Thursday, May 15, 2008

Dividend Champions Watchlist

In my previous post Dividend Conspiracies I posted a larger list of companies that have increased their dividends for more than 25 years, which for some reason or another, was more thorough than the S&P dividend aristocrats lists.


I used the same screening criteria for identifying stocks worthy of my watchlist as described in this post.

Relevant Articles:

- Dividend Conspiracies

- Historical changes of the S&P Dividend Aristocrats

- Current Aging of the Dividend Aristocrats

- Diversification Matters

6 comments:

  1. So have you been executing your strategy in your brokerage account or is this still theory/paper trading? How are your returns compared to the broader averages?

    ReplyDelete
  2. Bill,

    I have been executing my strategy in my accounts. YTD i am up 0.91%( total return) as of yesterday.

    That's not because I am a great investor, but because I started the year with a high portion of cash that I had accumulated for personal reasons.

    Thanks for stopping by!

    ReplyDelete
  3. Fair enough. Although the Dow is only down 2.5% this year, so I'd say you're within the margin of standard deviation. Hopefully you're making a killing on the dividends.

    Also, you may already have an article on this, but why not use some of the high yield ETFs instead of individual stocks? I'm not implying that an ETF is better or worse, just curious on your take.

    ReplyDelete
  4. Bil,

    I actually do have an article about dividend ETF's.

    http://dividendgrowth.blogspot.com/2008/01/are-dividend-etfs-for-you.html

    ETF's have their own pluses and minuses. My strategy is not to focus on current high-yield too much, but focus on companies that have the ability to increase their dividend payments over time. I look for companies that have increased their payments for at least 25 years preferably; however there are situations where I could look the other way and buy stocks which have raised their payment for at least 10 years.

    As for my returns, I believe that a diversified dividend income producing portfolio containing more than 30 stocks will track the market closely over time.

    Dividend investing is a long-term strategy, so I am willing to accept underperforming S&P 500 for several years. As long as my companies don't cut their dividends I would keep reinvesting them.

    Please check any posts on my blog that are of interest to you and let me know if you have any more questions or comments!

    Best Regards,

    Dividend Growth Investor

    ReplyDelete
  5. Are you focusing on Dividend Yield without regard to actual Dividends? For example, GCI appears to have a high dividend yield that has steadily increased, except that the reason Yield has increased is due mainly to the stock price falling 50%+ in the last two years. E.g. - 50% fall in stock = 200% increase in Dividend Yield if the payout remains the same.

    ReplyDelete
  6. Howard,

    The first criteria that I focus on is increased payments for at least 10 consecutive years ( preferably 25). Then I look for equal or above average dividend growth and dividend yield. I also look for low P/E and historically ok DPR.

    ReplyDelete

Questions or comments? You can reach out to me at my website address name at gmail dot com.

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