Wednesday, June 10, 2015

10 Dividend Growth Stocks for June 2015

Includes: ADM • CAH • GLW • GPS • HCI • HOG • NEE • NOV • MIC • QCOM • RS • TESS • UNP • VZ

Once a month, I rank a selection of David Fish's CCC stocks to identify top candidates for further analysis. The list of CCC stocks is updated monthly and contains all U.S.-listed stocks that have paid increasing dividends for at least 5 consecutive years.

The CCC list is divided into three categories based on the number of consecutive years of increases: Dividend Champions (25 or more years), Dividend Contenders (10-24 years), and Dividend Challengers (5-9 years). The latest list (dated 5/29/15) contains 722, with 105 Champions, 251 Contenders, and 366 Challengers.

I apply a series of filters to reduce the number of stocks to a more manageable number. The filters are designed to remove unlikely candidates from consideration. They are based on things like yield, growth rate, P/E and PEG ratio, and dividend increase history. I'm careful to retain a minimum number of stocks for each of the 10 GICS (Global Industry Classification Standard) sectors.

To see the top 10 stocks by rank and the 10 sector winners, please read this article at Seeking Alpha.

6 comments :

  1. Hey Ferdi,

    Nice article once again!
    Starting next month my focus will be on growth instead of yield.
    This is why GPS and QCOM are looking so nice. Both are having >20% growth and are trading close to their 52-week value. Two reasons to make then excellent candidates for further analysis.

    Thanks!

    Best wishes,
    DfS

    ReplyDelete
    Replies
    1. Hi DfS -- thanks for commenting!

      Agreed. I think it is important to consider growth in addition to yield. If you have lots of time as a dividend growth investor, focusing (a little) more on growth is a great idea. For investors that will be needing income sooner, focusing on yield is more important.

      Take care!

      Delete
  2. Timely post. I have been wondering about your previous GPS buy. Since GPS shows up #1 again, will you be locking in another block? There is no doubt about that dividend growth and the price appears right too. Good luck.

    ReplyDelete
    Replies
    1. As I write in my article "GPS is down 9% since my original purchase, now trading at a discount of 13% to my fair value estimate. Perhaps it is time to buy more shares...". However, HCI and RS look interesting, too, and investments in those stock would improve my sector allocation. I'm still looking...

      Delete
  3. I like ADM from the list. I just initiated a position in that stock not long ago and would love to average down and buy more but not at current prices. Thanks for sharing.

    ReplyDelete
    Replies
    1. You're welcome, DivHut! ADM is a good company, but I agree -- not at current prices. I'm still waiting for an opportunity to become a shareholder. Hopefully, there will be an opportunity soon enough.

      Delete

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