Good morning.
This market has been dominated by AI and AI-adjacent companies, and for good reason. That’s where all the opportunity has been, right? So it would only make sense.
But why aren’t investors talking about dividend stocks anymore? They’re still doing what they were made for: paying dividends. Some of them pretty big.
Unless you’re optimizing for hyper growth with nothing but tech stocks… why would you not want to balance your portfolio with some potential cash flow?
It just seems smart. Anyway, we aren’t trying to make you buy dividend stocks. But we did get some high-level new dividend stock picks from AltIndex.
So today we’ll be covering our top 3 AI-rated dividend stocks (we’ll throw in a few more at the end for the road, too).
But first, a few words on selecting dividend stocks:
It’s About More than Just Dividend Yield
Some people might be tempted to only look at a stock’s dividend yield and invest based off of that data point. A lot of smart investors think that’s a bad idea.
That’s because the yield % says nothing about the business’s actual cash flow or growth potential, which matter a lot more in the long run than dividend yield.
After all, a company with a 15% yield but 0 extra cash will pay a dividend of $0.
So, these picks from AltIndex aren’t just factoring in the yield size, but the company’s overall growth potential and cash flow as well.
Pick #1: Pembina Pipeline (PBA)
Dividend Yield: 7.26%
If you want to talk about growth potential, AltIndex’s AI model has been rating Pembina Pipeline as a top 10 stock for weeks now.
Some interesting tidbits about the stock:
Share prices just crossed above the 200-day moving average
PBA has a 76% buy rating from analysts
And here’s some hard data:
Revenue: steady at $1.79 billion only a 1.86% decline from last year
Net Income: 417 million, a decrease of 11.46% from last year
Employee business outlook: 85% positive
Short- and long-term positive price momentum
Pembina Pipeline Corporation (PBA) is a top transportation and midstream service provider with a specific focus on the hydrocarbon industry. It has a huge network of pipelines and related infrastructure that transport oil, natural gas, and natural gas liquids. Pembina has diversified its operations to include energy storage and midstream logistics.
Pick #2: Oneok (OKE)
Dividend Yield: 5.68%
If you haven’t heard of Oneok before, then 1) you’re not alone and 2) check out its revenue growth, which is a key characteristic of any dividend stock investment.
But we’re here to talk about the data behind the high AI rating:
Revenue: Huge growth of 61.16% over the past year to $7.89 billion
Net Income: $814 million, a YoY increase of 7.82% and QoQ of 32.23%
Employee business outlook: 83% positive
Slightly negative short- and long-term price momentum
Oneok, Inc. is a leading midstream service provider in the natural gas sector. The company is engaged in the gathering, processing, storage, and transportation of natural gas, and it holds a prominent position in the U.S. energy infrastructure industry. Oneok's value chain extends from wellhead to market delivery points across North America.
Pick #3: Trinity Capital (TRIN)
Dividend Yield: 12.6%
If you’re like us, your eyes might be wide after looking at that yield %, but let’s check the fundamentals first before diving headlong into a TRIN position.
Interesting pieces of TRIN data:
Serious insider buying over the past 3 months
Even more congress buying
Vident Advisory and Cubist Systematic Strategies invested recently
Now, the hard data:
Revenue: up 28.19% over the past year to $62 million
Net Income: up 34.34% YoY to $41 million
Employee sentiment: 100% positive
Positive short- and long-term price momentum
Trinity Capital is a prominent player in the capital and finance sector, known for providing growth-stage companies with sophisticated financing options. The company focuses on sectors such as technology, life sciences, and other high-growth industries, offering tailored financial solutions that help businesses scale and succeed.
Extras: 3 More Dividend Stock Picks
Here are some more dividend-earners that you can check out if you’re interested.
The Bottom Line
Dividend stocks are a key part of any balanced portfolio, like orange juice in those balanced breakfast commercials we used to see on TV before streaming services took over.
If you don’t have any stocks that are bringing in consistent cash flow through your portfolio, it could be worth considering dividend stocks like these.
These stocks are just one AI algorithm’s picks, and you should always do your own research and evaluate stocks from multiple angles.
⭐️ What did you think of today's edition?
🫡 See You Next Week
That’s all for today’s special edition. We hope you got value from it. Reply and let us know if you did.
Until next week,
— Brandon & Blake
The information provided in Stocks & Income is for informational and educational purposes only and should not be construed as financial advice, investment advice, or a recommendation to buy or sell any securities. Stocks & Income is not a registered investment advisor, broker-dealer, or licensed financial planner. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We may hold positions in or receive compensation from the companies or products mentioned. Disclosures will be made where applicable.