#309~ 5 Dividend Stocks: 4% Yield, Safe, and Cheap!

So this is just what I have linked to Schwab.

I have a much larger portfolio, which you can check out at the end of the video.

And SimpliSafe is cool because they give you their own bit of ideas where you can get high yield stocks, dividend aristocrats, companies that have paid a dividend for 25 years or more that's growing.

Warren's portfolio.

They got monthly payers on there, a bunch of REITs.

But what we're going to do is screen companies, and they also let you look at closed-end funds, which remember, closed-end funds are funds that don't issue any new shares, where an open-end fund issues and subtracts shares when people want to get in and want to get out.

So in the world of SimpliSafe Dividend, they currently have, yes, I know, there's thousands of companies out there, but they have 871,000. that we could look at and first we're going to start with dividend safety and all that this means when you see a safety score and simply save dividends it's not a safety score on the company their stock price it is just on the likelihood that a dividend will be cut so we're going to do safe and very safe which brings us to 415 matches but we're not done yet we're going to do that dividend yield and start with at least four percent hey look at that we're down to 41 Next, we'll build in valuation looking for undervalued.

And what you need to know about Simply Save Dividends is when they say undervalued, they take a company's trailing five-year price-to-earnings ratio, meaning how many dollars of a company's earnings are you buying.

So if a company has a P.E. of 15, you're paying $15 for every $1 of their forward earnings ratio.

And then what SimpliSafe does is they go 10% above and 10% below that number to give us a range.

And anything above that is overvalued.

If the PE is below that, it's undervalued, could be a good time to buy, and fairly valued if it's in that range.

And when we do that, we're down to 16 matches.

And we'll hit on more filters.

And I like to have a five-year dividend CAGR, the growth rate.

Make sure it's worth our while.

So we're going to do... average meaning five to eight percent and greater so we want those dividend raises to be outpacing inflation as well brings us down to 10 but we're not done yet because i want quality here i don't just want any old bucket of yuck that's paying a high yield so we're going to use return on invested capital which shows us how well management is investing that money and the return on So we're going to raise the bar to 10% return on invested capital and above, which is high.

And that brings us down to six.

But I want one more filter, which is the price to earnings ratio relative to that own company's history.

And we want it to be below its five year average to know that it looks like we're probably getting a company that truly is on sale compared to itself.

And that brings us to our magic number of five.

And by the way, if you want to run your own version of this, you can change the yield, change the dividend growth, play around with it yourself.

I have a special link below and a QR code on the screen.

Scan it, click it.

You can get a fully free month with no credit card required.