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12-26-2017, 01:05 PM
(This post was last modified: 12-27-2017, 08:44 PM by divmenow.)
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?
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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.
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12-27-2017, 08:45 PM
(This post was last modified: 12-27-2017, 08:47 PM by divmenow.)
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