Cole Grinde
Stock & Options Investor, Dividends/Value/Fundamentals, Tesla
Texas Roadhouse is probably the favorite restaurant to invest in because Americans still see good value there and its food quality hasn't deteriorated. Inflation and input costs need to stop rising so quickly for the sector to be investable. x.comÂ
Broadcom, Visa, Mastercard, Microsoft, JPMorgan, Costco, Apple, Home Depot, Lowe's, American Express and the DGRO, VIG and SCHD ETFs suit a dividend growth strategy, the best way to live off dividends. Payouts growing 5-8% a year can outpace inflation, and living on dividends means never selling in a crash. Steady dividend raises filter for stable cash flows, quality and solid management, dividends are easier to forecast than prices, and reinvesting them before retirement compounds share count. … Show more
Texas Roadhouse is a truly great company but a bit rich at 25x even the lowest forward earnings estimates, making it a tough call. x.comÂ
Restaurant chains such as Chipotle, Starbucks, Texas Roadhouse, Domino's and Wingstop are relatively easy to buy and hold for many years because they face no major tech disruption. Competition has always been strong, but growing by opening more physical locations is a clear and simple way to compound. Their shares are directly linked to consumer sentiment, which makes that chart worth following. x.comÂ
McDonald's looks attractive in one of its largest drawdowns ever, with its highest dividend yield in 11 years and its lowest P/E in six years. It was appealing at $247 and is a stock to commit to at $239. x.com x.comÂ
Dividend growth stocks have quietly outperformed the S&P 500 for decades, making Broadcom, Visa, S&P Global, Costco, Mastercard, Texas Instruments, Microsoft, PepsiCo, Starbucks and NVIDIA ten to buy and hold forever. x.com x.com x.com x.com x.com x.com x.com x.com x.com x.comÂ
McDonald's is getting more interesting for dividend investors: its dividend has compounded about 14% a year for 26 years since 2000. x.comÂ
Restaurant stocks, including Chipotle and Wingstop, are uninvestable right now, with too many better places for money. Most have slowing growth, rising costs and poor margins. Wingstop's growth and margins look better than most, but it is still not a buy. x.com x.comÂ
Dine Brands looks like a bargain at 8.1x earnings versus a normal 13.7x, with 12% consensus growth in 2027, leaving more room to run. Per the activist investor that took a stake, Applebee's and IHOP now have to prove the recovery is real through traffic, margins and cash flow. x.comÂ
Quality dividend stocks look like a great place to be over the next few years as the crowded tech trade unwinds. Per @PeterBerezinBCA, in the early dotcom bust tech crashed while the rest of the market rose, so the hedge for stocks was other stocks. A quality dividend basket holds old-economy, cash-generative businesses at sane multiples, while the index hides 50% of its weight in names at 10 times sales. That outweighs a general dislike of dividends as inefficient, taxable compounding. x.com … Show more