A new list that I am concentrating right now is the S&P 1500 dividend achievers. These are companies that have increased their annual dividend payments for at least 10 consecutive years.
I created custom watch lists in Yahoo! Finance in order to summarize the two groups of dividend achievers by a variety of criteria such as Symbol, Yield, P/E , Div/Shr, Last Price,EPS (ttm) ,PEG Ratio ,Dividend Payout. What I did was first exclude any stocks which had a dividend payout ratio of more than 50%. That gives me some reasonable assurance that the company is less likely to cut its dividends.
I also look at P/E ratios, since I do not want to overpay for a company. Anything with a P/E of over 20 is out of my watchlist.
I also check the PEG ratio but just to find stocks which might be expensive in terms of their growth prospects.
A third criteria that I look for is a dividend yield of at least 2%, which is a little bit over than the current yield of 2.00% that SPY is rewarding its shareholders.
The last but not least criteria that I screen for is the 5 dividend growth ratio. I am looking for an average annual dividend growth of at least 5% over the past 5 years. I didn't include the dividend growth rate in this screen though.
The reason why I selected dividend growth in the end is because I want to decrease to a minimum the rush to buy a stock that simply increased its dividend for whatever reason, whose fundamentals cannot support any significant further increases in the dividend payments.
I would continue screening for potential stocks to add to my buy watchlist on a monthly basis. I might add or remove stocks from my watchlist depending on how undervalued/overvalued I perceive them to be. If I stock in which I have a position drops off my buy watchlist, I would keep holding it, but I won’t be adding to that position until the technical’s and the fundamentals match my criteria.
Based off of this screen, here is my stock lists that I follow (you could also open it in google documents here).
This article appeared in Carnival of Personal Finance #150 , hosted by Lazy Man.
- Dividend Growth Stocks Watchlist
- Five Year Dividend Growth Rates for the High-Yield Dividend Aristocrats
- My Current Watchlist
- Diversification and portfolio allocation
I posted my goals for 2016 a few weeks ago. After some changes that I became aware of subsequent to posting the article, I have some change...
The first week of this year has been brutal for many investors. It is during times like these that you see who really is a long-term invest...
In the first two weeks of this year, the stock market has been down a lot . For someone who invests for dividends, I am relatively agnostic ...
Today marks the eight year of Dividend Growth Investor website . I wanted to thank all of you who follow my humble site. I didn’t really exp...
It is nice to have a diversified income stream . While many seem to look for a focused method, I look for a diversified method of generating...
Warren Buffett is one of the best investors in the world . He is skilled in the art of capital allocation. I have always suspected that the ...
ConocoPhillips (COP) just announced that it is cutting its quarterly dividend from 74 to 25 cents/share. This comes after management consta...
Most readers know me as a person that buys a stock in a company I like, and then I keep building a position as long as valuation and allocat...
To be honest, I didn’t do much investing wise in January. Of course, I didn't panic and I stayed the course . Per my earlier article I s...
The first three weeks of this month have been terrible for investors worldwide . It could be painful to watch your portfolio value decrease ...