Adding 5 High Quality Dividend Stocks To My Universe

With this update the investable universe now has 19 stocks in total.

5 New Stocks Added

1. ASML 0.00%↑ - New

2. TSM 0.00%↑ - New

3. QCOM 0.00%↑ - Upgrade from 90% STR list

4. RMD 0.00%↑ - Upgrade from 85% LTR list

5. MCO 0.00%↑ - Upgrade from 85% LTR list

Each of these companies appears to be of high quality, with a strong track record of success and the potential to grow shareholder capital at an above-average pace in the future. Let’s dig into some details.

ASML Holdings ASML 0.00%↑

ASML is a Dutch player in the semiconductor space, specializing in lithography. The stock has been on an impressive run, growing at a CAGR of 18.2% since 2001. More recently, however, the share price has pulled back nearly 30% since reaching an all-time high in July of 2024.

Here’s why I like ASML.

5-Year Metrics

• Revenue CAGR - 20.67%

• FCF CAGR - 31.63%

• Dividend CAGR - 13.60%

• Gross Profit Margin - 50.89%

• Return On Invested Capital - 26.23%

• Liquidity - 200.5%

• Payout Ratio - 32.23%

• Share Buybacks - 1.33%

Taiwan Semiconductor TSM 0.00%↑

TSM is the largest and most advanced semiconductor manufacturer globally, fueling the pace of AI growth. The stock has also performed well, growing at a CAGR of 17.1% since 2001. More recently, it is down a little more than 20% since peaking in January of this year.

Here’s why I like TSM.

5-Year Metrics

• Revenue CAGR - 22.02%

• FCF CAGR - 43.03%

• Dividend CAGR - 6.63%

• Gross Profit Margin - 54.95%

• Return On Invested Capital - 22.99%

• Liquidity - 173.94%

• Payout Ratio - 38.02%

• Share Buybacks - 0.00%

Qualcomm QCOM 0.00%↑

QCOM is a leader in wireless technology. The stock has seen a strong run, growing at a CAGR of 19.6% since 1991. This includes a euphoric rise during the dot-com bubble followed by a lost decade for those who invested at the peak. More recently, shares are down nearly 40% from the previous all-time high in June 2024.

Here’s why I like QCOM.

5-Year Metrics

• Revenue CAGR - 11.72%

• FCF CAGR - 13.59%

• Dividend CAGR - 6.20%

• Gross Profit Margin - 57.59%

• Return On Invested Capital - 24.53%

• Liquidity - 63.88%

• Payout Ratio - 39.55%

• Share Buybacks - 1.60%

ResMed RMD 0.00%↑

RMD operates in the healthcare industry with devices and software, primarily focused on sleep and respiratory care. The stock has had a solid run, growing at a CAGR of 13.5% since 2001. More recently, shares have declined by over 17% since peaking at the beginning of this year.

Here’s why I like RMD.

5-Year Metrics

• Revenue CAGR - 11.84%

• FCF CAGR - 26.82%

• Dividend CAGR - 5.85%

• Gross Profit Margin - 56.93%

• Return On Invested Capital - 16.17%

• Liquidity - 79.41%

• Payout Ratio - 34.38%

• Share Buybacks - -0.54%

Moody’s MCO 0.00%↑

MCO is commonly known as a credit rating provider, but it also serves the financial industry through a wide range of analytics and risk management tools. The stock has performed well, growing at a CAGR of 15.8% since 2001. It is currently down nearly 18% since peaking in February of this year.

Here’s why I like MCO.

5-Year Metrics

• Revenue CAGR - 8.85%

• FCF CAGR - 12.97%

• Dividend CAGR - 11.20%

• Gross Profit Margin - 72.15%

• Return On Invested Capital - 16.10%

• Liquidity - 229.31%

• Payout Ratio - 29.45%

• Share Buybacks - 0.81%

Valuation & Future Return Potential