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Wednesday, August 4, 2021

44 Dividend Champions For Further Research

A dividend champion is a company which has managed to raise annual dividends for a minimum of 25 years in a row. There are 142 companies in the US that are dividend champions.

The dividend champions list is one of my favorite lists to research. You can download it from this website.

It includes a lot of data, which can be used to identify companies for further research.

I recently obtained the list of Dividend Champions as of July 2021, and ran a simple screen, in order to identify companies that grew dividends at a fast pace.

I narrowed my search to:

1) Dividend champions, which are companies that have a 25 year track record of annual dividend increases

2) Companies with a ten year annualized dividend growth of 10%

I am looking for companies with a long streak of annual dividend increases, because I am looking for sustainable long-term dividend growth and total returns. My goal is to identify a group of companies to hold for the long run. I am not interested in identifying a company that I would then have to sell a few years later. That’s inefficient use of my time and could lead to a lot of taxes, especially if I sell stock with large unrealized capital gains.

The list of the 44 companies that fit the two criteria can be found below:

Company

Ticker

 

 

No.

7/30/21

Div.

DGR

DGR

Name

Symbol

Sector

Industry

Yrs

Price

Yield

5-yr

10-yr

Automatic Data Proc.

ADP

Information Technology

IT Services

45

209.63

1.77

13.2

11.8

Albemarle Corp.

ALB

Materials

Chemicals

27

206.04

0.76

5.9

10.5

A.O. Smith Corp.

AOS

Industrials

Building Products

27

70.33

1.48

20.9

21.9

Air Products & Chem.

APD

Materials

Chemicals

39

291.03

2.06

10.1

10.4

BancFirst Corp. OK

BANF

Financials

Banks

27

55.48

2.45

13.5

10.7

Franklin Resources

BEN

Financials

Capital Markets

41

29.55

3.79

12.5

13.9

Badger Meter Inc.

BMI

Information Technology

Electronic Equipment, Instruments & Components

28

101.03

0.71

12.4

10.4

Cardinal Health Inc.

CAH

Health Care

Health Care Providers & Services

25

59.38

3.31

5.8

10.1

Church & Dwight

CHD

Consumer Staples

Household Products

25

86.58

1.17

7.5

20.0

Canadian National Railway

CNI

Industrials

Road & Rail

26

108.63

1.77

11.7

12.6

Carlisle Companies

CSL

Industrials

Industrial Conglomerates

44

202.24

1.04

13.3

12.0

Computer Services Inc.

CSVI

Information Technology

IT Services

50

58.06

1.86

14.4

16.2

Cintas Corp.

CTAS

Industrials

Commercial Services & Supplies

39

394.18

0.96

21.8

19.3

Donaldson Company

DCI

Industrials

Machinery

35

66.19

1.33

4.6

13.0

Ecolab Inc.

ECL

Materials

Chemicals

29

220.83

0.87

7.3

11.7

Enbridge Inc.

ENB

Energy

Oil, Gas & Consumable Fuels

25

39.35

6.62

10.4

11.3

Expeditors International

EXPD

Industrials

Air Freight & Logistics

27

128.25

0.90

7.6

10.0

First Farmers Financial Corp.

FFMR

Financials

Banks

31

44.00

3.09

17.0

15.6

General Dynamics

GD

Industrials

Aerospace & Defense

30

196.03

2.43

9.9

10.2

W.W. Grainger Inc.

GWW

Industrials

Trading Companies & Distributors

50

444.58

1.46

5.3

11.1

Hormel Foods Corp.

HRL

Consumer Staples

Food Products

54

46.38

2.11

13.2

16.0

International Business Machines

IBM

Information Technology

IT Services

26

140.96

4.65

5.4

10.0

Illinois Tool Works

ITW

Industrials

Machinery

46

226.67

2.01

16.8

13.1

Jack Henry & Associates

JKHY

Information Technology

IT Services

31

174.09

1.06

11.5

16.3

Lincoln Electric Holdings

LECO

Industrials

Machinery

26

139.43

1.46

11.1

13.3

Lowe's Companies

LOW

Consumer Discretionary

Specialty Retail

59

192.69

1.66

17.1

18.9

Matthews International

MATW

Industrials

Commercial Services & Supplies

26

34.60

2.49

9.4

11.3

Medtronic plc

MDT

Health Care

Health Care Equipment & Supplies

44

131.31

1.92

10.3

10.0

3M Company

MMM

Industrials

Industrial Conglomerates

63

197.94

2.99

7.5

10.8

NACCO Industries

NC

Energy

Oil, Gas & Consumable Fuels

36

25.07

3.15

18.4

13.9

Nordson Corp.

NDSN

Industrials

Machinery

57

226.13

0.69

11.2

14.6

NextEra Energy Inc.

NEE

Utilities

Electric Utilities

27

77.90

1.98

12.7

10.8

Bank OZK

OZK

Financials

Banks

25

40.71

2.80

14.4

21.8

Parker-Hannifin Corp.

PH

Industrials

Machinery

65

312.03

1.32

6.9

12.6

Polaris Industries

PII

Consumer Discretionary

Leisure Products

26

131.07

1.92

3.2

12.0

Roper Technologies Inc.

ROP

Industrials

Industrial Conglomerates

28

491.34

0.46

15.4

18.4

SEI Investments Company

SEIC

Financials

Capital Markets

30

60.80

1.22

7.8

13.9

Sherwin-Williams Co.

SHW

Materials

Chemicals

43

291.03

0.76

14.9

14.0

S&P Global Inc.

SPGI

Financials

Capital Markets

48

428.72

0.72

15.2

11.0

Stryker Corp.

SYK

Health Care

Health Care Equipment & Supplies

28

270.94

0.93

10.8

14.4

Target Corp.

TGT

Consumer Discretionary

Multiline Retail

54

261.05

1.38

4.4

12.3

T. Rowe Price Group

TROW

Financials

Capital Markets

35

204.16

2.12

11.6

12.8

VF Corp.

VFC

Consumer Discretionary

Textiles, Apparel & Luxury Goods

48

80.20

2.44

9.0

12.9

Walgreens Boots Alliance Inc.

WBA

Consumer Staples

Food & Staples Retailing

46

47.15

4.05

5.8

11.5

Total:

1.96

11.11

13.41

The average yield as of July 31, 2021 is 1.96% and the average 10 year dividend growth is 13.41%.

When I start digging further and also looking at 5 year dividend growth that also exceeds 10%/year , I see that the list of companies drops down further to 26. That just goes to show you that a ten year high growth may hide the fact that recent dividend growth has slowed down. So you need to check for recent dividend growth, trends in earnings per share, trends in payout ratios as well as valuation. Investing is part art and part science.

Company

Ticker

 

 

No.

7/30/21

Div.

DGR

DGR

Name

Symbol

Sector

Industry

Yrs

Price

Yield

5-yr

10-yr

Automatic Data Proc.

ADP

Information Technology

IT Services

45

209.63

1.77

13.2

11.8

A.O. Smith Corp.

AOS

Industrials

Building Products

27

70.33

1.48

20.9

21.9

Air Products & Chem.

APD

Materials

Chemicals

39

291.03

2.06

10.1

10.4

BancFirst Corp. OK

BANF

Financials

Banks

27

55.48

2.45

13.5

10.7

Franklin Resources

BEN

Financials

Capital Markets

41

29.55

3.79

12.5

13.9

Badger Meter Inc.

BMI

Information Technology

Electronic Equipment, Instruments & Components

28

101.03

0.71

12.4

10.4

Canadian National Railway

CNI

Industrials

Road & Rail

26

108.63

1.77

11.7

12.6

Carlisle Companies

CSL

Industrials

Industrial Conglomerates

44

202.24

1.04

13.3

12.0

Computer Services Inc.

CSVI

Information Technology

IT Services

50

58.06

1.86

14.4

16.2

Cintas Corp.

CTAS

Industrials

Commercial Services & Supplies

39

394.18

0.96

21.8

19.3

Enbridge Inc.

ENB

Energy

Oil, Gas & Consumable Fuels

25

39.35

6.62

10.4

11.3

First Farmers Financial Corp.

FFMR

Financials

Banks

31

44.00

3.09

17.0

15.6

Hormel Foods Corp.

HRL

Consumer Staples

Food Products

54

46.38

2.11

13.2

16.0

Illinois Tool Works

ITW

Industrials

Machinery

46

226.67

2.01

16.8

13.1

Jack Henry & Associates

JKHY

Information Technology

IT Services

31

174.09

1.06

11.5

16.3

Lincoln Electric Holdings

LECO

Industrials

Machinery

26

139.43

1.46

11.1

13.3

Lowe's Companies

LOW

Consumer Discretionary

Specialty Retail

59

192.69

1.66

17.1

18.9

Medtronic plc

MDT

Health Care

Health Care Equipment & Supplies

44

131.31

1.92

10.3

10.0

NACCO Industries

NC

Energy

Oil, Gas & Consumable Fuels

36

25.07

3.15

18.4

13.9

Nordson Corp.

NDSN

Industrials

Machinery

57

226.13

0.69

11.2

14.6

NextEra Energy Inc.

NEE

Utilities

Electric Utilities

27

77.90

1.98

12.7

10.8

Bank OZK

OZK

Financials

Banks

25

40.71

2.80

14.4

21.8

Roper Technologies Inc.

ROP

Industrials

Industrial Conglomerates

28

491.34

0.46

15.4

18.4

Sherwin-Williams Co.

SHW

Materials

Chemicals

43

291.03

0.76

14.9

14.0

S&P Global Inc.

SPGI

Financials

Capital Markets

48

428.72

0.72

15.2

11.0

Stryker Corp.

SYK

Health Care

Health Care Equipment & Supplies

28

270.94

0.93

10.8

14.4

T. Rowe Price Group

TROW

Financials

Capital Markets

35

204.16

2.12

11.6

12.8


Of course, the list is not a recommendation to buy or sell, just a list of companies for further research. 

When I review companies, I look for:

1) Trends in Earnings Per Share
2) Trends in Dividends Per Share
3) Trends in the Payout Ratio
4) Valuation
5) Track Record of Annual dividend increases
6) Determine whether a company can keep growing earnings and dividends in the future

Check my analysis of Church & Dwight (CHD) for more information on what I look at when analyzing companies.

Thank you for reading!

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