6 Overlooked Dividend Stocks You Ought to Discover [Podcast]

Reasons why “quiet compounders” succeed
Less prominent companies frequently feature stable revenue, consistent cash flow, and opportunities for growth—provided you are willing to wait as the market recognizes them.

Our method for screening via the Dividend Triangle
Five-year trajectories in revenue, EPS, and dividends highlight businesses already performing well, before assessing debt, cash flow, and capital management.

Small-cap assessment
Smaller firms may excel in rising markets but can experience greater fluctuations in downturns. Adjust sizes accordingly and emphasize fiscal responsibility.

Jamieson Wellness (JWEL.TO) — Vitamins with brand strength

• Thesis: Top category in Canada characterized by repeat-purchase items and expansion potential internationally (especially in China/US). A combination of organic growth and acquisitions; brand promotion enhances market share.
• Keep an eye on: Substantial advertising expenditure versus profit margins, robust global competitors, and local competition abroad.

Roper Technologies (ROP) — Vertical-market software engine

• Thesis: Recurring and essential software across specialized sectors; strategic small acquisitions amplify cash flows; over 17 years of consistent dividend growth in double digits.
• Keep an eye on: Acquisitional timing/price strategy, integration risks, and the necessity for larger transactions as the foundation grows.

Exchange Income (EIF.TO) — Monthly dividend payer with dual engines

• Thesis: Northern aviation services (sticky, minimal competition) alongside diverse manufacturing; resilient dividend throughout COVID, followed by renewed growth.
• Keep an eye on: Debt incurred for acquisitions, cyclical nature of manufacturing, and volatility associated with small caps (expect more pronounced downturns).

A. O. Smith (AOS) — Unexciting but essential, built to last

• Thesis: Dominance in water heaters/boilers and water treatment sectors; U.S. replacement cycle coupled with China/India’s water infrastructure signifies a lengthy growth trajectory; Dividend Aristocrat.
• Keep an eye on: Global competitors, tariffs/margin pressures, and the execution challenges in a fragmented water-treatment market.

TerraVest Industries (TVK.TO) — Energy-related equipment, not a commodity speculation

• Thesis: Specialized tanks, compressed-gas/storage, HVAC equipment; acquisition strategy now augmented with service/maintenance revenue; low payout ratio with room for growth.
• Keep an eye on: Previous dividend halt (pre-2022), deal integration complexities, and elevated expectations post-strong growth.

HCA Healthcare (HCA) — Importance of scale in healthcare

• Thesis: Largest operator in the U.S., concentrating on high-growth areas (TX, FL); data-driven management, multiple profit centers per patient, strong performance in the Dividend Triangle.
• Keep an eye on: Capital demands, rising labor costs, reimbursement/regulatory shifts, and increasing debt levels for expansion.

Key insights from the process

• Prioritize numbers, then narrative: Start with the Triangle (increasing sales, EPS, dividends) to evade narrative pitfalls, and subsequently analyze moat, capital management, and balance-sheet risks.
• Size positioning trumps forecasting: Employ quality to guide inclusion and risk to dictate weight. Combine small- and mid-cap stocks with steadier core holdings.
• Patience is a competitive advantage: Limited investor focus can postpone multiple expansions in relation to a company’s performance. Allow top performers time to flourish.

Related Resources

Interested in more? Download the Top 7 Stocks from Three Sectors Booklet

This complimentary 16-page booklet contains:

• A review of the 2025 stock market for context: Gain insight into the stocks’ backgrounds and develop conviction, rather than just following a name on a list.
• A straightforward, metrics-focused method you can apply again: Observe how concentrating on growing sales, profits, and dividends narrows your options to successful, rather than merely popular, companies.

Make 2026 your most successful investment year!

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