An interesting combination is undervalued growth stocks that offer attractive dividends.
Investors often consider blue-chip stocks for their portfolio with an objective of capital protection and regular dividend income. Growth stocks, on the other hand, provide robust capital gains and can create immense wealth.
It's worth noting that some of the notable dividend aristocrats today were once growth ideas.
Investors often consider blue-chip stocks for their portfolio with an objective of capital protection and regular dividend income. Growth stocks, on the other hand, provide robust capital gains and can create immense wealth. An interesting combination is undervalued growth stocks that offer attractive dividends.
It's worth noting that some of the notable dividend aristocrats today were once growth ideas. Over time, these businesses have grown and matured. Investors should consider exposure to today's growth stocks that could be future dividend aristocrats as they will likely deliver 5-bagger returns in the next few years.
Besides the dividend factor, undervalued growth stocks with attractive valuations are also worth considering for their potential capital gains. Investors should carefully analyze each stock's financial statements and industry trends to determine if it has strong fundamentals that support its future performance.
Miniso Group (MNSO) is an attractive name to consider for growth and healthy dividends. MNSO stock trades at a forward price-earnings ratio of 16.5 and offers a dividend yield of 2%. The valuation gap is clear for this growth story and high total returns in the next 24 months.
Kinross Gold (KGC) is an undervalued gold miner with a current dividend yield of 1.96%. KGC stock has trended higher by 33% in the last 12 months, but the best part of the rally is still due. Talking about dividends, Kinross has a strong balance sheet and ended 2023 with a liquidity buffer of $1.9 billion.
Accuracy
Borr Drilling (BORR) is an undervalued, under-the-radar dividend stock with high growth potential.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that dividend aristocrats are 'the world's highest quality, most dependable and best-run blue chips'. However, this statement is not supported by any evidence or data provided in the article. Secondly, the author states that these companies have been raising their dividends for 25-plus consecutive years through at least three recessions and two market crashes. This implies a level of stability and reliability which may not be entirely accurate as economic conditions can change rapidly over time.
The author states that these companies have been raising their dividends for 25-plus consecutive years through at least three recessions and two market crashes. This implies a level of stability and reliability which may not be entirely accurate as economic conditions can change rapidly over time.
The article claims that dividend aristocrats are 'the world's highest quality, most dependable blue chips'. However, this statement is not supported by any evidence or data provided in the article.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that dividend aristocrats are among the world's highest quality and most dependable blue chips without providing any evidence or data to support this claim. Additionally, the author makes a false dichotomy between low-risk income and high returns when they state that dividend aristocrats provide both. The article also contains inflammatory rhetoric by stating that dividend aristocrats have badly underperformed almost every investing strategy in the last nine months without providing any context or data to support this claim.
The author uses an appeal to authority when they state that dividend aristocrats are among the world's highest quality and most dependable blue chips. This is not supported by evidence or data.
Bias
(85%)
The author of the article is Dividend Sensei and they have a history of promoting dividend aristocrats. The author uses language that portrays dividend aristocrats as high-quality blue chips with dependable income. They also mention their own love for low-risk, dependable income. Additionally, the author mentions the poor performance of dividend aristocrats in recent months and suggests a potential reversal of near-term rate trends could create opportunity.
Dividend aristocrats have badly underperformed almost every investing strategy in the last nine months
If each company grows as analysts expect and returns to historical market-determined fair value, this is the total return justified by fundamentals.
Site
Conflicts
Of
Interest (50%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topics of dividend aristocrats and blue chips as they are promoting these stocks. The article also mentions recessions, market crashes, pandemic crash and Great Inflation of 2022 which could be potential conflicts but it is not clear if the author has any financial ties or personal relationships with companies in those industries.
The article promotes dividend aristocrats as having been raising their dividends for 25-plus consecutive years, through at least three recessions and two market crashes. This suggests that the author may have a financial stake in these stocks or be biased towards them.
Miniso Group (MNSO) is an attractive name to consider for growth and healthy dividends. MNSO stock trades at a forward price-earnings ratio of 16.5 and offers a dividend yield of 2%. The valuation gap is clear for this growth story and high total returns in the next 24 months.
Kinross Gold (KGC) is an undervalued gold miner with a current dividend yield of 1.96%.
Accuracy
Kinross Gold (KGC) is an undervalued gold miner with a current dividend yield of 1.96%. KGC stock has trended higher by 33% in the last 12 months, but the best part of the rally is still due. Talking about dividends, Kinross has a strong balance sheet and ended 2023 with a liquidity buffer of $1.9 billion.
Borr Drilling (BORR) is an undervalued, under-the-radar dividend stock with high growth potential.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that some of the notable dividend aristocrats today were once growth ideas without providing any evidence or context for this claim. Additionally, the author makes a false dichotomy between blue-chip stocks and growth stocks, implying that they are mutually exclusive when in fact both can provide capital protection and regular dividends. The article also contains inflammatory rhetoric by stating that gold surges without providing any evidence or context for this claim. Finally, the author uses a fallacy of many by stating that there is clear visibility for healthy dividend growth without providing any specifics on how this will be achieved.
The author states that some of the notable dividend aristocrats today were once growth ideas without providing any evidence or context for this claim. This is a false dichotomy and an appeal to authority fallacy.
Bias
(85%)
The article is biased towards growth stocks that also offer attractive dividends. The author uses language such as 'undervalued' and 'stellar returns' to create a positive outlook for the three companies mentioned in the article.
Borr Drilling (BORR) reported an order backlog of $1.75 billion as oil trends higher
Kinross Gold (KGC) has trended higher by 33% in the last 12 months, but the best part of the rally is still due.
Miniso Group (MNSO) stock trades at a forward price-earnings ratio of 16.5
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. A recent study found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023), more than double the annualized return for non-payers.
Mid-cap stocks are shares of companies with total market capitalizations in the range of about $2 billion to $10 billion and have consistently increased dividends every year for at least 15 years. The S&P MidCap 400 Dividend Aristocrats is designed to measure the performance of mid-sized companies within the S&P MidCap 400 that meet this criteria.
The Aarons Company, Inc. (NYSE: AAN) provides lease-to-own and retail purchase solutions for furniture, electronics, appliances, computers and other home products through company-operated stores in the United States and Canada as well as its e-commerce platforms. It also manufactures upholstered furniture.
NNN REIT invests primarily in high quality properties that are subject to long term triple leases with a solid 5.25% dividend yield and plenty of growth potential.
Omega Healthcare Investors is a triple net REIT that supports the goals of skilled nursing facility and assisted living facility operators with an aging population, significant 8.46% dividend yield.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that dividends have contributed approximately 32% of the total return for the S&P 500 over the past half-century (1973-2023). However, this statement is misleading as it does not take into account other factors such as capital appreciation and market conditions. Secondly, the author claims that dividend stocks delivered an annualized return of 9.18% over the same timeline compared to non-payers (3.95%), but again, this statement is misleading as it does not provide context for these returns or compare them to other investment options such as bonds or index funds.
The author claims that dividends have contributed approximately 32% of the total return for the S&P 500 over the past half-century (1973-2023). However, this statement is misleading as it does not take into account other factors such as capital appreciation and market conditions.
The author claims that dividend stocks delivered an annualized return of 9.18% over the same timeline compared to non-payers (3.95%), but again, this statement is misleading as it does not provide context for these returns or compare them to other investment options such as bonds or index funds.
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing a study from Hartford Funds and Ned Davis Research without providing any evidence or context for the validity of their findings. Additionally, the author makes use of dichotomous depictions when describing dividend stocks as delivering annualized returns that are more than double those of non-payers. The article also contains inflammatory rhetoric by stating that investing in dividends is essential for total return expectations and implying that companies with high payouts are better investments than those with lower payouts.
The author uses an appeal to authority when citing a study from Hartford Funds and Ned Davis Research without providing any evidence or context for the validity of their findings. For example, they state that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). However, this statement does not provide any information on how accurate these figures are or if there were any other factors that contributed to this return.
The author makes use of dichotomous depictions when describing dividend stocks as delivering annualized returns that are more than double those of non-payers. For example, they state that 'dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.' This statement implies that companies with high payouts are better investments than those with lower payouts.
The author uses inflammatory rhetoric when stating that investing in dividends is essential for total return expectations. For example, they state that 'sustainable dividend income and capital appreciation potential are essential for total return expectations.' This statement implies that companies without high payouts are not good investments.
Bias
(85%)
The article is biased towards dividend stocks and specifically mentions the S&P MidCap 400 Dividend Aristocrats. The author also provides examples of four specific companies that are part of this index and have high dividends. This bias is evident in the language used to describe these companies, such as 'poised to explode' and 'sweet'. Additionally, the article mentions other stocks with high dividends but does not provide any analysis or comparison between them.
NNN REIT
Omega Healthcare Investors
Southwest Gas Holdings
The Aarons Companys
Site
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topics of dividends and capital appreciation potential as they are discussing specific stocks.
$ANN stock price, dividend yield and payout ratio
$NNN REIT stock price, dividend yield and payout ratio
