It’s hard to know what to think these days. Some say you should sell everything and hide in the cellar. The market may hit new high after new high, but everyone’s afraid of a “correction.”

Look, the markets are overvalued, and a correction somewhere down the line is all but certain. But that mean there aren’t real profits to be made. There’s always a chance to make money. You just have to look harder. And looking hard is my bread and butter as a forensic accountant.

I just wrapped up an important issue of my research service Hidden Profits. Instead of recommending a new stock, I took a step back and looked at each position in the model portfolio. I showed readers my thinking in real time, and two positions in particular stuck out as particularly deserving of the title “hidden profits.”

I doubt this will come as a surprise to anyone over the age of 30, but demand for skilled nursing facilities increases with our aging population. Healthcare for the elderly is as personal as it gets, but it’s also an enormous, sprawling business. And not every CEO does right by their patients or their investors.

But I did find one company that bucks this trend. It’s on sale right now because of overblown and unsubstantiated political uncertainty. That’s short-sighted, but it’s good for investors who know better.

As is often the case, the stock price follows dividend growth – and this company regularly kicks its payout up a notch each quarter. It announced another increase along with first-quarter financial and operating results. The new dividend rate represents 9% year-over-year growth!

The stock now boasts a 7.5% forward yield, which is simply too high for its stock price. The dividend will double in just eight years if it keeps rising 9% annually – and that’ll bring the stock with it.

With dividend and stock gains easy to see and little management concern about interminable healthcare policy debates, this company offers a double in just a few short years. Better hurry, though: The market won’t leave it sitting where it is today for long.

This leads me to another company that stood out in my stock-by-stock analysis.

Very profitable investments can languish in trading ranges for a long time for no reason. While other people move on, we pounce.

I’m not worried because I recommend businesses, not stock prices. Like I said, I’m a forensic accountant. I can look under the hood and see exactly what the engine is doing. And in every quarter since my initial recommendation, this special bank has reported increased interest income, continued buybacks, a healthy dividend, a great loan book, and strong capital reserves.

And if interest rates rise, this sweet unknown company will only do better.

The bonus? The stock sells for a big discount to book value. We pay about 50 cents for a dollar of value at today’s price. It’s like a TJ Maxx for stocks!

All lights are green for this stock so cheap it has built-in upside. Plus, the dividend yield is at a multi-year high. We can also expect the annual announcement of a dividend hike in late August. That too will boost the stock.

Sometimes it pays to be patient and take stock of your current situation rather than barreling forward looking for the next big thing. That’s what I did in the last issue of Hidden Profits, and I think you should take a look.

Good investing,

John Del Vecchio
Editor, Hidden Profits

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John Del Vecchio
In 2007, John Del Vecchio managed a short only portfolio for Ranger Alternatives, L.P. which was later converted into the AdvisorShares Ranger Equity Bear ETF in 2011. Mr. Del Vecchio also launched an earnings quality index used for the Forensic Accounting ETF. He is the co-author of What's Behind the Numbers? A Guide to Exposing Financial Chicanery and Avoiding Huge Losses in Your Portfolio. Previously, he worked for renowned forensic accountant Dr. Howard Schilit, as well as short seller David Tice.