It's the Moment to Secure These 3 Stellar SWANs for Investment

It's the Moment to Secure These 3 Stellar SWANs for Investment

Hey there, buddy! Let me spill the tea on some killer investment ideas, straight from Dividend Sensei (Adam Galas) and his crew. These dudes are always digging up juicy opportunities for our platform and Seeking Alpha. They've got a massive master list of 500 stocks, but get this—they're about to crank it up to 10,000!

That's right, my friend, they're working on a super-secret, high-tech model that'll let them sift through tens of thousands of publicly traded companies from around the world. We're talking 20 times their current list, baby! And when they're done, there'll be no shortage of rock-solid blue-chip value plays. They're even planning on churning out automated company-specific reports in the next few weeks, so keep your eyes peeled for that.

For now, though, let's dive into our top picks of the week:

U.S. Bancorp (USB): The Midwest's Top Regional Bank

First up, we've got U.S. Bancorp, a badass bank operating in 26 states. They've got over 4,500 ATMs and more than 2,100 branches, making them the Midwest's largest regional bank. As of March 31st, 2025, they had a whopping $669 billion in assets on their balance sheet.

Their client base is impressive, with 13 million consumers, 1.4 million businesses, 500K wealth clients, and 45K corporate and institutional clients. About 42% of their net revenue comes from Wealth, Corporate, Commercial & Institutional Banking activities, while another 32% comes from Consumer & Business Banking activities. The remaining 26% comes from Payment Services.

CEO Gunjan Kedia says they plan on returning to their old expense discipline ways to achieve positive operating leverage of over 200 basis points for the full year 2025. With disciplined expense management and a focus on improving momentum in fee revenue, they'll be riding high for years to come.

USB's 4.7% dividend yield is no joke, either. It's nearly four times the S&P 500's 1.3% yield, and the payout ratio is expected to be in the mid-40% range for 2025, which is manageable. That should give them plenty of room to keep growing their dividend and extending their 14-year dividend growth streak.

USB's shares are trading at a forward P/E ratio of just 9.5, which is a steal compared to the 10-year average of 13.5. If they hit their growth targets and return to fair value, USB could have a 45% cumulative upside by June 2026 and annual total return potential of 17% by 2030.

Principal Financial Group (PFG): An Undervalued Financial Services Powerhouse

Next on our list is Principal Financial Group, a major player in the financial services industry. They've got $1.7 trillion in assets under administration and $718 billion in assets under management, spread across over 70 million customers in more than 80 countries.

PFG offers a variety of products in three business segments: Retirement & Income Solutions, Principal Asset Management, and Benefits and Protection. They're targeting 9% to 12% annual non-GAAP operating earnings per diluted share growth, with plans to allocate between 35% and 45% of net income to return capital to shareholders through share repurchases.

They've also got some growth catalysts in the works, like deploying 15% to 25% of net income to organic capital deployment and strategic acquisitions to bolster their competitive positioning.

With a 4% dividend yield and a payout ratio set to be in the high 30% range in 2025, PFG has the flexibility to keep growing its dividend and extending its 16-year dividend growth streak. Plus, they've got an A- credit rating from S&P on a stable outlook.

PFG's shares are priced at a forward P/E ratio of just 8.9, which is substantially less than the 10-year average of 11.3. If they return to fair value and hit their growth targets, they could have a 30% cumulative upside by June 2026 and 15% annual total return potential by 2030.

Hormel Foods (HRL): A Discounted Dividend King

Last but not least, we've got Hormel Foods. With more than 40 brands commanding top positions in their respective categories, HRL has plenty of household names under its belt, like Hormel pepperoni, Planters nuts, Skippy peanut butter, and Spam.

They're expecting 5% to 7% annual operating income growth over the long haul, with organic net sales growth of 2% to 3% annually. Improving supply chain efficiency and adding to value-added capacity will help them achieve these results.

HRL's 3.8% dividend yield is tasty, too, with the payout ratio for FY 2025 poised to be in the low 70% range. That should give them room to grow their dividend at a rate less than adjusted diluted EPS growth in the coming years, building on an already legendary 58-year dividend growth streak.

HRL's shares are trading at a forward P/E ratio of 18.1, which is lower than the 10-year average of 23.2. If they hit their growth targets and revert to fair value, they could have a cumulative upside of 14% by FY 2026 and 12% annual total return prospects by FY 2030.

Always remember, my friend—these stocks have risks to consider, like interest rate volatility, shifting consumer preferences, and supply chain disruptions. Do your due diligence before diving in. Happy SWAN Investing!

Oh, and don't forget to check out iREIT® on Alpha for all the best research on REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers. You can snag a free 2-week trial and my free book, so what are you waiting for? Get in there!

1. To secure your financial future, you may consider investing in U.S. Bancorp (USB) for a steady income stream. With a 4.7% dividend yield and expansion plans, USB could have a 45% cumulative upside by June 2026 and an annual total return potential of 17% by 2030.
2. For those interested in the financial services sector, Principal Financial Group (PFG) offers a 4% dividend yield, an A- credit rating, and growth targets that could lead to a 30% cumulative upside by June 2026 and 15% annual total return potential by 2030.
3. Hormel Foods (HRL), with its diverse brand portfolio and growth expectations, offers a 3.8% dividend yield and has the potential to provide a 14% cumulative upside by FY 2026 and 12% annual total return prospects by FY 2030.
4. To diversify your investment portfolio and explore REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers, consider subscribing to iREIT® on Alpha for two weeks free and downloading my free book for additional resources.

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