A new screen from Trivariate Research identified five dividend-paying stocks, including Booking Holdings and Expedia Group, as promising investments for those looking to avoid chasing the market’s recent rally.
The research provides an alternative to semiconductor and industrial stocks that have driven the S&P 500 to a nearly 5% gain this year, according to Adam Parker of Trivariate. The idea is to find businesses with strong cash flow and earnings potential that are not yet reflected in their stock prices.
The firm started with a universe of 479 companies with market capitalizations over $10 billion, dividend yields of at least 0.1%, and a dividend increase in the past year. To find the top names, the list was filtered for companies in the bottom quintile of payout ratios, with net debt at or below 1.3 times expected 2026 Ebitda, and trading at forward price-to-earnings multiples in the lower end of their three-year range.
This quantitative approach seeks to identify companies with the financial capacity to continue increasing payouts to shareholders. The final list of stocks that met all criteria were Booking Holdings (BKNG), Expedia (EXPE), Synchrony Financial (SYF), Newmont Corp. (NEM), and Agnico Eagle Mines (AEM).
The identification of these specific stocks suggests that value can be found in sectors outside of the data-center boom. For investors concerned about elevated valuations in tech, this basket of names offers exposure to companies with potentially more attractive risk-reward profiles. The next catalyst for these firms will be their upcoming earnings reports, which will test the thesis of fundamental strength and dividend growth potential.
This article is for informational purposes only and does not constitute investment advice.
