My Top Dividend Stock To Buy In September
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So right now—as I’m sure is the case for many of you—my portfolio is sitting at all-time highs.
On one hand, that’s obviously very exciting. It feels good to see your wealth going up, which is the whole point of all this, right?
But on the other hand, a higher portfolio value also means higher share prices. When stocks get more expensive, you don’t get as much bang for your buck, which is a bit of a bummer.
But fear not, my fellow investors because there are always a few good buying opportunities to be found. Sometimes you just have to look a little harder.
I think one of the best looking buying opportunities right now is FactSet Research Systems (FDS), which is my top dividend stock to buy in September. You can learn about some of my other top stocks to buy here.
Now, unless you work in finance, you probably don’t use FactSet in your day-to-day life. But behind the scenes, FactSet is basically the “data backbone” for the investment world.
Think of it like a massive financial library and toolbox rolled into one—built specifically for analysts, portfolio managers, and other professionals.
They have mountains of financial data—everything from share prices and company financials to earnings reports and transcripts. That data is then licensed out and also gets integrated into their software.
Their partners include some of the biggest names in finance and tech—Amazon Web Services, Anthropic, BlackRock, Credit Suisse, and Equifax, just to name a few.
Source: FactSet Investor Presentation
Now what I think makes FactSet so interesting is that customers pay subscription fees to access their data and tools. Once they’ve built their entire workflow around FactSet’s offerings, it becomes incredibly sticky.
Nobody wants to go through the pain of switching software, especially when making multi-million dollar decisions. That recurring subscription model—with its high switching costs—gives FactSet a very stable and predictable revenue stream (which trickles down into their earnings and free cash flow).
Source: Snapstock
Still, no business is perfect, and some investors worry that AI could make FactSet irrelevant. But in reality, the company is leaning into AI, not fighting against it.
They’ve been building out data packages specifically designed to power AI tools—already organized, licensed, and ready to plug directly into other platforms. That positioning could actually make them even more valuable as AI use becomes more widespread.
Source: FactSet Website
Despite being such a high quality business (with an above-average Snapscore of 7.50), the stock is still down about 10% just in the last month.
And zooming out on a YTD basis, FDS is down over 20%, most of which is likely due to fears surrounding how AI will impact their business.
Source: Snapstock
In the dividend department, FactSet isn’t offering the highest yield at 1.1%, but the dividend growth has been very consistent over the last decade ranging from the high single digits to the low double digits.
And based on their average EPS and FCF growth of just under 10%, it seems that they are well set up to continue that steady and respectable dividend growth in the coming years.
Like I said, I think FactSet is one of the most interesting opportunities right now. With its predictable revenue, sticky business model, and consistent dividend growth, it looks like the kind of stock that you can sleep well at night owning.
With that said, FDS isn’t the only good buying opportunity on the market right now. It looks like there are quite a handful more, and I want to hear from you: Which discounted stocks do you have your eye on as we step into September? Write to me here and let me know.
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ICYMI 🎥
Cheap Stocks Are More Expensive Than You Think | Ep. 33
In this episode of The Deep End, we break down why “cheap” stocks are often more expensive than they look, the herd mentality that traps so many investors, and the mindset shift toward quality and compounding that actually leads to financial freedom.
CAREFULLY CURATED 🔍
📺 Costly Mistakes - My friend Chelle recently went back into the archives of my channel and reacted to an old video where I talked about three big dividend investing mistakes. In her reaction, she shared how she personally made one of those mistakes—and how it ended up costing her in a big way.
🎧 The Path To $1,000,000 - Russ was recently featured on the Moementum Finance channel, where he shared his journey of going from a net worth of less than $100K at age 39 to standing on the doorstep of millionaire status eight years later.
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SINCE YOU ASKED 💬
"How many stocks should a person keep in their portfolio at one time? I am diversified, but how many stocks is too many?"
- David | YouTube
Unfortunately, there isn’t a magic number to shoot for. It’d be nice if there were, but the truth is that it really depends on a couple of factors.
First and foremost, it comes down to the size of your portfolio. If you’re just starting out and have a smaller portfolio, you can get away with holding fewer stocks since less money is on the line.
But as your portfolio grows, I think it makes sense to be a bit more diversified. The larger your portfolio—and the more wealth you have—the more protective of that wealth you should be. And one way to do that is by owning more stocks.
The other factor you need to consider is time. There are only so many hours in a day, and owning individual companies requires keeping up with them, which takes time.
Now you don’t need to read every single article or bit of news, but at the very least, you should be following all the quarterly earnings, listening to the calls, and staying on top of company developments.
With that said, you'll need to balance how diversified you want to be with how much time you can realistically spend keeping up with your holdings. Over time, you’ll naturally get a feel for how many is too many based on what feels manageable for you. I call this your diversification "sweet spot."
One last thing to keep in mind: the more holdings you own, the more your returns will start to mirror the broader market. If you’re so diversified that you’re basically tracking the S&P 500 anyway, you might be better off just owning an index fund and keeping things simple.
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