This week, we’re joined by Eli from Dividend Ally, a well-known voice in the dividend investing space. We chat about his journey, portfolio strategy, and why dividend growth stocks are the cornerstone of his approach. There’s also a great discussion about key investing metrics, the balance between yield and growth, and how to build a strong long-term portfolio. Stick around as we go through listener questions and make an update to our community dividend portfolio!
Timestamps and Tickers
Here’s a quick guide to the key sections of the episode:
- 0:00 – Intro & Market Recap
- 2:00 – Eli’s Investing Journey
- 10:00 – Key Metrics for Dividend Investing
- 18:00 – Dividend Growth vs. High Yield Stocks
- 25:00 – YouTube & Building a Brand
- 35:00 – Top 5 Dividend Growth Stocks
- 45:00 – Listener Q&A
- 55:00 – Dividend Growth Community Portfolio Update
Key News
ASML’s Growth Potential – A key highlight was ASML, a European tech giant making waves with its role in semiconductor manufacturing. Eli discussed its long-term dividend potential and why it could be a game-changer for patient investors.
Google’s First Dividend – Alphabet (GOOGL) made headlines with its first-ever dividend payment, raising questions about its future in dividend growth portfolios. While the yield is low, Eli sees big potential if they commit to consistent hikes.
Interest Rate Impact on BDCS – With rate cuts expected, business development companies (BDCs) could see changes in dividend stability. Eli gave his take on how these investments fit into a dividend-focused strategy.
Dividend Hikes
This week was packed with dividend hikes! Here are some of the highlights:
- L’Oréal (+16%) – The luxury brand continues its impressive dividend track record, rewarding shareholders with another double-digit increase. Strong earnings and brand strength keep this stock on the radar.
- ADM (+10%) – Archer Daniels Midland bumped up its payout, showing confidence in its earnings power despite commodity price fluctuations.
- Novo Nordisk (+15%) – The pharmaceutical giant isn’t just leading in diabetes care—it’s also delivering strong dividend earnings growth, keeping shareholders happy.
Main Topic: Dividend Growth vs. High Yield
Eli shared his strategy for balancing dividend yield and growth, emphasizing:
- Yield on cost matters – A 1% yield today could turn into a 7%+ yield over time with strong dividend hikes.
- Focus on free cash flow – Sustainable dividend growth comes from companies reinvesting in their businesses while maintaining solid payout ratios.
- Management quality is key – Microsoft’s transformation under Satya Nadella is a perfect example of how leadership can shape long-term returns.
Eli highlighted why he prioritizes companies like Visa and Microsoft, even with lower yields, over high-yield stocks that may lack growth or stability.
Listener Questions
- Tim asked: “What’s the one piece of advice you’d give your kids before handing them your portfolio?”
- Eli: “Stocks are businesses. Look at them like you’re buying the company, not just a ticker symbol.”
- Sebastian wanted to know: “Are you buying more European stocks?”
- Eli: “Yes! Recently started a position in ASML, and Evolution Gaming is on my radar.”
- Lucien asked about BDCS:
- Eli: “There are good ones, but they depend heavily on interest rates. Main Street Capital (MAIN) is one of the better options.”
Community Dividend Portfolio Update
We made a big change! Eli swapped Coca-Cola (KO) out for ASML. His reasoning? While KO is a reliable dividend payer, its low growth limits its potential. ASML, on the other hand, has massive upside with strong dividend earnings potential in the years ahead.
Support Us
There are a couple of ways that you can support me if you like my content
Free Ways to Support Us
- Follow us on social media. Twitter or DividendTalk (@dividendtalkpodcast) • Instagram photos and videos
- Listen to our Podcast Dividend Talk | Podcast on Spotify
- Follow my Buddy Home European Dividend Growth Investor – European Dividend Growth Investor (europeandgi.com)
- Subscribe to my YouTube channel, Dividend Talk, on YouTube.
Become a Premium Member and join our growing community!
Sign up here to access one newsletter, three dividend stock cards, and three deep dives to see what you can expect from our analysis. Download Your Free Samples – Dividend Talk
Affiliate links: I use these services. If you plan to use these anyway, it won’t cost you any more, but I may receive a commission.
- Seeking Alpha – I use seeking alpha quite a bit. They have a free version, but I will get a commission if you sign up for the premium version. ( I use the premium version)
- Buy me a coffee – if you don’t want to use any of the above services, you can always buy me a coffee.
- Buy a bracelet from my niece – BraceletsByLucyIE – Etsy Ireland. I am trying to teach my niece what they won’t teach her at school. 15% of all profits are mine, but I donate this to charity as my main goal is to teach Lucy about business
Disclaimer
Dividend Talk is not a licensed or registered investment adviser or broker/dealer. We are not providing you with individual investment advice on this site. Please consult with a licensed investment professional before you invest your money. This site is for entertainment, informational, and educational use only.
Any opinion expressed on the site here and elsewhere on the internet is not a form of investment advice provided to you. We use information, data, and sources in the articles w
