Dividend Growth Stock Model Reveals Top Picks for Long-Term Profitability in 2024

San Francisco, California – A recent analysis on top growth and dividend stocks for the mid-year of 2024 has unveiled some intriguing findings. The research, which builds upon doctoral research on multiple discriminant analysis (MDA), delves into the complexities of selecting top stocks for long-term investment. The study highlights the unique characteristics of small-cap stocks with low trading volumes that offer no dividends, showing a propensity for large price breakouts with higher risk levels.

Moreover, the analysis reveals a stark contrast among the 15 largest Mega Cap stocks, with only one stock boasting a dividend yield above 2% while delivering impressive returns. This further emphasizes the challenge of achieving optimal total return with a blend of high dividends and reliable growth factors in the long run.

Digging deeper into the current market conditions, it’s evident that the landscape is filled with warning signals amid the Federal Reserve maintaining rates at historically high levels. The market scenario remains skewed towards favoring the largest mega-cap stocks, whereas smaller-cap indices like the Russell 2000 have experienced fluctuations, turning briefly negative for the year.

The cyclical pattern observed in the S&P 500 during election years underscores the potential for strong performance in the summer months, historically identified as the best periods of the year for market returns. However, the unpredictability of economic conditions in 2024 adds a layer of complexity to investment decisions.

When considering the growth and dividend portfolios, the data showcases a 10.7% year-to-date growth for the 2024 January portfolio, outperforming the S&P 500’s 15.2% return. The selection criteria for these stocks include a minimum $10 billion market cap, $2/share price, 500k average daily volume, and a minimum 2% dividend yield, reflecting a focus on fundamental, technical, and sentiment factors for optimized returns within the large-cap segment.

One standout stock from the July selection portfolio is Cenovus Energy, identified through discriminant analysis of fundamental variables and dividend analysis. The company exhibits strong potential for long-term gains based on a combination of MDA value and momentum variables, positioning it as a top dividend stock in the current market environment.

Looking at prior returns from 2020 to 2024, the analysis underscores the impact of factors such as Federal Reserve fund rates, corporate dividend decisions, and treasury market yields on large-cap dividend selections. These insights, combined with the Momentum Gauge signals, offer a strategic approach to enhancing returns and navigating market fluctuations in the long term.

In conclusion, the monthly top growth and dividend stocks serve as a testament to ongoing research and testing of breakout selection algorithms applied to strong dividend growth stocks. By leveraging key factors from MDA breakout models and ongoing optimizations, investors can position themselves for long-term success in the ever-evolving market landscape.