David Fish maintains a list of stocks with at least five consecutive years of higher dividend payments. Colloquially called the CCC list, it contains more than 800 dividend growth stocks trading on U.S. exchanges. While the CCC list and the accompanying spreadsheet is a wonderful source for dividend growth investors, analyzing so many stocks would be nearly impossible.My monthly 10 Dividend Growth Stocks series identifies 10 CCC stocks worthy of further research. I select stocks from the CCC list, rank them, and assign a 7-star rating to each stock. It would be too demanding to rank all the CCC stocks, so I use different screens every month to trim the CCC list to a smaller number of candidates.
With the markets trading at all-time highs, I thought it might be interesting to repeat last October's selection process, namely to focus on stocks I believe to be trading at or below fair value.
First, I trimmed the CCC list using the screener available at Dividend Kingdom, which allows users to define one or more filters based on metrics available in the CCC spreadsheet, such as consecutive years, dividend growth rate, and dividend yield.I used filters based dividend yield, debt, market cap, and payout ratio. Of the resulting 115 candidates, 33 appeared to trade below fair value based on a preliminary fair value analysis.
To find the top 10 stocks, I ranked the 33 remaining candidates using data from the CCC spreadsheet and additional sources like Morningstar, S&P Capital IQ, and F.A.S.T. Graphs.
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Thanks for sharing. One thing, think you accidentally got your links mixed up. The "Last October" link goes to 2017 and the "This Article" link goes to 2016. Great post though!
ReplyDeleteNot anymore, since I fixed it :-) Thanks for the heads-up! All the best and happy investing, Dividend Daze!
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