Here is the latest month's list of the most undervalued and overvalued Dividend Champions based on a comparison to their historical yield.
Right now is a time that many people are fearful, both because of the coronavirus, and because of the economy shutting down. Opportunities to invest in some high-quality dividend growth companies, at great prices. But how do we find these companies? As a dividend growth investor, I narrow the universe of stocks I'm willing to consider for investment to only those stocks which have demonstrated a commitment to increasing their dividend every year, year after year.
The Dividend Champions is a group of stocks, who have raised their dividend for at least the last 25 years in a row without interruption. To me, this is a strong indication of the quality of these companies. And right now, a lot of these companies can be bought at bargain prices.
So this is a great opportunity for us to by some undervalued stocks. The Champions List was started and maintained by David Fish for many years.
David passed away last year, but, fortunately, the management of the list has been taken over by Justin Lawwho is doing a wonderful job. I trust him to maintain the list, and I assume that the information he presents is accurate.
Any changes to the list are made by him. I attempted to correct any errors that I found or that were pointed out to me by others, including skewed results due to special dividends or stock splits, but if the info from Yahoo and Seeking Alpha is incorrect, it could affect the data presented here.
Many stocks can trade within a consistent range of yields over time. But if you find a stock that is trading at a higher yield than it usually does, it may be an indication that it is undervalued. There can be two reasons for an above-average yield: the price is down, or the dividend has increased.
Or, it could be a combination of the two. Every company is feeling pressure right now, but many will come out of these scary times in good financial strength. If the prices of these companies are down, and yet the Long-term business prospects are unchanged, then this could be a good buying opportunity.
In normal times, If the dividend has increased, and the stock price has not yet risen to keep up with the increased dividend, this again gives you an opportunity to buy more shares and increase your dividend income at a relatively low price.
Therefore, tracking the dividend yield and comparing it to the historical average of that stock can highlight times when it may be undervalued. I call this Percent Above Average Yield.Dividend Champions are companies that have increased their dividend every year for at least the past 25 years. Contenders have increased their dividend for at least the past 10 years, and Challengers the past five years.
For the dividend investor this is an essential source of information. Canadian companies with five or more consecutive years of dividend increases. Maintained by Patrick Neuwirth. The Eurozone Dividend Champions List is an excel spreadsheet with a lot of stock information on Eurozone companies that have increased or maintained their dividend for 5 or more calendar years in a row. Maintained by Christophe Soulet.
The UK Dividend Champions List is an excel spreadsheet with a lot of stock information on UK companies that have increased or maintained their dividend for 5 or more calendar years in a row. Dividend Income Calculator was developed to help users better define particular companies ripe for investment. Good Calculators is a collection of online calculators for use in every day domestic and commercial use. Information U. Dividend Champions Dividend Champions are companies that have increased their dividend every year for at least the past 25 years.
Maintained by Patrick Neuwirth Eurozone Dividend Champions The Eurozone Dividend Champions List is an excel spreadsheet with a lot of stock information on Eurozone companies that have increased or maintained their dividend for 5 or more calendar years in a row. Maintained by Christophe Soulet Glossaries Stock Market Terminology includes the most common stock terms and definitions Investment-related acronyms that are commonly encountered Investor Glossary on all things investing related.
With the The Dividend Calendar you see in which month you need to own the stock to get dividends according to the ex-date and when dividends get paid according to the payment date.Dividend Champions
The Dividend Meter is a spreadsheet created in Google Sheets. It automatically imports current stock quotes and annual dividend figures. The spreadsheet calculates dividend yields and displays the total annual expected dividend amount in a colorful gauge chart.
Track Your Dividends makes it easy to track all your Canadian and US dividend income all in one easy to use interface. Div lets you manage your portfolio easily and conveniently, where everything you need to make better decisions about your portfolio is right at your fingertips. Portfolio Slicer is a free Excel workbook that lets you track your investments stocks, ETFs, mutual funds your way. This website is maintained by George L Smyth.The Dividend Champions are U. This is a fairly select list as only companies have successfully done so.
These companies have survived periods of inflation, stock market crashes, global crisis and deep recessions. They may not have grown revenue and earnings per share every year, but they annually raised the dividend without fail for 25 years straight. It is possible for a stock to be a Dividend Champion but not a Dividend Aristocrat for this reason. Note that there is question of whether Altria is actually a Dividend Champion.
The regular dividend decreased from a period of to according to dividendchannel. This was tied to large special dividends and spin off of Philips Morris International PM at the time.
But since Altria is still on the Dividend Champion list maintained at dripinvesting. Note that Altria is not included as a Dividend Aristocrat.
The newest entries on the list are Albemarle Corp. ALBA. The list contains quite a few banks, utilities, and industrial companies.
Weyco Group is probably not that well known but it is the parent company of Florsheim Shoes. Despite the length of time for dividend increases 28 companies have a year double-digit rate of increase for the dividend. The Dividend Champions list serves as a screen for further investigating as stock for a dividend growth portfolio.
It is a list of companies with stable business that have competitive advantages and have returned cash to shareowners consistently through dividends and in some cases buybacks.
You will receive a free spreadsheet of the Dividend Kings. Skip to content. April 14, Search for:. Share this: Tweet. Like this: Like LoadingI am a long term buy and hold investor who focuses on dividend growth stocks.
I monitor the list of dividend champions regularly, using my screening criteria.
Dividend Champions List
This is helpful to identify quality companies available at good prices, which may be good additions to my portfolio at the right time. My screening process helps me narrow down the list of dividend champions to a more manageable level for further research.
This of course is the first phase in company selection process; once the list is narrowed down to a more manageable level, The screening criteria I used includes the following factors: 1 A dividend streak of annual dividend increases exceeding 25 years This is understandable, since to be a dividend champion, a company needs to have increased dividends for at least 25 years in a row. I view a long streak of annual dividend increases as an indicator of business quality.
After all, only a certain type of company can afford to grow the business, while also showering shareholders with more cash each year for over a quarter of a century. A long streak of dividend increases is a testament to a consistency in a business, strong competitive advantages, and an industry that quietly builds wealth to long-term shareholders over time.
The Dividend Investing Resource Center
To me valuation is importantbecause even the best company in the world may not be worth purchasing at an inflated price. If you overpay for a security, future returns could suffer, because you lock in a lower yield at the start. I am after companies that reinvest a portion of earnings to grow the business and distributes the excess to shareholders. An adequate payout ratio provides a buffer in case there is some short term fluctuations in earnings. I wanted to find companies which consistently grow dividends, and do not materially decrease them over time.
Again, I value consistency in dividend growth. There is a natural limit to dividend growth, if a company does not grow its bottom line. A company that grows earnings per share can afford to increase dividends, and reinvest more into the business. This also provides an additional margin of safety in the dividends, because a company has more tools within its disposal to tackle things such as a temporary high payout ratio.
By growing earnings, a company can simply grow itself out of a higher payout ratio, as dividends grow slightly slower until the payout is normalized. As a result of running this screen, I ended up with a list of the following dividend champions for further research: Name. Number of Annual Dividend Increases. Last Price. Annual Div Rate. Annual Div Yield. Dividend Payout Ratio. Most Recent Increase.
BancFirst Corp. Carlisle Companies. Eaton Vance Corp. Franklin Electric Co. General Dynamics. Genuine Parts Co. Gorman-Rupp Company. Grainger Inc. Illinois Tool Works. Lowe's Companies. Medtronic plc. McGrath Rentcorp.Published Mon, 02 Mar on Seeking Alpha. Monthly update of the Dividend Champions List. One new Champion, 23 new Contenders and 5 new Challengers. About the Dividend Champions List The Dividend Champions list is a monthly publication tracking companies with a history of consistently increasing their dividends.
In order to be included in the list, the annual split-adjusted dividend payout of a company based on calendar year must be consistently increasing. The Dividend Champions list is separated into three categories based on how long companies have maintained the streak of annually increasing dividends: Champions 25 or more yearsContenders 10 to 24 yearsand Challengers 5 to 9 years.
Data in the Dividend Champions list is provided "as is" with no guarantees of accuracy, completeness, or timeliness. Dividend Madness companies declared higher dividends in the past month, with an average increase of The average dividend streak has increased to The average yield has jumped to 3. Additions to Challengers: W. Read more.Dividend Champions are companies which have increased their dividend for 25 or more consecutive years.
The Dividend Champions list currently is much larger than the Dividend Aristocrats list currently The goal of the Champions list is to identify all U. Smith AOS — Stocks that have increased their dividend for 25 or more years are going to draw investor attention; they are proven winners. They obviously have been doing a lot of thing right. However, the fact that these have been successful companies means, their stock price might be higher than the value they provide.
In addition, some smaller Dividend Champions might have problems that are unique to smaller market capitalization stocks. That is why you should analyze and compare stocks before blindly buying any stock, even one with a great track record. Disclaimer: While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein.
The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice.
The Most Undervalued And Overvalued Dividend Champions - April 2020
Consult your financial advisor before making investment decisions. Dividend Champions List. There are companies on the Dividend Champions List:. Company Symbol — Consecutive Years of Dividend Increases sorted by consecutive years highest to lowest.
Get Started Risk-Free Today!I am a long term buy and hold investor who focuses on dividend growth stocks. Tuesday, January 1, Dividend Champions List. A dividend champion is a company which has a 25 year record of annual dividend increases.
There are only such companies in the US today. I believe that becoming a dividend champion is no accident, and it is a result of a strong business that has generated earnings growth for a long period of time.
These are the types of businesses I like to study, and potentially consider at the right time for my dividend portfolio. I have updated the list of dividend champions through December 31, I decided to update the list of dividend champions after the untimely passing of David Fish in May Since I use the list of dividend champions in my investing research, I realized that my process is at risk, since it is dependent on a single person.
This led me to develop ways to update the list on a monthly basis. The list is a result of a few things I do: 1 Obtain forward dividend information from Yahoo Finance, and compare it to existing information from the prior month's list 2 Research differences, and verify if this is indeed a dividend increase.
I like to verify new raises and dividend track records against press releases, which is a manual process. Very often, my research tells me that there is no increase, but my data feed or my calculations are incorrect. I like to keep plugged in the world of dividend growth investing. This is helpful when updating the list of dividend champions. I have also been around for a little bit, which is how I decided to promote certain companies like Abbott ABT to the rank of a dividend champion, but remove Realty Income O from the list.
As I didn't feel like updating the annual dividend amounts for for over companies, I skipped this step. The dividend champions list can be downloaded from this location in an excel spreadsheet format. Subscribers to my free newsletter are receiving this as an attachment in their inboxes. Additions to the list I added two companies to the list of dividend champions, which raised their dividends for the 25th year in at row: PSB Holdings Inc. Based on the latest dividend announcement, it looks like the new company is continuing the dividend history of Praxair.
As a result, there are dividend champions in the US. There were several dividend increases over the past month from the dividend champion companies. These include: Name. Yrs Annual Increases. Old Rate. New Rate. ABM Industries Inc. Abbott Laboratories. Ecolab Inc. Erie Indemnity Company.