Now that we have looked at 3
good dividend growth companies, let's compare them on several metrics that are important to dividend growth investors.
There are number of
good dividend growth companies out there and dividend growth ETFs.
Of course, any additional passive income I receive I will invest into
the best dividend growth companies to ensure I'm participating in compound interest.
The best dividend growth companies have what I call a managed dividend policy.
The best dividend growth companies on the market tend to be entrenched names within mature industries.
The best dividend growth companies are outstanding businesses Dividend growth companies typically have:
In
the best dividend growth companies, management is disciplined about projects, acquisitions, and costs.
-
A good dividend growth company has a product or service that you can foresee existing and being relevant for many decades to come.
Not exact matches
«Focus on investing in
companies with
good earnings and great
growth that can grow their
dividends,» he says.
Paul Moroz, Mawer Investment Management's deputy chief investment officer, points out that many emerging - market consumer staples
companies did exceptionally
well this year because they offered investors stability,
dividends and
growth.
But in a letter sent last month to CEOs of the S&P 500 and large
companies in Europe, the Middle East, Africa, and Asia Pacific, BlackRock CEO Larry Fink criticized corporate leaders» use of share buybacks and
dividends when they might be
better served by investing in «innovation, skilled workforces or essential capital expenditures necessary to sustain long - term
growth.»
Balanced funds, which usually invest in a mix of about 60 percent stock to 40 percent bonds,
growth and income funds, or equity income funds that invest in
well - established
companies that pay high
dividends, might be appropriate choices for a mid-term portfolio.
Companies with records of steadily increasing
dividends usually fared
better in the ratings than those in which
dividend growth has been erratic or where
dividend cuts or omissions have occurred.
Their is no
better time to buy solid
dividend growth companies then near 52 week lows.
- 6
Companies With The Power of 5/15
Dividend Growth - Searching the World For The
Best Dividend Stocks
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.
Additionally, exposure to
companies that have the potential to sustainably increase
dividends over time may be an opportunity to target steady
growth — as
well as income that can help provide some buffer from volatility.
Discipline refers to the rigorous quantitative and qualitative methodologies used in the identification and selection of
companies that have:
better than average relative valuations; a track record of
dividend growth and a sustainable payout level; and balance sheet strength.
Companies with FCF
well in excess of
dividend payments provide higher quality
dividend growth opportunities because we know the firm generates the cash to support the current
dividend as
well as a higher
dividend.
For stocks, it's important to have stocks in your portfolio from a large variety of
companies, including
companies in different sectors or industries, such as consumer staples or materials; from
companies of different sizes, such as large - cap or small - cap stocks; from
companies in different countries and from
companies that either have
growth potential or
good dividend yields.
I find there are also
good growth with many
dividend companies as I have a
good number in my portfolio that have earned me 50 % over the past 3 years.
If you wanted to avoid and / or minimize taxation, you could put a
good life together by adding Berkshire, Becton Dickinson, IBM, etc. to your portfolio, and those
companies either pay no
dividend or a low
dividend with a high
dividend and earnings
growth rate.
Companies that pay
dividends are saying that future
growth is limited so it's
better to give at least some of those profits back to owners so they can find
better investments.
That means additional ammo for the
company in terms of
growth, improving the balance sheet, buybacks, and
dividends — this all bodes
well for shareholders.
Valuentum (val ∙ u ∙ n ∙ tum)[val - yoo - en - tuh - m] Securities Inc. is an independent investment research publisher, offering premium equity reports,
dividend reports, and ETF reports, as well as commentary across all sectors / companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools / products, a
dividend reports, and ETF reports, as
well as commentary across all sectors /
companies, a
Best Ideas Newsletter (spanning market caps, asset classes), a
Dividend Growth Newsletter, modeling tools / products, a
Dividend Growth Newsletter, modeling tools / products, and more.
As a
dividend growth investor, the revenues and earnings are crucial for me as they will give me a
good indication if the
company will be able to increase their payouts or not.
This addition was considered because a) we wanted to increase the defensive tilt to the portfolio beyond the S&P index (lower portfolio beta), b) we liked the interesting
growth prospects of some
well - run, progressive utility
companies so they could deliver both future
growth and increasing
dividends and c) we needed to deploy the
dividends flowing in periodically from the DGI portfolio.
Dividend growth investment (DGI) is about buying big and
well driven
company at a fair or undervalued price.
Second, we're looking for
companies that register an «EXCELLENT» or «
GOOD» rating on our scale for both safety and future potential
dividend growth.
Even someone going out on their own and investing in
dividend growth stocks would find it very difficult to lose money with a portfolio of
well known multimillion dollar
companies that have raised their
dividends for decades on end.
We do see opportunities in emerging market
companies, as
well as in global firms with robust cash flows and
dividend -
growth potential.
DF:
Dividend growth is based on earnings
growth over time, and with 3 - plus billion people suddenly adopting capitalism, I feel
dividends of
good companies should grow nicely over time.
In addition to rewarding shareholders in the present with a healthy
dividend payment, each of these
companies is positioned to do
well in the future as a result of global
growth.
If a
company does not have a
good opportunity currently for a
growth project, I as an investor would rather get a
dividend than have the
company blow all the profit on a ill - fated gamble.
Once a month, we look for
good, solid
dividend growth companies that are selling at a fair price.
We looked at some of the top
dividend stocks, with an eye on sustainability of the existing
dividend, as
well as selecting
companies that are likely to continue
dividend growth for years to come.
If you can buy a
dividend growth company at a
better price, you are rewarded with a higher yield.
To what extent do you view your investing life as an extension of your personal life?By that I mean to what extent do the personal morals and ethical values of Tim the man govern the investing decisions of Tim the
dividend growth investor?If you ask your typical
dividend growth investor if they would be willing to invest in a lucrative but immoral venture, say selling child pornography or crack cocaine, the answer would probably be «absolutely not» regardless of the yield, valuation or
growth prospects of the underlying venture.And yet, ask that same investor what their thoughts are about Phillip Morris and they would probably describe what a wonderful investment it is and go on about why you should own it.Do your personal morals ever come into play when buying
companies, or do you compartmentalize your conscience, wall it off from the part of your brain that thinks about investments, and make your investing decisions based on the financial prospects of the company?The reason why I'm asking is that I keep identifying stocks of
companies that I love from an investing perspective but despise on a human level.I can not in
good conscience own any piece of Phillip Morris knowing the impact that smoking related illness has on the families of smokers.You might say that the smoker made his choice to smoke so you don't mind taking his money, but his children never made that choice and they are the ones who will suffer when he dies 20 years too soon.
Hey Wabbit, SHOP is a
good company however as a
dividend growth and value investor I prefer not to speculate.
The
dividend is
better positioned for
growth and clearly healthier than some of the most
well - known
companies in the world, especially in the consumer goods space.
• At 3.2 %, the
company's yield is around average for the
best dividend growth stocks.
Coca - Cola is one of those
companies that many
dividend growth investors consider to be a
good deal if you can buy it when its yield is above a certain value.
I want to own
companies with a
good yield (2.7 % or more), a long record of increasing their
dividend payout each year, and a consistent record of strong
dividend growth rates.
Keep in mind that this model only works
well for large
companies with
well established
dividend growth.
If a
company is doing
well, has done so consistently, and shows signs of
growth, these factors are indicative of stocks that will keep paying a
dividend.
You may find me pointing out
dividend growth companies that are a
good value at their current price, which may mean that it would be a
good time to buy them.
Ultimately, you want to find a
dividend stock that is stable, consistent, in a positive
growth industry and belonging to a
well managed
company.
The
companies in this list are
well known with strong brands and large moats, but this does not necessarily mean they will strong
dividend growth over the next decade.
Through a combination of increasing
dividends and aggressive share repurchases, Chubb's high shareholder yield allows it to give investors
good returns even without core
growth, and in this case, the
company would have roughly doubled your money if you had invested seven years ago and reinvested all
dividends.
My observations have been: — I have experienced low volatility similar to a balanced series of stock and bonds —
dividend income has grown between 6 - 8 % annually — not that much
growth potential as most of the individual stocks I own are mature
companies — I sleep
well at night — none of these
companies cut their distribution in 2008/2009 meltdown