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+--- Thread: Best Dividend Growth Stocks? (/showthread.php?tid=1722)
Best Dividend Growth Stocks? - divmenow - 12-26-2017
So what are some of your favorite dividend growth stocks heading into 2018? And by Growth I mean growing its dividend at least 10% year after year. Not the highest yielding stocks.
Here are 10 names that I like
BA
MCD
V
HD
UNH
MSFT
JPM
UNP
WMT
ABBV
Stocks that didn't make my top 10 but like them very much include: CSCO, CVS, BDX, HON and AAPL
What are some of yours?
RE: Best Dividend Growth Stocks? - MarcN - 12-27-2017
By growth, did you mean dividend growth rate or expected total annual return?
Personally, I like to look at the junction between current dividend yield and expected dividend growth rate. There are several ways to represent that notion. One I use is to calculate the expected number of years it would take to attain 10% yield on current cost.
The formula I use in excel is: =LOG((0.1/(Yield/100)),(1+(DGR/100)))
Where yield is current dividend yield and DGR is estimated dividend growth rate.
Let's look at 2 examples:
1) APPL offers a current dividend yield of 1.48%. One could estimate that forward dividend growth rates would be between 7% and 10% annually. It would take between 20 and 28 years to obtain 10% yield on current price.
2) TSE:CU (Canadian Utilities) offers a current dividend yield of 3.88%. Forwards dividend growth rates could be between 7-11%. It would take Between 9 to 14 years to get 10% yield on current cost.
I would favor 2). I try to find stocks that would attain 10% yield on current cost in about 10-15 years.
Using that approach, stocks I find interesting at this time are:
TSE:CU
FTS
HCN
LOW
MDT
MSFT
PSA
SBUX
TSE:T (Telus)
VFC
In addition, all time favorites are JNJ, D and O.
RE: Best Dividend Growth Stocks? - divmenow - 12-27-2017
I wasn't referring to a 10% yield. I was just referring to dividend companies that basically grow its dividend by at least 10% year after year. So there are companies out there that have dividend growth that reach that criterion. You just have to find them.
SBUX - Grew its dividend by 23% over the last 5 years
TXN – 24% over the last 5 years
HD – 24% over the last 5 years
V – 25% over the last 5 years
CVS – 25% over the last 5 years
BA – 26% over the last 5 years
ORCL – 26% over the last 5 years
UNH – 29% over the last 5 years
MA – 49% over the last 5 years
LUV – 66% over the last 5 years
MCD, HRL, LOW, WMT, COST, SHW, AFL, MCK, WM, MSFT and VZ as well
RE: Best Dividend Growth Stocks? - DividendGarden - 01-01-2018
(12-27-2017, 08:45 PM)divmenow Wrote: I wasn't referring to a 10% yield. I was just referring to dividend companies that basically grow its dividend by at least 10% year after year. So there are companies out there that have dividend growth that reach that criterion. You just have to find them.
SBUX - Grew its dividend by 23% over the last 5 years
TXN – 24% over the last 5 years
HD – 24% over the last 5 years
V – 25% over the last 5 years
CVS – 25% over the last 5 years
BA – 26% over the last 5 years
ORCL – 26% over the last 5 years
UNH – 29% over the last 5 years
MA – 49% over the last 5 years
LUV – 66% over the last 5 years
MCD, HRL, LOW, WMT, COST, SHW, AFL, MCK, WM, MSFT and VZ as well
I've wanted to own MA for many years and have never pulled the trigger due to valuation concerns. I don't want to pay 35x earnings for anything. But I've owned V and AXP for years and also bought DFS this Summer when it was below $60.