Summary

• Dividend stocks that consistently grow their payouts are premium compounders.
• Currently, two best-of-breed names are trading at compelling discounts that create a rare combination of yield, growth, and valuation upside.
• Both companies face near-term headwinds, but their long-term fundamentals remain firmly intact, making the current sell-offs look like buying opportunities.
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Dividend stocks, especially those that consistently grow their payouts, are often priced at a premium. This is because a company that pays out sustainable income and consistently grows it over the long term generally also compounds shareholder returns consistently year after year. This makes

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARCC, OWL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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