sure dividend...4 the sure dividend top 10 – october 2020 name & ticker div. risk score price...

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Sure Dividend

LONG-TERM INVESTING IN HIGH-QUALITY DIVIDEND STOCKS

October 2020 Edition

By Ben Reynolds, Bob Ciura, Josh Arnold, and Samuel Smith

Edited by Brad Beams

Published on October 4th, 2020

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Table of Contents

Opening Thoughts - Examining Our Closed Sell Recommendations - .................................... 3

The Sure Dividend Top 10 – October 2020 ................................................................................ 4

Analysis of Top 10 Stocks ............................................................................................................. 5

Unum Group (UNM) .................................................................................................................. 5

Walgreens Boots Alliance Inc. (WBA) ...................................................................................... 8

AbbVie Inc. (ABBV) ................................................................................................................ 11

M&T Bank Corp. (MTB) .......................................................................................................... 14

Huntington Ingalls Industries Inc. (HII) ................................................................................... 17

Prosperity Bancshares Inc. (PB) ............................................................................................... 20

AT&T Inc. (T) .......................................................................................................................... 23

Altria Group Inc. (MO) ............................................................................................................. 26

John Wiley & Sons Inc. (JW.A) ............................................................................................... 29

CVS Health Corp. (CVS) .......................................................................................................... 32

Closing Thoughts - What If You Never Sold A Security? - .................................................... 35

Real Money Portfolio .................................................................................................................. 36

Buying & Ranking Criteria ....................................................................................................... 38

Portfolio Building Guide ............................................................................................................ 39

Examples ................................................................................................................................... 39

Past Recommendations & Sells ................................................................................................. 40

Sell Rules .................................................................................................................................. 40

Unsold Past Recommendations ................................................................................................ 40

Pending Sells ............................................................................................................................. 42

Sold Positions ........................................................................................................................... 42

List of Stocks by Dividend Risk Score ...................................................................................... 44

List of Stocks by Sector .............................................................................................................. 50

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Opening Thoughts - Examining Our Closed Sell Recommendations - We’ve issued a total of 36 sell recommendations in The Sure Dividend Newsletter since the first edition went live in April of 2014. These security selections have done well prior to our sell recommendations, generating an average total return1 per recommendation of 61.4% versus 45.2% if the same funds would’ve been invested in the S&P 500 ETF (SPY) over the same time period as each recommendation.

The image below looks at the difference in total returns of our sold recommendations2 since they were sold as compared to SPY.

Overall, since selling, our sell recommendation securities have generated total returns of 13.5% versus 16.8% for the S&P 500. This means that our sells underperformed the market on average after selling – and outperformed on average before selling. This is what we would hope to see.

Our sell recommendations can be divided into four categories, which are shown below along with the average total return percentage point difference versus SPY since the sell recommendation.

1. 29 Sells due to low expected total returns; -5.2% versus SPY 2. 3 Sells due to dividend cuts; +51.7% versus SPY (-40.3% without OMI) 3. 2 Sells (VGR, HP) due to “F” Dividend Risk score; -57.6% versus SPY 4. 2 Sells (BXLT, CB) due to acquisitions (not shown in the image above, see footnote 2)

We’ve had one big ‘miss’ in selling too soon – Owens & Minor (OMI). We sold quickly after the company began its turnaround as it had previously cut its dividend. It would’ve been far better to ride the recovery momentum. Excluding OMI, our sells have generated total returns of 6.3% versus 16.8% for SPY. While pending sells will still be issued when a company cuts its dividend, we will not issue final sell recommendations on recovering undervalued securities moving forward.

1 Performance data in this month’s Opening Thoughts is through market close 9/28/20. 2 The image above and numbers following it cover 34 of our 36 closed sell recommendations. Our Baxalta and Chubb sells are

excluded because they were due to the company being acquired. In Baxalta’s case the security was delisted. In Chubb’s case, the

acquiring company renamed itself Chubb, but the ‘original’ Chubb no longer exists, making historical analysis difficult.

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The Sure Dividend Top 10 – October 2020

Name & Ticker Div. Risk

Score Price

Fair Value

Exp. Value Ret.

Div. Yield

Payout Ratio

Exp. Growth

ETR

Unum (UNM) A $17 $30 12.0% 6.8% 22.8% 2.0% 20.8%

Walgreens (WBA) A $36 $47 5.6% 5.2% 38.9% 5.0% 15.8%

AbbVie (ABBV) A $88 $109 4.5% 5.4% 44.3% 5.0% 14.9%

M&T Bank (MTB) B $92 $136 7.7% 4.8% 50.7% 5.7% 18.2%

Huntington Ingalls (HII) B $140 $217 9.1% 2.9% 27.3% 5.0% 17.0%

Prosperity Bancshares (PB) B $52 $74 7.2% 3.6% 35.8% 6.0% 16.8%

AT&T (T) B $29 $39 6.4% 7.3% 63.7% 3.0% 16.7%

Altria (MO) B $39 $47 4.1% 8.9% 78.0% 3.0% 16.0%

John Wiley & Sons (JW.A) B $32 $43 6.3% 4.3% 64.9% 4.5% 15.1%

CVS Health (CVS) B $58 $79 5.8% 3.4% 27.7% 5.0% 14.2%

Notes: Data for the table above is from a spreadsheet during the past week of our Sure Analysis Research

Database and general data over the same week. ‘Div.’ stands for ‘Dividend.’ ‘Exp. Value Ret.’ means

expected returns from valuation changes. ‘Exp. Growth’ means expected annualized growth rate over the next

five years. ‘ETR’ stands for Expected Annual Total Returns and is the sum of the Exp. Value Ret., Div. Yield,

and Exp. Growth columns.

Disclosures: Ben Reynolds is personally long WBA from this month’s Top 10. Bob Ciura is personally long

ABBV and MO. The Real Money Portfolio will buy shares of MO on Tuesday 10/6/20.

Bristol-Myers Squibb (BMY) and Sempra Energy (SRE) were replaced by M&T Bank (MTB) and Altria (MO)

this month. Remember: stocks that fall out of the Top 10 are holds, not sells.

An equally weighted portfolio of the Top 10 has the following future expected total return estimate

characteristics:

Top 10 S&P 500

Dividend Yield: 5.3% 1.8%

Growth Rate: 4.4% 5.5%

Valuation Expansion: 6.9% -5.8%

Expected Annual Total Returns3: 16.6% 1.5%

Note: Data for this newsletter was obtained between 9/28/20 and 10/2/20.

3 Expected Annual Total Returns (ETR) here is calculated using a simplified estimated method which is the sum of valuation,

dividend, and growth returns. It does not take into account dividend growth or volatility decay.

Return to Top 10 List

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Analysis of Top 10 Stocks

Unum Group (UNM) Overview & Current Events

Unum Group is an insurance holding company providing a broad portfolio of financial protection

benefits and services. The company operates through its Unum US, Unum UK, Unum Poland and

Colonial Life businesses, providing disability, life, accident, critical illness, dental and vision benefits

to millions of customers. Unum generated revenue of approximately $12 billion in 2019.

On July 28th, 2020 Unum reported second-quarter financial results. For the quarter, Unum generated

$3.0 billion in revenue, a 0.3% increase from the same quarter last year. The core Unum US segment

reported a 9% decline in adjusted operating income. Premium income for the segment increased 1.2%

while net investment income fell 3.9%. On an adjusted basis, earnings-per-share (EPS) of $1.23 for the

quarter declined 9.5% year-over-year.

Separately, the Unum International segment reported a 51% year-over-year decline in adjusted

operating income. Partially offsetting declines in the US and International segment was a 7.7%

increase in adjusted operating income for Colonial Life. Total revenue and earnings-per-share both

exceeded analyst expectations for the quarter. Book value per common share as of June 30th was

$51.90, compared to $45.11 at the same point last year.

Competitive Advantages & Recession Performance

Competitive advantages are difficult to achieve in the insurance industry, as customers are often

motivated by price. That said, Unum has developed a solid position in its industry with a long track

record of providing reliable service and establishing deep relationships with customers.

These qualities have served the company well during recessions. Unum performed surprisingly well in

the Great Recession of 2008-2009. Unum posted earnings-per-share of $2.19, $2.51, $2.57 and $2.71

from 2007 through 2010. Furthermore, the dividend kept increasing during this time as well.

Therefore, we expect Unum’s profits and dividend to hold up again, should another recession occur.

Growth Prospects, Valuation, & Catalyst

Over the past decade, Unum grew its earnings-per-share by approximately 8% per year on average.

Results were helped by rising premium income, as well as aggressive share repurchases which retired

5% of the share count each year. We believe Unum can continue to grow via reasonable improvement

in premium and investment income, expense management, and continued share repurchases. While the

company suspended its share buyback due to coronavirus, it should resume share repurchases in 2021.

We believe 2% annual EPS growth is a reasonable expectation through 2025.

We expect Unum to generate adjusted earnings-per-share of $5.00 for 2020. Based on this, the stock

has a price-to-earnings ratio (P/E) of just 3.4. Our fair value estimate is a P/E ratio of 6.0, which means

expansion of the P/E multiple could boost annual returns by 12% per year over the next five years. In

addition, expected EPS growth of 2% per year, and the 6.8% dividend yield combine for total expected

returns of 20.8% per year over the next five years for Unum stock.

Key Statistics, Ratios, & Metrics Years of Dividend Increases: 12 5-Year Growth Estimate: 2.0%

Dividend Yield: 6.8% 5-Year Valuation Return Estimate: 12.0%

Most Recent Dividend Increase: 9.6% 5-Year CAGR Estimate: 20.8%

Estimated Fair Value: $30 Dividend Risk Score: A

Stock Price: $17 Retirement Suitability Score: A


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Income Statement Metrics Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Revenue 10193 10278 10515 10369 10525 10731 11047 11287 11599 11999

SG&A Exp. 776 808 787 790 821 835 839 852 886 898

D&A Exp. 75 81 84 85 88 100 102 103 101 110

Net Profit 879 284 894 847 402 867 931 994 523 1100

Net Margin 8.6% 2.8% 8.5% 8.2% 3.8% 8.1% 8.4% 8.8% 4.5% 9.2%

Free Cash Flow 1197 1096 1274 926 1109 1192 1037 1059 1392 1591

Income Tax 441 49 355 373 140 371 416 410 104 282

Balance Sheet Metrics

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Assets 57308 59555 62236 59404 62450 60564 61942 64013 61876 67013

Cash & Equivalents 54 117 77 94 103 113 100 77 94 84

Accounts Receivable 1666 6527 6475 6454 6541 6324 6470 6545 6278 6384

Goodwill & Int. Ass. 201 232 225 220 214 255 367 367 447 440

Total Liabilities 48363 51386 53624 50745 53928 51900 52974 54438 53254 57048

Long-Term Debt 2856 2883 3211 2612 2781 2801 2999 2938 2971 3327

Shareholder’s Equity 8944 8170 8613 8659 8522 8664 8968 9575 8622 9965

D/E Ratio 0.32 0.35 0.37 0.30 0.33 0.32 0.33 0.31 0.34 0.33

Profitability & Per Share Metrics

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Return on Assets 1.6% 0.5% 1.5% 1.4% 0.7% 1.4% 1.5% 1.6% 0.8% 1.7%

Return on Equity 10.1% 3.3% 10.7% 9.8% 4.7% 10.1% 10.6% 10.7% 5.8% 11.8%

ROIC 7.7% 2.5% 7.8% 7.3% 3.6% 7.6% 7.9% 8.1% 4.3% 8.8%

Shares Out. 327.2 303.6 281.8 265.9 256.7 247.9 236.0 227.3 220.1 209.9

Revenue/Share 31.15 33.86 37.32 38.99 41.01 43.30 46.81 49.65 52.71 57.18

FCF/Share 3.66 3.61 4.52 3.48 4.32 4.81 4.39 4.66 6.33 7.58

Note: All relevant figures in millions of U.S. Dollars unless per share or indicated otherwise.


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Walgreens Boots Alliance Inc. (WBA)

Overview & Current Events

Walgreens Boots Alliance is a pharmacy retailer with nearly 19,000 stores in 11 countries, and

including equity investments, has a presence in more than 25 countries. Walgreens currently has a $31

billion market cap and produces $139 billion in annual revenue. The company has increased its

dividend for 45 consecutive years, which makes it a member of the prestigious Dividend Aristocrats.

Walgreens reported fiscal third-quarter earnings on July 9th. Sales increased 0.1%, while organic sales

increased 1.2%. Sales growth was due largely to comparable store sales growth of 3.0% in the core

Retail Pharmacy USA operating segment. However, higher costs and a sizable impairment charge led

to an operating loss of $1.6 billion, compared with operating profit of $1.2 billion in the year-ago

period. On a per-share basis, Walgreens swung to a loss of $1.95.

Walgreens incurred a non-cash impairment charge of $2 billion related to a re-evaluation of goodwill

and intangibles in its Boots UK business. Excluding this, the company reported positive earnings.

Adjusted earnings-per-share (EPS) came to $0.83, although this still represented a year-over-year

decline of 44%. However, Walgreens raised its dividend by 2.2%. The company also hiked its cost-

savings target to more than $2 billion by fiscal 2022, compared with previous forecasts of $1.8 billion.


Walgreens’ competitive advantage is its leading market share. Its robust retail presence and convenient

locations encourage consumers to use Walgreens instead of its competitors. This brand strength means

customers keep coming back to Walgreens, providing the company with stable sales and growth.

Consumers are unlikely to cut spending on prescriptions and other healthcare products, even during

difficult economic times, which makes Walgreens very resistant to recessions. Walgreens’ adjusted

earnings-per-share declined by just 7% during 2009 and the company actually grew its adjusted

earnings-per-share from 2007 through 2010.


Walgreens has a positive long-term growth outlook. It will benefit from the aging U.S. population and

rising demand for healthcare. For example, in the most recent quarter Walgreens’ pharmacy sales

increased 4.6% due to higher brand inflation and specialty sales. Separately, Walgreens announced

more than 2,300 products will be available for delivery in Chicago, Atlanta, and Denver through

DoorDash. Walgreens has also announced a partnership with VillageMD in which Walgreens will

offer full-service doctor offices co-located at its stores. Over the next five years, the partnership will

result in 500 to 700 primary-care clinics in over 30 U.S. markets.

Based on expected fiscal 2020 adjusted EPS of $4.70, Walgreens stock trades at a price-to-earnings

ratio (P/E) of just 7.6. Our fair value estimate is a P/E ratio of 10.0, which means expansion of the

price-to-earnings ratio could add 5.6% to Walgreens’ annualized returns through 2025. We expect this

expansion to combine with expected 5% annualized EPS growth and the 5.2% dividend yield to

generate 15.8% annualized total returns over the next five years.







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Revenue ($B) 67 72 72 72 76 103 117 118 132 137

Gross Profit 18976 20492 20342 21119 21569 26753 29874 29162 30792 30076

Gross Margin 28.1% 28.4% 28.4% 29.2% 28.2% 25.9% 25.5% 24.7% 23.4% 22.0%

SG&A Exp. 15518 16561 16878 17543 17992 22400 23910 23813 24694 25242

D&A Exp. 1030 1086 1166 1283 1316 1742 1718 1654 1770 2038

Operating Profit 3458 3931 3464 3576 3577 4353 5964 5349 6098 4834

Op. Margin 5.1% 5.4% 4.8% 5.0% 4.7% 4.2% 5.1% 4.5% 4.6% 3.5%

Net Profit 2091 2714 2127 2548 1932 4220 4173 4078 5024 3982

Net Margin 3.1% 3.8% 3.0% 3.5% 2.5% 4.1% 3.6% 3.4% 3.8% 2.9%

Free Cash Flow 2730 2430 2881 3089 2787 4413 6522 5904 6896 3892

Income Tax 1282 1580 1249 1499 1526 1056 997 760 998 588


Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Assets 26275 27454 33462 35481 37250 68782 72688 66009 68124 67598


Acc. Receivable 2450 2497 2167 2632 3218 6849 6260 6528 6573 7226

Inventories 7378 8044 7036 6852 6076 8678 8956 8899 9565 9333

Goodwill & Int. 3001 3229 3447 3717 3539 28723 25829 25788 28697 27436

Total Liabilities 11875 12607 15226 16027 16633 37482 42407 37735 41435 43446

Accounts Payable 4585 4810 4384 4635 4315 10088 11000 12494 13566 14341

Long-Term Debt 2401 2409 5392 5047 4490 14383 19028 12935 14397 16836

Total Equity 14400 14847 18236 19454 20513 30861 29880 27466 26007 23512

D/E Ratio 0.17 0.16 0.30 0.26 0.22 0.47 0.64 0.47 0.55 0.72


Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Return on Assets 8.1% 10.1% 7.0% 7.4% 5.3% 8.0% 5.9% 5.9% 7.5% 5.9%

Return on Equity 14.5% 18.6% 12.9% 13.5% 9.7% 16.4% 13.7% 14.2% 18.8% 16.1%

ROIC 12.5% 15.9% 10.4% 10.6% 7.8% 11.9% 8.8% 9.0% 12.2% 9.7%

Shares Out. 939 889 944 947 950 1,090 1,083 1,024 952 924

Revenue/Share 68.25 78.08 81.39 75.60 79.15 98.15 107.55 109.61 132.20 148.20

FCF/Share 2.76 2.63 3.27 3.23 2.89 4.19 5.98 5.47 6.93 4.21

Note: All figures in millions of U.S. Dollars unless per share or indicated otherwise.


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AbbVie Inc. (ABBV) Overview & Current Events

AbbVie is a biotechnology company that was spun off from Abbot Labs in 2013. AbbVie generates

$45 billion in annual revenue and has a $155 billion market cap. AbbVie recently acquired Allergan

(AGN) in a deal valued at more than $60 billion. The deal closed in May, giving AbbVie some

protection against its patent exclusivity loss of Humira, which is coming in the relatively near future.

AbbVie reported second-quarter earnings on July 31st, with results showing strong growth year-over-

year thanks to the Allergan acquisition. Total revenue was $10.4 billion during the quarter, up 26%

year-over-year, and better than first-quarter growth. Imbruvica continued to lead the way for AbbVie,

but the addition of Allergan helped boost the top line as well.

AbbVie posted earnings-per-share of $2.34 in Q2, which was better than consensus by $0.14. AbbVie

believes it will see essentially no impact from COVID-19 in 2020.

We believe AbbVie will earn $10.40 per share in 2020, which would be a sharp increase from the

$8.94 the company produced in 2019.


AbbVie did not exist as a standalone entity during the last recession. However, its former parent,

Abbott Labs, performed extremely well. Given that people generally seek treatment for illnesses

regardless of economic conditions, we expect AbbVie to hold up well during this recession. Results

through the first half of the year support this view, as well as management’s guidance.

AbbVie’s competitive advantage is its large cash flows that allow it to spend aggressively on research

and development. This has allowed it to build a pharmaceutical portfolio that is robust and deep, with

potential blockbusters such as Imbruvica. AbbVie will lose patent exclusivity on Humira in the U.S.

starting in 2023, which has forced the company to invest in new growth initiatives. That strong cash

generation allows it the ability to make strategic acquisitions, such as Allergan.


While Humira revenue is going to decline in the coming years, AbbVie’s R&D will create new drugs.

The company has Humira replacements in the pipeline already, and management believes it can fully

replace Humira revenue by the time patent exclusivity expires. We expect 5% annual earnings-per-

share growth over the next five years, which accounts for Allergan, but also patent loss of Humira.

AbbVie trades for 8.4 times our earnings-per-share estimate of $10.40 for this year, which compares

favorably to our estimate of fair value at 10.5 times earnings. The increased leverage due to the

Allergan deal results in some additional risks, but AbbVie still looks undervalued. Expansion of the

valuation could increase annual returns by 4.5%. In addition, AbbVie has a 5.4% yield. Along with

expected growth of 5.0% per year, AbbVie stock offers up to 14.9% total annual returns through 2025.






4 Including years as a wholly-owned subsidiary of Abbott Laboratories (ABT).


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Revenue 15638 17444 18380 18790 19960 22859 25638 28216 32753 33266 Gross Profit 11345 12805 13872 14209 15534 18359 19806 21174 25035 25827

Gross Margin 72.5% 73.4% 75.5% 75.6% 77.8% 80.3% 77.3% 75.0% 76.4% 77.6% SG&A Exp. 3820 5894 4989 5352 7724 6387 5881 6295 7399 6942 D&A Exp. 1184 1272 1150 897 786 836 1189 1501 1765 2017

Operating Profit 5030 4293 6105 6002 3763 7687 9540 9872 6807 13368 Op. Margin 32.2% 24.6% 33.2% 31.9% 18.9% 33.6% 37.2% 35.0% 20.8% 40.2% Net Profit 4178 3433 5275 4128 1774 5144 5953 5309 5687 7882

Net Margin 26.7% 19.7% 28.7% 22.0% 8.9% 22.5% 23.2% 18.8% 17.4% 23.7% Free Cash Flow 4528 5891 6012 5776 2937 7003 6562 9431 12789 12772

Income Tax 658 235 450 1204 595 1501 1931 2418 (490) 544

Balance Sheet Metrics Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Assets 21135 19521 27008 29198 27513 53050 66099 70786 59352 89115 Cash & Equivalents 10 27 5901 9595 8348 8399 5100 9303 7289 39924

Acc. Receivable 3373 3817 4298 3854 3735 4730 4758 5088 5384 5428 Inventories 836 872 1091 1150 1124 1719 1444 1605 1605 1813

Goodwill & Int. 9888 9010 8453 8167 7375 32877 44313 43344 36896 34253 Total Liabilities 5432 7589 23645 24706 25771 49105 61463 65689 67798 97287

Accounts Payable 357 417 556 933 1401 1597 1407 1474 1546 1452 Long-Term Debt --- 48 15672 14723 14977 31671 36842 37368 40310 66728

Total Equity 15703 11932 3363 4492 1742 3945 4636 5097 -8446 -8172 D/E Ratio --- 0.00 4.66 3.28 8.60 8.03 7.95 7.33 (4.77) (8.17)

Profitability & Per Share Metrics Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Return on Assets --- 16.9% 22.7% 14.7% 6.3% 12.8% 10.0% 7.8% 8.7% 10.6% Return on Equity --- 24.8% 69.0% 105% 57% 181% 139% 109% --- ---

ROIC --- 24.8% 34.0% 21.6% 9.9% 19.7% 15.4% 12.6% 15.3% 17.4% Shares Out. --- --- --- 1590 1590 1610 1590 1590 1550 1490

Revenue/Share 9.90 11.04 11.66 11.71 12.40 13.96 15.72 17.60 21.19 22.42 FCF/Share 2.87 3.73 3.81 3.60 1.82 4.28 4.02 5.88 8.27 8.61



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M&T Bank Corp. (MTB) Overview & Current Events

M&T Bank Corporation is a regional bank with branches in eight Northeast and Mid-Atlantic states

and the District of Columbia with more than 750 total branches. About 47% of M&T Bank’s loan

book is composed of commercial real estate, 29% is comprised of commercial loans, 16% in consumer

loans, and the remaining 8% is in consumer real estate. M&T Bank has a market capitalization of

$11.8 billion, with annual revenue of nearly $6 billion.

M&T report second-quarter earnings on July 23rd, with results missing expectations on both the top and

bottom lines. Revenue declined 7.1% year-over-year to $1.4 billion as the COVID-19-related

slowdown continued for M&T. The bank saw provisions for credit losses rise from $55 million in the

year-ago period to $325 million in the second quarter of this year; that was also up from $250 million

in this year’s first quarter. Low interest rates saw net interest income decline sharply despite a 9% gain

in average loans and leases. M&T, like many other banks, participated in the Paycheck Protection

Program in Q2, but these loans were generally done at very low rates, crimping net interest income.

Adjusted earnings-per-share (EPS) fell by 51% year-over-year to $1.76, and we’re reiterating our

estimate of $8.48 in earnings-per-share for 2020, but note that we believe earnings power resides at

$11.58 per share, backing out what should be a transitory impact from COVID-19 in 2020.


Competitive advantages are difficult to come by for banks given that they all largely offer the same

products. That said, its large branch count and overall size provide it with a stable and highly

profitable business model. The company is expected to maintain a dividend payout ratio of 50.7% for

2020, which indicates the dividend is secure, even during this recession.

Like other banks, M&T is susceptible to recessions as commercial loans tend to sour at a much higher

rate during downturns. M&T remained profitable during the Great Recession, but investors should

keep in mind that this is certainly not a defensive stock. Indeed, earnings-per-share declined more than

40% in 2009 during the Great Recession. That said, M&T quickly returned to growth by nearly

doubling earnings-per-share in 2010, with continued growth thereafter.


M&T’s primary growth catalysts are revenue growth and share repurchases. We see a low single-digit

tailwind from organic revenue growth, as well as a similarly sized tailwind from share repurchases.

M&T generates significant excess capital given that its dividend is 51% of projected 2020 earnings, so

the bank should be able to continue to reduce the float over time. We expect M&T Bank to grow its

earnings-per-share by 5.7% annually through 2025.

We expect M&T to have earnings power of $11.58 per share in a normalized economy. Based on this,

the stock has a price-to-earnings ratio of 7.9, which is below our fair value estimate of 11.5. As such, a

rising valuation could add 7.7% per year to total returns. The combination of 5.7% expected EPS

growth and the 4.8% yield lead to total expected returns of 18.2% per year over the next five years.



Most Recent Dividend Increase: 10% 5-Year CAGR Estimate: 18.2%

Estimated Fair Value: $136 Dividend Risk Score: B

Stock Price: $92 Retirement Suitability Score: B

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Revenue 3,488 3,973 4,266 4,538 4,456 4,668 5,296 5,632 5,928 6,192 SG&A Exp. 1,113 1,345 1,458 1,464 1,697 1,863 2,022 2,040 2,141 2,305 D&A Exp. 182 198 205 204 199 175 201 197 179 301 Net Profit 736 859 1,029 1,138 1,066 1,080 1,315 1,408 1,918 1,929

Net Margin 21.1% 21.6% 24.1% 25.1% 23.9% 23.1% 24.8% 25.0% 32.4% 31.2% Free Cash Flow 1,605 1,702 408 803 1,026 1,660 1,076 2,703 1,992 2,180

Income Tax 357 365 523 627 576 595 743 916 590 618


Total Assets ($B) 68021 77924 83009 85162 96686 122788 123449 118593 120097 119873 Cash & Equivalents 1010 1605 2114 3224 7761 8962 6321 6500 9711 8623

Acc. Receivable 4138 4612 4449 5282 5618 5962 5323 5013 4774 5644 Goodwill & Int. 3651 3701 3640 3593 3560 4733 4691 4665 4640 4622 Total Liab. ($B) 59664 68653 72806 73857 84350 106615 106963 102343 104637 104156

Accounts Payable 1790 1513 1369 1568 1871 1811 1594 1637 2337 Long-Term Debt 7921 5336 3208 3709 7607 10736 8573 7720 12236 6885

Total Equity 7617 8407 9330 10424 11104 14942 15255 15019 14229 14467 D/E Ratio 0.95 0.58 0.31 0.33 0.62 0.66 0.52 0.48 0.79 0.44


Return on Assets 1.1% 1.2% 1.3% 1.4% 1.2% 1.0% 1.1% 1.2% 1.6% 1.6% Return on Equity 10.1% 10.7% 11.6% 11.5% 9.9% 8.3% 8.7% 9.3% 13.1% 13.4%

ROIC 4.3% 5.6% 7.3% 8.0% 6.1% 4.6% 5.1% 5.7% 7.4% 7.7% Shares Out. 120 125 128 131 132 160 156 150 142 131



16


17


Huntington Ingalls Industries Inc. (HII) Overview & Current Events

Huntington Ingalls Industries builds nuclear and non-nuclear ships for the U.S. Department of Defense

and operates across three business segments: Newport News Shipbuilding, Ingalls Shipbuilding, and

Technical Solutions. Some of its highest profile products include aircraft carriers and submarines. The

company also provides fleet maintenance and modernization services, IT support, nuclear management

and operations, and oil and gas engineering. Huntington Ingalls Industries was founded in 2011 as a

spin-off from Northrop Grumman and trades at a market capitalization of $5.7 billion.

Huntington Ingalls reported its second-quarter earnings results on August 6th. For the quarter, the

company reported weak numbers all around. Year-over-year, revenue decreased 7.4% to $2.0 billion

and diluted earnings-per-share plunged by 121% to a loss of $0.49. The main drivers of the declines

included COVID-19 related impacts on shipyard operations and cost adjustments in several programs.

Furthermore, the lower volumes translated into weaker economies of scale, which saw Ingalls

Shipbuilding operating margins fall by 230 basis points year-over-year to 8.8% and Newport News

operating margins turned negative (-6.1%). A bright spot for the company was its backlog which

stands at a healthy $46.1 billion, implying plenty of business for the years to come as its primarily

government customer base is very resistant to recessions.


Huntington Ingalls’ biggest competitive advantage is its entrenched positioning within the U.S. military

industrial complex. With established relationships in the Pentagon and with other defense contractors,

Huntington Ingalls has the connections and intellectual property that make it very difficult for a

competitor to completely displace it or even eat into its pricing power in any meaningful way.

Additionally, the types of products it produces are not only major in cost and scope, meaning that

contracts are typically longer term in scope and costly for the government to cancel; but these products

also require considerable maintenance services that also demand a high degree of specialization, which

Huntington Ingalls is obviously well-positioned to offer.


We expect Huntington Ingalls Industries to grow earnings-per-share at a rate of 5% per year through

2025 as the continued ascendancy of the rival Chinese navy will force the U.S. government to continue

allocating even more funds to their own naval fleet. Furthermore, improving naval technologies tend to

drive ship prices higher and therefore generate greater revenues for Huntington Ingalls.

Huntington Ingalls Industries stock trades for a price-to-earnings ratio of 9.7, based on expected

earnings-per-share of $14.49 for this year. Our fair value estimate for the stock is a price-to-earnings

ratio of 15, so the stock is significantly undervalued after a recent decline. Multiple expansion could

add approximately 9.1% to shareholder returns per year over the next five years. Combining this

tailwind with earnings-per-share growth (5%) and the current dividend yield (2.9%), gives us expected

annualized total returns of 17.0% per year over the next five years.







18




Operating Profit 222 370 340 498 691 834 870 869 934 743 Operating Margin 3.3% 5.6% 5.1% 7.3% 9.9% 11.9% 12.3% 11.7% 11.4% 8.3%

Net Profit 131 -100 146 261 338 404 573 479 836 549 Net Margin 1.9% -1.5% 2.2% 3.8% 4.9% 5.8% 8.1% 6.4% 10.2% 6.2%

Free Cash Flow 168 331 170 97 590 673 537 432 451 366 Income Tax 68 96 95 133 169 228 211 293 135 134


Total Assets --- 6069 6392 6225 6239 6024 6352 6374 6383 7031 Cash & Equivalents --- 915 1057 1043 990 894 720 701 240 75

Accounts Receivable --- 135 191 171 244 236 318 442 261 318 Inventories --- 380 288 311 339 285 210 183 128 136

Goodwill & Int. Ass. --- 1448 1429 1409 1573 1451 1782 1725 1755 1865 Total Liabilities --- 5210 5725 4704 4874 4534 4699 4616 4867 5443

Accounts Payable --- 380 377 337 269 317 316 375 562 497 Long-Term Debt --- 1859 1830 1779 1670 1273 1278 1279 1283 1286

Shareholder’s Equity --- 859 667 1521 1365 1490 1653 1758 1516 1588 D/E Ratio --- 2.16 2.74 1.17 1.22 0.85 0.77 0.73 0.85 0.81


Return on Assets --- --- 2.3% 4.1% 5.4% 6.6% 9.3% 7.5% 13.1% 8.2% Return on Equity --- --- 19.1% 23.9% 23.4% 28.3% 36.5% 28.1% 51.1% 35.4%

ROIC --- --- 5.6% 9.0% 10.7% 13.9% 20.1% 16.1% 28.6% 19.4% Shares Out. 48.8 49.4 49.6 48.7 48.3 46.8 46.2 45.1 41.9 41.4



19


20


Prosperity Bancshares Inc. (PB) Overview & Current Events

Prosperity Bancshares was founded in 1983 as an acquisition vehicle. It then successfully acquired

Allied Bank and was renamed from Allied to its current name. Prosperity has nearly 300 branches in

Texas and Oklahoma, with the greatest concentration around the city of Houston. The bank’s market

cap is sizable at $4.8 billion, and it generates about $1.15 billion in annual revenue from its $33 billion

in total assets. Prosperity went through a transformational merger with LegacyTexas Bank in late

2019, which valued the acquired bank at $2.1 billion, nearly half of Prosperity’s post-merger value.

Prosperity reported second-quarter earnings on July 29th, with results coming in better than expected on

both the top and bottom lines. Net income came to $130.9 million as the bank’s loan portfolio

increased 9.9% during the quarter to $21 billion. Deposits were up 9.8% to $26 billion, for a loan-to-

deposit ratio of 81%, which is about what one would expect for a regional bank.

Allowances for credit losses were $354 million as the bank has built up credit reserves against expected

COVID-19-related losses. Nonperforming assets remain low at 0.28% of average interest-earning

assets, so losses haven’t yet sizably materialized. Second-quarter return on assets was decent at 1.6%.

Net interest income was up 66% year-over-year primarily due to the merger with LegacyTexas Bank.

We see earnings-per-share at $5.00 for this year, representing slight growth over 2019. Expenses

related to the merger will weigh on results, in addition to obvious credit headwinds due to COVID-19.

These headwinds should largely offset the scale gains from the merger, at least for this year. In the

second quarter, merger expenses were $7.5 million, or $0.06 per share. We note that growth should

pick up beginning in 2021 as credit conditions normalize.

Competitive Advantage & Recession Performance

Competitive advantages are difficult to come by in banking, but Prosperity has followed the model of

many other small regional banks in an effort to secure one of scale. Prosperity tries to be a top bank in

very select markets, allowing it to invest heavily in concentrated areas, gaining lending and deposit

scale in markets where it thinks it can operate profitably. Part of this strategy is to make targeted

acquisitions, like it did with LegacyTexas Bank last year.

Of course, economic downturns are a risk for any bank, and Prosperity is no different. Higher credit

losses are common during recessions, and Prosperity’s provisions for credit losses suggest it expects

unusually high losses in the coming quarters. With that said, Prosperity performed extremely well

during the Great Recession and earnings are expected to be higher this year than last year.


We expect Prosperity to grow earnings-per-share at a rate of 6% annually, which is in line with

historical growth rates. The LegacyTexas acquisition is a tailwind, and organic growth will help as

well. The stock trades for 10.4 times this year’s earnings estimate – we see fair value at a P/E ratio of

closer to 15. Valuation multiple expansion combined with the 3.6% yield and 6% growth, give

Prosperity expected annual total returns of 16.8% in the coming years.

Key Statistics, Ratios, & Metrics Years of Dividend Increase: 17 5-Year Growth Estimate: 6.0%





21



Revenue 372 376 447 582 776 736 734 716 728 796 SG&A Exp. 104 112 138 177 236 228 232 227 241 256 D&A Exp. 17 16 16 17 24 22 22 19 18 20 Net Profit 128 142 168 221 297 287 274 272 322 333

Net Margin 34.3% 37.7% 37.6% 38.0% 38.3% 39.0% 37.4% 38.0% 44.2% 41.8% Free Cash Flow 164 208 197 284 336 301 329 379 305 384

Income Tax 64 72 84 108 148 144 134 134 81 87



Accounts Receivable 30 29 42 49 52 52 53 56 57 81

Goodwill & Int. Ass. 953 946 1243 1714 1933 1918 1947 1940 1934 3310

Total Liabilities 8024 8255 12494 15855 18263 18574 18689 18763 18641 26215 Accounts Payable 4 3 2 3 3 2 2 3 4 9 Long-Term Debt 467 98 342 135 176 491 991 505 1031 1430

Shareholder’s Equity 1452 1567 2089 2787 3245 3463 3642 3824 4053 5971 D/E Ratio 0.32 0.06 0.16 0.05 0.05 0.14 0.27 0.13 0.25 0.24


Return on Assets 1.4% 1.5% 1.4% 1.3% 1.5% 1.3% 1.2% 1.2% 1.4% 1.2% Return on Equity 9.1% 9.4% 9.2% 9.1% 9.9% 8.5% 7.7% 7.3% 8.2% 6.6%

ROIC 7.5% 7.9% 8.2% 8.3% 9.4% 7.8% 6.4% 6.1% 6.8% 5.3% Shares Out. 46.7 46.9 56.5 66.1 69.8 70.0 69.5 69.5 69.9 94.7



22


23


AT&T Inc. (T) Overview & Current Events

AT&T is a large telecommunications company providing a wide range of services, including wireless,

broadband, and television through its cable operations and its DIRECTV satellite business. AT&T is

the largest communications company in the world, operating in three distinct business units: AT&T

Communications (providing mobile, broadband and video to over 100 million U.S. consumers and

nearly 3 million businesses); WarnerMedia (including Turner, HBO, Warner Bros. and the Xandr

advertising platform); and AT&T Latin America (offering pay-TV and wireless service to 11

countries). AT&T offers talk, text and data services in over 200 countries.

AT&T reported second-quarter 2020 financial results on July 23rd. The company generated $40.95

billion in revenue, down 9% year-over-year. The coronavirus pandemic caused declines, including

lower content and advertising revenue for WarnerMedia, as well as lower domestic video and legacy

wireless revenue. On an adjusted basis, earnings-per-share fell 6.7% to $0.83. Still, AT&T generated

$7.6 billion of free cash flow, which was used to pay down debt, return cash to shareholders, and invest

in future growth. AT&T’s net debt-to-EBITDA ratio was ~2.6x at the end of the quarter.


AT&T’s primary competitive advantage is its scale. The U.S. telecom industry is dominated by three

major players: AT&T, Verizon, and T-Mobile. It is very difficult for a new telecom company to build

a network with the necessary scale to compete with the established industry giants. This gives AT&T a

wide economic moat and a durable competitive advantage.

During the last recession, AT&T posted annual earnings-per-share results of $2.76, $2.16, $2.12 and

$2.29 for 2007 through 2010. The company remained highly profitable each year of the recession but

experienced a minor dip in earnings-per-share in 2009. We expect AT&T to remain highly profitable

in the event of a recession and continue to increase its dividend each year.


AT&T’s major growth catalyst going forward is media content, driven by the $85 billion acquisition of

Time Warner, which owns multiple media brands, including: TNT, TBS, CNN, and HBO. Time

Warner also owns a movie studio and sports rights across the NFL, NBA, MLB, and NCAA. Another

promising growth catalyst is 5G rollout. On June 29th, AT&T announced it had turned on 5G service to

28 additional markets. AT&T now provides access to 5G to parts of 355 U.S. markets. The company

also invested $1 billion in the second quarter to acquire 5G spectrum.

We expect AT&T to generate adjusted earnings-per-share of $3.25 in fiscal 2020. Based on this, the

stock has a price-to-earnings ratio of 8.8. Our fair value estimate for AT&T is a price-to-earnings ratio

of 12.0, which means valuation expansion could boost future shareholder returns by approximately

6.4% per year over the next five years. Including the 7.3% dividend yield and 3% expected annual

earnings-per-share growth, expected annual returns could reach 16.7% over the next five years.






24



Revenue ($B) 124.3 126.7 127.4 128.8 132.4 146.8 163.8 160.5 170.8 181.2

Gross Profit 74023 71819 72206 77561 72302 79755 86596 82736 91337 97052

Gross Margin 59.6% 56.7% 56.7% 60.2% 54.6% 54.3% 52.9% 51.5% 53.5% 53.6%

SG&A Exp. 34986 41314 41066 28414 39697 32919 36845 35465 36765 39422

D&A Exp. 19379 18377 18143 18395 18273 22016 25847 24387 28430 28217

Operating Profit 19658 12128 12997 30752 14332 24820 23904 22884 26142 29413

Op. Margin 15.8% 9.6% 10.2% 23.9% 10.8% 16.9% 14.6% 14.3% 15.3% 16.2%

Net Profit 19085 3944 7264 18418 6442 13345 12976 29450 19370 13903

Net Margin 15.4% 3.1% 5.7% 14.3% 4.9% 9.1% 7.9% 18.3% 11.3% 7.7%

Free Cash Flow 15692 14633 19711 13852 10139 16662 16926 17363 22844 29233

Income Tax -1162 2532 2900 9328 3619 7005 6479 -14.7B 4920 3493


Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Total Assets ($B) 269.4 270.4 272.3 277.8 296.8 402.7 403.8 444.1 531.9 551.7


Acc. Receivable 13610 13231 12657 12918 14527 16532 16794 16522 26472 22636

Goodwill/Int. ($B) 134.1 130.2 128.5 131.5 136.7 225.3 222.1 219.7 310.2 303.9

Total Liab. ($B) 157.4 164.6 179.6 186.3 206.6 279.0 279.7 302.1 338.0 349.7

Accounts Payable 7437 10485 12076 11561 14984 21047 22027 24439 27018 29640

LT Debt ($B) 66.2 64.8 69.8 74.8 81.8 126.2 123.5 164.3 176.5 161.1

Total Equity ($B) 111.6 105.5 92.4 91.0 89.7 122.7 123.1 140.9 184.1 184.2

D/E Ratio 0.59 0.61 0.76 0.82 0.91 1.03 1.00 1.17 0.96 0.87


Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Return on Assets 7.1% 1.5% 2.7% 6.7% 2.2% 3.8% 3.2% 6.9% 4.0% 2.6%

Return on Equity 17.9% 3.6% 7.3% 20.1% 7.1% 12.6% 10.6% 22.3% 11.9% 7.5%

ROIC 10.7% 2.3% 4.4% 11.2% 3.8% 6.3% 5.2% 10.6% 5.7% 3.8%

Shares Out. 5,911 5,927 5,581 5,226 5,187 6,145 6,139 6,139 7,282 7,348

Revenue/Share 20.93 21.30 21.89 23.91 25.37 26.00 26.46 25.97 25.09 24.65

FCF/Share 2.64 2.46 3.39 2.57 1.94 2.95 2.73 2.81 3.36 3.98


25


26


Altria Group Inc. (MO) Overview & Current Events

Altria sells cigarettes, chewing tobacco, cigars, e-cigarettes, and wine under the Marlboro, Skoal,

Copenhagen, and St. Michelle brands, among others. The company also has a 10% equity stake in

Anheuser-Busch InBev (BUD), a 35% stake in e-cigarette maker Juul Labs, and a 45% stake in the

marijuana company Cronos Group (CRON).

Altria reported second-quarter earnings on July 28th. Adjusted earnings-per-share (EPS) was up

slightly (0.9%) year-over-year to $1.09. Overall, smokable volume decreased by 8.7% and smokeless

product volume grew at a 2.8% clip. Adjusting for excise taxes, total revenue decreased by 2.5% year-

over-year. Management reiterated the safety of its dividend and increased its annualized dividend rate

by 2.4%. After analyzing the effects of COVID-19 on its business, Altria reestablished its full-year

2020 adjusted diluted EPS guidance to be in a range of $4.21 to $4.38. That is flat to a 4% increase

from 2019’s $4.21. Altria also announced IQOS expansion plans.

Competitive Advantage & Recession Performance

Altria has tremendous competitive advantages. It has the most valuable cigarette brand in the U.S.,

Marlboro, which commands greater than a 40% domestic retail share. This gives Altria the ability to

raise prices to drive revenue growth, as it has done for many years. The company increased its

dividend for the 51st consecutive year in 2020, keeping it on the exclusive list of Dividend Kings.

Another benefit of Altria’s business model is that it is highly resistant to recessions. Cigarettes and

alcohol sales hold up very well during recessions, which keep Altria’s profitability and dividend

growth intact. Given Altria’s own exposure to cigarettes and now, e-cigarette products, in addition to

its sizable investment stake in AB InBev, it should hold up very well during the next downturn.


Altria’s biggest risk is the declining U.S. smoking rate. In response, Altria has invested heavily in

related products that it believes carry fewer health risks, such as its $13 billion investment in e-cigarette

leader Juul and its $1.8 billion investment in marijuana company Cronos. Altria also recently invested

$372 million to acquire an 80% ownership stake in Swiss tobacco company, Burger Söhne, to

commercialize its tobacco leaf-free on! oral nicotine pouches. Finally, Altria is aggressively expanding

its own e-cigarette brand IQOS. In July, IQOS received approval from the FDA to be marketed as a

modified-risk tobacco product since it heats but does not burn tobacco.

Based on expected 2020 EPS of $4.31, Altria stock trades for a price-to-earnings ratio of 9.0, compared

with our fair value estimate of 11.0. As a result, Altria stock appears to be undervalued, which could

result in positive returns of 4.1% per year over the next five years. In addition, we expect 3% annual

earnings-per-share growth through 2025, while the stock has a high dividend yield of 8.9%. Taken

together, Altria stock has total expected annualized returns of 16% per year over the next five years.






27





Operating Profit 6264 6290 7314 8095 7619 8365 8910 9625 9498 10485 Op. Margin 37.1% 37.8% 41.8% 45.8% 42.5% 44.4% 46.1% 49.4% 48.4% 53.0% Net Profit 3905 3390 4180 4535 5070 5241 14239 10222 6963 -1293

Net Margin 23.1% 20.4% 23.9% 25.7% 28.3% 27.8% 73.6% 52.4% 35.5% -6.5% Free Cash Flow 2599 3476 3761 4244 4500 5614 3637 4702 8153 7591

Income Tax 1816 2189 2294 2407 2704 2835 7608 (399) 2374 2064



Acc. Receivable 85 268 193 115 124 124 151 142 142 152 Inventories 1803 1779 1746 1879 2040 2031 2051 2225 2331 2293

Goodwill & Int. 17292 17272 17252 17232 17334 17313 17321 17707 17475 17864 Total Liabilities 32175 33068 32159 30741 31465 28586 33159 27822 40670 42952

Accounts Payable 529 503 451 409 416 400 425 374 399 325 Long-Term Debt 12194 13689 13878 14517 14693 12847 13881 13894 25746 28042

Total Equity 5192 3680 3168 4119 3014 2880 12770 15377 14787 6222 D/E Ratio 2.35 3.72 4.38 3.52 4.87 4.46 1.09 0.90 1.74 4.51


Return on Assets 10.5% 9.1% 11.6% 12.9% 14.6% 15.9% 36.8% 22.9% 14.1% -2.5% Return on Equity 84.3% 76.4% 122% 125% 142% 178% 182% 72.6% 46.2% -12.3%

ROIC 23.3% 19.5% 24.3% 25.4% 27.9% 31.4% 67.2% 36.6% 19.9% -3.5% Shares Out. 2089 2044 2010 1994 1969 1960 1943 1901 1888 1860



28


29


John Wiley & Sons Inc. (JW.A)

Overview & Current Events

John Wiley & Sons is a publishing and research company whose operations are split into three

segments: Research, Publishing, and Solutions. The company offers research journals, reference

books, databases, clinical decision support tools, laboratory manuals, scientific and education books,

and test preparation services. Its services also include learning, development and assessment services

for businesses and professionals, and online program management for higher education institutions.

John Wiley & Sons reported its fiscal 2021 first-quarter earnings results on September 3rd. Revenue of

$431 million increased 2% in constant-currency, compared with the same quarter last fiscal year. On

an adjusted basis, earnings before interest, taxes, depreciation, and amortization (EBITDA) increased

42% while earnings-per-share (EPS) increased 124% due to revenue growth as well as significant cost

cuts. Among operating segments, Research Publishing & Platforms revenue increased 6%, Academic

& Professional Learning declined 12%, and Education Services grew 29%.


John Wiley & Sons’ competitive advantages are its leadership in the publishing and research industry,

as well as its successful transformation into a digital, recurring revenue business model. John Wiley &

Sons will likely remain relatively insulated versus changes in the publishing industry.

Since a substantial portion of its revenues are generated via journal subscriptions, which result in

recurring revenue, and because demand from the scientific community is not overly cyclical, John

Wiley & Sons performed quite well during the last financial crisis. The company grew its earnings-

per-share 30% from 2008 through 2010, during The Great Recession.


John Wiley & Sons’ focus on publishing research journals, scientific books, and similar items gives the

company a positive growth outlook. Book sales have declined in the U.S. for the past decade. But

because John Wiley & Sons’ offers books and journals for students, professionals, and scientists; the

company enjoys a steady, recurring revenue stream. It has also successfully transformed itself, as

~75% of all revenues were generated from digital products during the last year. Furthermore, John

Wiley’s research segment has performed well in recent years thanks to growth from journal

subscriptions and ongoing expansion in licensing & reprints. Overall, we expect 4% to 5% annual

earnings-per-share growth over the next five years.

Based on projected earnings power of $2.70 per share, John Wiley & Sons stock trades for a price-to-

earnings ratio of 11.8, below our fair value estimate of 16.0. John Wiley & Sons stock is significantly

undervalued. An expanding P/E multiple could increase returns by 6.3% per year over the next five

years. The combination of 4.5% annual earnings-per-share and the 4.3% dividend yield result in total

expected returns of 15.1% per year over the next five years.






30



Revenue 1,743 1,783 1,761 1,775 1,822 1,727 1,719 1,796 1,800 1,831 Gross Profit 1,204 1,239 1,229 1,268 1,323 1,261 1,218 1,265 1,245 1,240

Gross Margin 69.1% 69.5% 69.8% 71.4% 72.6% 73.0% 70.9% 70.4% 69.2% 67.7% SG&A Exp. 911 922 933 969 1,005 994 943 957 964 997 D&A Exp. 81 87 98 103 113 116 116 113 124 139

Operating Profit 248 280 253 254 267 217 225 260 227 181 Operating Margin 14.2% 15.7% 14.4% 14.3% 14.6% 12.5% 13.1% 14.5% 12.6% 9.9%

Net Profit 172 213 144 161 177 146 114 192 168 (74) Net Margin 9.9% 11.9% 8.2% 9.0% 9.7% 8.4% 6.6% 10.7% 9.3% -4.1%

Free Cash Flow 321 312 278 291 286 243 181 241 164 198 Income Tax 59 59 43 35 49 29 77 22 45 11


Total Assets 2,430 2,533 2,806 3,077 3,004 2,921 2,606 2,839 2,937 3,169 Cash & Equivalents 202 260 334 486 457 364 59 170 93 202

Accounts Receivable 168 172 162 150 147 168 189 212 295 309 Inventories 106 101 82 75 64 58 48 39 36 44

Goodwill & Int. Ass. 1,576 1,606 1,790 1,888 1,880 1,829 1,810 1,868 1,961 1,924 Total Liabilities 1,452 1,515 1,818 1,895 1,949 1,884 1,603 1,649 1,756 2,235

Accounts Payable 155 151 143 143 161 166 76 90 91 94 Long-Term Debt 454 475 673 700 750 605 365 360 479 775

Shareholder’s Equity 978 1,018 988 1,182 1,055 1,037 1,003 1,191 1,181 934 D/E Ratio 0.46 0.47 0.68 0.59 0.71 0.58 0.36 0.30 0.41 0.83


Return on Assets 7.3% 8.6% 5.4% 5.5% 5.8% 4.9% 4.1% 7.1% 5.8% -2.4% Return on Equity 20.2% 21.3% 14.4% 14.8% 15.8% 13.9% 11.1% 17.5% 14.2% -7.0%

ROIC 12.3% 14.5% 9.1% 9.1% 9.6% 8.5% 7.6% 13.2% 10.5% -4.4% Shares Out. 60 59 59 59 58 57 57 57 57 56



31



32

CVS Health Corp. (CVS) Overview & Current Events

CVS is an integrated healthcare services provider. The company operates more than 9,900 retail

locations and 1,100 medical clinics. CVS also services approximately 103 million plan members after

the $78 billion acquisition of Aetna in 2018. CVS generates annual revenues of about $265 billion.

CVS released earnings results for the second quarter on 8/4/20. Revenue increased 3% to $65.3 billion,

while adjusted earnings-per-share (EPS) increased 40% year-over-year. The COVID-19 pandemic

added an estimated $0.70 to $0.80 to adjusted earnings-per-share and $1.8 to $2.1 billion to revenue

results during the quarter, due to higher demand for healthcare products. Same store sales improved

2.4% from the previous year, while medical memberships overall increased 3.3% to 23.6 million

members. The company now expects adjusted earnings-per-share of $7.14 to $7.27 for the full year, up

from $7.04 to $7.17 previously.


CVS’ most compelling competitive advantage is its entrenched position in the pharmaceutical retail

industry. The industry is highly regulated, which makes it difficult for new competitors to enter into

the industry and gain market share. In addition, the company is one of the largest pharmacies in the

United States (along with Walgreens Boots Alliance), which allows it to capture economies of scale

and pressure its suppliers into delivering better prices.

Consumers are unlikely to cut spending on prescriptions, health insurance, and other healthcare

products and services, even during difficult economic times. We believe this makes CVS resistant to

recessions. From 2008 through 2010, during the Great Recession, CVS actually increased its diluted

earnings-per-share by 10%. The company has also continued to perform well in 2020, despite the U.S.

economy officially entering a recession in February.


CVS has a strong historical growth profile. In the past decade, the company grew earnings-per-share

by approximately 10% per year. We also believe CVS has a positive long-term growth outlook going

forward. Like Walgreens, the company will benefit from the aging U.S. population and rising demand

for pharmacy services. We believe pharmacy services growth, in addition to health insurance

operations from the Aetna acquisition, will drive 5% annual EPS growth over the next five years.

Based on expected fiscal 2020 adjusted EPS of $7.21, CVS stock trades at a price-to-earnings ratio

(P/E) of just 8.0. The stock has held an average price-to-earnings ratio of 14.6 over the past decade.

Our fair value estimate is a P/E ratio of 11.0, which we view as a prudent fair value P/E multiple. This

means expansion of the price-to-earnings ratio could add 5.8% to the annualized returns of the stock

through 2025. We expect this expansion to combine with 5% expected annualized EPS growth and the

3.4% dividend yield, to generate 14.2% total annual returns over the next five years.






33



Revenue ($B) 95,778 107,080 123,120 126,761 139,367 153,290 177,546 184,786 194,579 256,776 Gross Profit 20,219 20,562 22,488 23,783 25,367 26,528 28,834 28,528 31,538 45,528

Gross Margin 21.1% 19.2% 18.3% 18.8% 18.2% 17.3% 16.2% 15.4% 16.2% 17.7% D&A Exp. 1,469 1,568 1,753 1,870 1,931 2,092 2,475 2,479 2,718 4,371

Operating Profit 6,137 6,331 7,210 8,037 8,799 9,475 10,386 9,719 10,170 11,987 Op. Margin 6.4% 5.9% 5.9% 6.3% 6.3% 6.2% 5.8% 5.3% 5.2% 4.7% Net Profit 3,427 3,462 3,864 4,592 4,644 5,237 5,317 6,622 (594) 6,634

Net Margin 3.6% 3.2% 3.1% 3.6% 3.3% 3.4% 3.0% 3.6% -0.3% 2.6% Free Cash Flow 2,774 3,984 4,641 3,799 6,001 6,172 7,917 6,089 6,828 10,391

Income Tax 2,179 2,258 2,436 2,928 3,033 3,386 3,317 1,637 2,002 2,366


Total Assets 62,169 64,543 66,221 71,526 74,187 92,437 94,462 95,131 196,456 222,449 Cash & Equivalents 1,427 1,413 1,375 4,089 2,481 2,459 3,371 1,696 4,059 5,683

Acc. Receivable 4,925 6,047 6,479 8,729 9,687 11,888 12,164 7,895 6,896 19,617 Inventories 10,695 10,046 11,032 11,045 11,930 14,001 14,760 15,296 16,450 17,516

Goodwill & Int. 35,453 36,327 36,148 36,071 37,916 51,984 51,760 52,081 115,202 112,870 Total Liabilities 24,435 26,492 28,568 33,588 36,224 55,234 57,628 57,436 137,913 158,279

Accounts Payable 4,026 4,370 5,070 5,548 6,547 7,490 7,946 8,863 8,925 10,492 Long-Term Debt 10,057 10,014 9,828 13,402 12,890 27,464 27,531 27,002 73,429 68,480

Total Equity 37,700 38,051 37,653 37,938 37,958 37,196 36,830 37,691 58,225 63,864 D/E Ratio 0.27 0.26 0.26 0.35 0.34 0.74 0.75 0.72 1.26 1.07


Return on Assets 5.5% 5.5% 5.9% 6.7% 6.4% 6.3% 5.7% 7.0% -0.4% 3.2% Return on Equity 9.3% 9.1% 10.2% 12.1% 12.2% 13.9% 14.4% 17.8% -1.2% 10.9%

ROIC 7.2% 7.2% 8.1% 9.3% 9.1% 9.1% 8.2% 10.3% -0.6% 5.0% Shares Out. 1363 1298 1231 1180 1140 1101 1061 1014 1126 1301



34


Disclaimer

Nothing presented herein is, or is intended to constitute, specific investment advice. Nothing in this newsletter should be construed as a recommendation to follow any investment strategy or allocation. Any forward-looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements

or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. While Sure Dividend has used reasonable efforts

to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability or completeness of third-party information presented herein. No guarantee of investment performance is being provided and no inference to the contrary should be made. There is a risk of loss from an investment in

securities. Past performance is not a guarantee of future performance.

35

Closing Thoughts - What If You Never Sold A Security? -

We discussed our past closed sell recommendations in this month’s Opening Thoughts. On average our closed sell recommendations have outperformed the market from the time we initiated the buy recommendation and underperformed the market after we initiated our final sell recommendation. This is exactly what we’d hope to see with sell recommendations.

But, a large amount of work goes into determining when to sell our previous recommendations – and despite this we still had one spectacular miss with Owens & Minor. And then there are real frictional costs like taxes (for non-taxable accounts), brokerage fees (which have come down significantly and are rarely material now), and slippage (when a market order gets executed at a different price than intended). These and other frictional costs would further reduce the benefit of selling and reinvesting the proceeds.

On top of that, Warren Buffett recommends selling as infrequently as possible:

“When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

When it comes to selling securities, the less often, the better. The better someone is at buying quality securities that grow over the long run, the less likely that investor will need to sell.

If an investor never sold, their portfolio would likely become heavily weighted toward a few positions. Take Altria (MO) for example – it managed to generate compound annual returns of around 20% for fifty years. This turns $1 into over $9,000. Meanwhile, an investment compounding at a still good 9% return over 50 years would turn $1 into $74.36.

This would be good from a total return perspective (more money in your best investments) but would also create an undue amount of risk. If something unforeseen happened to the serial compounder securities, the portfolio would see serious declines due to a lack of diversification.

One less often discussed benefit of investing in dividend securities and never selling is that it creates true passive income because no additional work is required after the initial investment. There are very few true passive income opportunities available.

The concept of never selling has its merits based on reducing frictional costs and the difficulty of investing in general. On the downside, it would likely result in a risky portfolio with massive allocations to a few securities with the best historical performance. Moreover, securities with weak expected returns would not be pruned from the portfolio. We seek to hold investments for the long run at Sure Dividend and do see the merit in a ‘never sell’ approach, but we do recommend selling in the event of dividend reductions and low total expected returns.

Thanks,

Ben Reynolds

https://money.cnn.com/2015/02/19/investing/americas-best-stock-ever/

36

The next Sure Dividend Newsletter publishes on Sunday, November 1st, 2020

Real Money Portfolio

The Sure Dividend Real Money Portfolio tracks our actual investment decisions in real time,

with real money. Each month we will save and invest $1,000 to show the actual progress of

building and maintaining a dividend growth portfolio.

Our buy decisions will be the highest ranked stock in the Top 10 that we either do not own or

own the least in our portfolio. We will not place buys that push the portfolio over 30% in any

one sector to prevent over-concentration in any sector. The portfolio will hold 30 stocks. Once

30 stocks are reached, it will buy the highest ranked stock already in the portfolio up to 10% of

the portfolio’s value. Selling uses the same criteria as The Sure Dividend Newsletter.

We are using Interactive Brokers as our brokerage for this portfolio. Buy orders for our trades

will be placed the second trading day after The Sure Dividend Newsletter is published. This gives

readers who follow the real money portfolio a full trading day to make trades in advance of us.

Our next buy will be Altria (MO), which is the highest ranked stock in this month’s

newsletter that isn’t currently in the Real Money Portfolio and not in the financial sector (we are

overweight financials currently).

We also have one pending sell in the real money portfolio. Foot Locker (FL) will be sold the

Tuesday after we initiate our final sell recommendation for the company in The Sure Dividend

Newsletter. Foot Locker is a pending sell due to its dividend reduction. We will initiate our

final sell recommendation on the security when it appreciates closer to its pre COVID-19 value.

For now, we will continue to hold Foot Locker in the real money portfolio.

The screenshot from our brokerage account below shows our current 21 holdings in The Real

Money Portfolio (see the next page).

37

Including dividends, cash for October’s upcoming purchase, and transaction costs, the account

has a total value of $20,773.915 versus $22,000.00 invested.

The portfolio currently has a weighted dividend yield of 3.6% which translates to annual

dividend income of $706.

Performance and annual dividend income will become increasingly meaningful as both the

number and value of holdings in our portfolio grows, and as the amount of time each security

has been held increases.

5 Performance data is through midday 10/2/20.

38

Buying & Ranking Criteria The method we use to come up with the Top 10 list for The Sure Dividend Newsletter is as follows:

Note: Ranking data is from the preceding Wednesday’s Sure Analysis data update.

1. Filter our Sure Analysis Research Database universe of securities for: - 10%+ Expected Total Returns - A & B Dividend Risk Scores - U.S. securities only (no international securities, REITs, MLPs, or BDCs, etc.) - All companies must have their dividend covered by cash flows

2. Sort by Expected Total Returns (highest first)

3. No more than three companies per sector

4. Veto any securities from the Top 10 as necessary after qualitative analysis

5. The Top 10 is the 10 highest Expected Total Returns securities from steps 1 through 4

6. “A” Dividend Risk Score securities rank ahead of “B” Dividend Risk Score securities within the Top 10

To receive an “A” Dividend Risk Score, a security must be in the top 20% for dividend safety. To receive a “B” Dividend Risk Score, a security must be in the top 40% for dividend safety. The formula for the Dividend Risk Score is below:

Dividend Risk Score (Raw) = Payout Ratio x 100 – # Years of Steady or Rising Dividends + 50 if deemed risky during a recession We view securities with “A” and “B” Dividend Risk Scores as generally having secure dividends that are very unlikely to be reduced in the near future. Our formula for Expected Total Returns is calculated as the product of 5-year expected returns from growth on a per share basis, 5-year expected returns from valuation multiple changes, and the current dividend yield. The combination of expected total returns and low dividend risk creates a screen to find high-quality dividend growth securities with strong return potential. Note that our expected total returns are based on the idea that the economy will continue forward ‘as is’ for the foreseeable future, and not encounter a recession. Recessions happen, of course, and we seek to recommend securities likely to pay steady or rising dividends during recessions. Recession safety factors into our Dividend Risk Scores, and in turn our rankings for The Sure Dividend Newsletter.

https://www.suredividend.com/sure-analysis-subscribe/

39

Portfolio Building Guide

The process of building a high-quality dividend growth portfolio does not have to be complex: Each month

invest in the top-ranked security in which you own the smallest dollar amount out of the Top 10. Over

time, you will build a well-diversified portfolio of great businesses purchased at attractive prices. Alternatively,

the Top 10 list is also useful as an idea generation tool for those with a different portfolio allocation plan.

If you are looking to add higher yielding securities to your portfolio, The Sure Retirement Newsletter offers a

Top 10 list with 4%+ dividend yields. The Sure Analysis Research Database includes 600+ (and growing)

securities, most of which we analyze quarterly and provide Dividend Risk scores and 5-year forward expected

total returns (among other metrics) for.

Examples Portfolio 1 Portfolio 2

Ticker Name Amount Ticker Name Amount

UNM Unum $ 1,002 UNM Unum $ 4,374

WBA Walgreens $ - WBA Walgreens $ 4,878

ABBV AbbVie $ - ABBV AbbVie $ 4,353

MTB M&T Bank $ - MTB M&T Bank $ 7,428

HII Huntington Ingalls $ - HII Huntington Ingalls $ 3,309

PB Prosperity Bancshares $ - PB Prosperity Bancshares $ 8,099

T AT&T $ - T AT&T $ 5,629

MO Altria $ - MO Altria $ 2,176

JW.A John Wiley & Sons $ - JW.A John Wiley & Sons $ 1,079

CVS CVS Health $ - CVS CVS Health $ 4,864

- If you had portfolio 1, you would buy WBA, the top-ranked security you own least.

- If you had portfolio 2, you would buy JW.A, the top-ranked security you own least.

If you have an existing portfolio or a large lump sum to invest, you may wish to switch over to the Sure

Dividend Strategy over a 20-month period. Each month take 1/20 of your initial portfolio value and buy the

top-ranked security you own the least out of the Top 10. When you sell a security, use the proceeds to purchase

the top-ranked security you own the least. Reinvest dividends in the same manner.

This simple investing process will build a diversified portfolio of high-quality dividend securities over a period

of less than two years. Further, higher ranked securities will receive proportionately more investment dollars as

they will stay in the Top 10 rankings longer. You will build up large positions in the highest-quality securities

over your investing career.

If your portfolio grows too large to manage comfortably (for example, you are not comfortable holding 40+

securities – which would happen after around four years of using the Sure Dividend System), you will need to

sell holdings. I recommend eliminating positions that have the lowest yields if you are in or near retirement. If

you are not near retirement, eliminate positions that rank the lowest in the newsletter until you are comfortable

with the number of positions in your portfolio. Reinvest the proceeds into the highest-ranked securities you

currently own, until your highest-ranked holding makes up 10% of your portfolio’s total value. Then add to the

next highest-ranked holding, and so on.

https://www.suredividend.com/retirement-subscribe/

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40

Past Recommendations & Sells

Every past Sure Dividend Newsletter recommendation from the Top 10 is shown in this section6. The sell rules

that govern this newsletter are below. Except in extreme circumstances, we will not issue sell recommendations

– even if the sell rules below are triggered – unless a security has been held for one year or longer to qualify for

the lower long-term capital gains tax rates in taxable accounts.

Sell Rules Sell Rule #1, Dividend-Based Sell Rules: Any past recommendation that reduces or eliminates its dividend is

automatically a pending sell. We review and analyze these securities to determine when to initiate the final

sale. Secondly, any past recommendation that has an “F” Dividend Risk Score is reviewed as a potential sell.

Sell Rule #2, Valuation-Based Sell Rules: Sell past recommendations with expected total returns below the

expected total returns of the S&P 500 over the next several years. This sell rule replaces our previous

valuation-based sell rule of selling securities with an adjusted P/E ratio of 40 or higher. We calculate our

estimate of the long-term returns of the S&P 500 as the S&P 500’s dividend yield plus nominal (not inflation

adjusted) GDP growth, less valuation multiple mean reversion over 10 years. We currently estimate long-term

U.S. nominal GDP growth at 5.5%, the S&P 500’s dividend yield at 1.8%, and valuation multiple mean

reversion at -5.8% (S&P 500 fair value P/E of 15.8 versus current P/E of 28.8) for a 5-year expected total

returns7 sell threshold of 1.5%. Past recommendations at or below this sell threshold are bolded and in red

in the table below. We will only recommend up to two valuation-based sells a month so that the reinvestment

of sale proceeds is not concentrated in a short time frame. We will also review valuation-based sells

qualitatively and for momentum to select the appropriate sell time.

Unsold Past Recommendations

Name Ticker Time Since 1st

Recommended (Years)

DR Score

5-Year Expected

Total Returns

Total Return8

CAGR9 S&P 500

(SPY) CAGR

Kimberly-Clark KMB 6.5 A 5.4% 70.6% 8.6% 11.8%

ExxonMobil XOM 6.5 F 19.2% -56.1% -11.9% 11.8%

3M MMM 6.4 A 5.1% 35.4% 4.8% 11.6%

Genuine Parts Company GPC 6.4 A 4.7% 35.1% 4.8% 11.6%

Becton, Dickinson BDX 6.3 A 6.4% 116.1% 12.9% 11.3%

General Mills GIS 6.3 C 5.7% 40.6% 5.5% 11.3%

Philip Morris PM 6.3 C 9.5% 15.6% 2.3% 11.3%

AT&T T 6.3 B 14.6% 13.4% 2.0% 11.3%

J.M. Smucker SJM 6.2 B 6.6% 36.1% 5.1% 11.5%

Altria MO 5.5 B 13.4% 0.2% 0.0% 11.2%

Caterpillar CAT 5.2 C 6.4% 122.2% 16.7% 11.7%

6 This does not include our past “special recommendations” or international recommendations from years ago, which are outside the

scope of the regular Sure Dividend Newsletter strategy. We are not tracking when to sell or performance of those recommendations. 7 We are using the simplified calculation of expected total returns, which is dividend yield + growth rate + valuation multiple change. 8 Data through midday 10/2/20 and the 10/1/20 Sure Analysis Research Database Excel sheet. 9 Compound Annual Growth Rate (using total returns) is only calculated for past recommendations with holding periods of 1+ years.

41

BCE BCE 5.2 D 7.9% 31.8% 5.5% 11.7%

Raytheon Technologies RTX 5.2 B 12.0% 11.4% 2.1% 11.7%

Cummins CMI 4.9 C 2.8% 127.2% 18.2% 12.1%

Verizon VZ 4.8 B 8.6% 58.8% 10.1% 12.6%

Johnson Controls JCI 4.8 D 7.2% 49.1% 8.6% 12.6%

Archer-Daniels-Midland ADM 4.6 A 6.2% 61.2% 10.8% 15.8%

General Dynamics GD 4.6 A 11.2% 14.3% 3.0% 14.1%

Cardinal Health CAH 4.4 A 11.0% -33.4% -8.8% 13.6%

Phillips 66 PSX 4.2 F 19.5% -26.0% -6.8% 14.0%

Walgreens Boots Alliance WBA 4.1 A 14.6% -51.3% -16.2% 13.2%

AbbVie ABBV 4.0 A 13.9% 63.6% 13.1% 13.8%

Medtronic MDT 3.8 A 3.6% 55.8% 12.3% 13.7%

Lowe's LOW 3.4 A 11.6% 104.8% 23.4% 12.5%

IBM IBM 3.4 B 9.0% -8.7% -2.6% 12.5%

Ameriprise Financial AMP 3.3 A 13.5% 38.5% 10.3% 12.2%

CVS Health CVS 3.3 B 14.2% -19.2% -6.2% 12.2%

HNI HNI 2.8 C -0.3% 4.3% 1.5% 10.9%

Leggett & Platt LEG 2.7 B 6.7% -4.4% -1.6% 9.7%

ONEOK OKE 2.7 C 22.3% -46.0% -20.2% 9.7%

Franklin Resources BEN 2.5 A 12.7% -33.2% -14.9% 13.2%

United Parcel Service UPS 1.9 B 1.5% 66.9% 30.8% 13.5%

Northrop Grumman NOC 1.9 A 12.8% 14.0% 7.1% 13.5%

Whirlpool WHR 1.7 B 2.8% 66.5% 34.1% 19.4%

Hanesbrands HBI 1.7 B 7.8% 27.9% 15.2% 19.4%

Eaton Vance EV 1.7 A 8.8% 15.0% 8.4% 19.4%

Newell Brands NWL 1.7 D 4.1% -3.8% -2.2% 19.4%

Bank OZK OZK 1.7 B 13.4% -5.8% -3.4% 19.4%

T. Rowe Price TROW 1.7 A 5.0% 42.3% 23.7% 15.6%

People's United Financial PBCT 1.6 B 15.4% -37.7% -25.9% 14.5%

MSC Industrial MSM 1.2 B 11.7% -3.2% -2.6% 12.3%

A.O. Smith AOS 1.2 B 2.6% 25.7% 21.8% 17.6%

Snap-on SNA 1.2 B 4.6% 1.1% 0.9% 17.6%

FedEx FDX 1.0 A 10.8% 83.8% N/A N/A

UnitedHealth UNH 1.0 A 8.1% 43.2% N/A N/A

Comcast CMCSA 1.0 B 8.6% 4.3% N/A N/A

Textron TXT 1.0 A -0.7% -26.7% N/A N/A

42

M&T Bank MTB 1.0 B 16.7% -37.8% N/A N/A

Lockheed Martin LMT 0.7 B 12.2% -7.1% N/A N/A

UMB Financial UMBF 0.7 C 7.2% -25.0% N/A N/A

Polaris PII 0.5 A 10.3% 120.9% N/A N/A

H.B. Fuller FUL 0.5 A 8.6% 65.4% N/A N/A

Pentair PNR 0.5 A 6.9% 49.1% N/A N/A

UGI UGI 0.5 B 10.6% 24.8% N/A N/A

Stanley Black & Decker SWK 0.4 A 0.6% 58.7% N/A N/A

Unum UNM 0.4 A 18.2% 1.9% N/A N/A

Bristol-Myers Squibb BMY 0.3 A 13.5% -2.2% N/A N/A

Enterprise Bancorp EBTC 0.3 A 16.0% -16.6% N/A N/A

Huntington Ingalls HII 0.2 B 17.0% -18.8% N/A N/A

Intel INTC 0.2 B 11.0% 8.0% N/A N/A

John Wiley & Sons JW.A 0.2 B 13.4% -4.3% N/A N/A

Prosperity Bancshares PB 0.2 B 16.4% -6.2% N/A N/A

Sempra Energy SRE 0.1 B 12.8% N/A N/A N/A

Pending Sells Name Ticker 1st Rec. Date Sell Date Total Return S&P 500 Total Return10

Macy’s M 5/8/2017 TBD -75.2% 49.3%

Occidental Petroleum OXY 6/5/2017 TBD -81.8% 46.6%

Royal Dutch Shell RDS.B 7/3/2017 TBD -49.2% 47.0%

Kohl’s KSS 9/5/2017 TBD -46.4% 44.7%

Southwest Airlines LUV 2/5/2018 TBD -32.8% 33.6%

Invesco IVZ 3/5/2018 TBD -57.7% 29.5%

WestRock WRK 3/4/2019 TBD -4.6% 23.8%

Foot Locker FL 6/3/2019 TBD -11.2% 25.4%

We will initiate final sell recommendations for all of the above pending sells when they reach or approximate

their fair value. We are not issuing sell prices for our pending sells at this time. We are reviewing with every

newsletter for the final sell recommendation.

Sold Positions Name Ticker 1st Rec. Date Sell Date Total Return S&P 500 Total Return

Chubb (old Chubb) CB 4/7/2014 7/6/2015 32.1% 14.9%

Baxalta (acquired) BXLT 7/6/2015 2/8/2016 15.4% -9.3%

10 S&P 500 total returns are measured by the investable S&P 500 ETF (SPY).

43

ConocoPhillips COP 12/8/2014 10/8/2018 34.4% 50.8%

Helmerich & Payne HP 2/2/2015 12/3/2018 17.5% 48.9%

Vector VGR 8/7/2017 12/3/2018 -28.7% 15.3%

Abbott ABT 7/7/2014 1/7/2019 83.6% 40.9%

Hormel HRL 12/5/2016 1/7/2019 30.2% 20.3%

Ecolab ECL 10/6/2014 2/4/2019 70.4% 66.8%

Wal-Mart WMT 4/7/2014 2/4/2019 43.4% 66.8%

Clorox CLX 4/7/2014 3/4/2019 100.5% 72.6%

Nike NKE 5/8/2017 3/4/2019 61.6% 25.0%

Church & Dwight CHD 4/2/2018 4/8/2019 50.2% 14.3%

Computer Services CSVI 11/2/2015 6/3/2019 105.4% 39.9%

Axis Capital AXS 1/8/2018 6/3/2019 28.2% 2.6%

VF Corp. VFC 11/7/2016 7/8/2019 73.0% 46.9%

AFLAC AFL 4/7/2014 7/8/2019 108.0% 78.7%

Procter & Gamble PG 12/7/2015 8/5/2019 62.5% 46.8%

Mondelez MDLZ 4/3/2017 8/5/2019 27.3% 25.9%

Boeing BA 10/3/2016 9/3/2019 187.6% 42.1%

McDonald’s MCD 4/7/2014 9/3/2019 162.0% 75.0%

Owens & Minor OMI 1/8/2018 10/7/2019 -67.0% 10.6%

Coca-Cola KO 4/7/2014 10/7/2019 66.5% 77.2%

Qualcomm QCOM 6/5/2017 11/4/2019 57.7% 32.1%

Universal UVV 2/5/2018 11/4/2019 30.0% 20.3%

Target TGT 4/7/2014 12/2/2019 147.9% 88.4%

PepsiCo PEP 4/7/2014 12/2/2019 90.3% 88.4%

Illinois Tool Works ITW 11/5/2018 1/6/2020 41.1% 21.3%

Deere & Company DE 1/5/2015 1/6/2020 129.0% 77.1%

Eaton ETN 2/4/2019 2/5/2020 48.0% 24.7%

Western Digital WDC 9/8/2015 2/3/2020 95.2% 79.5%

Flowers Foods FLO 3/7/2016 4/6/2020 41.2% 43.6%

Johnson & Johnson JNJ 11/2/2015 5/3/2020 63.9% 47.5%

Disney DIS 6/6/2016 6/8/2020 36.6% 65.5%

Kellogg K 12/8/2014 7/6/2020 19.6% 72.0%

S&P Global SPGI 12/3/2018 7/6/2020 86.8% 17.5%

W.W. Grainger GWW 7/6/2015 9/8/20 67.2% 78.0%

Average Sold Recommendation Total Return: 61.4%

Average S&P 500 (SPY) Total Return: 45.2%

44

List of Stocks by Dividend Risk Score

Each of the securities in the Sure Analysis Research Database are grouped according to Dividend

Risk Score and sorted (from highest to lowest) by Expected Total Returns. Dividend or distribution

yield is included next to each security’s ticker symbol. The Dividend Risk Score uses payout ratio,

dividend history, and recession resiliency to measure a company’s dividend safety. You can learn

more about how the score is calculated in the Sure Analysis Glossary. These rankings will not

always align with our Top 10 due to additional safety constraints we impose outside of the Top 10

and newsletter compilation timing11. See our ‘Buying and Ranking Criteria’ for more information.

A-Rated Dividend Risk Stocks 1. Unum Group (UNM): 6.8%

2. Enterprise Bancorp, Inc. (EBTC): 3.2%

3. Tencent Holdings Ltd. (TCEHY): 0.2%

4. Ping An Insurance (Group) Co. of China Ltd. (PNGAY): 2%

5. Walgreens Boots Alliance, Inc. (WBA): 5.2%

6. AbbVie, Inc. (ABBV): 5.3%

7. Canadian Utilities Ltd. (CDUAF): 5.3%

8. Ameriprise Financial, Inc. (AMP): 2.6%

9. Telephone & Data Systems, Inc. (TDS): 3.6%

10. Community Trust Bancorp, Inc. (Kentucky) (CTBI): 5.2%

11. National Fuel Gas Co. (NFG): 4.3%

12. Eagle Financial Services, Inc. (EFSI): 4.1%

13. Bristol Myers Squibb Co. (BMY): 2.9%

14. L3Harris Technologies, Inc. (LHX): 1.6%

15. PSB Holdings, Inc. (Wisconsin) (PSBQ): 2.3%

16. Perrigo Co. Plc (PRGO): 1.9%

17. Northrop Grumman Corp. (NOC): 1.7%

18. Franklin Resources, Inc. (BEN): 5.3%

19. Fresenius Medical Care AG & Co. KGaA (FMS): 1.7%

20. Lowe's Cos., Inc. (LOW): 1.4%

21. Tennant Co. (TNC): 1.5%

22. McKesson Corp. (MCK): 1.1%

23. General Dynamics Corp. (GD): 3.1%

24. Black Hills Corp. (BKH): 4%

25. Farmers & Merchants Bancorp (California) (FMCB): 2%

26. FedEx Corp. (FDX): 1%

27. Carlisle Cos., Inc. (CSL): 1.7%

28. Cardinal Health, Inc. (CAH): 4.1%

29. Donaldson Co., Inc. (DCI): 1.8%

30. Polaris Inc. (PII): 2.7%

31. Chubb Ltd. (CB): 2.6%

32. Brady Corp. (BRC): 2.2%

33. Applied Materials, Inc. (AMAT): 1.4%

34. Oracle Corp. (ORCL): 1.6%

35. Aflac, Inc. (AFL): 3.1%

36. Eaton Vance Corp. (EV): 3.9%

37. BancFirst Corp. (Oklahoma) (BANF): 3.1%

38. Assurant, Inc. (AIZ): 2.1%

39. SEI Investments Co. (SEIC): 1.4%

11 This list was created with data from the Sure Analysis Research Database spreadsheet from 9/30/20.

40. UnitedHealth Group, Inc. (UNH): 1.5%

41. H.B. Fuller Co. (FUL): 1.4%

42. Sonoco Products Co. (SON): 3.4%

43. The Kroger Co. (KR): 2%

44. Atmos Energy Corp. (ATO): 2.4%

45. Arrow Financial Corp. (AROW): 4%

46. Northwest Natural Holding Co. (NWN): 4.4%

47. Parker-Hannifin Corp. (PH): 1.7%

48. ABM Industries, Inc. (ABM): 2%

49. Pentair Plc (PNR): 1.6%

50. Archer-Daniels-Midland Co. (ADM): 3.1%

51. Becton, Dickinson & Co. (BDX): 1.4%

52. AmerisourceBergen Corp. (ABC): 1.7%

53. Emerson Electric Co. (EMR): 3.1%

54. Stryker Corp. (SYK): 1.1%

55. The Gorman-Rupp Co. (GRC): 1.9%

56. Kimberly-Clark Corp. (KMB): 2.9%

57. Costco Wholesale Corp. (COST): 0.8%

58. Chesapeake Financial Shares, Inc. (Maryland) (CPKF): 2.4%

59. First Financial Corp. (Indiana) (THFF): 3.3%

60. Johnson & Johnson (JNJ): 2.6%

61. T. Rowe Price Group, Inc. (TROW): 2.6%

62. S&P Global, Inc. (SPGI): 0.7%

63. Dollar General Corp. (DG): 0.6%

64. 3M Co. (MMM): 3.6%

65. Genuine Parts Co. (GPC): 3.3%

66. Roper Technologies, Inc. (ROP): 0.5%

67. Dover Corp. (DOV): 1.8%

68. Domino's Pizza, Inc. (DPZ): 0.7%

69. Colgate-Palmolive Co. (CL): 2.3%

70. Walmart, Inc. (WMT): 1.6%

71. Advance Auto Parts, Inc. (AAP): 0.4%

72. Brown & Brown, Inc. (BRO): 0.8%

73. Medtronic Plc (MDT): 2.1%

74. Moody's Corp. (MCO): 0.7%

75. Canadian Pacific Railway Ltd. (CP): 0.8%

76. Tompkins Financial Corp. (TMP): 3.7%

77. The Clorox Co. (CLX): 2%

78. SJW Group (SJW): 2%

79. Tractor Supply Co. (TSCO): 1%

80. Tootsie Roll Industries, Inc. (TR): 1.1%

https://www.suredividend.com/sure-analysis-research-database/

https://www.suredividend.com/procedures-glossary-definitions/

45

81. Target Corp. (TGT): 1.7%

82. Franklin Electric Co., Inc. (FELE): 1%

83. Lancaster Colony Corp. (LANC): 1.5%

84. CSX Corp. (CSX): 1.3%

85. Church & Dwight Co., Inc. (CHD): 1%

86. W.W. Grainger, Inc. (GWW): 1.6%

87. Hormel Foods Corp. (HRL): 1.9%

88. MSA Safety, Inc. (MSA): 1.3%

89. Best Buy Co., Inc. (BBY): 1.9%

90. Microsoft Corp. (MSFT): 1%

91. eBay, Inc. (EBAY): 1.1%

92. Cincinnati Financial Corp. (CINF): 3%

93. Stanley Black & Decker, Inc. (SWK): 1.7%

94. Procter & Gamble Co. (PG): 2.2%

95. PPG Industries, Inc. (PPG): 1.7%

96. The Sherwin-Williams Co. (SHW): 0.7%

97. Expeditors International of Washington, Inc. (EXPD): 1.1%

98. MGE Energy, Inc. (MGEE): 2.3%

99. Canadian National Railway Co. (CNI): 1.6%

100. Abbott Laboratories (ABT): 1.3%

101. Jack Henry & Associates, Inc. (JKHY): 1%

102. Ecolab, Inc. (ECL): 0.9%

103. Stepan Co. (SCL): 1%

104. American States Water Co. (AWR): 1.6%

105. Textron, Inc. (TXT): 0.2%

106. NIKE, Inc. (NKE): 0.8%

107. McCormick & Co., Inc. (MKC): 1.3%

108. Brookfield Asset Management, Inc. (BAM): 1.4%

109. Middlesex Water Co. (MSEX): 1.6%

110. Otis Worldwide Corp. (OTIS): 0.6%

111. Computer Services, Inc. (CSVI): 1.3%

112. California Water Service Group (CWT): 1.9%

113. Nordson Corp. (NDSN): 0.8%

114. Carrier Global Corp. (CARR): 0.3%

115. Brown-Forman Corp. (BF.B): 0.9%

116. RPM International, Inc. (RPM): 1.7%

117. AptarGroup, Inc. (ATR): 1.3%

118. Apple, Inc. (AAPL): 0.7%

119. Cintas Corp. (CTAS): 0.8%

120. RLI Corp. (RLI): 1.1%

121. West Pharmaceutical Services, Inc. (WST): 0.2%

B-Rated Dividend Risk Stocks 1. Sunoco LP (SUN): 13.3%

2. Enterprise Products Partners LP (EPD): 11.1%

3. Huntington Ingalls Industries, Inc. (HII): 2.8%

4. M&T Bank Corp. (MTB): 4.7%

5. Prosperity Bancshares, Inc. (PB): 3.5%

6. People's United Financial, Inc. (PBCT): 7%

7. AT&T, Inc. (T): 7.3%

8. Federal Realty Investment Trust (FRT): 5.8%

9. John Wiley & Sons, Inc. (JW.A): 4.3%

10. CVS Health Corp. (CVS): 3.5%

11. Bank OZK (OZK): 4.7%

12. Altria Group, Inc. (MO): 8.8%

13. Bayer AG (BAYRY): 4.9%

14. Sempra Energy (SRE): 3.5%

15. Cisco Systems, Inc. (CSCO): 3.6%

16. Cullen/Frost Bankers, Inc. (CFR): 4.5%

17. Gilead Sciences, Inc. (GILD): 4.2%

18. Sun Life Financial, Inc. (SLF): 4%

19. Lockheed Martin Corp. (LMT): 2.4%

20. Raytheon Technologies Corp. (RTX): 4.7%

21. Edison International (EIX): 4.9%

22. America Móvil SAB de CV (AMX): 2.8%

23. MSC Industrial Direct Co., Inc. (MSM): 4.8%

24. Intel Corp. (INTC): 2.5%

25. American Express Co. (AXP): 1.8%

26. CyrusOne, Inc. (CONE): 2.8%

27. MetLife, Inc. (MET): 4.8%

28. UGI Corp. (UGI): 4%

29. United Bankshares, Inc. (West Virginia) (UBSI): 6.6%

30. Tyson Foods, Inc. (TSN): 2.8%

31. Intuit, Inc. (INTU): 0.7%

32. H&R Block, Inc. (HRB): 6.4%

33. Royal Bank of Canada (RY): 4.5%

34. MDU Resources Group, Inc. (MDU): 3.7%

35. Keurig Dr Pepper, Inc. (KDP): 2.2%

36. Intercontinental Exchange, Inc. (ICE): 1.2%

37. Red Eléctrica Corp. SA (RDEIY): 6.2%

38. International Business Machines Corp. (IBM): 5.4%

39. Comcast Corp. (CMCSA): 1.9%

40. Verizon Communications, Inc. (VZ): 4.2%

41. DTE Energy Co. (DTE): 3.5%

42. Merck & Co., Inc. (MRK): 2.9%

43. Hanesbrands, Inc. (HBI): 3.9%

44. Novartis AG (NVS): 3.5%

45. Campbell Soup Co. (CPB): 2.9%

46. Everest Re Group Ltd. (RE): 3%

47. Nucor Corp. (NUE): 3.6%

48. Flowers Foods, Inc. (FLO): 3.2%

49. Universal Health Realty Income Trust (UHT): 4.9%

50. National Bank of Canada (NTIOF): 4.2%

51. Alliant Energy Corp. (LNT): 2.9%

52. The Travelers Cos., Inc. (TRV): 3.1%

53. Leggett & Platt, Inc. (LEG): 3.9%

54. The J. M. Smucker Co. (SJM): 3.1%

55. Amgen, Inc. (AMGN): 2.5%

56. Mondelez International, Inc. (MDLZ): 2%

57. The Toro Co. (TTC): 1.2%

58. PPL Corp. (PPL): 6.2%

59. Artesian Resources Corp. (ARTNA): 2.9%

60. BlackRock, Inc. (BLK): 2.5%

61. Fortis, Inc. (FTS): 3.4%

62. Automatic Data Processing, Inc. (ADP): 2.6%

63. The Home Depot, Inc. (HD): 2.1%

64. The Coca-Cola Co. (KO): 3.3%

65. NextEra Energy Partners LP (NEP): 3.6%

66. Cognizant Technology Solutions Corp. (CTSH): 1.2%

67. Universal Corp. (UVV): 7.3%

68. American Electric Power Co., Inc. (AEP): 3.5%

69. Republic Services, Inc. (RSG): 1.7%

70. Kellogg Co. (K): 3.6%

71. SAP SE (SAP): 1.1%

72. Sysco Corp. (SYY): 2.8%

73. Public Service Enterprise Group, Inc. (PEG): 3.5%

46

74. Snap-On, Inc. (SNA): 2.9%

75. Booz Allen Hamilton Holding Corp. (BAH): 1.3%

76. Entergy Corp. (ETR): 3.9%

77. Consolidated Edison, Inc. (ED): 3.9%

78. McGrath RentCorp (MGRC): 2.7%

79. Arthur J. Gallagher & Co. (AJG): 1.7%

80. Novo Nordisk A/S (NVO): 1.3%

81. Honeywell International, Inc. (HON): 2.1%

82. ResMed, Inc. (RMD): 0.9%

83. The Hershey Co. (HSY): 2.2%

84. Xylem, Inc. (XYL): 1.2%

85. International Flavors & Fragrances, Inc. (IFF): 2.5%

86. A. O. Smith Corp. (AOS): 1.7%

87. Whirlpool Corp. (WHR): 2.7%

88. Commerce Bancshares, Inc. (Missouri) (CBSH): 1.9%

89. Fox Corp. (FOXA): 1.7%

90. Williams-Sonoma, Inc. (WSM): 2.2%

91. Westamerica Bancorporation (WABC): 3%

92. Norfolk Southern Corp. (NSC): 1.7%

93. The Western Union Co. (WU): 3.9%

94. PepsiCo, Inc. (PEP): 2.8%

95. Essential Utilities, Inc. (WTRG): 2.4%

96. American Tower Corp. (AMT): 1.7%

97. United Parcel Service, Inc. (UPS): 2.3%

98. Rockwell Automation, Inc. (ROK): 1.8%

99. Eli Lilly & Co. (LLY): 1.9%

100. Community Bank System, Inc. (CBU): 3%

101. Skyworks Solutions, Inc. (SWKS): 1.2%

102. Linde Plc (LIN): 1.6%

103. McDonald's Corp. (MCD): 2.2%

104. WEC Energy Group, Inc. (WEC): 2.5%

105. Fastenal Co. (FAST): 2.1%

106. Infosys Ltd. (INFY): 1.8%

107. Waste Management, Inc. (WM): 1.9%

108. Illinois Tool Works, Inc. (ITW): 2.2%

109. Union Pacific Corp. (UNP): 2%

110. NextEra Energy, Inc. (NEE): 1.9%

111. Xcel Energy, Inc. (XEL): 2.4%

112. C.H. Robinson Worldwide, Inc. (CHRW): 2%

113. QUALCOMM, Inc. (QCOM): 2.1%

114. NVIDIA Corp. (NVDA): 0.1%

115. Morningstar, Inc. (MORN): 0.7%

116. Deere & Co. (DE): 1.4%

117. Albemarle Corp. (ALB): 1.7%

118. Erie Indemnity Co. (ERIE): 1.8%

119. Air Products & Chemicals, Inc. (APD): 1.7%

120. Badger Meter, Inc. (BMI): 1%

121. Yamana Gold, Inc. (AUY): 0.8%

C-Rated Dividend Risk Stocks 1. Energy Transfer LP (ET): 21.8%

2. SL Green Realty Corp. (SLG): 6.3%

3. ONEOK, Inc. (OKE): 13.8%

4. Magellan Midstream Partners LP (MMP): 11.7%

5. MPLX LP (MPLX): 16.6%

6. TechnipFMC Plc (FTI): 4.2%

7. Enerplus Corp. (ERF): 4.9%

8. NACCO Industries, Inc. (NC): 4.1%

9. Principal Financial Group, Inc. (PFG): 5.5%

10. Kinder Morgan, Inc. (KMI): 8.1%

11. Lam Research Corp. (LRCX): 1.4%

12. Office Properties Income Trust (OPI): 7.9%

13. Meredith Corp. (MDP): 9.4%

14. Navient Corp. (NAVI): 7.7%

15. Enbridge, Inc. (ENB): 7.8%

16. Omnicom Group, Inc. (OMC): 5.3%

17. Mercury General Corp. (MCY): 6.1%

18. The Bank of Nova Scotia (BNS): 6.5%

19. Prudential Financial, Inc. (PRU): 6.7%

20. Molson Coors Beverage Co. (TAP): 3.4%

21. ViacomCBS, Inc. (VIAC): 3.1%

22. Great-West Lifeco, Inc. (GWLIF): 6.5%

23. Old Republic International Corp. (ORI): 5.6%

24. British American Tobacco plc (BTI): 7.4%

25. Bank of America Corp. (BAC): 3%

26. AEGON NV (AEG): 2.4%

27. The Bank of New York Mellon Corp. (BK): 3.7%

28. Synchrony Financial (SYF): 3.4%

29. DuPont de Nemours, Inc. (DD): 2.2%

30. Otter Tail Corp. (OTTR): 4%

31. Sampo Oyj (SAXPY): 10.4%

32. HP, Inc. (HPQ): 3.6%

33. Bank of Montreal (BMO): 5.4%

34. Nielsen Holdings Plc (NLSN): 3.8%

35. Ally Financial, Inc. (ALLY): 2.9%

36. The Allstate Corp. (ALL): 2.2%

37. Yum! Brands, Inc. (YUM): 2%

38. The Toronto-Dominion Bank (TD): 4.9%

39. Calvin B. Taylor Bankshares, Inc. (TYCB): 3.2%

40. Sanofi (SNY): 3.4%

41. Vale SA (VALE): 4.1%

42. Banco Santander SA (SAN): 6%

43. Superior Plus Corp. (SUUIF): 6.1%

44. Essex Property Trust, Inc. (ESS): 4%

45. Philip Morris International, Inc. (PM): 6.3%

46. 1st Source Corp. (SRCE): 3.7%

47. Brookfield Infrastructure Partners LP (BIP): 4.3%

48. Canadian Imperial Bank of Commerce (CM): 5.8%

49. National Retail Properties, Inc. (NNN): 6%

50. Realty Income Corp. (O): 4.5%

51. Hewlett-Packard Enterprise Co. (HPE): 5%

52. Aon Plc (AON): 0.4%

53. Jack in the Box, Inc. (JACK): 1.5%

54. AvalonBay Communities, Inc. (AVB): 4.2%

55. Oshkosh Corp. (OSK): 1.6%

56. W.P. Carey, Inc. (WPC): 6.4%

57. The Goldman Sachs Group, Inc. (GS): 2.5%

58. Rogers Communications, Inc. (RCI): 3.8%

59. General Electric Co. (GE): 0.7%

60. KLA Corp. (KLAC): 1.7%

61. TELUS Corp. (TU): 4.8%

62. Greif, Inc. (GEF): 4.9%

63. Anheuser-Busch InBev SA/NV (BUD): 2.7%

64. The Southern Co. (SO): 4.7%

65. UMB Financial Corp. (UMBF): 2.5%

66. Tapestry, Inc. (TPR): 4.4%

47

67. ASML Holding NV (ASML): 0.7%

68. Lazard Ltd. (LAZ): 5.8%

69. Patterson Cos., Inc. (PDCO): 4.4%

70. Weyco Group, Inc. (WEYS): 6.1%

71. RELX Plc (RELX): 2.6%

72. CoreSite Realty Corp. (COR): 4.1%

73. Caterpillar, Inc. (CAT): 2.8%

74. General Mills, Inc. (GIS): 3.3%

75. Easterly Government Properties, Inc. (DEA): 4.6%

76. Duke Energy Corp. (DUK): 4.6%

77. Public Storage (PSA): 3.6%

78. Diageo Plc (DEO): 2.6%

79. Western Digital Corp. (WDC): 3.8%

80. Marriott International, Inc. (MAR): 1%

81. TransAlta Renewables, Inc. (TRSWF): 5.6%

82. Physicians Realty Trust (DOC): 5.1%

83. Conagra Brands, Inc. (CAG): 2.4%

84. Unilever Plc (UL): 2.9%

85. Texas Instruments Incorporated (TXN): 2.5%

86. Crown Castle International Corp. (CCI): 2.9%

87. Telefonaktiebolaget LM Ericsson (ERIC): 0.7%

88. Paychex, Inc. (PAYX): 3.1%

89. CME Group, Inc. (CME): 1.9%

90. Constellation Brands, Inc. (STZ): 1.6%

91. Cummins, Inc. (CMI): 2.5%

92. Kansas City Southern (KSU): 0.9%

93. Siemens AG (SIEGY): 3%

94. ABB Ltd. (ABB): 3.2%

95. Brookfield Renewable Partners LP (BEP): 4.2%

96. Visa, Inc. (V): 0.6%

97. Newmont Corp. (NEM): 1.1%

98. Eastman Chemical Co. (EMN): 3.4%

99. Digital Realty Trust, Inc. (DLR): 3%

100. Nestlé SA (NSRGY): 2.3%

101. SK Telecom Co., Ltd. (SKM): 4%

102. PACCAR, Inc. (PCAR): 1.5%

103. Dunkin' Brands Group, Inc. (DNKN): 1.4%

104. Marvell Technology Group Ltd. (MRVL): 0.6%

105. HNI Corp. (HNI): 3.9%

106. Taiwan Semiconductor Manufacturing Co., Ltd. (TSM): 1.7%

107. Mastercard, Inc. (MA): 0.5%

108. Accenture Plc (ACN): 1.4%

109. Aptiv Plc (APTV): 0.5%

110. Trane Technologies Plc (TT): 1.7%

111. Toyota Motor Corp. (TM): 1.7%

112. Barrick Gold Corp. (GOLD): 0.9%

113. Sony Corp. (SNE): 0.3%

114. Thomson Reuters Corp. (TRI): 1.9%

115. Logitech International SA (LOGI): 1%

116. Gap, Inc. (GPS): 2.9%

117. Honda Motor Co., Ltd. (HMC): 2.7%

118. Ferrari NV (RACE): 0.6%

119. Wheaton Precious Metals Corp. (WPM): 0.8%

120. Owens & Minor, Inc. (OMI): 0%

D-Rated Dividend Risk Stocks 1. Micro Focus International Plc (MFGP): 17.7%

2. Citigroup, Inc. (C): 4.8%

3. Innovative Industrial Properties, Inc. (IIPR): 3.1%

4. Targa Resources Corp. (TRGP): 13.8%

5. Chorus Aviation, Inc. (CHRRF): 12%

6. Telefónica SA (TEF): 12.9%

7. KeyCorp (KEY): 6.3%

8. Brixmor Property Group, Inc. (BRX): 7.3%

9. Discover Financial Services (DFS): 3.2%

10. China Mobile Ltd. (CHL): 5.9%

11. Imperial Brands Plc (IMBBY): 13.4%

12. NetApp, Inc. (NTAP): 4.4%

13. New York Community Bancorp, Inc. (NYCB): 8.1%

14. TC Pipelines LP (TCP): 9.7%

15. Truist Financial Corp. (TFC): 4.9%

16. The GEO Group, Inc. (GEO): 16.9%

17. Pfizer Inc. (PFE): 4.1%

18. EPR Properties (EPR): 9.6%

19. FirstEnergy Corp. (FE): 5.4%

20. Simon Property Group, Inc. (SPG): 11.9%

21. New Residential Investment Corp. (NRZ): 14.6%

22. Boston Properties, Inc. (BXP): 4.8%

23. Invesco Ltd. (IVZ): 9.5%

24. Service Properties Trust (SVC): 13.9%

25. TC Energy Corp. (TRP): 5.4%

26. Consolidated Water Co. Ltd. (CWCO): 3.2%

27. Inter Pipeline Ltd. (IPPLF): 10.4%

28. LTC Properties, Inc. (LTC): 6.6%

29. Omega Healthcare Investors, Inc. (OHI): 9%

30. Iron Mountain, Inc. (IRM): 9.2%

31. The Williams Cos., Inc. (WMB): 7.7%

32. MGM Growth Properties LLC (MGP): 6.7%

33. CNA Financial Corp. (CNA): 4.8%

34. Gazprom PJSC (OGZPY): 9.6%

35. Suburban Propane Partners LP (SPH): 13.3%

36. GlaxoSmithKline Plc (GSK): 5.2%

37. U.S. Bancorp (USB): 4.8%

38. Urstadt Biddle Properties, Inc. (UBA): 10%

39. JPMorgan Chase & Co. (JPM): 3.8%

40. Tanger Factory Outlet Centers, Inc. (SKT): 17.6%

41. OUTFRONT Media, Inc. (OUT): 7.5%

42. Magna International, Inc. (MGA): 3.4%

43. CenturyLink, Inc. (CTL): 9.1%

44. Medical Properties Trust, Inc. (MPW): 6%

45. Hasbro, Inc. (HAS): 3.3%

46. Antero Midstream Corp. (AM): 22.4%

47. UBS Group AG (UBS): 4.9%

48. The Kraft Heinz Co. (KHC): 5.4%

49. Healthcare Trust of America, Inc. (HTA): 4.9%

50. AGNC Investment Corp. (AGNC): 12.9%

51. Global Net Lease, Inc. (GNL): 11.8%

52. Seagate Technology Plc (STX): 5.2%

53. STORE Capital Corp. (STOR): 5.1%

54. Equity Residential (EQR): 4.6%

55. Hercules Capital, Inc. (HTGC): 11.1%

56. Camden Property Trust (CPT): 3.6%

57. BCE, Inc. (BCE): 5.8%

58. Exelon Corp. (EXC): 4.2%

59. STAG Industrial, Inc. (STAG): 4.7%

60. CAE, Inc. (CAE): 1.5%

61. Dine Brands Global, Inc. (DIN): 2.6%

48

62. Artisan Partners Asset Management, Inc. (APAM): 6.6%

63. Lamar Advertising Co. (LAMR): 5.2%

64. Dream Office Real Estate Investment Trust (DRETF): 5.5%

65. VEREIT, Inc. (VER): 7.6%

66. Ares Capital Corp. (ARCC): 11.5%

67. WPP Plc (WPP): 7.9%

68. Johnson Controls International Plc (JCI): 2.5%

69. Koninklijke Philips NV (PHG): 2%

70. CF Industries Holdings, Inc. (CF): 4%

71. Macquarie Infrastructure Corp. (MIC): 7.6%

72. Gladstone Commercial Corp. (GOOD): 8.8%

73. B&G Foods, Inc. (BGS): 6.8%

74. Algonquin Power & Utilities Corp. (AQN): 4.1%

75. Gladstone Land Corp. (LAND): 3.6%

76. Orchid Island Capital, Inc. (ORC): 17.5%

77. Amcor Plc (AMCR): 4.3%

78. Restaurant Brands International, Inc. (QSR): 3.6%

79. LyondellBasell Industries NV (LYB): 6%

80. Dominion Energy, Inc. (D): 4.8%

81. Xerox Holdings Corp. (XRX): 5.4%

82. CenterPoint Energy, Inc. (CNP): 5.3%

83. Rio Tinto Plc (RIO): 6.4%

84. Diversified Healthcare Trust (DHC): 13.1%

85. Broadmark Realty Capital, Inc. (BRMK): 5.4%

86. Apollo Global Management, Inc. (APO): 5.1%

87. Broadcom, Inc. (AVGO): 3.4%

88. Healthpeak Properties, Inc. (PEAK): 5.5%

89. BHP Group Ltd. (BHP): 4.7%

90. Bayerische Motoren Werke AG (BMWYY): 3.8%

91. Garmin Ltd. (GRMN): 2.4%

92. Fluor Corp. (FLR): 7.9%

93. Dream Industrial Real Estate Investment Trust (DREUF):

6.2%

94. WestRock Co. (WRK): 4.6%

95. Alexandria Real Estate Equities, Inc. (ARE): 2.6%

96. International Paper Co. (IP): 5.1%

97. The TJX Cos., Inc. (TJX): 0.8%

98. Arbor Realty Trust, Inc. (ABR): 10.3%

99. Newell Brands, Inc. (NWL): 5.4%

100. Ventas, Inc. (VTR): 6.6%

101. Ross Stores, Inc. (ROST): 0.6%

102. The Blackstone Group, Inc. (BX): 3.7%

103. Daimler AG (DDAIF): 1.7%

104. Foot Locker, Inc. (FL): 3.6%

105. VF Corp. (VFC): 2.7%

106. Autoliv, Inc. (ALV): 1.7%

107. POSCO (PKX): 4.2%

108. Corning, Inc. (GLW): 2.6%

109. The Chemours Co. (CC): 4.9%

110. Gaming & Leisure Properties, Inc. (GLPI): 7.3%

111. Choice Properties Real Estate Investment Trust (PPRQF):

5.9%

112. The Wendy's Co. (WEN): 1.7%

113. Waddell & Reed Financial, Inc. (WDR): 6.8%

114. Tiffany & Co. (TIF): 2%

115. The Walt Disney Co. (DIS): 1.4%

116. Darden Restaurants, Inc. (DRI): 1.7%

117. General Motors Co. (GM): 4%

118. Freeport-McMoRan, Inc. (FCX): 0.7%

119. AstraZeneca Plc (AZN): 2.5%

120. Eaton Corp. Plc (ETN): 2.8%

121. Kulicke & Soffa Industries, Inc. (KLIC): 2.1%

F-Rated Dividend Risk Stocks 1. Genesis Energy LP (GEL): 30.8%

2. Covanta Holding Corp. (CVA): 10.5%

3. HollyFrontier Corp. (HFC): 6.8%

4. Suncor Energy, Inc. (SU): 9.2%

5. Royal Dutch Shell Plc (RDS.B): 10.2%

6. Holly Energy Partners LP (HEP): 18.6%

7. BP Plc (BP): 12.3%

8. SFL Corp. Ltd. (SFL): 17.7%

9. China Petroleum & Chemical Corp. (SNP): 8.2%

10. USA Compression Partners LP (USAC): 20.6%

11. Phillips 66 (PSX): 6.9%

12. Exxon Mobil Corp. (XOM): 10.2%

13. Total SE (TOT): 9.1%

14. New York Mortgage Trust, Inc. (NYMT): 17.4%

15. Valero Energy Corp. (VLO): 8.7%

16. Imperial Oil Ltd. (IMO): 5.4%

17. Marathon Petroleum Corp. (MPC): 7.5%

18. CNOOC Ltd. (CEO): 7.8%

19. Chevron Corp. (CVX): 6.9%

20. Macerich Co. (MAC): 39.9%

21. Chimera Investment Corp. (CIM): 21.7%

22. Comerica, Inc. (CMA): 7.2%

23. Occidental Petroleum Corp. (OXY): 23.8%

24. Cross Timbers Royalty Trust (CRT): 15%

25. Huntington Bancshares, Inc. (HBAN): 6.6%

26. Permian Basin Royalty Trust (PBT): 15.4%

27. Apple Hospitality REIT, Inc. (APLE): 6.1%

28. Baker Hughes Co. (BKR): 5.5%

29. ConocoPhillips (COP): 4.8%

30. Landmark Infrastructure Partners LP (LMRK): 14.1%

31. PetroChina Co., Ltd. (PTR): 6.1%

32. Canadian Natural Resources Ltd. (CNQ): 7.4%

33. Olin Corp. (OLN): 6.6%

34. Vermilion Energy, Inc. (VET): 53.2%

35. Petróleo Brasileiro SA (PBR): 2.4%

36. Schlumberger NV (SLB): 10.4%

37. PacWest Bancorp (PACW): 12.2%

38. Summit Hotel Properties, Inc. (INN): 6.9%

39. Wells Fargo & Co. (WFC): 8.8%

40. Southwest Airlines Co. (LUV): 1%

41. Starwood Property Trust, Inc. (STWD): 12.7%

42. Whitestone REIT (WSR): 13%

43. AXIS Capital Holdings Ltd. (AXS): 3.7%

44. Host Hotels & Resorts, Inc. (HST): 5.6%

45. Helmerich & Payne, Inc. (HP): 16.3%

46. Annaly Capital Management, Inc. (NLY): 13.6%

47. Blackstone Mortgage Trust, Inc. (BXMT): 11.2%

48. Sabra Health Care REIT, Inc. (SBRA): 11.9%

49. National Oilwell Varco, Inc. (NOV): 1.1%

50. Gladstone Capital Corp. (GLAD): 11.1%

51. Halliburton Co. (HAL): 4.8%

52. Macy's, Inc. (M): 13.3%

49

53. Eni SpA (E): 5.7%

54. Gladstone Investment Corp. (GAIN): 9%

55. Swiss Re AG (SSREY): 8.1%

56. Alaris Equity Partners Income Trust (ALARF): 12.5%

57. The Boeing Co. (BA): 3.8%

58. Deutsche Telekom AG (DTEGY): 7.9%

59. Brookfield Property Partners LP (BPY): 11.3%

60. Nordstrom, Inc. (JWN): 6.3%

61. Ladder Capital Corp. (LADR): 16.9%

62. Six Flags Entertainment Corp. (SIX): 5.3%

63. Prospect Capital Corp. (PSEC): 14.3%

64. Las Vegas Sands Corp. (LVS): 3.3%

65. Apollo Commercial Real Estate Finance, Inc. (ARI): 18.6%

66. Sabine Royalty Trust (SBR): 9%

67. Stellus Capital Investment Corp. (SCM): 13.3%

68. Spark Energy, Inc. (SPKE): 8.7%

69. Pearson Plc (PSO): 3.4%

70. Main Street Capital Corp. (MAIN): 8.3%

71. Cedar Fair LP (FUN): 6.8%

72. Pembina Pipeline Corp. (PBA): 8.5%

73. Two Harbors Investment Corp. (TWO): 19%

74. Harley-Davidson, Inc. (HOG): 4.9%

75. Kimco Realty Corp. (KIM): 7.4%

76. Shaw Communications, Inc. (SJR): 6.5%

77. Cheesecake Factory, Inc. (CAKE): 2.7%

78. Airbus SE (EADSY): 2.8%

79. AllianceBernstein Holding LP (AB): 9.9%

80. Vector Group Ltd. (VGR): 12.2%

81. Dynex Capital, Inc. (DX): 11.9%

82. Patterson-UTI Energy, Inc. (PTEN): 4.8%

83. Scholastic Corp. (SCHL): 2.9%

84. Kontoor Brands, Inc. (KTB): 7.1%

85. Ryder System, Inc. (R): 5.5%

86. Equinor ASA (EQNR): 6.3%

87. Vodafone Group Plc (VOD): 7.5%

88. Alaska Air Group, Inc. (ALK): 2%

89. Starbucks Corp. (SBUX): 1.9%

90. Ambev SA (ABEV): 5.5%

91. Compass Diversified Holdings (CODI): 7.9%

92. Industria de Diseño Textil SA (IDEXY): 1.7%

93. Nutrien Ltd. (NTR): 4.7%

94. Domtar Corp. (UFS): 5.1%

95. R.R. Donnelley & Sons Co. (RRD): 3.9%

96. CorEnergy Infrastructure Trust, Inc. (CORR): 26.4%

97. Ford Motor Co. (F): 6.8%

98. Cracker Barrel Old Country Store, Inc. (CBRL): 4.6%

99. Carnival Corp. (CCL): 6.6%

100. Canon, Inc. (CAJ): 6.3%

101. American Airlines Group, Inc. (AAL): 1.6%

102. Delta Air Lines, Inc. (DAL): 2.6%

103. Apache Corp. (APA): 5.8%

104. Kohl's Corp. (KSS): 7.5%

105. HSBC Holdings Plc (HSBC): 8%

106. Royal Caribbean Group (RCL): 3.6%

107. Taubman Centers, Inc. (TCO): 6.1%

108. Welltower, Inc. (WELL): 5.9%

109. PermRock Royalty Trust (PRT): 22.2%

110. Nabors Industries Ltd. (NBR): 0.2%

111. Dow, Inc. (DOW): 6%

112. Dillard's, Inc. (DDS): 1.8%

113. Weyerhaeuser Co. (WY): 3.6%

114. Hawaiian Holdings, Inc. (HA): 1.9%

115. Abercrombie & Fitch Co. (ANF): 2.9%

116. MGM Resorts International (MGM): 1.9%

117. Wynn Resorts Ltd. (WYNN): 2.8%

118. ARMOUR Residential REIT, Inc. (ARR): 17.1%

119. Bed Bath & Beyond, Inc. (BBBY): 2.3%

120. Chatham Lodging Trust (CLDT): 11.7%

121. Capitala Finance Corp. (CPTA): 48.1%

50

List of Stocks by Sector

Each of the securities in the Sure Analysis Research Database are grouped according to sector and

Dividend Risk Score and sorted (from highest to lowest) by Expected Total Returns. Dividend or

distribution yield is included next to each security’s ticker symbol. The Dividend Risk Score uses

payout ratio, dividend history, and recession resiliency to measure a company’s dividend safety.

You can learn more about how the score is calculated in the Sure Analysis Glossary. These

rankings will not always align with our Top 10 due to additional safety constraints we impose

outside of the Top 10 and newsletter compilation timing12. See our ‘Buying and Ranking Criteria’

for more information.

Basic Materials A-Ranked Dividend Risk 1. H.B. Fuller Co. (FUL): 1.4%

2. PPG Industries, Inc. (PPG): 1.7%

3. The Sherwin-Williams Co. (SHW): 0.7%

4. Ecolab, Inc. (ECL): 0.9%

5. Stepan Co. (SCL): 1%

6. RPM International, Inc. (RPM): 1.7%

B-Ranked Dividend Risk 1. MDU Resources Group, Inc. (MDU): 3.7%

2. Nucor Corp. (NUE): 3.6%

3. International Flavors & Fragrances, Inc. (IFF): 2.5%

4. Linde Plc (LIN): 1.6%

5. Albemarle Corp. (ALB): 1.7%

6. Air Products & Chemicals, Inc. (APD): 1.7%

7. Yamana Gold, Inc. (AUY): 0.8%

C-Ranked Dividend Risk 1. DuPont de Nemours, Inc. (DD): 2.2%

2. Vale SA (VALE): 4.1%

3. Newmont Corp. (NEM): 1.1%

4. Eastman Chemical Co. (EMN): 3.4%

5. Barrick Gold Corp. (GOLD): 0.9%

6. Wheaton Precious Metals Corp. (WPM): 0.8%

D-Ranked Dividend Risk 1. CF Industries Holdings, Inc. (CF): 4%

2. LyondellBasell Industries NV (LYB): 6%

3. Rio Tinto Plc (RIO): 6.4%

4. BHP Group Ltd. (BHP): 4.7%

5. POSCO (PKX): 4.2%

6. The Chemours Co. (CC): 4.9%

7. Freeport-McMoRan, Inc. (FCX): 0.7%

F-Ranked Dividend Risk

12 This list was created with data from the Sure Analysis Research Database spreadsheet from 9/30/20.

1. Olin Corp. (OLN): 6.6%

2. Nutrien Ltd. (NTR): 4.7%

3. Domtar Corp. (UFS): 5.1%

4. Dow, Inc. (DOW): 6%

Communication Services A-Ranked Dividend Risk 1. Tencent Holdings Ltd. (TCEHY): 0.2%

2. Telephone & Data Systems, Inc. (TDS): 3.6%

B-Ranked Dividend Risk 1. AT&T, Inc. (T): 7.3%

2. John Wiley & Sons, Inc. (JW.A): 4.3%

3. America Móvil SAB de CV (AMX): 2.8%

4. Comcast Corp. (CMCSA): 1.9%

5. Verizon Communications, Inc. (VZ): 4.2%

6. Fox Corp. (FOXA): 1.7%

C-Ranked Dividend Risk 1. Meredith Corp. (MDP): 9.4%

2. Omnicom Group, Inc. (OMC): 5.3%

3. ViacomCBS, Inc. (VIAC): 3.1%

4. Rogers Communications, Inc. (RCI): 3.8%

5. TELUS Corp. (TU): 4.8%

6. RELX Plc (RELX): 2.6%

7. SK Telecom Co., Ltd. (SKM): 4%

D-Ranked Dividend Risk 1. Telefónica SA (TEF): 12.9%

2. China Mobile Ltd. (CHL): 5.9%

3. CenturyLink, Inc. (CTL): 9.1%

4. BCE, Inc. (BCE): 5.8%

5. WPP Plc (WPP): 7.9%

6. The Walt Disney Co. (DIS): 1.4%

F-Ranked Dividend Risk

https://www.suredividend.com/sure-analysis-research-database/

https://www.suredividend.com/procedures-glossary-definitions/

51

1. Deutsche Telekom AG (DTEGY): 7.9%

2. Pearson Plc (PSO): 3.4%

3. Shaw Communications, Inc. (SJR): 6.5%

4. Scholastic Corp. (SCHL): 2.9%

5. Vodafone Group Plc (VOD): 7.5%

Consumer Cyclical A-Ranked Dividend Risk 1. Lowe's Cos., Inc. (LOW): 1.4%

2. Polaris Inc. (PII): 2.7%

3. Sonoco Products Co. (SON): 3.4%

4. Genuine Parts Co. (GPC): 3.3%

5. Domino's Pizza, Inc. (DPZ): 0.7%

6. Advance Auto Parts, Inc. (AAP): 0.4%

7. Tractor Supply Co. (TSCO): 1%

8. Best Buy Co., Inc. (BBY): 1.9%

9. eBay, Inc. (EBAY): 1.1%

10. NIKE, Inc. (NKE): 0.8%

11. AptarGroup, Inc. (ATR): 1.3%

B-Ranked Dividend Risk 1. H&R Block, Inc. (HRB): 6.4%

2. Hanesbrands, Inc. (HBI): 3.9%

3. Leggett & Platt, Inc. (LEG): 3.9%

4. The Home Depot, Inc. (HD): 2.1%

5. Whirlpool Corp. (WHR): 2.7%

6. Williams-Sonoma, Inc. (WSM): 2.2%

7. McDonald's Corp. (MCD): 2.2%

C-Ranked Dividend Risk 1. Yum! Brands, Inc. (YUM): 2%

2. Jack in the Box, Inc. (JACK): 1.5%

3. Greif, Inc. (GEF): 4.9%

4. Tapestry, Inc. (TPR): 4.4%

5. Weyco Group, Inc. (WEYS): 6.1%

6. Marriott International, Inc. (MAR): 1%

7. Dunkin' Brands Group, Inc. (DNKN): 1.4%

8. Aptiv Plc (APTV): 0.5%

9. Toyota Motor Corp. (TM): 1.7%

10. Gap, Inc. (GPS): 2.9%

11. Honda Motor Co., Ltd. (HMC): 2.7%

12. Ferrari NV (RACE): 0.6%

D-Ranked Dividend Risk 1. Magna International, Inc. (MGA): 3.4%

2. Hasbro, Inc. (HAS): 3.3%

3. Dine Brands Global, Inc. (DIN): 2.6%

4. Amcor Plc (AMCR): 4.3%

5. Restaurant Brands International, Inc. (QSR): 3.6%

6. Bayerische Motoren Werke AG (BMWYY): 3.8%

7. WestRock Co. (WRK): 4.6%

8. International Paper Co. (IP): 5.1%

9. The TJX Cos., Inc. (TJX): 0.8%

10. Ross Stores, Inc. (ROST): 0.6%

11. Daimler AG (DDAIF): 1.7%

12. Foot Locker, Inc. (FL): 3.6%

13. VF Corp. (VFC): 2.7%

14. Autoliv, Inc. (ALV): 1.7%

15. The Wendy's Co. (WEN): 1.7%

16. Tiffany & Co. (TIF): 2%

17. Darden Restaurants, Inc. (DRI): 1.7%

18. General Motors Co. (GM): 4%

F-Ranked Dividend Risk 1. Macy's, Inc. (M): 13.3%

2. Nordstrom, Inc. (JWN): 6.3%

3. Six Flags Entertainment Corp. (SIX): 5.3%

4. Las Vegas Sands Corp. (LVS): 3.3%

5. Cedar Fair LP (FUN): 6.8%

6. Harley-Davidson, Inc. (HOG): 4.9%

7. Cheesecake Factory, Inc. (CAKE): 2.7%

8. Kontoor Brands, Inc. (KTB): 7.1%

9. Starbucks Corp. (SBUX): 1.9%

10. Industria de Diseño Textil SA (IDEXY): 1.7%

11. Ford Motor Co. (F): 6.8%

12. Cracker Barrel Old Country Store, Inc. (CBRL): 4.6%

13. Carnival Corp. (CCL): 6.6%

14. Kohl's Corp. (KSS): 7.5%

15. Royal Caribbean Group (RCL): 3.6%

16. Dillard's, Inc. (DDS): 1.8%

17. Abercrombie & Fitch Co. (ANF): 2.9%

18. MGM Resorts International (MGM): 1.9%

19. Wynn Resorts Ltd. (WYNN): 2.8%

20. Bed Bath & Beyond, Inc. (BBBY): 2.3%

Consumer Defensive A-Ranked Dividend Risk 1. The Kroger Co. (KR): 2%

2. Archer-Daniels-Midland Co. (ADM): 3.1%

3. Kimberly-Clark Corp. (KMB): 2.9%

4. Costco Wholesale Corp. (COST): 0.8%

5. Dollar General Corp. (DG): 0.6%

6. Colgate-Palmolive Co. (CL): 2.3%

7. Walmart, Inc. (WMT): 1.6%

8. The Clorox Co. (CLX): 2%

9. Tootsie Roll Industries, Inc. (TR): 1.1%

10. Target Corp. (TGT): 1.7%

11. Lancaster Colony Corp. (LANC): 1.5%

12. Church & Dwight Co., Inc. (CHD): 1%

13. Hormel Foods Corp. (HRL): 1.9%

14. Procter & Gamble Co. (PG): 2.2%

15. McCormick & Co., Inc. (MKC): 1.3%

16. Brown-Forman Corp. (BF.B): 0.9%

B-Ranked Dividend Risk 1. Altria Group, Inc. (MO): 8.8%

2. Tyson Foods, Inc. (TSN): 2.8%

3. Keurig Dr Pepper, Inc. (KDP): 2.2%

4. Campbell Soup Co. (CPB): 2.9%

5. Flowers Foods, Inc. (FLO): 3.2%

6. The J. M. Smucker Co. (SJM): 3.1%

7. Mondelez International, Inc. (MDLZ): 2%

8. The Coca-Cola Co. (KO): 3.3%

52

9. Universal Corp. (UVV): 7.3%

10. Kellogg Co. (K): 3.6%

11. Sysco Corp. (SYY): 2.8%

12. The Hershey Co. (HSY): 2.2%

13. PepsiCo, Inc. (PEP): 2.8%

C-Ranked Dividend Risk 1. Molson Coors Beverage Co. (TAP): 3.4%

2. British American Tobacco plc (BTI): 7.4%

3. Philip Morris International, Inc. (PM): 6.3%

4. Anheuser-Busch InBev SA/NV (BUD): 2.7%

5. General Mills, Inc. (GIS): 3.3%

6. Diageo Plc (DEO): 2.6%

7. Conagra Brands, Inc. (CAG): 2.4%

8. Unilever Plc (UL): 2.9%

9. Constellation Brands, Inc. (STZ): 1.6%

10. Nestlé SA (NSRGY): 2.3%

D-Ranked Dividend Risk 1. Imperial Brands Plc (IMBBY): 13.4%

2. The Kraft Heinz Co. (KHC): 5.4%

3. B&G Foods, Inc. (BGS): 6.8%

4. Newell Brands, Inc. (NWL): 5.4%

F-Ranked Dividend Risk 1. Vector Group Ltd. (VGR): 12.2%

2. Ambev SA (ABEV): 5.5%

Energy A-Ranked Dividend Risk 1. National Fuel Gas Co. (NFG): 4.3%

B-Ranked Dividend Risk 2. Sunoco LP (SUN): 13.3%

3. Enterprise Products Partners LP (EPD): 11.1%

C-Ranked Dividend Risk 1. Energy Transfer LP (ET): 21.8%

2. ONEOK, Inc. (OKE): 13.8%

3. Magellan Midstream Partners LP (MMP): 11.7%

4. MPLX LP (MPLX): 16.6%

5. TechnipFMC Plc (FTI): 4.2%

6. Enerplus Corp. (ERF): 4.9%

7. NACCO Industries, Inc. (NC): 4.1%

8. Kinder Morgan, Inc. (KMI): 8.1%

9. Enbridge, Inc. (ENB): 7.8%

D-Ranked Dividend Risk 1. Targa Resources Corp. (TRGP): 13.8%

2. TC Pipelines LP (TCP): 9.7%

3. TC Energy Corp. (TRP): 5.4%

4. Inter Pipeline Ltd. (IPPLF): 10.4%

5. The Williams Cos., Inc. (WMB): 7.7%

6. Gazprom PJSC (OGZPY): 9.6%

7. Antero Midstream Corp. (AM): 22.4%

F-Ranked Dividend Risk 1. Genesis Energy LP (GEL): 30.8%

2. HollyFrontier Corp. (HFC): 6.8%

3. Suncor Energy, Inc. (SU): 9.2%

4. Royal Dutch Shell Plc (RDS.B): 10.2%

5. Holly Energy Partners LP (HEP): 18.6%

6. BP Plc (BP): 12.3%

7. China Petroleum & Chemical Corp. (SNP): 8.2%

8. USA Compression Partners LP (USAC): 20.6%

9. Phillips 66 (PSX): 6.9%

10. Exxon Mobil Corp. (XOM): 10.2%

11. Total SE (TOT): 9.1%

12. Valero Energy Corp. (VLO): 8.7%

13. Imperial Oil Ltd. (IMO): 5.4%

14. Marathon Petroleum Corp. (MPC): 7.5%

15. CNOOC Ltd. (CEO): 7.8%

16. Chevron Corp. (CVX): 6.9%

17. Occidental Petroleum Corp. (OXY): 23.8%

18. Cross Timbers Royalty Trust (CRT): 15%

19. Permian Basin Royalty Trust (PBT): 15.4%

20. Baker Hughes Co. (BKR): 5.5%

21. ConocoPhillips (COP): 4.8%

22. PetroChina Co., Ltd. (PTR): 6.1%

23. Canadian Natural Resources Ltd. (CNQ): 7.4%

24. Vermilion Energy, Inc. (VET): 53.2%

25. Petróleo Brasileiro SA (PBR): 2.4%

26. Schlumberger NV (SLB): 10.4%

27. Helmerich & Payne, Inc. (HP): 16.3%

28. National Oilwell Varco, Inc. (NOV): 1.1%

29. Halliburton Co. (HAL): 4.8%

30. Eni SpA (E): 5.7%

31. Sabine Royalty Trust (SBR): 9%

32. Pembina Pipeline Corp. (PBA): 8.5%

33. Patterson-UTI Energy, Inc. (PTEN): 4.8%

34. Equinor ASA (EQNR): 6.3%

35. Apache Corp. (APA): 5.8%

36. PermRock Royalty Trust (PRT): 22.2%

37. Nabors Industries Ltd. (NBR): 0.2%

Financial Services A-Ranked Dividend Risk 1. Unum Group (UNM): 6.8%

2. Enterprise Bancorp, Inc. (EBTC): 3.2%

3. Ping An Insurance (Group) Co. of China Ltd.

(PNGAY): 2%

4. Ameriprise Financial, Inc. (AMP): 2.6%

5. Community Trust Bancorp, Inc. (Kentucky) (CTBI):

5.2%

6. Eagle Financial Services, Inc. (EFSI): 4.1%

7. PSB Holdings, Inc. (Wisconsin) (PSBQ): 2.3%

8. Franklin Resources, Inc. (BEN): 5.3%

9. Farmers & Merchants Bancorp (California) (FMCB):

2%

10. Chubb Ltd. (CB): 2.6%

11. Aflac, Inc. (AFL): 3.1%

12. Eaton Vance Corp. (EV): 3.9%

13. BancFirst Corp. (Oklahoma) (BANF): 3.1%

53

14. Assurant, Inc. (AIZ): 2.1%

15. SEI Investments Co. (SEIC): 1.4%

16. Arrow Financial Corp. (AROW): 4%

17. Chesapeake Financial Shares, Inc. (Maryland)

(CPKF): 2.4%

18. First Financial Corp. (Indiana) (THFF): 3.3%

19. T. Rowe Price Group, Inc. (TROW): 2.6%

20. S&P Global, Inc. (SPGI): 0.7%

21. Brown & Brown, Inc. (BRO): 0.8%

22. Moody's Corp. (MCO): 0.7%

23. Tompkins Financial Corp. (TMP): 3.7%

24. Cincinnati Financial Corp. (CINF): 3%

25. Brookfield Asset Management, Inc. (BAM): 1.4%

26. RLI Corp. (RLI): 1.1%

B-Ranked Dividend Risk 1. M&T Bank Corp. (MTB): 4.7%

2. Prosperity Bancshares, Inc. (PB): 3.5%

3. People's United Financial, Inc. (PBCT): 7%

4. Bank OZK (OZK): 4.7%

5. Cullen/Frost Bankers, Inc. (CFR): 4.5%

6. Sun Life Financial, Inc. (SLF): 4%

7. American Express Co. (AXP): 1.8%

8. MetLife, Inc. (MET): 4.8%

9. United Bankshares, Inc. (West Virginia) (UBSI):

6.6%

10. Royal Bank of Canada (RY): 4.5%

11. Intercontinental Exchange, Inc. (ICE): 1.2%

12. Everest Re Group Ltd. (RE): 3%

13. National Bank of Canada (NTIOF): 4.2%

14. The Travelers Cos., Inc. (TRV): 3.1%

15. BlackRock, Inc. (BLK): 2.5%

16. Arthur J. Gallagher & Co. (AJG): 1.7%

17. Commerce Bancshares, Inc. (Missouri) (CBSH): 1.9%

18. Westamerica Bancorporation (WABC): 3%

19. The Western Union Co. (WU): 3.9%

20. Community Bank System, Inc. (CBU): 3%

21. Morningstar, Inc. (MORN): 0.7%

22. Erie Indemnity Co. (ERIE): 1.8%

C-Ranked Dividend Risk 1. Principal Financial Group, Inc. (PFG): 5.5%

2. Navient Corp. (NAVI): 7.7%

3. Mercury General Corp. (MCY): 6.1%

4. The Bank of Nova Scotia (BNS): 6.5%

5. Prudential Financial, Inc. (PRU): 6.7%

6. Great-West Lifeco, Inc. (GWLIF): 6.5%

7. Old Republic International Corp. (ORI): 5.6%

8. Bank of America Corp. (BAC): 3%

9. AEGON NV (AEG): 2.4%

10. The Bank of New York Mellon Corp. (BK): 3.7%

11. Synchrony Financial (SYF): 3.4%

12. Sampo Oyj (SAXPY): 10.4%

13. Bank of Montreal (BMO): 5.4%

14. Ally Financial, Inc. (ALLY): 2.9%

15. The Allstate Corp. (ALL): 2.2%

16. The Toronto-Dominion Bank (TD): 4.9%

17. Calvin B. Taylor Bankshares, Inc. (TYCB): 3.2%

18. Banco Santander SA (SAN): 6%

19. 1st Source Corp. (SRCE): 3.7%

20. Canadian Imperial Bank of Commerce (CM): 5.8%

21. Aon Plc (AON): 0.4%

22. The Goldman Sachs Group, Inc. (GS): 2.5%

23. UMB Financial Corp. (UMBF): 2.5%

24. Lazard Ltd. (LAZ): 5.8%

25. CME Group, Inc. (CME): 1.9%

26. Visa, Inc. (V): 0.6%

27. Mastercard, Inc. (MA): 0.5%

D-Ranked Dividend Risk 1. Citigroup, Inc. (C): 4.8%

2. KeyCorp (KEY): 6.3%

3. Discover Financial Services (DFS): 3.2%

4. New York Community Bancorp, Inc. (NYCB): 8.1%

5. Truist Financial Corp. (TFC): 4.9%

6. Invesco Ltd. (IVZ): 9.5%

7. CNA Financial Corp. (CNA): 4.8%

8. U.S. Bancorp (USB): 4.8%

9. JPMorgan Chase & Co. (JPM): 3.8%

10. UBS Group AG (UBS): 4.9%

11. Hercules Capital, Inc. (HTGC): 11.1%

12. Artisan Partners Asset Management, Inc. (APAM):

6.6%

13. Dream Office Real Estate Investment Trust (DRETF):

5.5%

14. Ares Capital Corp. (ARCC): 11.5%

15. Apollo Global Management, Inc. (APO): 5.1%

16. Dream Industrial Real Estate Investment Trust

(DREUF): 6.2%

17. The Blackstone Group, Inc. (BX): 3.7%

18. Choice Properties Real Estate Investment Trust

(PPRQF): 5.9%

19. Waddell & Reed Financial, Inc. (WDR): 6.8%

F-Ranked Dividend Risk 1. Comerica, Inc. (CMA): 7.2%

2. Huntington Bancshares, Inc. (HBAN): 6.6%

3. PacWest Bancorp (PACW): 12.2%

4. Wells Fargo & Co. (WFC): 8.8%

5. AXIS Capital Holdings Ltd. (AXS): 3.7%

6. Gladstone Capital Corp. (GLAD): 11.1%

7. Gladstone Investment Corp. (GAIN): 9%

8. Swiss Re AG (SSREY): 8.1%

9. Alaris Equity Partners Income Trust (ALARF): 12.5%

10. Prospect Capital Corp. (PSEC): 14.3%

11. Stellus Capital Investment Corp. (SCM): 13.3%

12. Main Street Capital Corp. (MAIN): 8.3%

13. AllianceBernstein Holding LP (AB): 9.9%

14. HSBC Holdings Plc (HSBC): 8%

15. Capitala Finance Corp. (CPTA): 48.1%

Healthcare A-Ranked Dividend Risk 1. Walgreens Boots Alliance, Inc. (WBA): 5.2%

2. AbbVie, Inc. (ABBV): 5.3%

54

3. Bristol Myers Squibb Co. (BMY): 2.9%

4. Perrigo Co. Plc (PRGO): 1.9%

5. Fresenius Medical Care AG & Co. KGaA (FMS):

1.7%

6. McKesson Corp. (MCK): 1.1%

7. Cardinal Health, Inc. (CAH): 4.1%

8. UnitedHealth Group, Inc. (UNH): 1.5%

9. Becton, Dickinson & Co. (BDX): 1.4%

10. AmerisourceBergen Corp. (ABC): 1.7%

11. Stryker Corp. (SYK): 1.1%

12. Johnson & Johnson (JNJ): 2.6%

13. Medtronic Plc (MDT): 2.1%

14. Abbott Laboratories (ABT): 1.3%

15. West Pharmaceutical Services, Inc. (WST): 0.2%

B-Ranked Dividend Risk 1. CVS Health Corp. (CVS): 3.5%

2. Bayer AG (BAYRY): 4.9%

3. Gilead Sciences, Inc. (GILD): 4.2%

4. Merck & Co., Inc. (MRK): 2.9%

5. Novartis AG (NVS): 3.5%

6. Amgen, Inc. (AMGN): 2.5%

7. Novo Nordisk A/S (NVO): 1.3%

8. ResMed, Inc. (RMD): 0.9%

9. Eli Lilly & Co. (LLY): 1.9%

C-Ranked Dividend Risk 1. Sanofi (SNY): 3.4%

2. Patterson Cos., Inc. (PDCO): 4.4%

3. Owens & Minor, Inc. (OMI): 0%

D-Ranked Dividend Risk 1. Pfizer Inc. (PFE): 4.1%

2. GlaxoSmithKline Plc (GSK): 5.2%

3. Koninklijke Philips NV (PHG): 2%

4. AstraZeneca Plc (AZN): 2.5%

F-Ranked Dividend Risk 1. N/A

Industrials A-Ranked Dividend Risk 1. L3Harris Technologies, Inc. (LHX): 1.6%

2. Northrop Grumman Corp. (NOC): 1.7%

3. Tennant Co. (TNC): 1.5%

4. General Dynamics Corp. (GD): 3.1%

5. FedEx Corp. (FDX): 1%

6. Carlisle Cos., Inc. (CSL): 1.7%

7. Donaldson Co., Inc. (DCI): 1.8%

8. Brady Corp. (BRC): 2.2%

9. Parker-Hannifin Corp. (PH): 1.7%

10. ABM Industries, Inc. (ABM): 2%

11. Pentair Plc (PNR): 1.6%

12. Emerson Electric Co. (EMR): 3.1%

13. The Gorman-Rupp Co. (GRC): 1.9%

14. 3M Co. (MMM): 3.6%

15. Roper Technologies, Inc. (ROP): 0.5%

16. Dover Corp. (DOV): 1.8%

17. Canadian Pacific Railway Ltd. (CP): 0.8%

18. Franklin Electric Co., Inc. (FELE): 1%

19. CSX Corp. (CSX): 1.3%

20. W.W. Grainger, Inc. (GWW): 1.6%

21. MSA Safety, Inc. (MSA): 1.3%

22. Stanley Black & Decker, Inc. (SWK): 1.7%

23. Expeditors International of Washington, Inc. (EXPD):

1.1%

24. Canadian National Railway Co. (CNI): 1.6%

25. Textron, Inc. (TXT): 0.2%

26. Otis Worldwide Corp. (OTIS): 0.6%

27. Nordson Corp. (NDSN): 0.8%

28. Carrier Global Corp. (CARR): 0.3%

29. Cintas Corp. (CTAS): 0.8%

B-Ranked Dividend Risk 1. Huntington Ingalls Industries, Inc. (HII): 2.8%

2. Lockheed Martin Corp. (LMT): 2.4%

3. Raytheon Technologies Corp. (RTX): 4.7%

4. MSC Industrial Direct Co., Inc. (MSM): 4.8%

5. The Toro Co. (TTC): 1.2%

6. Automatic Data Processing, Inc. (ADP): 2.6%

7. Republic Services, Inc. (RSG): 1.7%

8. Snap-On, Inc. (SNA): 2.9%

9. Booz Allen Hamilton Holding Corp. (BAH): 1.3%

10. McGrath RentCorp (MGRC): 2.7%

11. Honeywell International, Inc. (HON): 2.1%

12. Xylem, Inc. (XYL): 1.2%

13. A. O. Smith Corp. (AOS): 1.7%

14. Norfolk Southern Corp. (NSC): 1.7%

15. United Parcel Service, Inc. (UPS): 2.3%

16. Rockwell Automation, Inc. (ROK): 1.8%

17. Fastenal Co. (FAST): 2.1%

18. Waste Management, Inc. (WM): 1.9%

19. Illinois Tool Works, Inc. (ITW): 2.2%

20. Union Pacific Corp. (UNP): 2%

21. C.H. Robinson Worldwide, Inc. (CHRW): 2%

22. Deere & Co. (DE): 1.4%

23. Badger Meter, Inc. (BMI): 1%

C-Ranked Dividend Risk 1. Nielsen Holdings Plc (NLSN): 3.8%

2. Oshkosh Corp. (OSK): 1.6%

3. General Electric Co. (GE): 0.7%

4. Caterpillar, Inc. (CAT): 2.8%

5. Paychex, Inc. (PAYX): 3.1%

6. Cummins, Inc. (CMI): 2.5%

7. Kansas City Southern (KSU): 0.9%

8. Siemens AG (SIEGY): 3%

9. ABB Ltd. (ABB): 3.2%

10. PACCAR, Inc. (PCAR): 1.5%

11. HNI Corp. (HNI): 3.9%

12. Trane Technologies Plc (TT): 1.7%

13. Thomson Reuters Corp. (TRI): 1.9%

D-Ranked Dividend Risk

55

1. Chorus Aviation, Inc. (CHRRF): 12%

2. CAE, Inc. (CAE): 1.5%

3. Johnson Controls International Plc (JCI): 2.5%

4. Macquarie Infrastructure Corp. (MIC): 7.6%

5. Fluor Corp. (FLR): 7.9%

6. Eaton Corp. Plc (ETN): 2.8%

F-Ranked Dividend Risk 1. Covanta Holding Corp. (CVA): 10.5%

2. SFL Corp. Ltd. (SFL): 17.7%

3. Southwest Airlines Co. (LUV): 1%

4. The Boeing Co. (BA): 3.8%

5. Airbus SE (EADSY): 2.8%

6. Ryder System, Inc. (R): 5.5%

7. Alaska Air Group, Inc. (ALK): 2%

8. Compass Diversified Holdings (CODI): 7.9%

9. R.R. Donnelley & Sons Co. (RRD): 3.9%

10. American Airlines Group, Inc. (AAL): 1.6%

11. Delta Air Lines, Inc. (DAL): 2.6%

12. Hawaiian Holdings, Inc. (HA): 1.9%

Real Estate A-Ranked Dividend Risk 1. N/A

B-Ranked Dividend Risk 1. Federal Realty Investment Trust (FRT): 5.8%

2. CyrusOne, Inc. (CONE): 2.8%

3. Universal Health Realty Income Trust (UHT): 4.9%

4. American Tower Corp. (AMT): 1.7%

C-Ranked Dividend Risk 1. SL Green Realty Corp. (SLG): 6.3%

2. Office Properties Income Trust (OPI): 7.9%

3. Essex Property Trust, Inc. (ESS): 4%

4. National Retail Properties, Inc. (NNN): 6%

5. Realty Income Corp. (O): 4.5%

6. AvalonBay Communities, Inc. (AVB): 4.2%

7. W.P. Carey, Inc. (WPC): 6.4%

8. CoreSite Realty Corp. (COR): 4.1%

9. Easterly Government Properties, Inc. (DEA): 4.6%

10. Public Storage (PSA): 3.6%

11. Physicians Realty Trust (DOC): 5.1%

12. Crown Castle International Corp. (CCI): 2.9%

13. Digital Realty Trust, Inc. (DLR): 3%

D-Ranked Dividend Risk 1. Innovative Industrial Properties, Inc. (IIPR): 3.1%

2. Brixmor Property Group, Inc. (BRX): 7.3%

3. The GEO Group, Inc. (GEO): 16.9%

4. EPR Properties (EPR): 9.6%

5. Simon Property Group, Inc. (SPG): 11.9%

6. New Residential Investment Corp. (NRZ): 14.6%

7. Boston Properties, Inc. (BXP): 4.8%

8. Service Properties Trust (SVC): 13.9%

9. LTC Properties, Inc. (LTC): 6.6%

10. Omega Healthcare Investors, Inc. (OHI): 9%

11. Iron Mountain, Inc. (IRM): 9.2%

12. MGM Growth Properties LLC (MGP): 6.7%

13. Urstadt Biddle Properties, Inc. (UBA): 10%

14. Tanger Factory Outlet Centers, Inc. (SKT): 17.6%

15. OUTFRONT Media, Inc. (OUT): 7.5%

16. Medical Properties Trust, Inc. (MPW): 6%

17. Healthcare Trust of America, Inc. (HTA): 4.9%

18. AGNC Investment Corp. (AGNC): 12.9%

19. Global Net Lease, Inc. (GNL): 11.8%

20. STORE Capital Corp. (STOR): 5.1%

21. Equity Residential (EQR): 4.6%

22. Camden Property Trust (CPT): 3.6%

23. STAG Industrial, Inc. (STAG): 4.7%

24. Lamar Advertising Co. (LAMR): 5.2%

25. VEREIT, Inc. (VER): 7.6%

26. Gladstone Commercial Corp. (GOOD): 8.8%

27. Gladstone Land Corp. (LAND): 3.6%

28. Orchid Island Capital, Inc. (ORC): 17.5%

29. Diversified Healthcare Trust (DHC): 13.1%

30. Broadmark Realty Capital, Inc. (BRMK): 5.4%

31. Healthpeak Properties, Inc. (PEAK): 5.5%

32. Alexandria Real Estate Equities, Inc. (ARE): 2.6%

33. Arbor Realty Trust, Inc. (ABR): 10.3%

34. Ventas, Inc. (VTR): 6.6%

35. Gaming & Leisure Properties, Inc. (GLPI): 7.3%

F-Ranked Dividend Risk 1. New York Mortgage Trust, Inc. (NYMT): 17.4%

2. Macerich Co. (MAC): 39.9%

3. Chimera Investment Corp. (CIM): 21.7%

4. Apple Hospitality REIT, Inc. (APLE): 6.1%

5. Landmark Infrastructure Partners LP (LMRK): 14.1%

6. Summit Hotel Properties, Inc. (INN): 6.9%

7. Starwood Property Trust, Inc. (STWD): 12.7%

8. Whitestone REIT (WSR): 13%

9. Host Hotels & Resorts, Inc. (HST): 5.6%

10. Annaly Capital Management, Inc. (NLY): 13.6%

11. Blackstone Mortgage Trust, Inc. (BXMT): 11.2%

12. Sabra Health Care REIT, Inc. (SBRA): 11.9%

13. Brookfield Property Partners LP (BPY): 11.3%

14. Ladder Capital Corp. (LADR): 16.9%

15. Apollo Commercial Real Estate Finance, Inc. (ARI):

18.6%

16. Two Harbors Investment Corp. (TWO): 19%

17. Kimco Realty Corp. (KIM): 7.4%

18. Dynex Capital, Inc. (DX): 11.9%

19. CorEnergy Infrastructure Trust, Inc. (CORR): 26.4%

20. Taubman Centers, Inc. (TCO): 6.1%

21. Welltower, Inc. (WELL): 5.9%

22. Weyerhaeuser Co. (WY): 3.6%

23. ARMOUR Residential REIT, Inc. (ARR): 17.1%

24. Chatham Lodging Trust (CLDT): 11.7%

Technology A-Ranked Dividend Risk 1. Applied Materials, Inc. (AMAT): 1.4%

56

2. Oracle Corp. (ORCL): 1.6%

3. Microsoft Corp. (MSFT): 1%

4. Jack Henry & Associates, Inc. (JKHY): 1%

5. Computer Services, Inc. (CSVI): 1.3%

6. Apple, Inc. (AAPL): 0.7%

B-Ranked Dividend Risk 1. Cisco Systems, Inc. (CSCO): 3.6%

2. Intel Corp. (INTC): 2.5%

3. Intuit, Inc. (INTU): 0.7%

4. International Business Machines Corp. (IBM): 5.4%

5. Cognizant Technology Solutions Corp. (CTSH): 1.2%

6. SAP SE (SAP): 1.1%

7. Skyworks Solutions, Inc. (SWKS): 1.2%

8. Infosys Ltd. (INFY): 1.8%

9. QUALCOMM, Inc. (QCOM): 2.1%

10. NVIDIA Corp. (NVDA): 0.1%

C-Ranked Dividend Risk 1. Lam Research Corp. (LRCX): 1.4%

2. HP, Inc. (HPQ): 3.6%

3. Hewlett-Packard Enterprise Co. (HPE): 5%

4. KLA Corp. (KLAC): 1.7%

5. ASML Holding NV (ASML): 0.7%

6. Western Digital Corp. (WDC): 3.8%

7. Texas Instruments Incorporated (TXN): 2.5%

8. Telefonaktiebolaget LM Ericsson (ERIC): 0.7%

9. Marvell Technology Group Ltd. (MRVL): 0.6%

10. Taiwan Semiconductor Manufacturing Co., Ltd.

(TSM): 1.7%

11. Accenture Plc (ACN): 1.4%

12. Sony Corp. (SNE): 0.3%

13. Logitech International SA (LOGI): 1%

D-Ranked Dividend Risk 1. Micro Focus International Plc (MFGP): 17.7%

2. NetApp, Inc. (NTAP): 4.4%

3. Seagate Technology Plc (STX): 5.2%

4. Xerox Holdings Corp. (XRX): 5.4%

5. Broadcom, Inc. (AVGO): 3.4%

6. Garmin Ltd. (GRMN): 2.4%

7. Corning, Inc. (GLW): 2.6%

8. Kulicke & Soffa Industries, Inc. (KLIC): 2.1%

F-Ranked Dividend Risk 1. Canon, Inc. (CAJ): 6.3%

Utilities A-Ranked Dividend Risk

1. Canadian Utilities Ltd. (CDUAF): 5.3%

2. Black Hills Corp. (BKH): 4%

3. Atmos Energy Corp. (ATO): 2.4%

4. Northwest Natural Holding Co. (NWN): 4.4%

5. SJW Group (SJW): 2%

6. MGE Energy, Inc. (MGEE): 2.3%

7. American States Water Co. (AWR): 1.6%

8. Middlesex Water Co. (MSEX): 1.6%

9. California Water Service Group (CWT): 1.9%

B-Ranked Dividend Risk 1. Sempra Energy (SRE): 3.5%

2. Edison International (EIX): 4.9%

3. UGI Corp. (UGI): 4%

4. Red Eléctrica Corp. SA (RDEIY): 6.2%

5. DTE Energy Co. (DTE): 3.5%

6. Alliant Energy Corp. (LNT): 2.9%

7. PPL Corp. (PPL): 6.2%

8. Artesian Resources Corp. (ARTNA): 2.9%

9. Fortis, Inc. (FTS): 3.4%

10. NextEra Energy Partners LP (NEP): 3.6%

11. American Electric Power Co., Inc. (AEP): 3.5%

12. Public Service Enterprise Group, Inc. (PEG): 3.5%

13. Entergy Corp. (ETR): 3.9%

14. Consolidated Edison, Inc. (ED): 3.9%

15. Essential Utilities, Inc. (WTRG): 2.4%

16. WEC Energy Group, Inc. (WEC): 2.5%

17. NextEra Energy, Inc. (NEE): 1.9%

18. Xcel Energy, Inc. (XEL): 2.4%

C-Ranked Dividend Risk 1. Otter Tail Corp. (OTTR): 4%

2. Superior Plus Corp. (SUUIF): 6.1%

3. Brookfield Infrastructure Partners LP (BIP): 4.3%

4. The Southern Co. (SO): 4.7%

5. Duke Energy Corp. (DUK): 4.6%

6. TransAlta Renewables, Inc. (TRSWF): 5.6%

7. Brookfield Renewable Partners LP (BEP): 4.2%

D-Ranked Dividend Risk 1. FirstEnergy Corp. (FE): 5.4%

2. Consolidated Water Co. Ltd. (CWCO): 3.2%

3. Suburban Propane Partners LP (SPH): 13.3%

4. Exelon Corp. (EXC): 4.2%

5. Algonquin Power & Utilities Corp. (AQN): 4.1%

6. Dominion Energy, Inc. (D): 4.8%

7. CenterPoint Energy, Inc. (CNP): 5.3%

F-Ranked Dividend Risk 1. Spark Energy, Inc. (SPKE): 8.7%

sure dividend...4 the sure dividend top 10 – october 2020 name & ticker div. risk score price...

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