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Hi,
Investing has traditionally been broadly categorized into “growth”, and “value” styles.
- Value investors look for stocks trading for less than they are worth.
- Growth investors look for fast-growing stocks that will be worth more in the future.
Both value and growth are important. Valuation matters. And so does future growth potential.
The synthesis of growth investing and value investing is GARP investing.
GARP stands for “Growth At A Reasonable Price”.
It aims to buy fast growing companies trading at reasonable prices.
Note: The style was popularized by Peter Lynch.
The key metric for GARP investors is the PEG ratio.
The PEG ratio takes the P/E ratio and divides it by the expected annualized growth rate x 100.
Example: A stock growing at 10% annually with a P/E ratio of 20 would have a PEG ratio of 2.0.
GARP investors ideally want securities trading for PEG ratios of 1.0 or less.
These are rare, especially in today’s high P/E ratio market.
That’s because stocks with strong growth prospects tend to not have low P/E ratios. If expected growth is strong, sentiment is usually not negative.
There are, however, exceptions....
Fear of future events that may or may not occur (like how great the impact of AI will be on specific businesses) can create PEG bargains.
What the PEG ratio does not take into account is dividends.
Dividends matter to investing – and especially to dividend growth investors.
An easy modification is to add dividend yield to the growth component of the PEG ratio to adjust for dividends.
When doing this, we get the following adjusted (for dividends) PEG ratios:
- S&P 500: 4.8
- Upcoming May 2026 Sure Dividend Growth Newsletter Top 10 average: 1.5
- Lowest PEG in the May 2026 Sure Dividend Growth Newsletter: 0.8
- Highest PEG in the May 2026 Sure Dividend Growth Newsletter: 2.3
Note 1: S&P P/E and yield data from multpl.com on 5/14/26. I use an expected EPS growth rate for the S&P 500 of 5.5%.
Note 2: Data above referencing the Sure Dividend Growth Newsletter is from the 5/13/26 Sure Analysis spreadsheet. Our P/E ratios use expected earnings for the current fiscal year, which gives them a slight advantage versus the S&P’s P/E ratio above which uses trailing twelve month earnings.
The Sure Dividend Growth Newsletter (SDG) Top 10 isn’t specifically built around the PEG ratio.
But we do look for high quality fast-growing dividend stocks trading at or below fair value to buy and hold for the long run.
This lines up well with the PEG ratio, especially compared to the broader market.
Note: The new May 2026 edition of the Sure Dividend Growth Newsletter publishes this Sunday morning!
About The Sure Dividend Growth Newsletter
The Sure Dividend Growth Newsletter analyzes our Top 10 fast-growing long-term dividend stock buys each month.
The SDG Newsletter:
- Is always published on the 3rd Sunday of the month
- Initial edition was published on October of 2020.
- Is currently trusted by more than 3,700 investors
And the SDG Newsletter has everything you need to build your fast growth long-term dividend portfolio, including:
- Our Top 10 high yield dividend growth stock buys
- Actionable sell recommendations
(As needed)
- A portfolio building guide
- And much more
Our Top 10 buys each month have:
- Dividend yields + conservative growth estimate of 7.0%+
(And typically significantly higher)
- At least 5 years of consecutive annual dividend increases (And typically much longer).
- Trading at fair or better prices
(Always trading below fair value).
"In my investment tracking spreadsheet, these Passive Income stocks are labeled the Untouchables and I am prepared to hold them forever. May this newsletter go on in perpetuity!"
– Sure Dividend Growth Newsletter member
(Formerly the Sure Passive Income Newsletter)
These are our top 1.1% buys for fast-growing dividend growth stocks to buy and hold for the long-run from our 900+ stock Sure Analysis Research Database.
Our ~15 person team puts in the work to find the best fast-growing dividend stocks to buy for the long-run for our members by analyzing 900+ securities every quarter.
Note: This is real analysis by our team, not a quick computer screen or AI guesswork.
“The person that turns over the most rocks wins the game. And that’s always been my investing philosophy.”
– Peter Lynch
The upcoming May 2026 Top 10 has the following compelling averages:
- 10.5% Expected annual dividend growth rate
(Rapid dividend growth for compounding)
- Trading for 80% of fair value
(All of the top 10 are currently undervalued)
- Dividend yield of 2.0%
(This compares favorably to the S&P 500's 1.1% yield)
- 27 Year streak of consecutive dividend increases
(Including 2 stocks with 50+ year streaks)
Note: Data from the 5/13/26 Sure Analysis spreadsheet.
And we don't stop after recommending a security.
We provide actionable sell recommendations as needed as well...
Although our goal is to buy and hold forever so long as dividends keep growing.
Note: Click here for a past edition of the SDG Newsletter.
Why Now Is The Absolute Best Time To Join The Sure Dividend Growth Newsletter
Now is the best time to get the SDG Newsletter because:
- This Sunday morning we will publish the new May 2026 edition the SDG Newsletter.
- We are currently running a deep discount promotion to celebrate the upcoming publication of the new May 2026 edition!
And this is BIG because:
- The SDG Newsletter annual plan will never be this cheap again
It's normally $49/month, which comes to $588 annually. But you can join now for just $87/year.
- Your price will never increase after joining
It will stay at $87/year for as long as you are a member with absolutely no tricks, gimmicks, or gotchas.
- You get a 60-day full refund period
There's no risk in trying the SDHY Newsletter because you get a 60-day full refund period on your first payment. There are no hoops to jump through; just email us at support@suredividend.com.
- Hard Deadline at 8:00 PM CT on May 11th, 2026
Once this deep discount promotion ends, it's gone forever with absolutely no exceptions. It ends at 8:00 PM CT on May 18th, 2026.
You will instantly receive the current April 2026 edition when you join below, and be on the list to get the new May 2026 edition when we publish it this Sunday morning.
To your compounding dividends,
Ben Reynolds
Founder, Sure Dividend
P.S. The new May 2026 edition of the Sure Dividend Growth Newsletter goes live this Sunday morning! Click here to join now with the deep discount price locked in, while it's still available.
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