Happy Monday,
It’s Zach here with another weekly investing update for you!
The core goal remains the same: buying high-quality, cash-flowing businesses that regularly pay growing dividends. Today, I’m breaking down the 2 high-yield dividend stocks I'm buying in August, followed by 5 dividend growth stocks that are historically cheap.
Today’s Topics:
The 2 Dividend Stocks I'm Buying in August (Watch Here)
I Found 5 Historically Cheap Dividend Stocks (Watch Here)
The Key Story
2 High-Yield Dividend Stocks I'm Buying in August
📊 Research HESM: DividendData.com/stocks/hesm
📊 Research MPLX: DividendData.com/stocks/mplx
It is officially dividend payday!
On August 14th, I received $2,364 in dividends, and every single dollar is being reinvested to buy more shares.
Hess Midstream ($HESM): $2,009 dividend reinvested (~50.1 shares at $40.08)
MPLX LP ($MPLX): $355.39 dividend reinvested (~5.9 shares at $59.94)
Ticker | Forward Yield | 3-Year Dividend CAGR | Total Return (Since 2025) | Tax Form |
7.87% | 9.5% | +25% | 1099-DIV | |
7.18% | 11.6% | +31% | K-1 |
Why keep buying near all-time highs? Both stocks offer a rare combination of 7%+ forward yield and high single- to double-digit dividend growth.
HESM offers a 7.87% yield, raises its payment every quarter, and management guides for at least 5% annual dividend growth. Using a Dividend Discount Model (DDM) with a conservative 5% dividend growth assumption and a 10% required return, HESM shows an intrinsic value of $49.92 (~24.5% upside).
MPLX trades at a 7.18% yield, backed by management targeting 12.5% dividend growth this year and next. A conservative DDM model with 5% long-term growth yields an intrinsic value of $68.00 (~13.6% upside).
Reinvesting these payouts creates a massive compounding snowball—adding over $46/year in brand new forward income without adding a single dollar of fresh capital.
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Stock Analysis
5 Historically Cheap Dividend Growth Stocks
I screened my watchlist for high-growth dividend stocks trading above their 90th percentile 5-year dividend yield.
Here are 5 names trading near historic low valuations:
Intuit ($INTU): Trades at a 1.43% yield (96th percentile over 5 years, 99th all-time). Dividend has grown at a 14.87% CAGR over 10 years with a sustainable ~19.5% FCF payout ratio. Caught in the SaaS sell-off, it trades at its cheapest forward P/E in history.
Rollins ($ROL): Down 43% from all-time highs, bringing the forward yield to 1.97%—its highest ever going back to 2007. Features a 10-year dividend CAGR of 15.17% and a low ~50% FCF payout ratio.
Salesforce ($CRM): Offers a 0.89% yield with an ultra-safe 11% FCF payout ratio. Free cash flow grew 15.9% year-over-year to $14.66B, with $37.2B returned via buybacks over the TTM.
Tractor Supply Co. ($TSCO): Yields 2.72% (94th percentile 5-year yield). While recent dividend growth has slowed to single digits, it trades near its lowest 10-year valuation multiple.
Domino's Pizza ($DPZ): Trades at a 2.23% yield (94th percentile 5-year yield) after a 30% drop over the past 5 years. Boasts an 18% 10-year dividend CAGR with a safe ~35% FCF payout ratio.
Earnings and Dividend News Links:
How did you like today’s newsletter?
📅 Keep Investing. Stay informed.
– Zach
Founder, Dividend Data
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Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter