As a result, most utility businesses have below -
average dividend growth rates, and Duke Energy is no exception.
In buying stocks I try to maintain a balance between high yielders (such as most REITS) and low yielders with above
average dividend growth rates (stock like SBUX, DAL).
My current YOC is 3.97 % — meaning that I am not only on track for this goal but also that my portfolio has some more room for low yielders with above
average dividend growth rates.
As I mentioned my weighted
average dividend growth rate on my Vrijheid Fonds is 4.45 %.
Since I started my blog I asked myself, every year the same question about my Vrijheid Fonds, «What is my portfolio's weighted
average dividend growth rate?»
They have a 6 year dividend growth history and a 3 year 11 %
average dividend growth rate.
Since 2007,
the average dividend growth rate is 15 percent per year.
The median trailing 5 - year
average dividend growth rate fell from 5.8 % last year to 4.6 % this time around.
Its five - year
average dividend growth rate is 32.32 %.
By taking the historical
average dividend growth rate for at least five years, you have a baseline to go off of to increase or decrease your forecasted dividend growth rate.
Since 2011, the year - over-year dividend increases have been in the double digits, giving the company a 5 - year
average dividend growth rate of 17.27 %.
Do you know
your average dividend growth rate of your portfolio?
Not exact matches
There are a multitude of reasons as to why this occurs but it's a powerful enough force that many investors have done quite well for themselves over an investing lifetime by focusing on
dividend stocks, specifically one of two strategies -
dividend growth, which focuses on acquiring a diversified portfolio of companies that have raised their
dividends at
rates considerably above
average and high
dividend yield, which focuses on stocks that offer significantly above -
average dividend yields as measured by the
dividend rate compared to the stock market price.
Given this, we expect the
rate of
dividend growth to moderate beyond this year, with increases likely tracking closely to earnings
growth, which figures to
average 8 % -10 % annually between 2018 and 2020.
It currently sports
dividend growth rates of: 40.4 % for 1 year, 38.3 % for 3 year, and 45.9 % for its 5 year
average.
A value under 1.0 suggests the
dividend growth rate has declined compared to the 10 year
average.
To start, the
average annual
dividend growth rate sits at 9 % well above my required 7 %.
In a fairly poor scenario, even if only a 5.7 % long - term EPS /
dividend growth rate is achieved (chosen to match the previous 7 - year
average EPS
growth), then the current price in the low $ 80's can still offer a 9 % long - term
rate of return, based on the DDM again.
If I assume a
dividend growth rate of 6 percent (about the long - run
average *), the current S&P 500
dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500
dividend yield of 4 percent (Hussman says that the
dividend yield on stocks has historically
averaged about 4 percent), the expected nominal return over ten years is 2.4 percent annually.
It will never be a flying high stock anymore, but the consistency of its
dividend payments and its incredible
growth rate (the KO
dividend doubles on
average every 10 years) are solid enough to make KO a key investment in your holdings.
(as of 4/13/2018 and since our 1994 NYSE listing, except as noted) • 573 consecutive monthly
dividends paid (since our founding in 1969) • 96
dividend increases • 82 consecutive quarterly increases • Dividend growth of 192.7 % • Compound average annual dividend growth rate of approximate
dividend increases • 82 consecutive quarterly increases •
Dividend growth of 192.7 % • Compound average annual dividend growth rate of approximate
Dividend growth of 192.7 % • Compound
average annual
dividend growth rate of approximate
dividend growth rate of approximately 4.7 %
Natural by - products of slower potential
growth are not only weaker corporate profits and
dividends, but also a lower
average rate of return on investments.
Buying stocks where the
dividend yield was at least two - thirds the AAA bond yield would have generated an
average compound
growth rate of 19.5 %; and
National Health's
dividend growth record is decent, with a 5 - year
average growth rate of 7.61 % and a 10 - year
average growth rate of 6.49 %.
My problem is that when i look for stocks i set very strict parameter rules like: — minimum
dividend growth rate of 7 - 10 % in last years 10, 5 years
average — historical stocks that increased
dividend at least for the last 15 years or paid historically (like BANK OF NOVA SCOTIA)-- very low debt — low payout ratio — historically (long term) stock price has been increasing etc...
ROYAL BANK OF CANADA $ 105 (Toronto symbol RY; Conservative
Growth and Income Portfolios, Finance sector; Shares outstanding: 1.5 billion; Market cap: $ 157.5 billion; Price - to - sales ratio: 3.9;
Dividend yield: 3.5 %; TSINetwork
Rating: Above
Average; www.rbc.com) acquired Los Angeles - based City National Bank in November 2015 for $ 5.5... Read More
NEWELL RUBBERMAID INC. $ 45 (New York symbol NWL; Aggressive
Growth and Income Portfolios, Consumer sector; Shares outstanding: 267.1 million; Market cap: $ 12.0 billion; Price - to - sales ratio: 2.0;
Dividend yield: 1.7 %; TSINetwork
Rating:
Average; www.newellrubbermaid.com) is buying Jarden Corp. (New York symbol JAH), which makes a wide... Read More
O's
dividend growth rate is usually
average for a high - yield stock (around 5 %) or slow.
BANK OF MONTREAL $ 77 (Toronto symbol BMO; Conservative
Growth and Income Portfolios, Finance sector; Shares outstanding: 642.5 million; Market cap: $ 49.5 billion; Price - to - sales ratio: 2.9;
Dividend yield: 4.3 %; TSINetwork
Rating: Above
Average; www.bmo.com) is Canada's fourth - largest bank, with $ 672.4 billion of assets.
CANADIAN PACIFIC RAILWAY LTD. $ 226 (Toronto symbol CP; Conservative
Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 145.0 million; Market cap: $ 32.8 billion; Price - to - sales ratio: 5.1;
Dividend yield: 1.0 %; TSINetwork
Rating: Above
Average; www.cpr.
For example, over five years is it just the
average of the
dividend growth rates for each year individually, or do you take the
dividend at year 1 and compare it to the
dividend in year 5?
The remaining stocks are then assigned a rank based on their yield (the higher the yield the higher the rank), payout ratio (the lower the payout ratio the higher the rank), 3 year
dividend growth rate, and 5/10 year Dividend Acceleration / Deceleration (5 - year average increase divided by 10 - year average in
dividend growth rate, and 5/10 year
Dividend Acceleration / Deceleration (5 - year average increase divided by 10 - year average in
Dividend Acceleration / Deceleration (5 - year
average increase divided by 10 - year
average increase).
Over the last decade, the
dividend growth rate has
averaged 11.68 %.
It does benefit, however, from holding healthier underlying companies with reduced instances of delisting (0 vs. 9), which leads to a higher
average total return (13.4 % vs. 11.4 %), lower volatility (13.6 % vs. 15.3 %), and higher subsequent five - year
dividend growth rate (18.0 % vs. 11.1 %).
C.R. BARD INC. $ 215 (New York symbol BCR; Conservative
Growth Portfolio, Consumer sector; Shares outstanding: 73.5 million; Market cap: $ 15.8 billion; Price - to - sales ratio: 4.5;
Dividend yield: 0.5 %; TSINetwork
Rating: Above
Average; www.
DIV STRK is consecutive years of
dividend increases; DIV YLD is yield using the most recently announced
dividend; 5 YR YLD is
average dividend yield over the past 5 years; REC DG is most recent year - over-year
dividend growth; 5 YR DG is
average annual
dividend growth over the past 5 years; PRICE was at market close Friday, March 2; FAIR VAL is Morningstar's «Fair Value Estimate»; FWD P / E is price / earnings ratio based on projected 2018 earnings; 5 YR P / E is
average P / E ratio over the past 5 years; MOAT is Morningstar's
rating of competitive economic advantage; SFT is Value Line's «Safety» score; CRD is Standard & Poor's credit
rating; MKT CAP is market cap in billions of dollars.
ADRs $ 29 (New York symbol CAJ; Conservative
Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.1 billion; Market cap: $ 31.9 billion; Price - to - sales ratio: 1.1;
Dividend yield: 4.5 %; TSINetwork
Rating: Above
Average; www.canon.
These cutoffs are loosely based on the
average 5 - year
dividend growth rates of stocks on the CCC list with outliers removed.
BCE INC. $ 56 (Toronto symbol BCE; Conservative
Growth and Income Portfolios, Utilities sector; Shares outstanding: 840.3 million; Market cap: $ 47.1 billion; Price - to - sales ratio: 2.2;
Dividend yield: 4.6 %; TSINetwork
Rating: Above
Average; www.bce.ca) is Canada's largest telephone provider, with 5.0 million customers in Ontario and Quebec... Read More
The expected
growth rate is 6 % per year, which is under the
average of 9 % for all
Dividend Champions, Contenders, and Challengers.
CANADIAN TIRE CORP. $ 170 (Toronto symbol CTC.A; Conservative
Growth Portfolio, Consumer sector; Shares outstanding: 63.1 million; Market cap: $ 10.7 billion; Price - to - sales ratio: 0.9;
Dividend yield: 2.1 %; TSINetwork
Rating: Above
Average; www.canadiantire.ca) owns 501 Canadian Tire stores across Canada.
THOMSON REUTERS CORP. $ 51 (Toronto symbol TRI; Conservative
Growth Portfolio, Consumer sector; Shares outstanding: 711.6 million; Market cap: $ 36.3 billion; Price - to - sales ratio: 3.2;
Dividend yield: 3.5 %; TSINetwork
Rating: Above
Average; www.thomsonreuters.com) has agreed to sell 55 % of its Financial & Risk (F&R) business to a..
AMERICAN EXPRESS CO. $ 91 (New York symbol AXP, Conservative
Growth Portfolio, Finance sector; Shares outstanding: 860.1 million; Market cap: $ 78.3 billion; Price - to - sales ratio: 2.6;
Dividend yield: 1.5 %; TSINetwork
Rating:
Average; www.americanexpress.com) is one of the world's largest issuers of payment cards.
IGM FINANCIAL INC. $ 37 (Toronto symbol IGM; Conservative
Growth Portfolio, Finance sector; Shares outstanding: 240.6 million; Market cap: $ 8.9 billion; Price - to - sales ratio: 2.7;
Dividend yield: 6.1 %; TSINetwork
Rating: Above
Average; www.igmfinancial.com) had $ 155.8 billion in assets under management as of March 31, 2018.
LOBLAW COMPANIES LTD. $ 65 (Toronto symbol L; Conservative
Growth Portfolio, Consumer sector; Shares outstanding: 379.0 million; Market cap: $ 24.6 billion; Price - to - sales ratio: 0.5;
Dividend yield: 1.8 %; TSINetwork
Rating: Above
Average; www.loblaw.ca) operates 1,084 supermarkets under a variety of banners: Loblaw, Zehrs, Provigo, Real Canadian Superstore and No... Read More
TRANSCONTINENTAL INC. $ 27 (Toronto symbol TCL.A; Aggressive
Growth Portfolio, Consumer sector; Shares o / s: 77.0 million; Market cap: $ 2.1 billion; Price - to - sales ratio: 1.0;
Dividend yield: 3.1 %; TSINetwork
Rating:
Average; www.tctranscontinental.com) is a leading printer of advertising flyers, magazines, books and newspapers.
As I said earlier, the
average 5 - year
dividend growth rate for all Dividend Champions is 7 % per year, n
dividend growth rate for all
Dividend Champions is 7 % per year, n
Dividend Champions is 7 % per year, not 17 %.
BRIGGS & STRATTON CORP. $ 21 (New York symbol BGG; Conservative
Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 42.9 million; Market cap: $ 900.9 million; Price - to - sales ratio: 0.5;
Dividend yield: 2.7 %; TSINetwork
Rating: Above
Average; www.
The
average Dividend Champion's 5 - year dividend growth rate is 7 % p
Dividend Champion's 5 - year
dividend growth rate is 7 % p
dividend growth rate is 7 % per year.
That in turn allows it to borrow very cheaply (
average interest
rate 3.6 %), which, along with its massive cash position, allows it to not only continue growing the
dividend, but also invest in future
growth by acquiring new asset managers in other countries and industries (such as K2 Securities to get into hedge funds).