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Dividend Lookout Weekly
High-Conviction September Plays:
Strong Buy Ratings with Double-Digit Upside
This week's report features 5 exceptional dividend stocks with ex-dividend dates between September 3-5, 2025. Each selection combines strong analyst conviction, substantial upside potential, and sustainable dividend growth.
Portfolio Highlights
This $5 stock powers Nvidia's AI servers (up 187% potential)
$5 dividend stock powers AI revolution
- ✓ Builds Nvidia's AI servers
- ✓ Pays a dividend nearly 2.5x the market average
- ✓ AI revenue surpassing iPhone business
Editor's Note:
This week presents an extraordinary convergence of value and income opportunity.After screening dividend stocks with imminent ex-dividend dates, our analysis uncovered exceptional value across multiple sectors, with our top 5 selections averaging 15.9% price upside potential. Led by energy services giant Schlumberger with an impressive 41.4% upside, this diversified portfolio spans five distinct sectors from healthcare to consumer staples.
The standout theme: Our featured companies represent a compelling blend of value and income, combining strong analyst ratings with attractive dividend yields averaging 2.54%. These selections demonstrate robust dividend growth trajectories, with several companies posting double-digit dividend increases over the past year. Schlumberger leads with a "Strong Buy" rating and 3.09% yield, while Cigna Group offers healthcare sector exposure with 26.3% upside potential.
Action Required: With ex-dividend dates rapidly approaching between September 3-5, investors have a narrow window to capture these quarterly distributions before the deadline. The portfolio's diversity provides natural hedging across economic cycles, featuring established players in energy services, healthcare plans, beverages, regional banking, and automotive manufacturing.
— The Dividend Lookout Research Team
September 1, 2025
Selection Methodology
Our proprietary 35-point scoring system evaluated 34 dividend stocks with upcoming ex-dividend dates, analyzing six critical factors:
Analyst Ratings (10 pts)
Strong Buy ratings scored highest, with emphasis on consensus conviction
Price Upside (5 pts)
Stocks with 20%+ analyst price targets received maximum points
Dividend Yield (5 pts)
Higher yields preferred, with 4%+ earning top scores
Dividend Growth (5 pts)
Double-digit growth rates demonstrate dividend acceleration
Payout Ratio (5 pts)
Conservative ratios under 40% ensure sustainability
Coverage (5 pts)
Broad analyst coverage validates institutional interest
Schlumberger Limited (SLB)
Company Overview
Schlumberger Limited is the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. The company operates in over 120 countries with a comprehensive portfolio of products and services spanning the entire oil and gas value chain. Schlumberger's extensive technology portfolio, global scale, and deep domain expertise position it as an essential partner for energy companies looking to optimize their operations and maximize resource recovery.
Dividend Strengths
- Exceptional 41.4% upside potential backed by Strong Buy rating from 19 analysts
- Solid 3.09% dividend yield above market average
- Reasonable 38.6% payout ratio ensures dividend sustainability
- Trading at attractive 12.6 P/E ratio offering compelling value
- Global diversification and technology leadership in energy services
Risk Factors
- Energy sector volatility and commodity price sensitivity
- Negative 5-year dividend growth due to sector challenges
- Cyclical nature of oil services industry
- International operations exposed to geopolitical risks
Dividend Information
Key Dividend Metrics
$5 dividend stock powers AI revolution
- Builds Nvidia's AI servers
- Pays a dividend nearly 2.5x the market average
- AI revenue surpassing iPhone business
The Cigna Group (CI)
Company Overview
The Cigna Group is a leading global health services company dedicated to improving the health, well-being, and peace of mind of those they serve. Through an integrated platform of health services, Cigna offers medical, pharmaceutical, dental, supplemental insurance and Medicare solutions to individuals, families, and businesses in 30 countries and jurisdictions. The company's diversified healthcare platform includes Evernorth, a health services business that provides pharmacy benefit management, specialty pharmacy services, and clinical solutions to improve health outcomes and reduce costs.
Dividend Strengths
- Outstanding 26.3% analyst upside potential with Strong Buy rating from 16 analysts
- Exceptional 42.76% five-year dividend growth history demonstrates commitment
- Strong 9.21% current dividend growth rate
- Conservative 32.5% payout ratio provides room for future increases
- Defensive healthcare sector characteristics provide stability
Risk Factors
- Lower 2.01% dividend yield may not satisfy high-income investors
- Healthcare industry faces ongoing regulatory pressures
- Medical cost inflation can pressure margins
- Competition from other managed care organizations
Dividend Information
Key Dividend Metrics
Molson Coors Beverage Company (TAP)
Company Overview
Molson Coors Beverage Company is one of the world's largest brewing companies, with a portfolio of more than 100 beer and beverage brands including Coors Light, Miller Lite, Molson Canadian, Carling, and Blue Moon. The company operates across major markets including North America and Europe, focusing on premiumization, innovation, and operational efficiency. Molson Coors has been transforming its business model beyond beer to include hard seltzers, energy drinks, and other beverage categories to capture evolving consumer preferences.
Dividend Strengths
- Attractive 3.72% dividend yield leads the portfolio this week
- Impressive 40.33% five-year dividend growth demonstrates strong commitment
- Conservative 36.6% payout ratio ensures dividend sustainability
- Compelling value trading at just 10.0x earnings
- Defensive consumer staples characteristics provide stability
Risk Factors
- Limited 9.2% price upside to analyst target
- Declining beer consumption trends in key markets
- Competitive pressure from craft breweries and alternatives
- Currency exchange rate exposure in international operations
Dividend Information
Key Dividend Metrics
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Hancock Whitney Corporation (HWC)
Company Overview
Hancock Whitney Corporation is a financial holding company headquartered in Gulfport, Mississippi, with banking centers along the Gulf Coast in Mississippi, Alabama, Florida, Louisiana, and Texas. The company provides a broad range of financial services including commercial and consumer banking, trust and investment services, mortgage origination and insurance. Hancock Whitney focuses on relationship-based banking and has been serving communities throughout the Gulf South region for over 100 years, building strong customer relationships and supporting local economic development.
Dividend Strengths
- Outstanding 25% dividend growth rate demonstrates strong capital generation
- Solid 2.86% dividend yield with consistent quarterly payments
- Conservative 32.3% payout ratio provides significant expansion capacity
- Attractive 11.6 P/E ratio offers compelling value
- Regional banking exposure to Gulf Coast economic growth
Risk Factors
- Limited 6.7% price upside potential to analyst target
- Regional concentration in Gulf Coast markets
- Interest rate sensitivity affects banking margins
- Credit risk exposure during economic downturns
Dividend Information
Key Dividend Metrics
General Motors Company (GM)
Company Overview
General Motors Company is a global automotive manufacturer that designs, builds and sells trucks, crossovers, cars and automobile parts worldwide. The company operates through four segments: GM North America, GM International, Cruise and GM Financial. GM is at the forefront of the electric vehicle transition, with ambitious plans to launch 30 new EVs globally by 2025. The company's strong brand portfolio includes Chevrolet, Buick, GMC, and Cadillac, while its financial services arm provides automotive financing and insurance.
Dividend Strengths
- Exceptional 43.1% five-year dividend growth demonstrates strong commitment
- Outstanding 20% recent dividend growth shows management confidence
- Ultra-low 8.7% payout ratio provides massive dividend expansion runway
- Compelling value trading at just 9.0x earnings
- EV transition and improved capital allocation support long-term growth
Risk Factors
- Modest 1.02% current dividend yield may not satisfy income investors
- Slight negative price upside to analyst target (-4.0%)
- Cyclical automotive industry exposure to economic downturns
- Competitive pressures in the EV transition
Dividend Information
Key Dividend Metrics
Important Disclaimer
This report is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Dividend payments and stock prices can fluctuate, and investors may lose money.
Always conduct your own research and consult with a qualified financial advisor before making investment decisions. The information contained herein is believed to be accurate but is not guaranteed. Data accurate as of September 1, 2025.