603 2444 2337 1978

Inventories 2481 2937 2977 2804 4819 4670 4487 2997 3619 3545

Goodwill & Int. 10148 10370 10348 11186 14717 14857 14604 14263 13817 13818



Long-Term Debt 6460 6308 6152 6142 15261 14282 14263 14104 12654 12169

Total Equity 1001 39 4918 3400 3097 1511 -683 1394 3127 6015

D/E Ratio 6.45 161.74 1.25 1.81 4.93 9.45 -20.88 10.12 4.05 2.02


Return on Assets 7.3% 7.2% 8.0% 9.9% 8.3% 10.9% 4.2% 11.0% 13.5% 13.9%

Return on Equity 118% 528% 120% 86.9% 111% 230% 484% 1419% 275.6% 149.5%

ROIC 33.2% 39.8% 34.2% 35.1% 25.8% 31.0% 13.6% 34.6% 39.7% 40.2%

Shares Out. 323.4 321 319 314 303 289 284 280 278 275

Revenue/Share 136.80 143.67 138.92 123.90 128.81 155.88 175.66 187.45 210.75 232.57

FCF/Share 9.61 1.88 11.36 9.37 13.23 13.61 18.23 6.49 20.53 22.82


31



32

Telephone & Data Systems Inc. (TDS) Overview & Current Events

Telephone & Data Systems is a telecommunications company that provides customers with cellular and

landline services, wireless products, cable, broadband, and voice services across 24 U.S. states. The

company’s Cellular Division accounts for more than 75% of total operating revenue. TDS started in

1969 as a collection of 10 rural telephone companies. Today, the company has a market cap of $2.2

billion and generates more than $5 billion in annual revenues.

On November 5th, TDS reported financial results for the third quarter. Diluted earnings-per-share

(EPS) surged 340% to $0.66. Postpaid churn rate was favorable in comparison to last year, at 1.06%

for the third quarter versus 1.38% in the same quarter last year. Average revenue per user for postpaid

connections grew 2% which helped boost revenue. While wireline connections fell 0.5%, cable

connections grew 11.7% last quarter, bolstered by the acquisition of Continuum.


Telephone & Data Systems operates in the competitive telecommunications industry. Price wars are

common among telecoms in the constant battle for subscribers. That said, the entire industry benefits

from a high level of concentration. There are only a few major telecoms (AT&T, Verizon, and T-

Mobile) that dominate the U.S. market. Building a new network large enough to compete with the

established giants, TDS included, would be extremely prohibitive.

TDS has historically held up well during recessions as consumers are reluctant to cut their

telecommunications services, even during an economic downturn. During the Great Recession, TDS’

earnings-per-share actually increased 69% from 2008-2010. The company has remained profitable

during the current period of economic weakness caused by the coronavirus pandemic.


Much of TDS’ future growth potential depends on U.S. Cellular, as TDS has an 82% stake in U.S.

Cellular. The company has a mixed track record when it comes to growth. During the last decade, its

earnings-per-share have declined approximately 2.6% compounded-per-year on average. While the

earnings trend has been volatile, book value per share has grown by 2.0% per year over the last decade.

We are expecting $1.95 in earnings for 2020, to go along with ~$42 in book value per share. We also

expect 1.5% annual earnings-per-share growth over the next five years. Earnings growth will be

achieved through a mix of revenue growth and margin improvements.

Due to the volatility in the company’s earnings, we believe that the best way to assess the valuation of

TDS is by looking at its price-to-book ratio. TDS is currently trading at a price-to-book ratio of 0.48,

which is lower than its 10-year average of 0.74. Our fair value estimate is a price-to-book ratio of 0.70.

If the stock reverts to its average valuation level over the next five years, it will see a 7.8% annualized

gain. Shareholder returns will be boosted by expected EPS growth of 1.5%, and the current dividend

yield of 3.3%. Overall, total returns are expected to reach 11.8% per year over the next five years.






33



Revenue 4987 5180 5345 4901 5009 5210 5155 5044 5109 5176 Gross Profit 3062 3130 3073 2676 2498 2795 2726 2685 2773 2839

Gross Margin 61.4% 60.4% 57.5% 54.6% 49.9% 53.6% 52.9% 53.2% 54.3% 54.8% SG&A Exp. 1998 2002 2034 1948 1865 1781 1762 1689 1694 1717 D&A Exp. 756 766 814 1018 837 844 850 844 883 932

Operating Profit 308 362 225 -290 -204 170 114 152 196 190 Operating Margin 6.2% 7.0% 4.2% -5.9% -4.1% 3.3% 2.2% 3.0% 3.8% 3.7%

Net Profit 145 201 82 142 -136 219 43 153 135 121 Net Margin 2.9% 3.9% 1.5% 2.9% -2.7% 4.2% 0.8% 3.0% 2.6% 2.3%

Free Cash Flow 337 284 110 -389 -404 -11 146 91 241 59 Income Tax 95 114 74 126 -5 172 40 -279 46 64


Total Assets 7763 8201 8624 8904 8854 9422 9446 9295 9783 10781 Cash & Equivalents 368 563 740 830 472 985 900 619 921 465

Accounts Receivable 513 394 410 552 549 705 753 861 992 1005 Inventories 116 130 161 245 274 158 151 145 150 169

Goodwill & Int. Ass. 2219 2342 2336 2456 2534 2901 2938 3020 2957 3266 Total Liabilities 3301 3598 3968 4234 4399 4718 4696 4403 4490 5377

Accounts Payable 344 365 377 496 387 349 365 368 365 374 Long-Term Debt 1502 1531 1723 1722 1942 2454 2445 2457 2439 2326

Shareholder’s Equity 3814 3962 4012 4118 3926 4126 4144 4269 4560 4653 D/E Ratio 0.39 0.39 0.43 0.42 0.49 0.59 0.59 0.58 0.53 0.50


Return on Assets 1.9% 2.5% 1.0% 1.6% -1.5% 2.4% 0.5% 1.6% 1.4% 1.2% Return on Equity 3.8% 5.2% 2.1% 3.5% -3.4% 5.4% 1.0% 3.6% 3.1% 2.6%

ROIC 2.4% 3.3% 1.3% 2.2% -2.1% 3.2% 0.6% 2.1% 1.8% 1.6% Shares Out. 113.0 117.9 107.9 108.8 107.9 109.0 110.0 112.0 115.0 116.0

Revenue/Share 45.13 47.48 49.07 44.91 46.38 47.36 46.44 45.04 44.82 44.62 FCF/Share 3.05 2.60 1.01 -3.57 -3.74 -0.10 1.32 0.81 2.11 0.51

Note: All figures in millions of U.S. Dollars unless per share or indicated otherwise. Data for fiscal 2020 was not yet available from our data provider at the time of this newsletter publication.

34


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.

35

Closing Thoughts - Cash Flows & Payout Ratios -

We covered the importance of the payout ratio metric in last month’s Opening Thoughts section of The Sure Dividend Newsletter. Last month’s Opening Thoughts said the following:

“One of the most important financial metrics we utilize when analyzing dividend stocks is the dividend payout ratio. This is the percentage of a company’s earnings-per-share that are distributed to shareholders as a dividend. We believe the payout ratio tells the “real story” as to whether a company’s dividend is sustainable moving forward.”

Earnings-per-share is the standard metric to use in the denominator of the payout ratio calculation. But earnings don’t always reflect the true cash generating power of a business.

Earnings are an accounting metric. Dividends are paid in cash. That’s why it’s important to compare a company’s cash flows to its dividend to determine if the dividend is sustainable.

Earnings are reported on the income statement whereas operating cash flow are reported on the statement of cash flows. The purpose of earnings is to show if a business is operating profitably by matching expenses with revenues. The purpose of the statement of cash flows is to show where money is coming from and where it is going.

Operating cash flow is cash generated in the normal activity of a business. It does not account for purchases of long-term assets. These long-term asset purchases are called capital expenditures. Operating cash flows minus capital expenditures equals free cash flow.

Free cash flow is an important metric used to determine dividend safety. If a company’s dividend payments are not covered by its free cash flows, then the dividend could be unsustainable.

With that said, free cash flows are more volatile than earnings due to the timing of large asset purchases, timing of customer payments, and timing of payables, among other reasons. Because of this volatility, a quarter, or even a year, may not be cause for concern regarding the sustainability of the dividend. But if there’s a multi-year history of free cash flows not covering the dividend, then the dividend is likely not sustainable at its current rate.

It’s also worth noting that looking at cash flows is not as applicable for many financial and utility companies. Earnings tend to be the better metric for those sectors.

We look into the operating cash flows and free cash flows for all non-financial and non-utility sector recommendations in The Sure Dividend Newsletter. This is done manually as part of our qualitative analysis to complement our quantitative ranking system in order to increase the safety of our recommendations to members.

Thanks, Ben Reynolds

The next Sure Dividend Newsletter publishes on Sunday, March 7th, 2021

https://www.suredividend.com/wp-content/uploads/2021/01/Sure-Dividend-202101-January-2021-Newsletter-26I0.pdf

36

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 security 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 to prevent over-concentration in any sector. The portfolio will hold 30 securities.

Once 30 securities are reached, it will buy the highest ranked security already in the portfolio up

to 10% of the portfolio’s value. Selling uses the same criteria as The Sure Dividend Newsletter.

We are using Interactive Brokers as our brokerage for this portfolio. Buy orders for our trades

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

gives readers who follow the real money portfolio a full trading day to make trades in advance

of us.

Our next buy will be L3Harris Technologies (LHX) which is the highest ranked security in

this month’s newsletter that isn’t currently in the Real Money Portfolio.

We sold our shares of Eaton Vance on November 3rd for a profit of 68.7% after brokerage fees.

We replaced Eaton Vance with Cisco Systems (CSCO). The additional ~$650 in profit was

retained in the account. We will purchase a new security with this money when dividend

income pushes it to ~$1,000.

We have one pending sell in the real money portfolio; Foot Locker (FL). Foot Locker will be

sold the Tuesday after we initiate our final sell recommendation for the company in The Sure

Dividend Newsletter; we have not initiated our final sell recommendation yet. Foot Locker

is a pending sell due to its dividend reduction.

The screenshot from our brokerage account below shows our current 25 holdings in The Real

Money Portfolio (see the next page).

37

Including dividends, cash for February’s upcoming purchase, and transaction costs, the account

has a total value of $31,354.762 versus $26,000.00 invested.

The portfolio currently has a weighted dividend yield of 2.9% (not including cash in the

account) which translates to annual dividend income of $866.

Performance and annual dividend income will become increasingly meaningful as both the

number and value of holdings in our portfolio grows, and as the amount of time each security

has been held increases.

2 Performance data is through afternoon 2/5/21.

38

Buying & Ranking Criteria The method we use to come up with the Top 10 list for The Sure Dividend Newsletter is as follows:

Note: Ranking data is from the most recent Sure Analysis report on the Wednesday morning preceding the publication of the newsletter.

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 Returns (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 Returns 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 expected total returns are calculated in Sure Analysis. They are based on expected returns over the next five years. Our expected total returns take into account dividends, growth, and valuation returns. 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.

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39

Portfolio Building Guide

The process of building a high-quality dividend growth portfolio does not have to be 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 higher yielding securities to your portfolio, The Sure Retirement Newsletter offers a

Top 10 list with 4%+ dividend yields. The Sure Analysis Research Database includes 600+ (and growing)

securities, most of which we analyze quarterly and provide Dividend Risk scores and 5-year forward expected

total returns (among other metrics) for.

Examples Portfolio 1 Portfolio 2

Ticker Name Amount Ticker Name Amount

LHX L3Harris Technologies $ 1,002 LHX L3Harris Technologies $ 4,374

NOC Northrop Grumman $ - NOC Northrop Grumman $ 4,878

UNM Unum Group $ - UNM Unum Group $ 4,353

NFG National Fuel Gas $ - NFG National Fuel Gas $ 7,428

AMP Ameriprise Financial $ - AMP Ameriprise Financial $ 3,309

PII Polaris $ - PII Polaris $ 8,099

ATO Atmos Energy $ - ATO Atmos Energy $ 5,629

BMY Bristol-Myers Squibb $ - BMY Bristol-Myers Squibb $ 2,176

LMT Lockheed Martin $ - LMT Lockheed Martin $ 1,079

TDS Telephone & Data $ - TDS Telephone & Data $ 4,864

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

- If you had portfolio 2, you would buy LMT, 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 two 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 four 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 or the Sure Analysis

Research Database 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/

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40

Past Recommendations & Sells

Every past Sure Dividend Newsletter recommendation from the Top 10 is shown in this section3. The sell rules

that govern this newsletter are below. Except in extreme circumstances, we will not issue sell recommendations

– even if the sell rules below are triggered – unless a security has been held for one year or longer, to qualify for

the lower long-term capital gains tax rates in taxable accounts.

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 greater of either the S&P 500 over the next several years or the yield on the 20 year

T-Bond. 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 1.5%, and

valuation multiple mean reversion at -8.7% (S&P 500 fair value P/E of 15.9 versus current P/E of 39.56) for a

5-year expected total returns4 sell threshold of -1.7%. The 20-year T-Bond currently has a yield of 1.75%, so

our expected total return sell threshold is 1.75%.

Past recommendations at or below this sell threshold are in red 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. We will also review valuation-based sells qualitatively and for momentum

to select the appropriate sell time.

Unsold Past Recommendations

Name Ticker Time Since 1st

Recommended (Years)

DR Score

5-Year Expected

Total Returns

Total Return5

CAGR6 S&P 500

(SPY) CAGR

Kimberly-Clark KMB 6.8 A 7.0% 54.1% 6.5% 13.6%

ExxonMobil XOM 6.8 F 10.5% -33.2% -5.7% 13.6%

3M MMM 6.8 A 8.1% 52.1% 6.4% 13.4%

Genuine Parts Company GPC 6.8 A 5.3% 44.4% 5.6% 13.4%

Becton, Dickinson BDX 6.7 A 9.0% 138.8% 13.9% 13.2%

Philip Morris PM 6.7 D 7.2% 32.8% 4.3% 13.2%

General Mills GIS 6.7 C 7.7% 31.0% 4.1% 13.2%

AT&T T 6.7 B 12.3% 19.5% 2.7% 13.2%

J.M. Smucker SJM 6.5 B 6.9% 34.4% 4.6% 13.4%

3 This does not include our past “special recommendations” or international recommendations from years ago, which are outside the

scope of the regular Sure Dividend Newsletter strategy. We are not tracking when to sell or performance of those recommendations. 4 We are using the simplified calculation of expected total returns for estimated S&P 500 returns, which is calculated as dividend yield

+ growth rate + valuation multiple change. 5 Data through afternoon 2/5/21 and the 2/5/21 Sure Analysis Research Database Excel sheet. 6 Compound Annual Growth Rate (using total returns) is only calculated for past recommendations with holding periods of 1+ years.

41

Altria MO 5.8 B 11.4% 12.5% 2.0% 13.4%

Caterpillar CAT 5.5 B -0.2% 193.0% 21.5% 13.9%

Raytheon Technologies RTX 5.5 B 4.7% 42.1% 6.6% 13.9%

BCE, Inc. BCE 5.5 F 6.8% 41.4% 6.5% 13.9%

Cummins CMI 5.3 B 5.3% 154.6% 19.4% 14.4%

Johnson Controls JCI 5.2 D 4.1% 87.3% 12.9% 14.9%

Verizon VZ 5.2 B 11.2% 51.1% 8.3% 14.9%

Archer-Daniels-Midland ADM 5.0 A 6.6% 84.9% 13.1% 18.1%

General Dynamics GD 4.9 A 8.4% 32.9% 6.0% 16.5%

Cardinal Health CAH 4.8 A 6.9% -18.1% -4.1% 16.1%

Phillips 66 PSX 4.6 F 10.0% 8.9% 1.9% 16.6%

Walgreens Boots Alliance WBA 4.4 A 8.3% -31.8% -8.3% 15.9%

AbbVie ABBV 4.3 A 9.9% 110.4% 18.7% 16.5%

Medtronic MDT 4.2 A 0.6% 79.4% 15.1% 16.6%

Lowe's LOW 3.7 A 8.2% 115.7% 22.8% 15.7%

IBM IBM 3.7 B 8.7% -6.9% -1.9% 15.7%

Ameriprise Financial AMP 3.7 A 11.2% 87.4% 18.7% 15.5%

CVS Health CVS 3.7 B 9.5% 3.7% 1.0% 15.5%

HNI Corporation HNI 3.2 C -0.1% 11.6% 3.5% 14.9%

Leggett & Platt LEG 3.1 B 6.2% -1.2% -0.4% 13.9%

ONEOK OKE 3.1 C 11.5% -5.2% -1.7% 13.9%

Franklin Resources BEN 2.8 A 8.1% -14.1% -5.2% 17.4%

United Parcel Service UPS 2.3 B 6.6% 63.8% 24.5% 18.8%

Northrop Grumman NOC 2.3 A 12.9% 12.1% 5.2% 18.8%

Whirlpool WHR 2.1 A 8.1% 73.2% 30.2% 24.4%

Bank OZK OZK 2.1 B 3.2% 66.0% 27.6% 24.4%

Newell Brands NWL 2.1 D -3.0% 50.5% 21.7% 24.4%

Hanesbrands HBI 2.1 B 8.0% 29.2% 13.1% 24.4%

T. Rowe Price Group TROW 2.0 A 4.4% 78.7% 33.6% 21.4%

People's United Financial PBCT 1.9 B 9.0% -8.2% -4.4% 20.6%

MSC Industrial MSM 1.6 C 5.0% 39.2% 23.2% 20.2%

A.O. Smith AOS 1.5 B 0.9% 38.5% 24.1% 25.0%

Snap-on SNA 1.5 B 2.5% 33.5% 21.1% 25.0%

FedEx FDX 1.3 A 11.4% 78.0% 54.1% 25.2%

UnitedHealth Group UNH 1.3 B 11.4% 51.9% 36.8% 25.2%

Comcast CMCSA 1.3 B 6.4% 18.5% 13.6% 25.2%

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Textron TXT 1.3 A -2.4% -0.4% -0.3% 25.2%

M&T Bank MTB 1.3 B 7.3% -4.3% -3.3% 25.2%

Lockheed Martin LMT 1.1 B 15.1% -16.3% -15.1% 19.7%

UMB Financial UMBF 1.0 B 0.4% 17.6% 17.4% 21.2%

Polaris PII 0.8 A 10.9% 176.6% N/A N/A

H.B. Fuller FUL 0.8 A 8.3% 99.6% N/A N/A

Pentair PNR 0.8 A 5.5% 78.2% N/A N/A

UGI UGI 0.8 A 9.4% 42.2% N/A N/A

Stanley Black & Decker SWK 0.8 A 7.2% 71.3% N/A N/A

Unum Group UNM 0.8 A 9.7% 51.9% N/A N/A

Enterprise Bancorp EBTC 0.7 A 14.5% 8.5% N/A N/A

Bristol-Myers Squibb BMY 0.7 B 13.1% 2.5% N/A N/A

Huntington Ingalls HII 0.6 B 13.7% -5.7% N/A N/A

John Wiley & Sons JW.A 0.5 B 3.9% 42.4% N/A N/A

Prosperity Bancshares PB 0.5 B 9.0% 26.5% N/A N/A

Intel INTC 0.5 B 6.9% 24.2% N/A N/A

Sempra Energy SRE 0.4 B 11.5% 7.7% N/A N/A

Cisco Systems CSCO 0.3 B 8.6% 32.7% N/A N/A

Telephone & Data TDS 0.3 B 11.8% 20.0% N/A N/A

National Fuel Gas NFG 0.2 A 11.9% 0.7% N/A N/A

Gilead Sciences GILD 0.1 B 10.3% 9.5% N/A N/A

Atmos Energy ATO 0.0 A 10.7% N/A N/A N/A

L3Harris Technologies LHX 0.0 A 11.6% N/A N/A N/A

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Pending Sells Name Ticker 1st Rec. Date Sell Date Total Return S&P 500 Total Return7

Macy’s M 5/8/2017 TBD -35.0% 73.8%

Occidental Petroleum OXY 6/5/2017 TBD -55.2% 70.7%

Royal Dutch Shell RDS.B 7/3/2017 TBD -21.9% 71.2%

Kohl’s KSS 9/5/2017 TBD 40.1% 68.5%

Southwest Airlines LUV 2/5/2018 TBD -9.4% 55.5%

Invesco IVZ 3/5/2018 TBD -20.7% 50.8%

Foot Locker FL 6/3/2019 TBD 28.3% 46.0%

Pending sells are issued for securities that have reached a sell event (typically a dividend reduction) but should

not be sold yet. We will initiate final sell recommendations for all of the above pending sells when they reach

or approximate their fair values. We are not issuing sell prices for our pending sells at this time. We are

reviewing with every newsletter for the final sell recommendation.

7 S&P 500 total returns are measured by the investable S&P 500 ETF (SPY).

44

Sold Positions Name Ticker 1st Rec. Date Sell Date Total Return S&P 500 Total Return

Chubb (old Chubb) CB 4/7/2014 7/6/2015 32.1% 14.9%

Baxalta (acquired) BXLT 7/6/2015 2/8/2016 15.4% -9.3%

ConocoPhillips COP 12/8/2014 10/8/2018 34.4% 50.8%

Helmerich & Payne HP 2/2/2015 12/3/2018 17.5% 48.9%

Vector VGR 8/7/2017 12/3/2018 -28.7% 15.3%

Abbott ABT 7/7/2014 1/7/2019 83.6% 40.9%

Hormel HRL 12/5/2016 1/7/2019 30.2% 20.3%

Ecolab ECL 10/6/2014 2/4/2019 70.4% 66.8%

Wal-Mart WMT 4/7/2014 2/4/2019 43.4% 66.8%

Clorox CLX 4/7/2014 3/4/2019 100.5% 72.6%

Nike NKE 5/8/2017 3/4/2019 61.6% 25.0%

Church & Dwight CHD 4/2/2018 4/8/2019 50.2% 14.3%

Computer Services CSVI 11/2/2015 6/3/2019 105.4% 39.9%

Axis Capital AXS 1/8/2018 6/3/2019 28.2% 2.6%

VF Corp. VFC 11/7/2016 7/8/2019 73.0% 46.9%

AFLAC AFL 4/7/2014 7/8/2019 108.0% 78.7%

Procter & Gamble PG 12/7/2015 8/5/2019 62.5% 46.8%

Mondelez MDLZ 4/3/2017 8/5/2019 27.3% 25.9%

Boeing BA 10/3/2016 9/3/2019 187.6% 42.1%

McDonald’s MCD 4/7/2014 9/3/2019 162.0% 75.0%

Owens & Minor OMI 1/8/2018 10/7/2019 -67.0% 10.6%

Coca-Cola KO 4/7/2014 10/7/2019 66.5% 77.2%

Qualcomm QCOM 6/5/2017 11/4/2019 57.7% 32.1%

Universal UVV 2/5/2018 11/4/2019 30.0% 20.3%

Target TGT 4/7/2014 12/2/2019 147.9% 88.4%

PepsiCo PEP 4/7/2014 12/2/2019 90.3% 88.4%

Illinois Tool Works ITW 11/5/2018 1/6/2020 41.1% 21.3%

Deere & Co. DE 1/5/2015 1/6/2020 129.0% 77.1%

Eaton ETN 2/4/2019 2/5/2020 48.0% 24.7%

Western Digital WDC 9/8/2015 2/3/2020 95.2% 79.5%

Flowers Foods FLO 3/7/2016 4/6/2020 41.2% 43.6%

Johnson & Johnson JNJ 11/2/2015 5/3/2020 63.9% 47.5%

Disney DIS 6/6/2016 6/8/2020 36.6% 65.5%

Kellogg K 12/8/2014 7/6/2020 19.6% 72.0%

45

S&P Global SPGI 12/3/2018 7/6/2020 86.8% 17.5%

W.W. Grainger GWW 7/6/2015 9/8/2020 67.2% 78.0%

WestRock WRK 3/4/2019 11/2/2020 8.7% 22.2%

Eaton Vance EV 1/7/2019 11/2/2020 79.4% 34.2%

Average Sold Recommendation Total Return: 60.5%

Average S&P 500 (SPY) Total Return: 44.3%

46

List of Securities 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 in the Sure Analysis Glossary. These rankings will not

always align with our Top 10 due to additional safety constraints we impose outside of the Top 10

and newsletter compilation timing8. See our ‘Buying and Ranking Criteria’ for more information.

A-Rated Dividend Risk Securities 1. Tencent Holdings Ltd. (TCEHY): 0%

2. Perrigo Company plc (PRGO): 2.1%

3. Northrop Grumman Corp. (NOC): 1.9%

4. Ping AN Insurance (Group) Co. of China, Ltd. (PNGAY): 0%

5. Eagle Financial Services, Inc. (EFSI): 0%

6. L3Harris Technologies Inc (LHX): 1.9%

7. National Fuel Gas Co. (NFG): 4.3%

8. FedEx Corp (FDX): 1.1%

9. Ameriprise Financial Inc (AMP): 2%

10. Fresenius Medical Care AG & Co. KGaA (FMS): 2%

11. Polaris Inc (PII): 2.1%

12. Enterprise Bancorp, Inc. (EBTC): 2%

13. Silgan Holdings Inc. (SLGN): 1.3%

14. Atmos Energy Corp. (ATO): 2.6%

15. Thermo Fisher Scientific Inc. (TMO): 0.2%

16. Unum Group (UNM): 4.7%

17. Stryker Corp. (SYK): 1%

18. Dollar General Corp. (DG): 0.7%

19. UGI Corp. (UGI): 3.6%

20. General Dynamics Corp. (GD): 2.9%

21. Farmers & Merchants Bancorp (FMCB): 0%

22. Oracle Corp. (ORCL): 1.5%

23. Community Trust Bancorp, Inc. (CTBI): 4%

24. Lowe`s Cos., Inc. (LOW): 1.4%

25. Kroger Co. (KR): 2%

26. H.B. Fuller Company (FUL): 0.6%

27. Black Hills Corporation (BKH): 3.5%

28. AbbVie Inc (ABBV): 4.6%

29. Mckesson Corporation (MCK): 0.9%

30. Becton, Dickinson And Co. (BDX): 1.2%

31. Walgreens Boots Alliance Inc (WBA): 3.8%

32. ABM Industries Inc. (ABM): 1.9%

33. Johnson & Johnson (JNJ): 2.4%

34. 3M Co. (MMM): 3.3%

35. Whirlpool Corp. (WHR): 2.5%

36. Arrow Financial Corp. (AROW): 3.4%

37. Assurant Inc (AIZ): 1.9%

38. Cardinal Health, Inc. (CAH): 3.5%

39. Franklin Resources, Inc. (BEN): 4.2%

8 This list was created with data from the Sure Analysis Research Database from between 2/2/21 and 2/4/21.

40. Archer Daniels Midland Co. (ADM): 2.8%

41. RenaissanceRe Holdings Ltd (RNR): 0.9%

42. Matthews International Corp. (MATW): 1.9%

43. Stanley Black & Decker Inc (SWK): 1.6%

44. SEI Investments Co. (SEIC): 1.3%

45. Kimberly-Clark Corp. (KMB): 3.2%

46. S&P Global Inc (SPGI): 0.8%

47. Tennant Co. (TNC): 1.2%

48. Dover Corp. (DOV): 1.6%

49. Brady Corp. (BRC): 1.9%

50. Carlisle Companies Inc. (CSL): 1.4%

51. Northeast Indiana Bancorp Inc. (NIDB): 0%

52. PPG Industries, Inc. (PPG): 1.5%

53. Genuine Parts Co. (GPC): 3.2%

54. Moody`s Corp. (MCO): 0.8%

55. Costco Wholesale Corp (COST): 0.8%

56. Aflac Inc. (AFL): 2.4%

57. Amerisource Bergen Corp. (ABC): 1.6%

58. CSX Corp. (CSX): 1.2%

59. Brown & Brown, Inc. (BRO): 0.6%

60. Sonoco Products Co. (SON): 2.9%

61. Pentair plc (PNR): 1.4%

62. Nucor Corp. (NUE): 3.2%

63. Gorman-Rupp Co. (GRC): 1.8%

64. Advance Auto Parts Inc (AAP): 0.6%

65. Best Buy Co. Inc. (BBY): 2%

66. Roper Technologies Inc (ROP): 0.5%

67. T. Rowe Price Group Inc. (TROW): 2.3%

68. Colgate-Palmolive Co. (CL): 2.2%

69. PSB Holdings Inc (WI) (PSBQ): 0%

70. Chubb Limited (CB): 2%

71. Donaldson Co. Inc. (DCI): 1.4%

72. RPM International, Inc. (RPM): 1.7%

73. Clorox Co. (CLX): 2.1%

74. Church & Dwight Co., Inc. (CHD): 1.2%

75. Sherwin-Williams Co. (SHW): 0.8%

76. Hormel Foods Corp. (HRL): 1.9%

77. Parker-Hannifin Corp. (PH): 1.3%

78. Target Corp (TGT): 1.4%

79. Procter & Gamble Co. (PG): 2.4%

80. Walmart Inc (WMT): 1.5%

https://www.suredividend.com/sure-analysis-research-database/

https://www.suredividend.com/procedures-glossary-definitions/

47

81. McGrath RentCorp (MGRC): 2.3%

82. Tractor Supply Co. (TSCO): 1%

83. Visa Inc (V): 0.6%

84. Expeditors International of Washington, Inc. (EXPD): 1.1%

85. McCormick & Co., Inc. (MKC): 1.1%

86. Applied Materials Inc. (AMAT): 0.8%

87. Abbott Laboratories (ABT): 1.3%

88. Stepan Co. (SCL): 0.7%

89. Microsoft Corporation (MSFT): 0.9%

90. Emerson Electric Co. (EMR): 2.4%

91. Jack Henry & Associates, Inc. (JKHY): 1.1%

92. Medtronic Plc (MDT): 2%

93. First Financial Corp. - Indiana (THFF): 2.6%

94. Chesapeake Financial Shares Inc (CPKF): 0%

95. W.W. Grainger Inc. (GWW): 1.6%

96. SJW Group (SJW): 1.9%

97. Tootsie Roll Industries, Inc. (TR): 0.9%

98. United Bankshares, Inc. (UBSI): 4.1%

99. Nordson Corp. (NDSN): 0.8%

100. Cintas Corporation (CTAS): 0.8%

101. Tompkins Financial Corp (TMP): 3%

102. Otis Worldwide Corp (OTIS): 0.9%

103. Computer Services, Inc. (CSVI): 0%

104. MGE Energy, Inc. (MGEE): 2.2%

105. Lancaster Colony Corp. (LANC): 1.6%

106. Apple Inc (AAPL): 0.6%

107. Franklin Electric Co., Inc. (FELE): 0.9%

108. Ecolab, Inc. (ECL): 0.9%

109. Textron Inc. (TXT): 0.2%

110. American States Water Co. (AWR): 1.6%

111. Eaton Vance Corp. (EV): 2%

112. Brown-Forman Corp. (BF.B): 1%

113. MSA Safety Inc (MSA): 1.1%

114. Brookfield Asset Management Inc. (BAM): 1.3%

115. Carrier Global Corp (CARR): 0.7%

116. California Water Service Group (CWT): 1.5%

117. AptarGroup Inc. (ATR): 1%

118. Middlesex Water Co. (MSEX): 1.3%

119. RLI Corp. (RLI): 1%

120. West Pharmaceutical Services, Inc. (WST): 0.2%

121. Badger Meter Inc. (BMI): 0.7%

122. Albemarle Corp. (ALB): 0.9%

B-Rated Dividend Risk Securities 1. Lockheed Martin Corp. (LMT): 2.9%

2. Huntington Ingalls Industries Inc (HII): 2.6%

3. Telephone and Data Systems, Inc. (TDS): 3.5%

4. Bristol-Myers Squibb Co. (BMY): 2.9%

5. AT&T, Inc. (T): 7.1%

6. First of Long Island Corp. (FLIC): 4.2%

7. Altria Group Inc. (MO): 7.9%

8. Sempra Energy (SRE): 3.3%

9. Bayer AG (BAYRY): 0%

10. Verizon Communications Inc (VZ): 8.9%

11. Ritchie Bros Auctioneers Inc (RBA): 1.7%

12. UnitedHealth Group Inc (UNH): 1.4%

13. Federal Realty Investment Trust (FRT): 4.7%

14. Gilead Sciences, Inc. (GILD): 4.1%

15. People`s United Financial Inc (PBCT): 3.8%

16. Merck & Co Inc (MRK): 3.2%

17. Enterprise Products Partners L P (EPD): 8.2%

18. Bank of Montreal (BMO): 5.5%

19. Flowers Foods, Inc. (FLO): 3.4%

20. CVS Health Corp (CVS): 2.8%

21. Novartis AG (NVS): 3.4%

22. Tyson Foods, Inc. (TSN): 2.6%

23. Republic Services, Inc. (RSG): 1.8%

24. America Móvil S.A.B.DE C.V. (AMX): 0%

25. Home Depot, Inc. (HD): 2.2%

26. Cisco Systems, Inc. (CSCO): 3.1%

27. Prosperity Bancshares Inc. (PB): 2.7%

28. Blackrock Inc. (BLK): 2%

29. Sun Life Financial, Inc. (SLF): 4.5%

30. International Business Machines Corp. (IBM): 5.3%

31. Red Eléctrica Corporación S.A. (RDEIY): 0%

32. Hanesbrands Inc (HBI): 3.9%

33. Edison International (EIX): 4.3%

34. AMGEN Inc. (AMGN): 2.6%

35. Royal Bank of Canada (RY): 5.2%

36. H&R Block Inc. (HRB): 5.5%

37. M & T Bank Corp (MTB): 3.2%

38. Sap SE (SAP): 1.3%

39. National Bank of Canada (NTIOF): 0%

40. Toronto Dominion Bank (TD): 5.4%

41. Northwest Natural Holding Co (NWN): 4.2%

42. Coca-Cola Co (KO): 3.3%

43. Intel Corp. (INTC): 2.3%

44. Mondelez International Inc. (MDLZ): 2.1%

45. Axis Capital Holdings Ltd (AXS): 3.5%

46. MDU Resources Group Inc (MDU): 3.1%

47. Toro Co. (TTC): 1.1%

48. United Parcel Service, Inc. (UPS): 2.5%

49. J.M. Smucker Co. (SJM): 3.1%

50. Travelers Companies Inc. (TRV): 2.4%

51. Automatic Data Processing Inc. (ADP): 2.2%

52. Comcast Corp (CMCSA): 1.8%

53. Fortis Inc. (FTS): 4.1%

54. Domino’s Pizza Inc (DPZ): 0.8%

55. Southside Bancshares Inc (SBSI): 3.8%

56. Leggett & Platt, Inc. (LEG): 3.7%

57. Keurig Dr Pepper Inc (KDP): 2.3%

58. Consolidated Edison, Inc. (ED): 4.3%

59. MetLife Inc (MET): 2.8%

60. Intercontinental Exchange Inc (ICE): 1%

61. Raytheon Technologies Corporation (RTX): 3.1%

62. Everest Re Group Ltd (RE): 2.9%

63. Kellogg Co (K): 3.9%

64. Intuit Inc (INTU): 0.6%

65. Essex Property Trust, Inc. (ESS): 3.4%

66. Cummins Inc. (CMI): 2.2%

67. Booz Allen Hamilton Holding Corp (BAH): 1.5%

68. Entergy Corp. (ETR): 3.9%

69. Texas Instruments Inc. (TXN): 2.2%

70. John Wiley & Sons Inc. (JW.A): 2.9%

71. Union Pacific Corp. (UNP): 1.9%

72. American Express Co. (AXP): 1.4%

48

73. Hershey Company (HSY): 2.1%

74. Snap-on, Inc. (SNA): 2.5%

75. Bank OZK (OZK): 2.2%

76. Fox Corporation (FOXA): 1.5%

77. McDonald`s Corp (MCD): 2.4%

78. American Tower Corp. (AMT): 1.9%

79. PepsiCo Inc (PEP): 2.9%

80. Xcel Energy, Inc. (XEL): 2.7%

81. Western Union Company (WU): 3.9%

82. Arthur J. Gallagher & Co. (AJG): 1.5%

83. Cognizant Technology Solutions Corp. (CTSH): 1.1%

84. International Flavors & Fragrances Inc. (IFF): 2.4%

85. Westamerica Bancorporation (WABC): 2.1%

86. Artesian Resources Corp. (ARTNA): 2.4%

87. Eastman Chemical Co (EMN): 2.6%

88. Cullen Frost Bankers Inc. (CFR): 3%

89. Lincoln Electric Holdings, Inc. (LECO): 1.2%

90. Honeywell International Inc (HON): 1.8%

91. Williams-Sonoma, Inc. (WSM): 1.6%

92. Sysco Corp. (SYY): 2.4%

93. ResMed Inc. (RMD): 0.8%

94. A.O. Smith Corp. (AOS): 1.7%

95. Canadian National Railway Co. (CNI): 1.2%

96. Skyworks Solutions, Inc. (SWKS): 1.3%

97. UMB Financial Corp. (UMBF): 1.7%

98. Illinois Tool Works, Inc. (ITW): 2.2%

99. C.H. Robinson Worldwide, Inc. (CHRW): 2.3%

100. Canadian Pacific Railway Ltd (CP): 0.9%

101. Qualcomm, Inc. (QCOM): 1.5%

102. Xylem Inc (XYL): 1.1%

103. Waste Management, Inc. (WM): 1.9%

104. Linde Plc (LIN): 1.5%

105. Caterpillar Inc. (CAT): 2.1%

106. Norfolk Southern Corp. (NSC): 1.5%

107. Commerce Bancshares, Inc. (CBSH): 1.5%

108. Rockwell Automation Inc (ROK): 1.6%

109. Essential Utilities Inc (WTRG): 2%

110. eBay Inc. (EBAY): 1.1%

111. Air Products & Chemicals Inc. (APD): 1.9%

112. NextEra Energy Partners LP (NEP): 2.7%

113. Nike, Inc. (NKE): 0.7%

114. BancFirst Corp. (BANF): 2.2%

115. NextEra Energy Inc (NEE): 1.7%

116. Lilly (Eli) & Co (LLY): 1.5%

117. Cincinnati Financial Corp. (CINF): 2.7%

118. Deere & Co. (DE): 1%

119. Morningstar Inc (MORN): 0.5%

120. Community Bank System, Inc. (CBU): 2.5%

121. Erie Indemnity Co. (ERIE): 1.6%

C-Rated Dividend Risk Securities 1. Magellan Midstream Partners L.P. (MMP): 9.5%

2. Morgan Stanley (MS): 2%

3. MPLX LP (MPLX): 8.5%

4. Principal Financial Group Inc (PFG): 4.3%

5. Sampo Plc (SAXPY): 0%

6. Enbridge Inc (ENB): 7.5%

7. ONEOK Inc. (OKE): 8.7%

8. British American Tobacco Plc (BTI): 7.1%

9. New Jersey Resources Corporation (NJR): 3.5%

10. Sunoco LP (SUN): 9.9%

11. Mercury General Corp. (MCY): 4.6%

12. Sanofi (SNY): 3.6%

13. NACCO Industries Inc. (NC): 3%

14. Old Republic International Corp. (ORI): 4.1%

15. Bank of Nova Scotia (BNS): 8.1%

16. Great-West Lifeco, Inc. (GWLIF): 0%

17. Omnicom Group, Inc. (OMC): 4.1%

18. Hewlett Packard Enterprise Co (HPE): 3.8%

19. Navient Corp (NAVI): 5.3%

20. Campbell Soup Co. (CPB): 3%

21. Brookfield Infrastructure Partners L.P (BIP): 3.5%

22. Otter Tail Corporation (OTTR): 3.5%

23. Chorus Aviation, Inc. (CHRRF): 0%

24. Discover Financial Services (DFS): 1.5%

25. CyrusOne Inc (CONE): 2.6%

26. Realty Income Corp. (O): 4.5%

27. Alliant Energy Corp. (LNT): 3.1%

28. Bank Of New York Mellon Corp (BK): 3%

29. HP Inc (HPQ): 2.9%

30. Itaú Unibanco Holding S.A. (ITUB): 0.9%

31. DTE Energy Co. (DTE): 3.4%

32. Canadian Imperial Bank of Commerce (CM): 6.6%

33. Calvin b. Taylor Bankshares, Inc. (TYCB): 0%

34. Fairfax Financial Holdings Ltd. (FRFHF): 0%

35. Citigroup Inc (C): 3.4%

36. Aon plc. (AON): 0.6%

37. Ally Financial Inc (ALLY): 1.9%

38. Yum Brands Inc. (YUM): 1.8%

39. Synchrony Financial (SYF): 2.4%

40. ASML Holding NV (ASML): 0.5%

41. General Mills, Inc. (GIS): 3.4%

42. Allstate Corp (The) (ALL): 1.9%

43. Halliburton Co. (HAL): 1.7%

44. Service Properties Trust (SVC): 0.4%

45. Lam Research Corp. (LRCX): 0.9%

46. Rogers Communications Inc. (RCI): 4.3%

47. Barrick Gold Corp. (GOLD): 1.5%

48. Enerplus Corporation (ERF): 3.2%

49. W. P. Carey Inc (WPC): 6%

50. Invesco Ltd (IVZ): 3.5%

51. Greif Inc (GEF): 3.7%

52. MSC Industrial Direct Co., Inc. (MSM): 3.6%

53. Lazard Ltd. (LAZ): 4.4%

54. AvalonBay Communities Inc. (AVB): 3.8%

55. Goldman Sachs Group, Inc. (GS): 1.7%

56. Crown Castle International Corp (CCI): 2.9%

57. SK Telecom Co Ltd (SKM): 0.4%

58. Universal Health Realty Income Trust (UHT): 4.4%

59. National Retail Properties Inc (NNN): 5%

60. PPL Corp (PPL): 5.8%

61. Kansas City Southern (KSU): 0.8%

62. Southern Company (SO): 4.2%

63. Bank of America Corp. (BAC): 2.3%

64. Public Storage (PSA): 3.4%

65. American Electric Power Company Inc. (AEP): 3.4%

49

66. Patterson Companies Inc. (PDCO): 3.2%

67. Brookfield Renewable Partners LP (BEP): 2.7%

68. Unilever plc (UL): 3.1%

69. Duke Energy Corp. (DUK): 4%

70. Targa Resources Corp (TRGP): 1.4%

71. JPMorgan Chase & Co. (JPM): 2.7%

72. Vale S.A. (VALE): 0%

73. 1st Source Corp. (SRCE): 2.8%

74. Mastercard Incorporated (MA): 0.5%

75. Weyco Group, Inc (WEYS): 5.1%

76. Oshkosh Corp (OSK): 1.3%

77. RELX Plc (RELX): 2.2%

78. Novo Nordisk (NVO): 1.8%

79. Paccar Inc. (PCAR): 1.7%

80. Universal Corp. (UVV): 6.5%

81. Macerich Co. (MAC): 9%

82. Fastenal Co. (FAST): 2.2%

83. Wells Fargo & Co. (WFC): 3.9%

84. Collectors Universe Inc (CLCT): 0.8%

85. Nestle SA (NSRGY): 0%

86. Public Service Enterprise Group Inc. (PEG): 3.3%

87. Starbucks Corp. (SBUX): 1.6%

88. Constellation Brands Inc (STZ): 1%

89. WEC Energy Group Inc (WEC): 2.9%

90. Aegon N. V. (AEG): 0.3%

91. ViacomCBS Inc (VIAC): 1.9%

92. Foot Locker Inc (FL): 1.5%

93. Diageo plc (DEO): 2.1%

94. Paychex Inc. (PAYX): 2.7%

95. Tapestry Inc (TPR): 1%

96. Nielsen Holdings plc (NLSN): 1.1%

97. Digital Realty Trust Inc (DLR): 3%

98. Siemens AG (SIEGY): 0%

99. HNI Corp. (HNI): 3.6%

100. KLA Corp. (KLAC): 1.2%

101. Harley-Davidson, Inc. (HOG): 1.3%

102. Ambev S.A. (ABEV): 0.5%

103. Daimler AG (DDAIF): 0%

104. Gap, Inc. (GPS): 0%

105. Infosys Ltd (INFY): 1.6%

106. Owens & Minor, Inc. (OMI): 0%

107. Logitech International SA (LOGI): 0.7%

108. Tanger Factory Outlet Centers, Inc. (SKT): 4.1%

109. Tiffany & Co. (TIF): 1.8%

110. Diversified Healthcare Trust (DHC): 0.9%

111. NVIDIA Corp (NVDA): 0.1%

112. TransAlta Renewables, Inc. (TRSWF): 0%

113. Marriott International, Inc. (MAR): 0.4%

114. General Motors Company (GM): 0.7%

115. Marvell Technology Group Ltd (MRVL): 0.5%

116. Honda Motor (HMC): 2%

117. Yamana Gold Inc. (AUY): 2.1%

118. General Electric Co. (GE): 0.4%

119. Trane Technologies plc (TT): 1.5%

120. Sony Corporation (SNE): 0.5%

121. Thomson-Reuters Corp (TRI): 2%

D-Rated Dividend Risk Securities

1. Energy Transfer LP (ET): 15.4%

2. Progressive Corp. (PGR): 5.6%

3. Holly Energy Partners L.P. (HEP): 9.5%

4. Pfizer Inc. (PFE): 4.3%

5. SL Green Realty Corp. (SLG): 5%

6. Genesis Energy L.P. (GEL): 9.6%

7. Kinder Morgan Inc (KMI): 7.4%

8. Suburban Propane Partners LP (SPH): 9.5%

9. China Mobile Limited (CHL): 0%

10. Inter Pipeline Ltd. (IPPLF): 0%

11. Office Properties Income Trust (OPI): 9%

12. New York Community Bancorp Inc. (NYCB): 6.3%

13. Geo Group, Inc. (GEO): 21.6%

14. TC Energy Corporation (TRP): 8.3%

15. Grupo Aval Acciones y Valores S.A. (AVAL): 4.3%

16. GlaxoSmithKline plc (GSK): 5.4%

17. FirstEnergy Corp. (FE): 4.8%

18. DHT Holdings Inc (DHT): 22.9%

19. Boston Properties, Inc. (BXP): 4.3%

20. Williams Cos Inc (WMB): 7.3%

21. Lumen Technologies Inc (LUMN): 8.6%

22. VICI Properties Inc (VICI): 4.6%

23. Truist Financial Corporation (TFC): 3.5%

24. Canadian Utilities Ltd. (CDUAF): 0%

25. Iron Mountain Inc. (IRM): 7.5%

26. Imperial Brands Plc (IMBBY): 0%

27. Prudential Financial Inc. (PRU): 5.4%

28. Jack In The Box, Inc. (JACK): 1.3%

29. Amcor Plc (AMCR): 4.2%

30. Kraft Heinz Co (KHC): 4.7%

31. Omega Healthcare Investors, Inc. (OHI): 5.3%

32. Philip Morris International Inc (PM): 5.8%

33. Industria De Diseño Textil SA (IDEXY): 0%

34. Hasbro, Inc. (HAS): 2.8%

35. Keycorp (KEY): 4.1%

36. Deutsche Telekom AG (DTEGY): 0%

37. Store Capital Corp (STOR): 4.3%

38. Alliance Resource Partners, LP (ARLP): 6.5%

39. New Residential Investment Corp (NRZ): 4.9%

40. Conagra Brands Inc (CAG): 2.8%

41. U.S. Bancorp. (USB): 3.7%

42. CenterPoint Energy Inc. (CNP): 3.4%

43. STAG Industrial Inc (STAG): 4.5%

44. Superior Plus Corp. (SUUIF): 0%

45. Healthcare Trust of America Inc (HTA): 4.3%

46. Sabra Healthcare REIT Inc (SBRA): 7.5%

47. Bayerische Motoren Werke AG (BMWYY): 0%

48. Dream Office Real Estate Investment Trust (DRETF): 0%

49. NetApp Inc (NTAP): 2.9%

50. Prologis Inc (PLD): 2.2%

51. Brixmor Property Group Inc (BRX): 2.9%

52. Medical Properties Trust Inc (MPW): 4.8%

53. PNC Financial Services Group (PNC): 3%

54. Interpublic Group of Cos., Inc. (IPG): 4%

55. Newmont Corp (NEM): 1.7%

56. Gazprom (OGZPY): 0%

57. CNA Financial Corp. (CNA): 3.7%

58. Easterly Government Properties Inc (DEA): 4.6%

59. Simon Property Group, Inc. (SPG): 6.3%

50

60. AGNC Investment Corp (AGNC): 9.1%

61. Whitestone REIT (WSR): 5.7%

62. Urstadt Biddle Properties, Inc. (UBA): 4.4%

63. Münchener Rückversicherungs-Gesellschaft AG (MURGF):

0%

64. Comerica, Inc. (CMA): 4.4%

65. WestRock Co (WRK): 2.5%

66. Broadcom Inc (AVGO): 2.8%

67. Alexandria Real Estate Equities Inc. (ARE): 2.5%

68. Exelon Corp. (EXC): 3.5%

69. Camden Property Trust (CPT): 3.1%

70. LyondellBasell Industries NV (LYB): 4.6%

71. TELUS Corp. (TU): 4.9%

72. Koninklijke Philips N.V. (PHG): 1.6%

73. Johnson Controls International plc (JCI): 2%

74. Equity Residential Properties Trust (EQR): 3.8%

75. Xerox Holdings Corp (XRX): 4.3%

76. Physicians Realty Trust (DOC): 5%

77. Kontoor Brands Inc (KTB): 2.6%

78. FBL Financial Group, Inc. (FFG): 3.5%

79. Anheuser-Busch In Bev SA/NV (BUD): 0.9%

80. CoreSite Realty Corporation (COR): 3.5%

81. Weyerhaeuser Co. (WY): 1.6%

82. Corning, Inc. (GLW): 2.4%

83. Telefonaktiebolaget L M Ericsson (ERIC): 1.2%

84. TJX Companies, Inc. (TJX): 0.3%

85. PacWest Bancorp (PACW): 4.1%

86. DuPont de Nemours Inc (DD): 1.6%

87. Summit Hotel Properties Inc (INN): 2.1%

88. UBS Group AG (UBS): 2.4%

89. WPP Plc. (WPP): 5.5%

90. Dream Industrial Real Estate Investment Trust (DREUF): 0%

91. Magna International Inc. (MGA): 2.7%

92. Seagate Technology Plc (STX): 3.9%

93. Ventas Inc (VTR): 4.5%

94. Garmin Ltd (GRMN): 2%

95. International Paper Co. (IP): 4%

96. Mid-America Apartment Communities, Inc. (MAA): 2.9%

97. Hannon Armstrong Sustainable Infrastructure capital Inc

(HASI): 2.1%

98. Lamar Advertising Co (LAMR): 2.9%

99. VF Corp. (VFC): 2.4%

100. Rio Tinto plc (RIO): 4.9%

101. BHP Group Limited (BHP): 3.5%

102. CME Group Inc (CME): 1.7%

103. Wheaton Precious Metals Corp (WPM): 1%

104. CF Industries Holdings Inc (CF): 2.7%

105. Accenture plc (ACN): 1.3%

106. Kimco Realty Corp. (KIM): 3.3%

107. Vermilion Energy Inc (VET): 7.3%

108. Wendy`s Co (WEN): 1.4%

109. ABB Ltd. (ABB): 2.7%

110. Chemours Company (CC): 3.7%

111. Newell Brands Inc (NWL): 3.6%

112. Canon Inc (CAJ): 3.4%

113. AstraZeneca plc (AZN): 2.8%

114. Darden Restaurants, Inc. (DRI): 0.5%

115. HSBC Holdings plc (HSBC): 3.9%

116. Eaton Corporation plc (ETN): 2.4%

117. Taiwan Semiconductor Manufacturing (TSM): 1.3%

118. U.S. Global Investors, Inc. (GROW): 0.5%

119. Ferrari N.V. (RACE): 0.5%

120. Kulicke & Soffa Industries, Inc. (KLIC): 1.3%

121. VEREIT Inc (VER): 5%

F-Rated Dividend Risk Securities 1. Great Elm Capital Corp (GECC): 12.2%

2. SFL Corporation Ltd (SFL): 14.5%

3. Shell Midstream Partners L.P. (SHLX): 16.2%

4. Preferred Apartment Communities Inc (APTS): 10.3%

5. China Petroleum & Chemical Corp (SNP): 7.5%

6. USA Compression Partners LP (USAC): 14.5%

7. Suncor Energy, Inc. (SU): 6.4%

8. Innovative Industrial Properties Inc (IIPR): 2.2%

9. CNOOC Ltd. (CEO): 7.8%

10. Royal Dutch Shell Plc (RDS.B): 5.5%

11. Telefonica S.A (TEF): 10.2%

12. PetroChina Co. Ltd. (PTR): 6%

13. HollyFrontier Corp (HFC): 4.9%

14. Total SE (TOT): 5.4%

15. Exxon Mobil Corp. (XOM): 7.4%

16. BP plc (BP): 8.8%

17. Phillips 66 (PSX): 5.1%

18. TC Pipelines, LP (TCP): 8.5%

19. Chatham Lodging Trust (CLDT): 1%

20. Chimera Investment Corp (CIM): 12.6%

21. Icahn Enterprises L P (IEP): 9.6%

22. Valero Energy Corp. (VLO): 6.6%

23. LTC Properties, Inc. (LTC): 5.6%

24. Sixth Street Specialty Lending Inc (TSLX): 7.8%

25. Alaris Equity Partners Income Trust (ALARF): 0%

26. KNOT Offshore Partners LP (KNOP): 12.5%

27. Chevron Corp. (CVX): 5.8%

28. Newtek Business Services Corp (NEWT): 9.1%

29. Höegh LNG Partners LP (HMLP): 11.2%

30. Shaw Communications Inc. (SJR): 7.1%

31. Two Harbors Investment Corp (TWO): 7.7%

32. Consolidated Water Co. Ltd. (CWCO): 2.6%

33. PennantPark Floating Rate Capital Ltd (PFLT): 9.5%

34. Sabine Royalty Trust (SBR): 6.9%

35. Exchange Income Corp. (EIFZF): 0%

36. MGM Growth Properties LLC (MGP): 5.8%

37. Landmark Infrastructure Partners LP (LMRK): 6.5%

38. Dominion Energy Inc (D): 4.7%

39. Ares Capital Corp (ARCC): 8.7%

40. Global Net Lease Inc (GNL): 6.9%

41. Permian Basin Royalty Trust (PBT): 5.1%

42. Marathon Petroleum Corp (MPC): 5%

43. Conoco Phillips (COP): 4.1%

44. Imperial Oil Ltd. (IMO): 2.9%

45. BCE Inc (BCE): 6.7%

46. TriplePoint Venture Growth BDC Corp (TPVG): 9.8%

47. Annaly Capital Management Inc (NLY): 10.4%

48. Cross Timbers Royalty Trust (CRT): 8.3%

49. Gladstone Investment Corporation (GAIN): 7.6%

50. Starwood Property Trust Inc (STWD): 9.4%

51

51. Huntington Bancshares, Inc. (HBAN): 4.3%

52. Vector Group Ltd (VGR): 6.4%

53. Brookfield Property Partners L.P. (BPY): 9.3%

54. Gladstone Commercial Corp (GOOD): 8.1%

55. Ellington Financial Inc (EFC): 7.6%

56. Swiss Re Ltd (SSREY): 0%

57. Baker Hughes Co (BKR): 2.6%

58. Blackstone Mortgage Trust Inc (BXMT): 8.6%

59. Orchid Island Capital Inc (ORC): 13.6%

60. Horizon Technology Finance Corp (HRZN): 8.6%

61. Spirit Realty Capital Inc (SRC): 6.1%

62. Eni Spa (E): 6%

63. New York Mortgage Trust Inc (NYMT): 5.6%

64. B&G Foods, Inc (BGS): 5.7%

65. Restaurant Brands International Inc (QSR): 4.2%

66. Gladstone Capital Corp. (GLAD): 8.1%

67. Sienna Senior Living, Inc. (LWSCF): 0%

68. Solar Senior Capital Ltd (SUNS): 8.1%

69. Main Street Capital Corporation (MAIN): 7.3%

70. Prospect Capital Corp (PSEC): 10.7%

71. Schlumberger Ltd. (SLB): 3.8%

72. Canadian Natural Resources Ltd. (CNQ): 8.8%

73. Stellus Capital Investment Corp (SCM): 9.6%

74. New Mountain Finance Corp (NMFC): 12.5%

75. ARMOUR Residential REIT Inc (ARR): 9.3%

76. Broadmark Realty Capital Inc (BRMK): 7%

77. Gold Resource Corporation (GORO): 1.4%

78. Apollo Global Management Inc (APO): 4.6%

79. Artisan Partners Asset Management Inc (APAM): 5.3%

80. Dow Inc (DOW): 5%

81. Hercules Capital Inc (HTGC): 8.2%

82. Algonquin Power & Utilities Corp (AQN): 4.4%

83. Dynex Capital, Inc. (DX): 8.7%

84. Gladstone Land Corp (LAND): 3.2%

85. Pembina Pipeline Corporation (PBA): 10%

86. Apollo Commercial Real Estate Finance Inc (ARI): 11.8%

87. Tenaris S.A. (TS): 0.9%

88. Healthpeak Properties Inc (PEAK): 4.8%

89. Compass Diversified Holdings (CODI): 5%

90. Spark Energy Inc (SPKE): 6.3%

91. Antero Midstream Corp (AM): 14.9%

92. Choice Properties Real Estate Investment Trust (PPRQF): 0%

93. Gaming and Leisure Properties Inc (GLPI): 3%

94. Scholastic Corp. (SCHL): 2.3%

95. Compass Minerals International Inc (CMP): 4.7%

96. Global Water Resources Inc (GWRS): 1.7%

97. Vodafone Group plc (VOD): 6%

98. AllianceBernstein Holding LP (AB): 7.3%

99. Cedar Fair L.P. (FUN): 2.2%

100. Ladder Capital Corp (LADR): 8.9%

101. Pearson plc (PSO): 2.4%

102. Equinor ASA (EQNR): 3.9%

103. Welltower Inc (WELL): 4.3%

104. Helmerich & Payne, Inc. (HP): 7.5%

105. Arbor Realty Trust Inc. (ABR): 8%

106. Occidental Petroleum Corp. (OXY): 3.9%

107. Blackstone Group Inc (The) (BX): 2.7%

108. Covanta Holding Corporation (CVA): 3.3%

109. Nutrien Ltd (NTR): 3.7%

110. Cheesecake Factory Inc. (CAKE): 0.8%

111. Olin Corp. (OLN): 2.9%

112. Ryder System, Inc. (R): 2.5%

113. Oxford Square Capital Corp (OXSQ): 14.3%

114. Harvest Capital Credit Corp (HCAP): 3.9%

115. PermRock Royalty Trust (PRT): 3.9%

116. Apache Corp. (APA): 1%

117. Waddell & Reed Financial, Inc. (WDR): 3.9%

118. Patterson-UTI Energy Inc (PTEN): 1.5%

119. Dillard`s Inc. (DDS): 0.7%

120. MGM Resorts International (MGM): 0.5%

121. Wynn Resorts Ltd. (WYNN): 0.9%

122. CorEnergy Infrastructure Trust Inc (CORR): 9.7%

52

List of Securities 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 in the Sure Analysis Glossary. These

rankings will not always align with our Top 10 due to additional safety constraints we impose

outside of the Top 10 and newsletter compilation timing9. See our ‘Buying and Ranking Criteria’

for more information.

Basic Materials A-Ranked Dividend Risk 1. H.B. Fuller Company (FUL): 0.6%

2. PPG Industries, Inc. (PPG): 1.5%

3. Nucor Corp. (NUE): 3.2%

4. RPM International, Inc. (RPM): 1.7%

5. Sherwin-Williams Co. (SHW): 0.8%

6. Stepan Co. (SCL): 0.7%

7. Ecolab, Inc. (ECL): 0.9%

8. Albemarle Corp. (ALB): 0.9%

B-Ranked Dividend Risk 1. MDU Resources Group Inc (MDU): 3.1%

2. International Flavors & Fragrances Inc. (IFF): 2.4%

3. Eastman Chemical Co (EMN): 2.6%

4. Linde Plc (LIN): 1.5%

5. Air Products & Chemicals Inc. (APD): 1.9%

C-Ranked Dividend Risk 1. Barrick Gold Corp. (GOLD): 1.5%

2. Vale S.A. (VALE): 0%

3. Yamana Gold Inc. (AUY): 2.1%

D-Ranked Dividend Risk 1. Newmont Corp (NEM): 1.7%

2. LyondellBasell Industries NV (LYB): 4.6%

3. DuPont de Nemours Inc (DD): 1.6%

4. Rio Tinto plc (RIO): 4.9%

5. BHP Group Limited (BHP): 3.5%

6. Wheaton Precious Metals Corp (WPM): 1%

7. CF Industries Holdings Inc (CF): 2.7%

8. Chemours Company (CC): 3.7%

F-Ranked Dividend Risk 1. Gold Resource Corporation (GORO): 1.4%

2. Dow Inc (DOW): 5%

3. Compass Minerals International Inc (CMP): 4.7%

4. Nutrien Ltd (NTR): 3.7%

9 This list was created with data from the Sure Analysis Research Database from between 2/2/21 and 2/4/21.

5. Olin Corp. (OLN): 2.9%

Communication Services A-Ranked Dividend Risk 1. Tencent Holdings Ltd (TCEHY): 0%

B-Ranked Dividend Risk 1. Telephone and Data Systems, Inc. (TDS): 3.5%

2. AT&T, Inc. (T): 7.1%

3. Verizon Communications Inc (VZ): 8.9%

4. America Móvil S.A.B.DE C.V. (AMX): 0%

5. Comcast Corp (CMCSA): 1.8%

6. John Wiley & Sons Inc. (JW.A): 2.9%

7. Fox Corporation (FOXA): 1.5%

C-Ranked Dividend Risk 1. Omnicom Group, Inc. (OMC): 4.1%

2. Rogers Communications Inc. (RCI): 4.3%

3. SK Telecom Co Ltd (SKM): 0.4%

4. RELX Plc (RELX): 2.2%

5. ViacomCBS Inc (VIAC): 1.9%

D-Ranked Dividend Risk 1. China Mobile Limited (CHL): 0%

2. Lumen Technologies Inc (LUMN): 8.6%

3. Deutsche Telekom AG (DTEGY): 0%

4. Interpublic Group of Cos., Inc. (IPG): 4%

5. TELUS Corp. (TU): 4.9%

6. WPP Plc. (WPP): 5.5%

F-Ranked Dividend Risk 1. Telefonica S.A (TEF): 10.2%

2. Shaw Communications Inc. (SJR): 7.1%

3. BCE Inc (BCE): 6.7%

4. Scholastic Corp. (SCHL): 2.3%

5. Vodafone Group plc (VOD): 6%

6. Pearson plc (PSO): 2.4%

https://www.suredividend.com/sure-analysis-research-database/

https://www.suredividend.com/procedures-glossary-definitions/

53

Consumer Cyclical A-Ranked Dividend Risk 1. Polaris Inc (PII): 2.1%

2. Silgan Holdings Inc. (SLGN): 1.3%

3. Lowe`s Cos., Inc. (LOW): 1.4%

4. Whirlpool Corp. (WHR): 2.5%

5. Genuine Parts Co. (GPC): 3.2%

6. Sonoco Products Co. (SON): 2.9%

7. Advance Auto Parts Inc (AAP): 0.6%

8. Best Buy Co. Inc. (BBY): 2%

9. Tractor Supply Co. (TSCO): 1%

10. AptarGroup Inc. (ATR): 1%

B-Ranked Dividend Risk 1. Home Depot, Inc. (HD): 2.2%

2. Hanesbrands Inc (HBI): 3.9%

3. H&R Block Inc. (HRB): 5.5%

4. Domino’s Pizza Inc (DPZ): 0.8%

5. Leggett & Platt, Inc. (LEG): 3.7%

6. McDonald`s Corp (MCD): 2.4%

7. Williams-Sonoma, Inc. (WSM): 1.6%

8. eBay Inc. (EBAY): 1.1%

9. Nike, Inc. (NKE): 0.7%

C-Ranked Dividend Risk 1. Yum Brands Inc. (YUM): 1.8%

2. Greif Inc (GEF): 3.7%

3. Weyco Group, Inc (WEYS): 5.1%

4. Starbucks Corp. (SBUX): 1.6%

5. Foot Locker Inc (FL): 1.5%

6. Tapestry Inc (TPR): 1%

7. Harley-Davidson, Inc. (HOG): 1.3%

8. Daimler AG (DDAIF): 0%

9. Gap, Inc. (GPS): 0%

10. Tiffany & Co. (TIF): 1.8%

11. Marriott International, Inc. (MAR): 0.4%

12. General Motors Company (GM): 0.7%

13. Honda Motor (HMC): 2%

D-Ranked Dividend Risk 1. Jack In The Box, Inc. (JACK): 1.3%

2. Amcor Plc (AMCR): 4.2%

3. Industria De Diseño Textil SA (IDEXY): 0%

4. Hasbro, Inc. (HAS): 2.8%

5. Bayerische Motoren Werke AG (BMWYY): 0%

6. WestRock Co (WRK): 2.5%

7. Kontoor Brands Inc (KTB): 2.6%

8. TJX Companies, Inc. (TJX): 0.3%

9. Magna International Inc. (MGA): 2.7%

10. International Paper Co. (IP): 4%

11. VF Corp. (VFC): 2.4%

12. Wendy`s Co (WEN): 1.4%

13. Darden Restaurants, Inc. (DRI): 0.5%

14. Ferrari N.V. (RACE): 0.5%

F-Ranked Dividend Risk

1. Restaurant Brands International Inc (QSR): 4.2%

2. Cedar Fair L.P. (FUN): 2.2%

3. Cheesecake Factory Inc. (CAKE): 0.8%

4. Dillard`s Inc. (DDS): 0.7%

5. MGM Resorts International (MGM): 0.5%

6. Wynn Resorts Ltd. (WYNN): 0.9%

Consumer Defensive A-Ranked Dividend Risk 1. Dollar General Corp. (DG): 0.7%

2. Kroger Co. (KR): 2%

3. Archer Daniels Midland Co. (ADM): 2.8%

4. Kimberly-Clark Corp. (KMB): 3.2%

5. Costco Wholesale Corp (COST): 0.8%

6. Colgate-Palmolive Co. (CL): 2.2%

7. Clorox Co. (CLX): 2.1%

8. Church & Dwight Co., Inc. (CHD): 1.2%

9. Hormel Foods Corp. (HRL): 1.9%

10. Target Corp (TGT): 1.4%

11. Procter & Gamble Co. (PG): 2.4%

12. Walmart Inc (WMT): 1.5%

13. McCormick & Co., Inc. (MKC): 1.1%

14. Tootsie Roll Industries, Inc. (TR): 0.9%

15. Lancaster Colony Corp. (LANC): 1.6%

16. Brown-Forman Corp. (BF.B): 1%

B-Ranked Dividend Risk 1. Altria Group Inc. (MO): 7.9%

2. Flowers Foods, Inc. (FLO): 3.4%

3. Tyson Foods, Inc. (TSN): 2.6%

4. Coca-Cola Co (KO): 3.3%

5. Mondelez International Inc. (MDLZ): 2.1%

6. J.M. Smucker Co. (SJM): 3.1%

7. Keurig Dr Pepper Inc (KDP): 2.3%

8. Kellogg Co (K): 3.9%

9. Hershey Company (HSY): 2.1%

10. PepsiCo Inc (PEP): 2.9%

11. Sysco Corp. (SYY): 2.4%

C-Ranked Dividend Risk 1. British American Tobacco Plc (BTI): 7.1%

2. Campbell Soup Co. (CPB): 3%

3. General Mills, Inc. (GIS): 3.4%

4. Unilever plc (UL): 3.1%

5. Universal Corp. (UVV): 6.5%

6. Nestle SA (NSRGY): 0%

7. Constellation Brands Inc (STZ): 1%

8. Diageo plc (DEO): 2.1%

9. Ambev S.A. (ABEV): 0.5%

D-Ranked Dividend Risk 1. Imperial Brands Plc (IMBBY): 0%

2. Kraft Heinz Co (KHC): 4.7%

54

3. Philip Morris International Inc (PM): 5.8%

4. Conagra Brands Inc (CAG): 2.8%

5. Anheuser-Busch In Bev SA/NV (BUD): 0.9%

6. Newell Brands Inc (NWL): 3.6%

F-Ranked Dividend Risk 1. Vector Group Ltd (VGR): 6.4%

2. B&G Foods, Inc (BGS): 5.7%

Energy A-Ranked Dividend Risk 1. National Fuel Gas Co. (NFG): 4.3%

B-Ranked Dividend Risk 1. Enterprise Products Partners L P (EPD): 8.2%

C-Ranked Dividend Risk 1. Magellan Midstream Partners L.P. (MMP): 9.5%

2. MPLX LP (MPLX): 8.5%

3. Enbridge Inc (ENB): 7.5%

4. ONEOK Inc. (OKE): 8.7%

5. Sunoco LP (SUN): 9.9%

6. NACCO Industries Inc. (NC): 3%

7. Halliburton Co. (HAL): 1.7%

8. Enerplus Corporation (ERF): 3.2%

9. Targa Resources Corp (TRGP): 1.4%

D-Ranked Dividend Risk 1. Energy Transfer LP (ET): 15.4%

2. Holly Energy Partners L.P. (HEP): 9.5%

3. Genesis Energy L.P. (GEL): 9.6%

4. Kinder Morgan Inc (KMI): 7.4%

5. Inter Pipeline Ltd. (IPPLF): 0%

6. TC Energy Corporation (TRP): 8.3%

7. DHT Holdings Inc (DHT): 22.9%

8. Williams Cos Inc (WMB): 7.3%

9. Alliance Resource Partners, LP (ARLP): 6.5%

10. Gazprom (OGZPY): 0%

11. Vermilion Energy Inc (VET): 7.3%

F-Ranked Dividend Risk 1. Shell Midstream Partners L.P. (SHLX): 16.2%

2. China Petroleum & Chemical Corp (SNP): 7.5%

3. USA Compression Partners LP (USAC): 14.5%

4. Suncor Energy, Inc. (SU): 6.4%

5. CNOOC Ltd. (CEO): 7.8%

6. Royal Dutch Shell Plc (RDS.B): 5.5%

7. PetroChina Co. Ltd. (PTR): 6%

8. HollyFrontier Corp (HFC): 4.9%

9. Total SE (TOT): 5.4%

10. Exxon Mobil Corp. (XOM): 7.4%

11. BP plc (BP): 8.8%

12. Phillips 66 (PSX): 5.1%

13. TC Pipelines, LP (TCP): 8.5%

14. Valero Energy Corp. (VLO): 6.6%

15. Chevron Corp. (CVX): 5.8%

16. Höegh LNG Partners LP (HMLP): 11.2%

17. Sabine Royalty Trust (SBR): 6.9%

18. Permian Basin Royalty Trust (PBT): 5.1%

19. Marathon Petroleum Corp (MPC): 5%

20. Conoco Phillips (COP): 4.1%

21. Imperial Oil Ltd. (IMO): 2.9%

22. Cross Timbers Royalty Trust (CRT): 8.3%

23. Baker Hughes Co (BKR): 2.6%

24. Eni Spa (E): 6%

25. Schlumberger Ltd. (SLB): 3.8%

26. Canadian Natural Resources Ltd. (CNQ): 8.8%

27. Pembina Pipeline Corporation (PBA): 10%

28. Tenaris S.A. (TS): 0.9%

29. Antero Midstream Corp (AM): 14.9%

30. Equinor ASA (EQNR): 3.9%

31. Helmerich & Payne, Inc. (HP): 7.5%

32. Occidental Petroleum Corp. (OXY): 3.9%

33. PermRock Royalty Trust (PRT): 3.9%

34. Apache Corp. (APA): 1%

35. Patterson-UTI Energy Inc (PTEN): 1.5%

Financial Services A-Ranked Dividend Risk 1. Ping AN Insurance (Group) Co. of China, Ltd.

(PNGAY): 0%

2. Eagle Financial Services, Inc. (EFSI): 0%

3. Ameriprise Financial Inc (AMP): 2%

4. Enterprise Bancorp, Inc. (EBTC): 2%

5. Unum Group (UNM): 4.7%

6. Farmers & Merchants Bancorp (FMCB): 0%

7. Community Trust Bancorp, Inc. (CTBI): 4%

8. Arrow Financial Corp. (AROW): 3.4%

9. Assurant Inc (AIZ): 1.9%

10. Franklin Resources, Inc. (BEN): 4.2%

11. RenaissanceRe Holdings Ltd (RNR): 0.9%

12. SEI Investments Co. (SEIC): 1.3%

13. S&P Global Inc (SPGI): 0.8%

14. Northeast Indiana Bancorp Inc. (NIDB): 0%

15. Moody`s Corp. (MCO): 0.8%

16. Aflac Inc. (AFL): 2.4%

17. Brown & Brown, Inc. (BRO): 0.6%

18. T. Rowe Price Group Inc. (TROW): 2.3%

19. PSB Holdings Inc (WI) (PSBQ): 0%

20. Chubb Limited (CB): 2%

21. Visa Inc (V): 0.6%

22. First Financial Corp. - Indiana (THFF): 2.6%

23. Chesapeake Financial Shares Inc (CPKF): 0%

24. United Bankshares, Inc. (UBSI): 4.1%

25. Tompkins Financial Corp (TMP): 3%

26. Eaton Vance Corp. (EV): 2%

27. Brookfield Asset Management Inc. (BAM): 1.3%

28. RLI Corp. (RLI): 1%

B-Ranked Dividend Risk 1. First of Long Island Corp. (FLIC): 4.2%

2. People`s United Financial Inc (PBCT): 3.8%

3. Bank of Montreal (BMO): 5.5%

55

4. Prosperity Bancshares Inc. (PB): 2.7%

5. Blackrock Inc. (BLK): 2%

6. Sun Life Financial, Inc. (SLF): 4.5%

7. Royal Bank of Canada (RY): 5.2%

8. M & T Bank Corp (MTB): 3.2%

9. National Bank of Canada (NTIOF): 0%

10. Toronto Dominion Bank (TD): 5.4%

11. Axis Capital Holdings Ltd (AXS): 3.5%

12. Travelers Companies Inc. (TRV): 2.4%

13. Southside Bancshares Inc (SBSI): 3.8%

14. MetLife Inc (MET): 2.8%

15. Intercontinental Exchange Inc (ICE): 1%

16. Everest Re Group Ltd (RE): 2.9%

17. American Express Co. (AXP): 1.4%

18. Bank OZK (OZK): 2.2%

19. Western Union Company (WU): 3.9%

20. Arthur J. Gallagher & Co. (AJG): 1.5%

21. Westamerica Bancorporation (WABC): 2.1%

22. Cullen Frost Bankers Inc. (CFR): 3%

23. UMB Financial Corp. (UMBF): 1.7%

24. Commerce Bancshares, Inc. (CBSH): 1.5%

25. BancFirst Corp. (BANF): 2.2%

26. Cincinnati Financial Corp. (CINF): 2.7%

27. Morningstar Inc (MORN): 0.5%

28. Community Bank System, Inc. (CBU): 2.5%

29. Erie Indemnity Co. (ERIE): 1.6%

C-Ranked Dividend Risk 1. Morgan Stanley (MS): 2%

2. Principal Financial Group Inc (PFG): 4.3%

3. Sampo Plc (SAXPY): 0%

4. Mercury General Corp. (MCY): 4.6%

5. Old Republic International Corp. (ORI): 4.1%

6. Bank of Nova Scotia (BNS): 8.1%

7. Great-West Lifeco, Inc. (GWLIF): 0%

8. Navient Corp (NAVI): 5.3%

9. Discover Financial Services (DFS): 1.5%

10. Bank Of New York Mellon Corp (BK): 3%

11. Itaú Unibanco Holding S.A. (ITUB): 0.9%

12. Canadian Imperial Bank of Commerce (CM): 6.6%

13. Calvin b. Taylor Bankshares, Inc. (TYCB): 0%

14. Fairfax Financial Holdings Ltd. (FRFHF): 0%

15. Citigroup Inc (C): 3.4%

16. Aon plc. (AON): 0.6%

17. Ally Financial Inc (ALLY): 1.9%

18. Synchrony Financial (SYF): 2.4%

19. Allstate Corp (The) (ALL): 1.9%

20. Invesco Ltd (IVZ): 3.5%

21. Lazard Ltd. (LAZ): 4.4%

22. Goldman Sachs Group, Inc. (GS): 1.7%

23. Bank of America Corp. (BAC): 2.3%

24. JPMorgan Chase & Co. (JPM): 2.7%

25. 1st Source Corp. (SRCE): 2.8%

26. Mastercard Incorporated (MA): 0.5%

27. Wells Fargo & Co. (WFC): 3.9%

28. Aegon N. V. (AEG): 0.3%

D-Ranked Dividend Risk

1. Progressive Corp. (PGR): 5.6%

2. New York Community Bancorp Inc. (NYCB): 6.3%

3. Grupo Aval Acciones y Valores S.A. (AVAL): 4.3%

4. Truist Financial Corporation (TFC): 3.5%

5. Prudential Financial Inc. (PRU): 5.4%

6. Keycorp (KEY): 4.1%

7. U.S. Bancorp. (USB): 3.7%

8. Dream Office Real Estate Investment Trust (DRETF):

0%

9. PNC Financial Services Group (PNC): 3%

10. CNA Financial Corp. (CNA): 3.7%

11. Münchener Rückversicherungs-Gesellschaft AG

(MURGF): 0%

12. Comerica, Inc. (CMA): 4.4%

13. FBL Financial Group, Inc. (FFG): 3.5%

14. PacWest Bancorp (PACW): 4.1%

15. UBS Group AG (UBS): 2.4%

16. Dream Industrial Real Estate Investment Trust

(DREUF): 0%

17. CME Group Inc (CME): 1.7%

18. HSBC Holdings plc (HSBC): 3.9%

19. U.S. Global Investors, Inc. (GROW): 0.5%

F-Ranked Dividend Risk 1. Great Elm Capital Corp (GECC): 12.2%

2. Sixth Street Specialty Lending Inc (TSLX): 7.8%

3. Alaris Equity Partners Income Trust (ALARF): 0%

4. Newtek Business Services Corp (NEWT): 9.1%

5. PennantPark Floating Rate Capital Ltd (PFLT): 9.5%

6. Ares Capital Corp (ARCC): 8.7%

7. TriplePoint Venture Growth BDC Corp (TPVG):

9.8%

8. Gladstone Investment Corporation (GAIN): 7.6%

9. Huntington Bancshares, Inc. (HBAN): 4.3%

10. Ellington Financial Inc (EFC): 7.6%

11. Swiss Re Ltd (SSREY): 0%

12. Horizon Technology Finance Corp (HRZN): 8.6%

13. Gladstone Capital Corp. (GLAD): 8.1%

14. Solar Senior Capital Ltd (SUNS): 8.1%

15. Main Street Capital Corporation (MAIN): 7.3%

16. Prospect Capital Corp (PSEC): 10.7%

17. Stellus Capital Investment Corp (SCM): 9.6%

18. New Mountain Finance Corp (NMFC): 12.5%

19. Apollo Global Management Inc (APO): 4.6%

20. Artisan Partners Asset Management Inc (APAM):

5.3%

21. Hercules Capital Inc (HTGC): 8.2%

22. Choice Properties Real Estate Investment Trust

(PPRQF): 0%

23. AllianceBernstein Holding LP (AB): 7.3%

24. Blackstone Group Inc (The) (BX): 2.7%

25. Oxford Square Capital Corp (OXSQ): 14.3%

26. Harvest Capital Credit Corp (HCAP): 3.9%

27. Waddell & Reed Financial, Inc. (WDR): 3.9%

Healthcare A-Ranked Dividend Risk

56

1. Perrigo Company plc (PRGO): 2.1%

2. Fresenius Medical Care AG & Co. KGaA (FMS): 2%

3. Thermo Fisher Scientific Inc. (TMO): 0.2%

4. Stryker Corp. (SYK): 1%

5. AbbVie Inc (ABBV): 4.6%

6. Mckesson Corporation (MCK): 0.9%

7. Becton, Dickinson And Co. (BDX): 1.2%

8. Walgreens Boots Alliance Inc (WBA): 3.8%

9. Johnson & Johnson (JNJ): 2.4%

10. Cardinal Health, Inc. (CAH): 3.5%

11. Amerisource Bergen Corp. (ABC): 1.6%

12. Abbott Laboratories (ABT): 1.3%

13. Medtronic Plc (MDT): 2%

14. West Pharmaceutical Services, Inc. (WST): 0.2%

B-Ranked Dividend Risk 1. Bristol-Myers Squibb Co. (BMY): 2.9%

2. Bayer AG (BAYRY): 0%

3. UnitedHealth Group Inc (UNH): 1.4%

4. Gilead Sciences, Inc. (GILD): 4.1%

5. Merck & Co Inc (MRK): 3.2%

6. CVS Health Corp (CVS): 2.8%

7. Novartis AG (NVS): 3.4%

8. AMGEN Inc. (AMGN): 2.6%

9. ResMed Inc. (RMD): 0.8%

10. Lilly (Eli) & Co (LLY): 1.5%

C-Ranked Dividend Risk 1. Sanofi (SNY): 3.6%

2. Patterson Companies Inc. (PDCO): 3.2%

3. Novo Nordisk (NVO): 1.8%

4. Owens & Minor, Inc. (OMI): 0%

D-Ranked Dividend Risk 1. Pfizer Inc. (PFE): 4.3%

2. GlaxoSmithKline plc (GSK): 5.4%

3. Koninklijke Philips N.V. (PHG): 1.6%

4. AstraZeneca plc (AZN): 2.8%

F-Ranked Dividend Risk 1. Sienna Senior Living, Inc. (LWSCF): 0%

Industrials A-Ranked Dividend Risk 1. Northrop Grumman Corp. (NOC): 1.9%

2. L3Harris Technologies Inc (LHX): 1.9%

3. FedEx Corp (FDX): 1.1%

4. General Dynamics Corp. (GD): 2.9%

5. ABM Industries Inc. (ABM): 1.9%

6. 3M Co. (MMM): 3.3%

7. Matthews International Corp. (MATW): 1.9%

8. Stanley Black & Decker Inc (SWK): 1.6%

9. Tennant Co. (TNC): 1.2%

10. Dover Corp. (DOV): 1.6%

11. Brady Corp. (BRC): 1.9%

12. Carlisle Companies Inc. (CSL): 1.4%

13. CSX Corp. (CSX): 1.2%

14. Pentair plc (PNR): 1.4%

15. Gorman-Rupp Co. (GRC): 1.8%

16. Roper Technologies Inc (ROP): 0.5%

17. Donaldson Co. Inc. (DCI): 1.4%

18. Parker-Hannifin Corp. (PH): 1.3%

19. McGrath RentCorp (MGRC): 2.3%

20. Expeditors International of Washington, Inc. (EXPD):

1.1%

21. Emerson Electric Co. (EMR): 2.4%

22. W.W. Grainger Inc. (GWW): 1.6%

23. Nordson Corp. (NDSN): 0.8%

24. Cintas Corporation (CTAS): 0.8%

25. Otis Worldwide Corp (OTIS): 0.9%

26. Franklin Electric Co., Inc. (FELE): 0.9%

27. Textron Inc. (TXT): 0.2%

28. MSA Safety Inc (MSA): 1.1%

29. Carrier Global Corp (CARR): 0.7%

30. Badger Meter Inc. (BMI): 0.7%

B-Ranked Dividend Risk 1. Lockheed Martin Corp. (LMT): 2.9%

2. Huntington Ingalls Industries Inc (HII): 2.6%

3. Ritchie Bros Auctioneers Inc (RBA): 1.7%

4. Republic Services, Inc. (RSG): 1.8%

5. Toro Co. (TTC): 1.1%

6. United Parcel Service, Inc. (UPS): 2.5%

7. Automatic Data Processing Inc. (ADP): 2.2%

8. Raytheon Technologies Corporation (RTX): 3.1%

9. Cummins Inc. (CMI): 2.2%

10. Booz Allen Hamilton Holding Corp (BAH): 1.5%

11. Union Pacific Corp. (UNP): 1.9%

12. Snap-on, Inc. (SNA): 2.5%

13. Lincoln Electric Holdings, Inc. (LECO): 1.2%

14. Honeywell International Inc (HON): 1.8%

15. A.O. Smith Corp. (AOS): 1.7%

16. Canadian National Railway Co. (CNI): 1.2%

17. Illinois Tool Works, Inc. (ITW): 2.2%

18. C.H. Robinson Worldwide, Inc. (CHRW): 2.3%

19. Canadian Pacific Railway Ltd (CP): 0.9%

20. Xylem Inc (XYL): 1.1%

21. Waste Management, Inc. (WM): 1.9%

22. Caterpillar Inc. (CAT): 2.1%

23. Norfolk Southern Corp. (NSC): 1.5%

24. Rockwell Automation Inc (ROK): 1.6%

25. Deere & Co. (DE): 1%

C-Ranked Dividend Risk 1. Chorus Aviation, Inc. (CHRRF): 0%

2. MSC Industrial Direct Co., Inc. (MSM): 3.6%

3. Kansas City Southern (KSU): 0.8%

4. Oshkosh Corp (OSK): 1.3%

5. Paccar Inc. (PCAR): 1.7%

6. Fastenal Co. (FAST): 2.2%

7. Collectors Universe Inc (CLCT): 0.8%

8. Paychex Inc. (PAYX): 2.7%

9. Nielsen Holdings plc (NLSN): 1.1%

10. Siemens AG (SIEGY): 0%

57

11. HNI Corp. (HNI): 3.6%

12. General Electric Co. (GE): 0.4%

13. Trane Technologies plc (TT): 1.5%

14. Thomson-Reuters Corp (TRI): 2%

D-Ranked Dividend Risk 1. Johnson Controls International plc (JCI): 2%

2. ABB Ltd. (ABB): 2.7%

3. Eaton Corporation plc (ETN): 2.4%

F-Ranked Dividend Risk 1. SFL Corporation Ltd (SFL): 14.5%

2. Icahn Enterprises L P (IEP): 9.6%

3. KNOT Offshore Partners LP (KNOP): 12.5%

4. Exchange Income Corp. (EIFZF): 0%

5. Compass Diversified Holdings (CODI): 5%

6. Covanta Holding Corporation (CVA): 3.3%

7. Ryder System, Inc. (R): 2.5%

Real Estate A-Ranked Dividend Risk 1. N/A

B-Ranked Dividend Risk 1. Federal Realty Investment Trust (FRT): 4.7%

2. Essex Property Trust, Inc. (ESS): 3.4%

3. American Tower Corp. (AMT): 1.9%

C-Ranked Dividend Risk 1. CyrusOne Inc (CONE): 2.6%

2. Realty Income Corp. (O): 4.5%

3. Service Properties Trust (SVC): 0.4%

4. W. P. Carey Inc (WPC): 6%

5. AvalonBay Communities Inc. (AVB): 3.8%

6. Crown Castle International Corp (CCI): 2.9%

7. Universal Health Realty Income Trust (UHT): 4.4%

8. National Retail Properties Inc (NNN): 5%

9. Public Storage (PSA): 3.4%

10. Macerich Co. (MAC): 9%

11. Digital Realty Trust Inc (DLR): 3%

12. Tanger Factory Outlet Centers, Inc. (SKT): 4.1%

13. Diversified Healthcare Trust (DHC): 0.9%

D-Ranked Dividend Risk 1. SL Green Realty Corp. (SLG): 5%

2. Office Properties Income Trust (OPI): 9%

3. Geo Group, Inc. (GEO): 21.6%

4. Boston Properties, Inc. (BXP): 4.3%

5. VICI Properties Inc (VICI): 4.6%

6. Iron Mountain Inc. (IRM): 7.5%

7. Omega Healthcare Investors, Inc. (OHI): 5.3%

8. Store Capital Corp (STOR): 4.3%

9. New Residential Investment Corp (NRZ): 4.9%

10. STAG Industrial Inc (STAG): 4.5%

11. Healthcare Trust of America Inc (HTA): 4.3%

12. Sabra Healthcare REIT Inc (SBRA): 7.5%

13. Prologis Inc (PLD): 2.2%

14. Brixmor Property Group Inc (BRX): 2.9%

15. Medical Properties Trust Inc (MPW): 4.8%

16. Easterly Government Properties Inc (DEA): 4.6%

17. Simon Property Group, Inc. (SPG): 6.3%

18. AGNC Investment Corp (AGNC): 9.1%

19. Whitestone REIT (WSR): 5.7%

20. Urstadt Biddle Properties, Inc. (UBA): 4.4%

21. Alexandria Real Estate Equities Inc. (ARE): 2.5%

22. Camden Property Trust (CPT): 3.1%

23. Equity Residential Properties Trust (EQR): 3.8%

24. Physicians Realty Trust (DOC): 5%

25. CoreSite Realty Corporation (COR): 3.5%

26. Weyerhaeuser Co. (WY): 1.6%

27. Summit Hotel Properties Inc (INN): 2.1%

28. Ventas Inc (VTR): 4.5%

29. Mid-America Apartment Communities, Inc. (MAA):

2.9%

30. Hannon Armstrong Sustainable Infrastructure capital

Inc (HASI): 2.1%

31. Lamar Advertising Co (LAMR): 2.9%

32. Kimco Realty Corp. (KIM): 3.3%

33. VEREIT Inc (VER): 5%

F-Ranked Dividend Risk 1. Preferred Apartment Communities Inc (APTS): 10.3%

2. Innovative Industrial Properties Inc (IIPR): 2.2%

3. Chatham Lodging Trust (CLDT): 1%

4. Chimera Investment Corp (CIM): 12.6%

5. LTC Properties, Inc. (LTC): 5.6%

6. Two Harbors Investment Corp (TWO): 7.7%

7. MGM Growth Properties LLC (MGP): 5.8%

8. Landmark Infrastructure Partners LP (LMRK): 6.5%

9. Global Net Lease Inc (GNL): 6.9%

10. Annaly Capital Management Inc (NLY): 10.4%

11. Starwood Property Trust Inc (STWD): 9.4%

12. Brookfield Property Partners L.P. (BPY): 9.3%

13. Gladstone Commercial Corp (GOOD): 8.1%

14. Blackstone Mortgage Trust Inc (BXMT): 8.6%

15. Orchid Island Capital Inc (ORC): 13.6%

16. Spirit Realty Capital Inc (SRC): 6.1%

17. New York Mortgage Trust Inc (NYMT): 5.6%

18. ARMOUR Residential REIT Inc (ARR): 9.3%

19. Broadmark Realty Capital Inc (BRMK): 7%

20. Dynex Capital, Inc. (DX): 8.7%

21. Gladstone Land Corp (LAND): 3.2%

22. Apollo Commercial Real Estate Finance Inc (ARI):

11.8%

23. Healthpeak Properties Inc (PEAK): 4.8%

24. Gaming and Leisure Properties Inc (GLPI): 3%

25. Ladder Capital Corp (LADR): 8.9%

26. Welltower Inc (WELL): 4.3%

27. Arbor Realty Trust Inc. (ABR): 8%

28. CorEnergy Infrastructure Trust Inc (CORR): 9.7%

Technology A-Ranked Dividend Risk

58

1. Oracle Corp. (ORCL): 1.5%

2. Applied Materials Inc. (AMAT): 0.8%

3. Microsoft Corporation (MSFT): 0.9%

4. Jack Henry & Associates, Inc. (JKHY): 1.1%

5. Computer Services, Inc. (CSVI): 0%

6. Apple Inc (AAPL): 0.6%

B-Ranked Dividend Risk 1. Cisco Systems, Inc. (CSCO): 3.1%

2. International Business Machines Corp. (IBM): 5.3%

3. Sap SE (SAP): 1.3%

4. Intel Corp. (INTC): 2.3%

5. Intuit Inc (INTU): 0.6%

6. Texas Instruments Inc. (TXN): 2.2%

7. Cognizant Technology Solutions Corp. (CTSH): 1.1%

8. Skyworks Solutions, Inc. (SWKS): 1.3%

9. Qualcomm, Inc. (QCOM): 1.5%

C-Ranked Dividend Risk 1. Hewlett Packard Enterprise Co (HPE): 3.8%

2. HP Inc (HPQ): 2.9%

3. ASML Holding NV (ASML): 0.5%

4. Lam Research Corp. (LRCX): 0.9%

5. KLA Corp. (KLAC): 1.2%

6. Infosys Ltd (INFY): 1.6%

7. Logitech International SA (LOGI): 0.7%

8. NVIDIA Corp (NVDA): 0.1%

9. Marvell Technology Group Ltd (MRVL): 0.5%

10. Sony Corporation (SNE): 0.5%

D-Ranked Dividend Risk 1. NetApp Inc (NTAP): 2.9%

2. Broadcom Inc (AVGO): 2.8%

3. Xerox Holdings Corp (XRX): 4.3%

4. Corning, Inc. (GLW): 2.4%

5. Telefonaktiebolaget L M Ericsson (ERIC): 1.2%

6. Seagate Technology Plc (STX): 3.9%

7. Garmin Ltd (GRMN): 2%

8. Accenture plc (ACN): 1.3%

9. Canon Inc (CAJ): 3.4%

10. Taiwan Semiconductor Manufacturing (TSM): 1.3%

11. Kulicke & Soffa Industries, Inc. (KLIC): 1.3%

F-Ranked Dividend Risk 1. N/A

Utilities A-Ranked Dividend Risk 1. Atmos Energy Corp. (ATO): 2.6%

2. UGI Corp. (UGI): 3.6%

3. Black Hills Corporation (BKH): 3.5%

4. SJW Group (SJW): 1.9%

5. MGE Energy, Inc. (MGEE): 2.2%

6. American States Water Co. (AWR): 1.6%

7. California Water Service Group (CWT): 1.5%

8. Middlesex Water Co. (MSEX): 1.3%

B-Ranked Dividend Risk 1. Sempra Energy (SRE): 3.3%

2. Red Eléctrica Corporación S.A. (RDEIY): 0%

3. Edison International (EIX): 4.3%

4. Northwest Natural Holding Co (NWN): 4.2%

5. Fortis Inc. (FTS): 4.1%

6. Consolidated Edison, Inc. (ED): 4.3%

7. Entergy Corp. (ETR): 3.9%

8. Xcel Energy, Inc. (XEL): 2.7%

9. Artesian Resources Corp. (ARTNA): 2.4%

10. Essential Utilities Inc (WTRG): 2%

11. NextEra Energy Partners LP (NEP): 2.7%

12. NextEra Energy Inc (NEE): 1.7%

C-Ranked Dividend Risk 1. New Jersey Resources Corporation (NJR): 3.5%

2. Brookfield Infrastructure Partners L.P (BIP): 3.5%

3. Otter Tail Corporation (OTTR): 3.5%

4. Alliant Energy Corp. (LNT): 3.1%

5. DTE Energy Co. (DTE): 3.4%

6. PPL Corp (PPL): 5.8%

7. Southern Company (SO): 4.2%

8. American Electric Power Company Inc. (AEP): 3.4%

9. Brookfield Renewable Partners LP (BEP): 2.7%

10. Duke Energy Corp. (DUK): 4%

11. Public Service Enterprise Group Inc. (PEG): 3.3%

12. WEC Energy Group Inc (WEC): 2.9%

13. TransAlta Renewables, Inc. (TRSWF): 0%

D-Ranked Dividend Risk 1. Suburban Propane Partners LP (SPH): 9.5%

2. FirstEnergy Corp. (FE): 4.8%

3. Canadian Utilities Ltd. (CDUAF): 0%

4. CenterPoint Energy Inc. (CNP): 3.4%

5. Superior Plus Corp. (SUUIF): 0%

6. Exelon Corp. (EXC): 3.5%

F-Ranked Dividend Risk 1. Consolidated Water Co. Ltd. (CWCO): 2.6%

2. Dominion Energy Inc (D): 4.7%

3. Algonquin Power & Utilities Corp (AQN): 4.4%

4. Spark Energy Inc (SPKE): 6.3%

5. Global Water Resources Inc (GWRS): 1.7%

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