The model portfolio
High income. Earnings behind it.
The Fly High 50 seeks the highest dividend yields supported, or substantially supported, by the earnings available to pay them. Yield identifies the opportunity. Earnings analysis evaluates its support.
The selection principle
We seek to select 50 high-yielding companies whose dividends have an earnings foundation. The analysis begins with how each business earns its income, then compares that earning power with the distributions it pays. A large quoted yield alone does not establish a place in the model.
Identify the income engine
Use the earnings measure the company identifies as supporting its dividend. Net investment income, AFFO and other distributable-earnings measures are not interchangeable.
Combine actuals and forecasts
Add the two most recently reported quarters of company-specific earnings and the next two quarters of comparable, independent analyst consensus estimates.
Test dividend support
Compare the four-quarter earnings estimate with annualized regular dividends and regularly paid supplementals. Exclude irregular special dividends.
Consider yield with support
The selection objective is the 50 highest-yielding companies that satisfy the earnings-support standard under the Fly High process.
Revisit the evidence
Refresh the earnings estimate after each earnings release and the coverage calculation when included dividends change. Follow changes in earning power across the portfolio.
Two quarters behind us. Two ahead.
Actual quarter 1
Company-reported earnings using the relevant dividend-source measure.
Actual quarter 2
The second of the two most recently reported quarters.
Consensus quarter 3
Independent analyst estimates on a comparable earnings basis.
Consensus quarter 4
The following quarter, completing the rolling four-quarter window.
Four-quarter earnings estimate
÷ Annualized included dividends
100% means estimated earnings equal included dividends. A higher ratio indicates more estimated earnings relative to those payments. Use consistent per-share units throughout.
Earnings Fixes Everything
Earnings are the primary signal in the Fly High methodology. Asset quality, leverage, financing and management matter when they affect a company's earning power. We examine that evidence without replacing the earnings framework with an unrelated checklist or a claim that every risk can be scored away.
We judge the reliability of the estimation method across the portfolio and compare forecasts with subsequent results. We do not claim to predict an individual company's earnings indefinitely. Where comparable independent estimates are unavailable, the gap must be disclosed rather than filled with an invented figure.
Return to the Fly High 50 →Explore the Dividend Income Stocks criteria
The Fly High 50 is a model portfolio for research and education, not a managed account or personalized investment recommendation. Earnings estimates, distributions and market values can change. Members retain control of their investment decisions.