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Friday, June 9, 2017

10 Dividend Growth Stocks For June 2017


As a dividend growth investor, I love David Fish's CCC list of dividend growth stocks trading on U.S exchanges. Updated every month, the CCC list it contains more than 800 stocks trading with at least five consecutive years of higher dividend payments. The accompanying spreadsheet provides key statistics of the CCC stocks.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens. I rank the trimmed list and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.

The latest CCC list (dated 5/31/17) contains 826 stocks. This month, rather than using screens to trim the CCC list, I used a weighted average of normalized ranks for each of the following factors:
  1. Dividend yield (weight: 3)
  2. Most recent dividend increase (weight: 2)
  3. Estimated 5-yr EPS growth (weight: 1)
  4. Market capitalization (weight: 1)
  5. 3-yr dividend growth rate (weight: 3)
  6. 5-yr beta (weight: 2)
What do I mean by normalized rank? 
To learn about normalized ranks and how I used the weighted average of normalized ranks to select candidate stocks for my normal ranking process, please read this article at Seeking Alpha, where I reveal the top 10 ranked stocks for June.

Please feel free to leave comments on this article either at Seeking Alpha or here, on my blog. I'll do my best to respond to each comment as quickly as possible.

4 comments :

  1. Thanks for sharing. Another great analysis. Cheers.

    ReplyDelete
    Replies
    1. You're welcome, BHL -- hope your investments go very well!

      Delete
  2. Thanks for sharing. What you think about Target Inc "Ticker: TGT". I think it's valuation and high dividend yield looks lovely. I've been purchasing TGT stocks in my portfio. Please check out my portfolio at www.dividendgrowthbunny.com Thanks!

    ReplyDelete
    Replies
    1. Hi, Hansen -- thanks for visiting DivGro and for commenting!

      First, my fair value estimate of TGT is about $56, which means TGT is trading at a discount of about 7%. The company is facing some issues and challenges, but I think it will be OK in the long run.

      Your dividend growth portfolio looks good, with some interesting holdings. All the best and I hope you continue blogging. (Its been a year since your last post!)

      Delete

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