Ruth's Hospitality Group (RUTH-Q)

(Past Top Pick Nov. 1, 2017, Up 41%) They have a good balance of corporately-owned stores and franchises. The former have higher growth and ROI; the former offer less growth, but more stable cash flows. You need both. Don't expect another 41% increase in the next 12 months. Yes, the stock price is higher, but so are its earnings. Likes it.

He continues to like it. It is a mid-cap. You get the comfort and security without the frothy valuation of large caps. They have a nice balance between franchised and corporately owned stores. Both are important. They are planning on opening 3-5 stores a year in the US in the next year. For a change you don’t see a promise of opening hundreds. He is all about raising the dividend. (Analysts’ target: $31.33).

A steakhouse group. The name of the game here is all about execution. This has been around for a long time, but only have 160 locations. Low debt and strong cash flows means they are well positioned for store growth. Have not tried to grow the fastest, allowing them to give shareholders a nice mix of high return on investments and stable cash flows. Have done a great job of reinvesting in the brand and remaining relevant. Has a history of raising their dividend, 25% last year. Dividend yield of 1.7%. (Analysts' Price target is $21.50.)