How the Big Money Is Front-Running $7.5 Trillion VIEW IN BROWSER
BY JASON BODNER, EDITOR, QUANTUM EDGE PRO Right now, two market forces are aligning… You see, when interest rates fall – as is happening right now with the recent Fed rate cuts – dividend yields can compete more easily with Treasury bond yields. This rotation into dividend payers is well underway. Below is a chart of the Vanguard High Dividend Yield Index Fund ETF (VYM). The green lines are days with unusually strong buying activity – the kind that, in my experience, comes from Big Money: 
Source: MoneyFlows.com You can see five Big Money buy signals here in September, all of which came before the Fed officially lowered interest rates last Wednesday. And there were three earlier buy signals in August. Notably, there was one on Aug. 22 when Fed Chair Jerome Powell acknowledged in a speech that rates would soon fall. With rates expected to continue falling, this rotation is far from over. But I don’t want you to buy just any old dividend stock. I want you to buy the stocks with the best chance of beating the market – high-quality growth stocks – that also happen to pay a dividend. This is a rare mix of qualities that would normally be hard to find. After all, big dividends aren’t common among growth stocks. Only 32 of the top 100 stocks in my Quantum Edge system pay any dividend. And the average yield among them is 1.4% – much lower than the yield of short-term Treasury bills right now. But with my data and the power of TradeSmith’s software, we can easily spot the best stocks to ride this trend… Let’s talk about three stocks whose dividends match or beat the Fed’s short-term interest rate while also ranking high in my Quantum Edge system… | Recommended Link | | | | The S&P 500 historically averages a 10% return per year… But this financial technology firm’s AI system has averaged an annualized return of 238% since its inception in 2023. Which is incredible… And the best part is it’s available to regular Americans who want to leverage the power of AI for the chance to supercharge their stock market returns. Click here to learn more. *This return measures the performance of all of this firm’s recommendations, scaled to a one-year holding period. |  | | DHT Holdings (DHT): 7.5% Yield DHT Holdings (DHT) owns and operates oil tankers. The business model is simple: own massive ships and get paid to transport oil around the world. That 7.5% yield is almost double any other stock among my top 100. DHT’s high Quantum Score of 97.1 put it firmly in the buy zone: 
Source: TradeSmith Finance The fundamentals also have a high 92.9 score, although sales and earnings can vary depending on oil prices. One- and three-year sales and earnings growth are strong at the moment, as are the company’s profit margin and debt levels. Shares trade with momentum as shown by that Technical Score of 100 and are near three-month and one-year highs. Their moving averages are stacked in the order of an uptrend, and internal metrics are good. But a perfect score is also a double-edged sword. It’s as good as it gets, yet there’s nowhere to go but down. That raises the odds of a short-term pullback. Big Money has been buying with five inflow signals this month: 
Source: MoneyFlows.com The data looks solid and predictive of higher share prices, but since we’re focusing on dividends, another layer of analysis is helpful – the stability of the dividend. When investing for income, your best bets are companies whose dividends are rock solid and ideally grow year after year. DHT is not one of those companies. It doesn’t pay the same dividend every quarter until the board raises it. In fact, it fluctuates sharply. Just looking at this year, the company paid 24 cents per share in August, while the May payout was 15 cents, and the February payout was 17 cents. Patria Investments (PAX): 3.9% Yield Patria Investments (PAX) manages assets across several product lines – private equity, infrastructure, real estate, credit, public equities, and private market solutions. It is headquartered in the Cayman Islands, with its roots in Latin America, and operations in Europe, the U.S., and around the world. PAX rates a buy with its 93.9 Quantum Score, which has risen from 74.5 in mid-August: 
Source: TradeSmith Finance Earnings are expected to dip slightly this year before growing 20% next year, so I would call that mixed. Debt is also higher than I like to see at 52.1% of equity, though that is more common with financial stocks. The rest of the fundamentals are good to strong. The real strength is in the technicals, which rate well in all the important metrics my system analyzes. Shares have zoomed 60% higher since their April lows. Big Money drove the bulk of that move, went quiet for a while, and then just recently reappeared with buy signals last Thursday and again on Tuesday. 
Source: MoneyFlows.com The dividend has been steady for the last four quarters at 15 cents per share, which is also good. There have been periods of inconsistency in the years since PAX went public in 2021. I like the company’s strong operating cash flow, which makes the dividend more sustainable. CareTrust (CTRE): 3.9% Yield I wrote about CareTrust (CTRE) last week as the top-ranked Real Estate Investment Trust (REIT) in my system. It is a healthcare REIT with more than 500 properties around the world, specifically skilled nursing, assisted living, and independent living facilities. We often find some of the best dividend-paying investments among REITS because they must pay back about 90% of their income to shareholders. Hence the often-higher yields. But if a yield seems too good to be true, it probably is. You want to stay with REITs that show the same predictive characteristic as stocks – strong fundamentals and technicals and Big Money buying up shares. CTRE fits the bill with its 93.1 Quantum Score: 
Source: TradeSmith Finance Those three scores are unchanged from last week, but the Quantum Edge system sniffed out a fresh Big Money buy signal on Tuesday. 
Source: MoneyFlows.com Investing for income is not my primary focus, but it should be part of a well-diversified portfolio. If you follow the data and the Big Money, you can find both growth income in the same stock. A win-win. With institutions pouring money into dividend-paying stocks and rates expected to fall further, now is an unusually good time to invest. Talk soon, 
Jason Bodner
Editor, Quantum Edge Pro P.S. Buying great dividend stocks is just step one of boosting your income… In a world with falling rates and stubborn inflation, you need to pull out all the stops to keep your income in check. One great method is TradeSmith’s newest breakthrough, the T-Line. This new tool helps you find small “mispricings” in the market… and helps you exploit them for short-term profits. It’s the kind of advantage we constantly try to deliver to our subscribers. And this tool is just part of a suite of trading tools designed to turn small market moves into big, triple-digit payouts in a matter of weeks… even days. It’s the type of opportunity usually reserved for the big money institutions whose trades we revealed today. With TradeSmith, you can level the playing field. TradeSmith CEO Keith Kaplan will explain everything about the T-Line in the upcoming T-Day Summit on Sept. 30 at 1 p.m. It’s free to attend. Simply click here now to secure your spot. You won’t find the T-Line anywhere else, and learning about this unique and powerful advantage might well stretch what you think is possible when it comes to making money in the markets. Be sure to reserve your spot now. | 
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