Category Monthly Dividend

U.S. stocks had their worst day of an already bad year on Monday as investors raced into safe-haven assets amid growing recession fears. 

The S&P 500 fell 2.7% on Monday, its biggest one-day drop since December. The index has notched only two worse days in the current bull market, which began in late 2022: December 18, 2024, when the Federal Reserve scaled back its rate cut forecast, and August 5, 2024, when the unwinding of a popular leveraged trade briefly sank U.S. equities. 

The last six days have been particularly punishing. The S&P 500 fell nearly 1.8% last Monday when President Trump confirmed a 25% tariff on Canadian and Mexican imports would go into effect the following day. In the five days since, stocks have fallen another 4% despite Trump again partially delaying those tariffs. The S&P 500’s 5.7% decline between last Monday and today stands as the index’s worst 6-day stretch since September 2022. 

Stocks were rattled Monday by comments the President made over the weekend. Trump, in an interview with Fox News aired on Sunday, declined to say whether he expects the U.S. to enter a recession this year. Instead, he said the economy would experience “a period of transition” as his tariffs take effect. The comments echoed his address to Congress last week, in which he said there would “be a little disturbance, but we’re OK with that.”

Is the S&P 500 In Store For a Correction?

It’s been 340 trading days since the S&P 500 last corrected, an abnormally long time. According to research from LPL Financial, since 1929, the average time between S&P 500 corrections has been about 173 days.

Monday’s sell-off brought the S&P 500 closer to a correction than any other pullback in the last year. Stocks fell about 8.4% from peak to trough during their August slump, and they retreated about 4% during their December pullback. With Monday’s losses, the S&P 500 has fallen 8.6% off its all-time high from three weeks ago.

The recent slump, however, has been a much swifter decline than the last correction, which played out over three months, from July 31 to October 27, 2023. The S&P 500 fell 10.3% in that time. It was, however, a short-lived correction; the index rebounded on October 30, the next trading day, and resumed its bull run. 

Updated on March 10th, 2025 by Bob Ciura
Spreadsheet data updated daily

The Russell 2000 Index is arguably the world’s best-known benchmark for small-cap U.S. stocks.

Small-cap stocks have historically outperformed their larger counterparts. Accordingly, the Russell 2000 Index can be an intriguing place to look for new investment opportunities.

You can download your free Excel list of Russell 2000 stocks, along with relevant financial metrics like dividend yields and P/E ratios, by clicking on the link below:

 

Table Of Contents

Russell Index Overview & Construction

The Russell 2000 Index is a subset of the Russell 3000 Index.

FTSE Russell maintains the Russell 3000 Index, which is comprised of the 4000 largest publicly traded U.S. companies. Note the confusing naming structure; the Russell 3000 actually has 4000 securities in it.

The index is reconstructed annually and updated quarterly with new IPOs (Initial Public Offerings).

The Russell 3000 Index is broken down into the following subgroups (which despite its name includes 4000 securities):

• Russell 1000: The 1000 largest Russell 3000 Index companies
• Russell 2000: Companies ranked 1,001 – 3,000 in size
• Russell Microcap Index: Companies ranked 2,001 – 4000 in size (overlaps with the Russell 2000)

How To Use The Russell 2000 Stocks List To Find Investment Ideas

Having an Excel document that contains financial information on each Russell 2000 stock can be tremendously useful.

This document becomes far more powerful when combined with a knowledge of how to manipulate data within Microsoft Excel.

With that in mind, this article will provide a tutorial on how to implement two actionable investing screens from the Russell 2000 Stocks List.

The first screen that we’ll implement is for stocks trading at price-to-earnings ratios below 15. These are small-cap stocks trading at attractive valuations and should avoid the valuation risk that accompanies investing in overpriced securities.

Screen 1: Small-Cap Value Stocks With Price-To-Earnings Ratios Below 15

Step 1: Download the Russell 2000 Stocks List near the beginning of this article.

Step 2: Highlight all columns.

Step 3: Go to the “Data” tab, then click “Filter.” See the image below for a walk through of steps 2 and 3.

Step 4: Go to the P/E ratio column, click the filter arrow, go to numbers filter, click between, and set to between 0 and 15. See the image below for a guide to this step.

The remaining stocks in this spreadsheet are Russell 2000 stocks with price-to-earnings ratios below 15 and positive earnings.

In the next screen we’ll show you how to implement an investing screen for Russell 2000 stocks that have high-dividend yields and reasonable payout ratios.

Screen 2: High-Yield, Reasonable Payout Ratio Small-Cap Stocks

Step 1: Download the Russell 2000 Stocks List at the link above, and set the columns to “Filter” (see steps 2 and 3 of screen 1).

Step 2: Go to the Dividend Yield column, click the filter arrow, go to numbers filter, click “greater than or equal to,” and add in 0.05.

Step 3: Go to the Payout Ratio column, click the filter arrow, go to numbers filter, and select “between,” and set to between 0 and 0.60. See the image below for a walk through of steps 2 and 3.

The remaining stocks in this spreadsheet have dividend yields of 5% or more and payout ratios below 60%.

This screen reveals small-cap dividend stocks with reasonable payout ratios for further research.

You now have a solid understanding of how to use the Russell 2000 stocks list to find investment ideas.

The remainder of this article will briefly describe the merits of investing in the Russell 2000 Index before explaining other resources that you can use to find investment ideas.

Why Invest In Stocks From The Russell 2000 Index

As mentioned previously, the Russell 2000 Index contains the domestic U.S. stocks that rank 1,001 through 3,000 by descending market capitalization.

The Russell 2000 is an excellent benchmark for small-cap stocks. The average market capitalization within the Russell 2000 is currently ~$3 billion.

Why does this matter? There are a number of advantages to investing in small-cap stocks, which we explore in the following video:

Small-cap stocks have historically outperformed large-cap stocks for two reasons.

Firstly, small-cap stocks tend to grow more quickly than their larger counterparts. There is simply less competition and more room to grow when your market capitalization is, say, $1 billion when compared to mega-cap stocks with market caps above $200 billion.

Secondly, many small-cap securities are outside the investment universes of some larger institutional investment managers. This creates less demand for shares, which reduces their prices and creates better buying opportunities.

For this reason, there are typically more mispriced investment opportunities in a small-cap index like the Russell 2000 than a large-cap stock index like the S&P 500.

Investors with a value orientation should keep this in mind when searching for their next purchase opportunity.

Russell 2000 Monthly Performance

The Russell 2000 ETF (IWM) generated negative total returns of -8.3% in February 2025. IWM under-performed the S&P 500 ETF (SPY), which generated negative total returns of -1.3% last month.

While the evidence points towards small-cap stocks outperforming over the long run, that has not been the case over the last decade when comparing IWM to SPY.

Over past 10 years, the S&P 500 ETF generated annualized total returns of 12.70% per year, versus 6.87% annual total returns for the Russell 2000 ETF.

This is a counter-intuitive finding, as many investors would expect small-cap stocks to outperform large-caps in a bull market.

We believe the extremely strong performance of large technology companies over the last decade is at least partially responsible for the superior performance of the large-cap S&P 500 relative to small caps over that time frame.

Final Thoughts & Further Reading

The Russell 2000 Index List is an excellent place to look for small-cap investment opportunities. However, it is not the only place where excellent investments can be found.

If you’re looking for exposure to stable large-cap stocks with solid dividend growth prospects, the following databases will prove more useful than the Russell 2000 Index List:

Updated on March 10th, 2025 by Bob Ciura

The largest Canadian bank stocks have proven over the past decade that they not only endure recessions, but that they can grow at high rates coming out of a recession as well.

Canadian bank stocks also pay higher dividends than many U.S. bank stocks, making them potentially more appealing for income investors.

Valuations have also remained quite low recently, boosting their respective total return profiles as a result.

In this article, we’ll take a look at the “Big 5” Canadian banks – Canadian Imperial Bank of Commerce (CM), Royal Bank of Canada (RY), The Bank of Nova Scotia (BNS), Bank of Montreal (BMO) and Toronto-Dominion Bank (TD) – and rank them in order of highest expected returns.

Note: Canada imposes a 15% dividend withholding tax on U.S. investors. In many cases, investing in Canadian stocks through a U.S. retirement account waives the dividend withholding tax from Canada, but check with your tax preparer or accountant for more on this issue.

The top 5 big banks in Canada are very shareholder-friendly, with attractive cash returns. With this in mind, we created a full list of financial stocks.

You can download the entire list of ~210 financial sector stocks (along with important financial metrics like dividend yields and price-to-earnings ratios) by clicking the link below:

 

More information can be found in the Sure Analysis Research Database, which ranks stocks based on their dividend yield, earnings-per-share growth potential, and changes in the valuation multiple.

The stocks are listed in order below, with #1 being the most attractive for investors today.

Read on to see which Canadian bank is ranked highest in our Sure Analysis Research Database.

Table Of Contents

You can use the following table of contents to instantly jump to a specific stock:

The top 5 Canadian bank stocks are ranked based on total expected returns over the next five years, from lowest to highest.

Canadian Bank Stock #5: Canadian Imperial Bank of Commerce (CM)

• 5-year expected returns: 8.4%

Canadian Imperial Bank of Commerce is a global financial institution that provides banking and other financial services to individuals, small businesses, corporations, and institutional clients. CIBC was founded in 1961 and is headquartered in Toronto, Canada.

In addition to trading on the New York Stock Exchange, CM stock trades on the Toronto Stock Exchange, as do the other stocks in this article.

You can download a full list of all TSX 60 stocks below:

 

CIBC reported its fiscal Q4 and full-year 2024 earnings results on 12/05/24. For the quarter, the bank’s revenue climbed 13% year over year (“YOY”) to C$6.6 billion. Provision for credit losses (“PCL”) was C$419 million, down 23% from a year ago.

Naturally, the loan loss ratio was 0.30%, down from 0.35% a year ago. And net income came in C$1.9 billion (up 27%). Adjusted net income came in 24% higher at C$1.9 billion.

Ultimately, adjusted earnings per share (“EPS”) rose 22% to C$1.91. The adjusted return on equity was 13.4%, down from 14.0% a year ago.

The bank’s capital position remains solid with a Common Equity Tier 1 ratio of 13.3%, same as a year ago. CIBC raised its quarterly dividend by 7.8% to C$0.97 per share, equating an annual payout of $3.88 per share.

Click here to download our most recent Sure Analysis report on CM (preview of page 1 of 3 shown below):

Canadian Bank Stock #4: Bank of Montreal (BMO)

• 5-year expected annual returns: 8.0%

Bank of Montreal was formed in 1817, becoming Canada’s first bank. The past two centuries have seen Bank of Montreal grow into a global powerhouse of financial services and today, it has about 2,000 branches (including Bank of the West branches) in North America.

It generates about 45% of earnings from the U.S. (including Bank of the West) and the rest primarily from Canada. Bank of Montreal generates about 64% of its adjusted revenue from Canada and about 36% from the U.S.

Bank of Montreal reported its fiscal Q4 and full-year 2024 financial results on 12/05/24. For the quarter, compared to a year ago, revenue rose 7.7% to C$9.0 billion, while net income climbed 35% to C$2.3 billion and diluted earnings per share (“EPS”) rose 34% to C$2.94.

This jump in earnings was primarily due to the reversal of a fiscal 2022 legal provision related to a lawsuit associated with a predecessor bank.

Adjusted net income fell 31% to C$1.5 billion and adjusted diluted EPS fell 35% to C$1.90. Higher adjusted provision for credit losses (“PCL”) of C$1.5 billion (versus C$446 million a year ago) weighed on earnings.

Click here to download our most recent Sure Analysis report on BMO (preview of page 1 of 3 shown below):

Canadian Bank Stock #3: Royal Bank of Canada (RY)

• 5-year expected returns: 8.6%

The Royal Bank of Canada is the largest bank in Canada by market capitalization, and by total assets. RBC offers banking and financial services to customers primarily in Canada and the U.S.

The financial institution operates in four core business units: Personal & Commercial Banking (39% of FY2023 revenue), Wealth Management (31%), Insurance (10%), and Capital Markets (20%). Its revenue mix is roughly 59% Canada, 25% the U.S., and 16% international.

On 12/04/24, RBC reported solid fiscal Q4 and full-year 2024 earnings results. Compared to the prior year’s quarter, the bank reported revenue growth of 19% to C$15.1 billion. Management put aside a reserve of C$840 million in the form of provision for credit losses (“PCL”) that dragged down net income. The PCL was 17% higher than a year ago.

Additionally, non-interest expense rose 12% to $9.0 billion. Net income rose 7.2% year over year (“YOY”) to C$4.2 billion; on a per share basis, it rose 5.4% to C$2.91.

Adjusted net income was 18% higher at C$4.4 billion, and its adjusted diluted earnings-per-share (“EPS”) was C$3.07 (up 16%). The bank’s capital position was still solid with a Common Equity Tier 1 ratio at 13.2%, down from 14.5% a year ago.

The bank raised its quarterly dividend by 4.2% to C$1.48 per share, equating to an annualized payout of C$5.92 per share.

Click here to download our most recent Sure Analysis report on RY (preview of page 1 of 3 shown below):

Canadian Bank Stock #2: Toronto-Dominion Bank (TD)

• 5-year expected annual returns: 10.1%

Toronto-Dominion Bank traces its lineage back to 1855 when the Bank of Toronto was founded. It is now a major bank with C$1.9 trillion in assets. The bank produces about C$14 billion in annual net income each year.

TD reported fiscal Q4 and full-year 2024 earnings results on December 5th, 2024. For the quarter, TD reported revenue growth of 18% year-over-year to C$15.5 billion. Provision for credit losses (“PCL”) rose 26% to C$1.1 billion.

However, net income still climbed 27% to C$3.6 billion. The adjusted metrics likely provide a better picture of TD’s normal earnings power.

The adjusted revenue climbed 12% to C$14.9 billion, and the adjusted net income fell 8% to C$3.2 billion, leading to adjusted diluted earnings per share (“EPS”) of C$1.72, down 5.5% year over year. Its PCL ratio as a percentage of average net loans and acceptances was 0.47%, up 8 basis points from a year ago.

The adjusted return on equity (“ROE”) was 13.4%, up from 10.5% a year ago. The bank’s capital position remained solid with a common equity tier 1 ratio of 13.1%, down from 14.4% a year ago.

Click here to download our most recent Sure Analysis report on TD (preview of page 1 of 3 shown below):

Canadian Bank Stock #1: Bank of Nova Scotia (BNS)

• 5-year expected annual returns: 12.2%

Bank of Nova Scotia (often called Scotiabank) is the fourth-largest financial institution in Canada behind the Royal Bank of Canada, the Toronto-Dominion Bank and Bank of Montreal.

Scotiabank reports in four core business segments – Canadian Banking, International Banking, Global Wealth Management, and Global Banking & Markets.

Scotiabank reported fiscal Q4 and full-year 2024 results on 12/03/24. For the quarter, revenue rose 3.1% to C$8.5 billion, while non-interest expenses fell 4.2% to C$5.3 billion. Provision for credit losses (“PCL”) declined by 18% year over year (“YOY”) to C$1.0 billion, weighing less on earnings compared to a year ago.

As a result, net income rose 25% to C$1.7 billion and diluted earnings per share (“EPS”) rose 23% to C$1.22. The bank’s PCL as a percentage of average net loans & acceptances was 0.54%, down from 0.65% a year ago, whereas the PCL on impaired loans as a percentage of average net loans & acceptances was 0.55%, up from 0.42% a year ago.

The fiscal year saw revenue rising 4.5% to C$33.7 billion. Non-interest expenses increased by 3.0% to C$19.7 billion, while PCL rose 18% to C$4.1 billion.

The PCL as a percentage of average net loans & acceptances was 0.53%, up from 0.44% a year ago, whereas the PCL on impaired loans as a percentage of average net loans & acceptances was 0.46%, up from 0.32% a year ago.

Click here to download our most recent Sure Analysis report on BNS (preview of page 1 of 3 shown below):

Final Thoughts

Canadian bank stocks do not get nearly as much coverage as the major U.S. banks. However, income and value investors should pay attention to the big 5 Canadian bank stocks.

Royal Bank of Canada, TD Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce are all highly profitable banks.

And, all 5 have reasonable valuations with dividend yields that are well above the U.S. bank stocks.

The following articles contain stocks with very long dividend or corporate histories, ripe for selection for dividend growth investors:

Redfin (RDFN) shares are surging 75% in premarket trading Monday after mortgage giant Rocket Companies (RKT) announced it was buying the digital real estate brokerage in an all-stock deal valued at $1.75 billion.

Shares of the Detroit-based Rocket are down 11%.

Rocket said the transaction values Redfin shares at $12.50 each and “connects Redfin’s nearly 50 million monthly visitors to Rocket’s mortgage products.”

Deal Seen Accretive to Rocket Adjusted EPS by End of 2026

Rocket added it “expects the combined company to achieve more than $200 million in run-rate synergies by 2027,” and that the deal is expected to be accretive to its adjusted earnings per share (EPS) by the end of 2026. Once the transaction closes, current Rocket shareholders will control 95% of the combined firm, while Redfin shareholders will own the rest. 

“Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs and increases value to American homebuyers,” Rocket Companies CEO Varun Krishna said.

Entering Monday, Rocket Companies shares had added nearly a quarter of their value over the past 12 months, while Redfin stock had lost about 18% of its value in that span.

Updated on March 8th, 2025 by Felix Martinez

Each year, we individually review each of the Dividend Aristocrats, a group of 69 stocks in the S&P 500 Index that have raised their dividends for at least 25 consecutive years.

To make it on the list of Dividend Aristocrats, a company must possess a profitable business model, a valuable brand, global competitive advantages, and the ability to withstand recessions. This is why Dividend Aristocrats can continue to raise their dividends in difficult years.

With this in mind, we have created a list of all 69 Dividend Aristocrats.

You can download your free copy of the Dividend Aristocrats list, along with important financial metrics such as price-to-earnings ratios and dividend yields, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

One of the three newest members to join this list is Nordson Corporation (NDSN). Nordson has an incredible dividend growth track record, with a remarkable 61 years of consecutive increases.

This article will discuss the company’s business overview, growth prospects, competitive advantages, and expected returns.

Business Overview

Nordson was founded in 1954 in Amherst, Ohio, by brothers Eric and Evan Nord, but the company’s roots go back to 1909 with the U.S. Automatic Company.

Today, the company has operations in over 35 countries and engineers, manufactures, and markets products used for dispensing adhesives, coatings, sealants, biomaterials, plastics, and other materials. These products have applications ranging from diapers and straws to cell phones and aerospace.

Source: Investor Presentation

On February 19th, 2025, Nordson reported first quarter results for January 31st, 2025. (Nordson’s fiscal year ends October 31st.) The company reported that sales declined 2.8% to $615 million, with net income of $95 million ($1.65 per share). Adjusted EPS fell 7% to $2.06, while backlog grew 15%, indicating strong future demand.

Industrial sales dropped 11% due to weaker demand, while medical sales rose 21%, driven by acquisitions. Advanced Technology Solutions declined 11%. EBITDA was $188 million (31% of sales), down 4%, though profitability remained solid despite lower sales.

For Q2, Nordson expects sales between $650 million and $690 million, with adjusted EPS of $2.30–$2.50. The company sees improving order trends and a growing backlog as signs of recovery. CEO Sundaram Nagarajan remains confident in long-term growth, citing strong portfolio resilience despite market uncertainties.

Growth Prospects

From 2014 through 2024, Nordson grew earnings-per-share by a solid 10% annually. In its investment thesis, Nordson lists factors such as best-in-class technology that boosts client production while cutting costs, a worldwide service model, a balanced income stream, and a successful track record.

A growing demand for disposable goods, productivity investments, mobile computing, an increase in the use of medical devices, and the production of lightweight/lean vehicles are all areas of growth for the company’s adhesive and coating sectors, and would add to the company’s top line.

Nordson will keep making acquisitions to gain access to unique precision technologies and strengthen its competitive advantage.

For example, in 2023 Nordson completed its acquisition of the ARAG Group. ARAG is a global market and innovation leader in developing, producing and supplying precision control systems and smart fluid components for agricultural spraying.

Source: Investor Presentation

Our projection for 2025 earnings, based on management’s guidance midpoint, is for $9.90 per share.

We also project 10% EPS growth over the next five years, driven by an increase in top line revenue, modest margin expansion, and the favorable effects of acquisitions.

Competitive Advantages & Recession Performance

Nordson’s competitive advantage lies in its proprietary precision technologies. The business offers specialized and essential components used in various manufacturing processes.

This has enabled Nordson to muster an enormous installed base of customers worldwide. Due to its extensive global presence, Nordson has diversified its revenue geographically and by industry and segment.

However, this does not imply that Nordson is immune to economic downturns. Earnings decreased by -32% for the year during the Great Financial Crisis before rapidly increasing. Given the company’s reliance on global expansion, another recession could reduce its projections for near-term growth.

Valuation & Expected Returns

Nordson’s current price-to-earnings ratio is 21.7 based on our 2025 forecasted earnings-per-share of $9.90. This valuation is lower than the company’s trailing decade average P/E ratio of about 23.0. Given its solid prospects, we believe that 24 times earnings is a reasonable fair value estimate for Nordson.

Given shares trade under our fair value estimate today, Nordson stock could experience a positive return of roughly 2.3% per year over the next five years from an expanding multiple.

Nordson also has a 1.5% dividend yield, which has increased yearly for 61 years. Furthermore, we forecast a payout ratio of only 32% for 2025, leaving ample room for continued increases in the years ahead.

Combining the company’s 1.5% dividend yield with the 10% forecasted EPS growth rate, and the potential valuation tailwind, we see Nordson stock generating total returns of 13.8% per year in the intermediate term. As a result, Nordson receives a buy rating at this time.

Final Thoughts

The company’s growth prospects seem promising, and Nordson has an impressive track record of earnings and dividends. The company is currently trading at a lower level, which increases its attractiveness.

The company may continue its incredible earnings-per-share growth this year or take a breather and remain flat. However, we believe Nordson will continue growing over the long term. This long-term earnings growth and the very conservative dividend payout ratio should see the company increasing its dividend for many more years ahead.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Updated on March 8th, 2025 by Felix Martinez

The Dividend Aristocrats are a group of 69 companies in the S&P 500 Index that have increased their dividends for 25+ consecutive years.

Within the Dividend Aristocrats are various types of stocks with differing yields. Some of the Dividend Aristocrats have higher yields, but these high-yielders tend to grow their dividends at a lower rate each year.

At the same time, there are Dividend Aristocrats with low yields. While these may look unappealing on the surface, they often provide higher dividend growth levels from year to year. An example is Brown-Forman (BF.B), a Dividend Aristocrat that has increased its dividend for 41 consecutive years.

There are currently 69 Dividend Aristocrats, including Brown-Forman. You can download an Excel spreadsheet of all 69 Dividend Aristocrats (with metrics like dividend yields and price-to-earnings ratios) by clicking the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

Brown-Forman has paid a dividend for 80 years. Thanks to its defensive business model, the company typically provides high dividend increases each year, even during recessions.

This article will discuss Brown-Forman’s growth prospects, valuation, and outlook.

Business Overview

Jack Daniel’s Tennessee Whiskey got its start all the way back in 1865 when Jack Daniel purchased Cave Spring Hollow. The following year, he registered the Jack Daniel Distillery, which is today America’s oldest registered distillery.

Brown-Forman has a large product portfolio focused on whiskey, vodka, and tequila. Its most famous brand is its flagship, Jack Daniel’s whiskey. Other popular brands include Herradura and El Jimador tequila and Finlandia vodka.

Brown-Forman reported revenues of $1.1 billion for its third quarter (fiscal 2025) earnings results. The company’s third quarter earnings saw a 1% decline in Q2 net sales to $1.1 billion, though organic sales grew 3%. Operating income rose 1% to $341 million, and EPS increased 9% to $0.55. For the first half of fiscal 2025, net sales dropped 5% to $2 billion, operating income fell 7% to $622 million, and EPS declined 3% to $0.96. CEO Lawson Whiting expects growth in the second half of the year despite economic challenges.

Sales declines were driven by the divestitures of Finlandia and Sonoma-Cutrer, along with lower volumes across key markets. Whiskey sales remained stable due to Woodford Reserve and Old Forester, but Tequila and ready-to-drink products saw declines. U.S. net sales fell 7% due to weaker Jack Daniel’s and Korbel sales, while international and emerging markets showed mixed performance.

Gross profit declined 8% due to high inventory and cost fluctuations, but lower expenses helped offset losses. Brown-Forman increased its dividend for the 41st consecutive year. The company expects 2%-4% organic growth in net sales and operating income but remains cautious about economic and geopolitical risks.

Source: Investor Presentation

Growth Prospects

Brown-Forman has a strong growth track record; the company even increased its earnings-per-share during the last financial crisis, as demand for alcohol is not especially cyclical. Historical earnings-per-share were driven by a combination of several factors, including revenue growth, rising margins, and the impact of a declining share count.

Because Brown-Forman owns strong brands and is active in the super and ultra-premium alcoholic beverages markets, which see consistent market growth, Brown-Forman should be able to keep its revenue growth going forward.

This has been an important growth factor for Brown-Forman in the past. Brown-Forman’s Jack Daniels brand and its American super-premium whiskeys continue to grow around the globe.

Higher overall sales allow for margin increases due to better economies of scale, which makes the company more efficient overall, and positively impacts its net earnings growth rate.

In addition, Brown-Forman has aggressively repurchased shares in the past decade, which adds some additional growth to its bottom line. Going forward, there is plenty of growth potential left as the company further expands its product line inside and outside its flagship Jack Daniels brand.

Furthermore, the company will purchase growth through acquisitions, for example, its recent purchase of the Diplomático Rum brand. This purchase launched Brown-Forman into the growing super-premium+ rum category. Diplomático Rum is a super-premium rum from Venezuela and is distributed in over 100 countries.

 

Source: Investor Presentation

We are forecasting 6% annual earnings-per-share growth over the next five years.

Competitive Advantages & Recession Performance

Brown-Forman has many competitive advantages. Its famous brands yield significant pricing power. Because of its global scale, it has a highly profitable business with low manufacturing and distribution costs. These qualities help Brown-Forman generate consistently high returns on invested capital.

Brown-Forman is also very resistant to recessions. This is typical among alcohol stocks, as their products tend to be consumed in greater volume when economic times are tough. One could argue that alcohol manufacturers perform well during recessions.

Brown-Forman’s earnings-per-share through the Great Recession are shown below:

• 2007 earnings-per-share of $0.76
• 2008 earnings-per-share of $0.77 (1.3% increase)
• 2009 earnings-per-share of $0.82 (6.5% increase)
• 2010 earnings-per-share of $0.95 (15.9% increase)

As you can see, the company grew its earnings per share every year through the Great Recession. This rare accomplishment demonstrates the company’s defensive business model.

Spirits manufacturers such as Brown-Forman are among the most recession-resistant businesses.

Valuation & Expected Returns

Based on our estimate for 2025 earnings-per-share of $1.80 and a current share price near $36, Brown-Forman shares are currently trading at a P/E ratio 20.

This is a fair multiple, even considering the strength of Brown-Forman’s business. We estimate a fair value P/E ratio of 22.

If shares were to increase to 22 times earnings, this implies the potential for a 1.5% valuation tailwind over the next five years. On this basis, the valuation appears fair.

A strong earnings growth rate of 6% and 2.5% dividend yield will help boost shareholder returns. Overall, we estimate annual returns of 10% over the next five years.

Final Thoughts

Brown-Forman has a dominant position in its core product categories. Its flagship Jack Daniel’s brand should continue to lead the whiskey industry, with high growth from its smaller whiskey brands and tequilas. Emerging markets are also an appealing growth catalyst, and of course, the dividend growth streak is enviable.

Brown-Forman is a good example of a great business trading at an exceptionally fair valuation. The company has a solid dividend and very strong business, the shares look particularly compelling for purchase right now.

Related: My Top 10 Buy & Hold Forever Stocks.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Updated on March 8th, 2025 by Felix Martinez

At Sure Dividend, we often discuss the merits of Dividend Aristocrats. We believe this exclusive group of stocks has strong brands, consistent profits even during recessions, and durable competitive advantages. These qualities allow Dividend Aristocrats to raise their dividends every year, regardless of the economy’s state.

Of the ~505 stocks comprising the S&P 500 Index, just 69 qualify as Dividend Aristocrats. You can download a copy of the full list of all 69 Dividend Aristocrats, complete with metrics like dividend yields and P/E ratios, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

We individually review all the Dividend Aristocrats each year. The next in the series is The J.M. Smucker Company (SJM).

J.M. Smucker has a long history of dividend growth, having raised its dividend for 28 years in a row. This article will discuss the significant factors for J.M. Smucker’s long dividend history and outlook.

Business Overview

J.M. Smucker has been in business for more than 100 years. It was founded in 1897 at a small cider mill in Orrville, Ohio, in the 19th century.

Today, J.M. Smucker has a market capitalization of $12.5 billion and generates more than $8.2 billion annual revenue. It is a packaged food and beverage company that owns well-known brands such as Smucker’s, Jif, Folgers, and so on. The company also owns a pet food business with brands such as Milk-Bone and 9Lives.

Source: Investor Presentation

In late February, Smucker’s reported (2/27/25) results for the third quarter of fiscal 2025. The company reported net sales down 2% to $2.2 billion due to divestitures and acquisitions. Adjusted EPS rose 5% to $2.61, though a $6.22 per share net loss was recorded due to impairment charges. Operating cash flow fell to $239.4 million, impacted by higher working capital needs and tax timing.

Gross profit grew 7%, driven by pricing and cost efficiencies, but operating income declined due to impairment charges. Coffee sales rose 2% on higher pricing, while pet food and Sweet Baked Snacks saw declines of 9% and 7%, respectively, due to lower demand and contract manufacturing losses. Supply chain disruptions also affected performance.

Smucker updated its fiscal 2025 outlook, projecting a 7.25% sales increase and adjusted EPS of $9.85–$10.15. Free cash flow is expected at $925 million. The company focuses on cost control and growth strategies to drive long-term shareholder value.

Growth Prospects

J.M. Smucker’s industry isn’t growing fast, as demand for food is not growing too much based on economic development. Instead, food consumption is generally growing a little less than economic output, as it is mostly tied to population growth. Still, J.M. Smucker can generate growth in different ways, despite being active in a lower-growth industry.

Acquisitions have been a major source of business growth for the company in the past.

The company regularly acquires smaller companies that are then benefitting from J.M. Smucker’s sales network. On top of that, the company is able to capture synergies when it comes to administration and other areas, which drives the profitability of the companies J.M. Smucker acquires.

As an example, on November 7th, 2023, Smucker’s completed the acquisition of Hostess Brands (TWNK) in a cash-and-stock deal with value of $5.6 billion, which includes debt. Hostess Brands has many sweet baked goods brands, which will expand the product portfolio of Smucker’s and create synergies. However, the deal value is about 13.2 times EBITDA of Hostess Brands, after the expected synergies have been taken into account.

In the long run, we believe that current margin headwinds from rising commodity prices will wane, or that the company will fully pass on those rising costs to consumers. Some organic business growth, some M&A, and the impact of share repurchases should allow J.M. Smucker to grow its earnings-per-share by around 4% a year in the long run, we believe.

Source: Investor Presentation

Competitive Advantages & Recession Performance

J.M. Smucker is not the largest player in the food and beverages space by far, but it is among the leading players in the active segments, such as coffee sold at retailers, peanut butter and other breakfast spreads, pet food, and so on.

J.M. Smucker’s brands are well-known and liked among consumers, thus it is not very likely that new market entrants will disrupt the company’s core business.

A major advantage for J.M. Smucker is its outstanding recession resilience. While consumers do cut back on their spending during economic downturns, they typically do so in discretionary areas—autos, electronics, apparel, and so on. This is why J.M. Smucker and most of its peers have outperformed during recessions in the past.

The company’s earnings-per-share performance during the Great Recession is below:

• 2007 earnings-per-share of $3.15
• 2008 earnings-per-share of $3.77 (20% increase)
• 2009 earnings-per-share of $4.37 (16% increase)
• 2010 earnings-per-share of $4.79 (10% increase)

We see that J.M. Smucker not only managed to grow its earnings-per-share during every year of the Great Recession but also generated a very compelling average growth rate of 15% in that time frame—barely any other company has managed to perform so well during the crisis.

The same held true during the pandemic, as J.M. Smucker also managed to grow its earnings-per-share by 14% in 2020 when the economy was suffering from lockdowns and other COVID measures.

J.M. Smucker’s recession resilience is one of its biggest advantages, making it a suitable choice from a risk perspective.

Valuation & Expected Returns

Using the current share price of ~$117 and the midpoint for earnings guidance of $8.50 for the year, J.M. Smucker trades for a price-to-earnings ratio of 13.7. Given the company’s strong recession performance, and an overly strong growth outlook, we feel that a target price-to-earnings ratio of 16 is appropriate. This is also roughly in line with the company’s 10-year historical average.

As a result, J.M. Smucker is slightly undervalued. An expanding P/E multiple could add 3.5% to SJM’s annual returns over five years. Aside from changes in the price-to-earnings multiple, future returns will be driven by earnings growth and dividends.

We expect 4% annual earnings growth over the next five years. In addition, J.M. Smucker stock currently has a dividend yield of 3.7%.

Total returns could consist of the following:

• 4% earnings growth
• 3.5% multiple expansion
• 3.7% dividend yield

J.M. Smucker is thus expected to return around 11.2% annually through 2030. This is a solid anticipated rate of return, high enough to warrant a buy recommendation.

Final Thoughts

J.M. Smucker is a quality company with a strong dividend growth track record and an outstanding ability to withstand recessions.

Shares are trading slightly below our fair value estimate, leading to high double-digit expected total returns. The current dividend yield is solid and looks safe, but we rate J.M. Smucker a buy right now because of the expected total returns of about 11.2% over the coming years.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

YouTube creator MrBeast—his real name is Jimmy Donaldson—has made millions of dollars from his career as a content creator. Known for stunts like spending 24 hours underwater or a week in a cave, Donaldson is the most-followed creator in the world, according to Forbes, with more than 500 million followers across his social media platforms.

Donaldson has an estimated net worth of $1 billion, according to an estimate by Celebrity Net Worth. Donaldson has his own production company, a streaming partnership with Amazon, a snack brand, a clothing line, and more.

Here’s how MrBeast built his wealth.

Content Creation

Donaldson earned an estimated $85 million between June 2023 and June 2024 from his content and businesses, according to Forbes. In a February 2024 interview with Time, Donaldson said each video makes “a couple million” each in ad revenue and brand deals. Brands pay between $2.5 million to $3 million just to get a shoutout from MrBeast, Marc Hustvedt, who manages Donaldson’s YouTube business, told Time.

Donaldson also told Time that everything he earns—about $600 million to $700 million a year—he reinvests back into his content. “I’ve reinvested everything to the point of—you could claim—stupidity, just believing that we would succeed,” he said. “And it’s worked out.”

The 26-year-old creator has 371 million subscribers on his YouTube channel, “MrBeast.” Donaldson’s content earned nearly 9 billion views in 2024 and landed him the No. 1 spot on Forbes’ Top Creators 2024 list.

Donaldson has pulled off extreme stunts on YouTube like being buried alive for a week, spending a week in solitary confinement, surviving 24 hours in ice, and more. He also creates content where he pays other people to tackle challenges for money, such as spending 100 days in a circle to win $500,000 or spending 100 days in a nuclear bunker with a stranger for $500,000.

Donaldson has another channel, “Beast Philanthropy,” where 100% of the profit from ad revenue, sponsorships, and merchandise sales goes to charity. It features videos such as giving out $30 million worth of food, adopting 100 dogs, and giving away $1 million worth of toys.

Amazon Partnership and Reality Show

Donaldson also hosts a reality competition series called “Beast Games” for Amazon’s Prime Video. The deal with Amazon was valued at close to $100 million, according to Puck and Variety.

The series featured 1,000 contestants competing in challenges similar to Donaldson’s YouTube videos, for a chance at a $5 million cash prize. The show received 50 million views in just 25 days, and was Amazon’s second-largest series debut in 2024, according to Fast Company. The winner of the competition was a father of two who won $10 million—the largest prize for a reality competition ever, per People.

In September, five unidentified contestants on “Beast Games” filed a lawsuit against Donaldson and Amazon for mistreatment and neglect, sexual harassment, hostile working conditions, and more, according to Variety.

Businesses

Donaldson’s other businesses include a snack company, Feastables, and a line of MrBeast merchandise. He also had a virtual burger chain that partnered with restaurants around the country. However, Donaldson stepped away from the burger chain in 2023 amid legal struggles with the brand’s partner, Virtual Dining Concepts.

His snack brand, Feastables, was expected to bring in about $500 million in revenue in 2024, according to Donaldson’s interview with Time. The snacks are sold online by Amazon and at major retailers such as Target, Walmart, Safeway, and 7-Eleven.

Despite a slow start for home sales in 2025, some economists and real estate professionals see promise for the busy spring homebuying season.

The National Association of Realtors’ Pending Home Sales Index fell 4.6% in January to hit an all-time low. Home affordability issues persist as homeownership costs continue to outpace income levels and mortgage rates remain elevated. However, that could change during the spring, which is typically one of the best times to sell a home, according to Realtor.com.

“I see the spring market as an opportunity to start new momentum due to the number of buyers waiting out the markets,” said Phil Crescenzo Jr., Nation One Mortgage Corporation southeast division vice president. 

Mortgage Rates, Inventory Moving in the Right Direction

Falling mortgage rates are one reason for optimism, economists said. The average interest rate on a 30-year fixed mortgage fell to 6.63% this week, according to Freddie Mac. That’s the lowest since mid-December and the seventh consecutive decline.

Other factors are pointing toward a potential pickup in home sales. Notably, inventory is higher, giving browsing house shoppers more options to consider this year.  

“This stability continues to bode well for potential buyers and sellers as we approach the spring homebuying season,” said Freddie Mac Chief Economist Sam Khater.

Demographic Trends Could Drive Season

Going into the 2025 spring home sales season, some demographic trends could also help spur the housing market. Recent housing data shows that homebuyers are becoming older, including first-time owners, who made up a record-low share of buyers in 2024.  

“Millennials have reached peak age for marriage and children, both of which are catalysts for homebuying. In addition, more and more baby boomers retire every day. Retirement leads to a change in lifestage and lifestyle, which also corresponds to changes in where and how people live,” said Ali Wolf, chief economist at real estate data firm Zonda. 

As many Baby Boomers approach retirement, they also face rising living costs, housing prices, and health care, which is encouraging many to delay retirement or reenter the workforce.

Roughly 60% of Baby Boomers, or those born between 1946 and 1964, will be able to receive their full retirement age (FRA) Social Security benefits by the end of the year. Yet, only 10% of this generation are fully retired, according to a recent survey by Indeed Flex, an online job portal for temporary work.

In addition, almost half of Baby Boomers said they plan to keep working in 2025, and 35% were unsure if they will retire this year due to the high cost of living.

Consumer prices continue to rise for all Americans, but especially those nearing retirement age. In January 2025, the Consumer Price Index (CPI) for those aged 62 years and older increased by 3.1% compared to a year prior and was 9.3% higher than the CPI for all Americans.

Some advocates have criticized Social Security’s annual Cost of Living Adjustments (COLA) for not keeping up with the inflation, and experts have said the lag has reduced retirees’ buying power. Additionally, Social Security is running out of money and may eventually be unable to provide retirees with full benefits.

“As the aging population heads into retirement age, many do not have enough money saved to live financially secure,” said Novo Constare, CEO and co-founder of Indeed Flex, in a press release. “Previous generations could rely on pensions and affordable living; today’s boomers are navigating a financial landscape where Social Security alone isn’t enough to meet their current needs.”

To bridge the gap between their retirement income and high costs of living, almost one in four retirees consider unretiring and working a temporary job for extra money, vacations, gifts, or socialization, Indeed Flex found.