Hi friend 👋
TJ is doing an amazing job at Compounding Dividends.
His best investments so far?
The Portfolio pays a dividend yield of 3.5%.
This means that per $100.000 you invest, you receive $3.500 in yearly dividends.
And guess what?
TJ just added to a stock in the Portfolio.
The stock I’m talking about? Wolters Kluwer.
Here’s why TJ thinks it’s an interesting buy right now:
Market overreaction: The stock is down ~30% this year. Mr. Market seems to be very pessimistic about Wolters Kluwer.
Already an AI company: 70% of Wolters Kluwer’s digital revenues come from AI-enabled products, up from 50% two years ago. They’ve been using AI for over a decade.
Proprietary data moat: Wolters Kluwer owns unique, gold-standard content databases that cannot be replicated. This includes 7,600+ medical experts validating their health platform and processing 300,000 regulatory changes per year in tax & accounting.
High switching costs: Once professionals like doctors, lawyers, and CPAs are embedded in Wolters Kluwer’s tools, they rarely leave.
Recurring revenue: Over 80% of revenue is subscription-based.
Shareholder-friendly management: The company has a 5-year dividend growth CAGR of 14% and continues to buy back shares.
Attractive valuation: The stock is trading at 13x earnings, which is historically cheap.
High dividend: The dividend yield is 3.75%, compared to a historical average of 1.74%.
You want to learn more?
TJ will provide investors with a lot of Dividend Investing Wisdom this week.
To start, grab this list with 27 companies that paid a dividend for over 100 (!) years:
27 Dividend Kings
Everything In Life Compounds
Team Compounding Quality
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