The ten stocks at the top of my August list are NTT, MSFT, INTC, CHL, NSC, PRE, TRV, CB, AFL, and COP. I already own shares of the highlighted stocks in DivGro. In order to diversify my portfolio, I select 7 candidates from the list that I don't own yet, for further analysis.
The 7 candidates for August, along with their respective star ratings and sectors, are:
|Microsoft Corp. (MSFT):||(*******)||
|Norfolk Southern (NSC):||(*******)||
|ACE Limited (ACE):||(*******)||
|Chubb Corp. (CB):||(*******)||
|Coach Inc. (COH):||(*******)||
|Qualcomm Inc. (QCOM):||(*******)||
|Caterpillar Inc. (CAT):||(*******)|
NSC and ACE each earned 6 stars. NSC is a repeat candidate from last month, so perhaps its time for a thorough analysis to determine if its higher level of debt is acceptable. ACE misses on yield and on payback rate, though its discount of nearly 30% to fair value is interesting.
CB, COH, QCOM, and CAT each earn 5 stars:
- CB has an impressive dividend streak of 48 years, but low yield and growth numbers
- COH has a short but impressive record of dividend growth (5 years; 60% weighted average)
- QCOM misses on yield and on payback rate; it also is a Technology sector stock
- CAT has a dividend streak of 20 years, but a rather high Debt to Equity ratio.
What dividend growth stocks are you considering?
Full Disclosure: Long NTT, INTC, CHL, PRE, TRV, AFL, COP