In this second installment of his F.I.R.E. (Financial Independence, Retire Early) dividend growth series, Chuck Carnevale, co-founder of FAST Graphs and “Mr. Valuation,” walks through the construction of a high-yield dividend growth portfolio designed to support retirement income without selling shares.
He recaps the screening process from Part 1: focusing on U.S. and Canadian companies with at least 15 years of dividend growth over 8%, investment-grade credit ratings (BBB- or better), earnings growth of 8% or more, and an earnings yield of at least 6% (ideally 6.5–7%). From that universe, he then layers on dividend yield and valuation, looking for companies that can provide rising income over time and a margin of safety based on fundamentals.
Chuck builds a hypothetical $2 million “FHIR” portfolio for a retiree who needs at least a 3% starting yield ($60,000 per year), but he pushes the design further: with 15 stocks funded at roughly $100,000 each (targeting 20 names total), the current income yield is already over 5%, pointing toward ~$100,000 in annual income once fully invested. He explains how FAST Graphs’ advanced portfolio tools track yield, diversification, and long-term performance, noting that the current rate of return metrics are meaningless because the portfolio is only a few days old.
The video then tours several holdings and why they made the cut. Chuck highlights names like AES (very high yield plus deep undervaluation), AVT (3% yield with strong earnings expectations but weaker cash-flow coverage and a possible future replacement), Best Buy, British American Tobacco, utilities such as Edison International, high-quality REITs including Realty Income and an experiential casino REIT, asset manager T. Rowe Price, and financials like Prudential. Across these examples, he emphasizes combining attractive yield, reasonable balance sheets, and undervalued fundamentals to control risk and enhance return potential.
Chuck stresses that short-term price swings don’t change his thesis: he buys businesses for their earnings power, cash flows, and dividends—not for “trading sardines.” This particular portfolio is tailored to an investor who needs income now, but he notes that future videos will focus more on faster dividend growth and blending higher-yield, slower-growth names with lower-yield, faster-growth stocks. He closes by inviting viewers to like, subscribe, and explore FAST Graphs as a way to clearly see business value behind stock prices.
FAST Graphs Analyze Out Loud Video on AES Corp (AES), Avnet Inc (AVT), Best Buy Co (BBY), British American Tobacco (BTI), Edison International (EIX), Interpublic Group of Cos (IPG), Altria Group (MO), NNN Reit (NNN), Realty Income (O), Oneok Inc (OKE), Omnicom Group (OMC), Sonoco Products (SON), VICI Properties (VICI)
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Disclosure: Long AES, BBY, BTI, MO, NNN, O, OMC, VICI
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
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