Top Dividend Idea For 2018 And Beyond

What do we understand under “ Top Dividend Idea”?
There are really just three main criteria: (1) it needs to pay a high current dividend yield, (2) the cash flow must be sufficient to easily cover the dividend, and finally, (3) the growth prospects must be favorable in the long run.
To be more precise, at “High Yield Landlord”, we target companies for our HYPO Portfolio that can:
Pay a dividend yield in excess of 6%. With a conservative payout ratio at around 75%. And have a ~5% annual growth target. Put simply, this is a “Top Dividend Idea”. It pays a high, safe, and growing dividend, no more, no less. If it could be paid on a monthly basis, even better…
Finding such investments is surprisingly difficult in today’s market. The main issue is that if a company is all that great, it will rarely be priced at such a high yield. Take the example of STORE Capital (STOR), a fantastic company with solid growth prospects and a low payout ratio, but unfortunately, a share price that is too high and a dividend yield that falls short of our requirements. Similarly, National Retail (NNN), another popular name among Seeking Alpha readers, would not meet our criteria in terms of dividend yield (4.3%), and well, even the 5% growth target may be too optimistic for NNN.
You get the point: combining high growth with high yield and low payout ratio is tough. This is why when we rarely find one of these “ Top Dividend Ideas”,... Read more