15 new stocks make our Safest Dividend Yield Model Portfolio this month.
Recap from February's Picks
This Model Portfolio leverages our Robo-Analyst technology[1], which scales our forensic accounting expertise (featured in Barron's) across thousands of stocks.[2]
This Model Portfolio only includes stocks that earn an Attractive or Very Attractive rating, have positive free cash flow and economic earnings, and offer a dividend yield greater than 3%. Companies with strong free cash flow provide higher quality and safer dividend yields because we know they have the cash to support the dividend. We think this portfolio provides a uniquely well-screened group of stocks that can help clients outperform.
Featured Stock for March: National Research Corp (NRCIB: $50/share)
Since 2007, NRCIB has grown revenue 9% compounded annually while after-tax profit (NOPAT) has grown 12% compounded annually, per Figure 1. NOPAT margins have increased from 14% in 2007 to 19% in 2017 while the company's return on invested capital (ROIC) improved from 14% to 33% over the same time.
Sources: New Constructs, LLC and company filings