Buy-Hold-Sell List Update May 2025
👋 Howdy Partner,
Since November, the Compounding Dividends Portfolio is up 12.06%.
The S&P 500? It’s still down about 1%.
Now, I’ll be the first to tell you - this isn’t a race.
I’m not trying to “beat the market.”
What I am trying to do is build $5,000 in reliable, recurring, passive income. Every month. Rain or shine.
That’s it. That’s the goal.
And you know what I love about dividend stocks?
They don’t care how the market feels.
It’s swung from ‘Extreme Fear’ in April to ‘Greed’ in May.
But the total change in the past 3 months?
Only 1%.
If you were on social media, or read the financial headlines, you know there was painc.
To be honest, I hardly worried about it.
Why?
Because I own real businesses. With real cash flow. That send me money.
Every. Single. Month.
Remember that volatility is opportunity - even though the market has recovered, some Dividend Stocks are still beaten down.
Let’s update our Buy-Hold-Sell List to see what looks attractive right now.
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With The Walnut Fund, you invest in real walnut trees that produce nuts (and cash) every year, for over 40 years.
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Cold Beer, Warm Sun, and Passive Income
I love the summertime - unfortunately our weather hasn’t been very nice lately.
It’s been unseasonably cold, wet, and miserable.
But I know the heat and sun are coming, so last week I opened our pool.
One of my favorite things to do is to float around on the water, paperback (or 10-K) in hand, with a cold, crisp beer sweating in the can.
I don’t need much more than that.
And here’s the best part…
While I’m floating? Those cash flowing companies we talked about earlier are still working to produce income for me.
Even though I’ll be doing my part to support the breweries through the summer, the beer business has taken a hit lately.
Alcohol consumption is down. Some of the biggest names have seen their stocks slide.
One of them is Constellation Brands ($STZ).
They sell popular alcoholic drinks like Corona, Modelo, and Robert Mondavi wines. Constellation leads the market for imported beer in the U.S. and also sell many spirits and wines.
A few reasons they’re interesting:
Berkshire Hathaway has been buying
They’re divesting lower-end wine brands to focus on premium wines
The stock is down nearly 33% over the past year
It looks undervalued on the Buy-Hold-Sell list
62% undervalued on Historical Dividend Yield
15% undervalued on the Reverse DDM
Buy-Hold-Sell List
The Buy-Hold-Sell List is a way to filter our very large Investable Universe.
You can see all of the details on how it works here:
We look for cheap Dividend Stocks based on three valuation methods:
The PEG Ratio
Current Yield vs Historical
Reverse Dividend Discount Model
Based on this, we give each company a Buy, Hold, or Sell recommendation.
Update May 2025
One company will be removed from the Buy-Hold-Sell List:
Discover Financial Services ($DFS): Capital One Financial Corporation acquired the company on May 19, 2025
Some Interesting Stats:
148 companies total receive a ‘buy’ rating
43 moved from 'hold’ to ‘buy’
38 have moved up from ‘sell’ to ‘hold’
5 made the jump from ‘sell’ directly to ‘buy’
Recommendation Changes
52 companies went from Buy to Hold due to increasing stock prices.
Here’s a sample of a few:
CME Group ($CME): Runs one of the world’s largest derivatives exchanges
CSX Corporation ($CSX): Provides freight rail and intermodal transportation services across the eastern US
L'Oreal ($OR): Develops, manufactures, and sells a wide range of cosmetics and beauty products
Baxter International ($BAX): Develops, manufactures, and sells medical products and therapies for hospitals and home use
Wabtec ($WAB): Provides equipment, systems, digital solutions, and services for the freight and transit rail industries
You can download the entire Buy-Hold-Sell list here: