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Sunday, June 30, 2019

The Dividend Aristocrats Ranked By Quality Score

Dividend Aristocrats are S&P 500 stocks that have increased their dividend payouts for 25 consecutive years or more.

In this article, I use a slightly modified version of David Van Knapp's quality scoring system to rank all the Dividend Aristocrats. The system employs five widely used quality indicators from independent sources and assigns 0-5 points to each quality indicator, for a maximum of 25 points.

I love the simplicity of the quality scoring system and I believe it does a remarkable job of identifying high-quality stocks. It is quite stringent, so stocks scoring 20-25 points would be considered high-quality stocks by many investors.

Of the 57 Dividend Aristocrats, no fewer than 39 have quality scores in the 20-25 range, and only three stocks of the remaining stocks have quality scores below 15 points. These truly are high-quality stocks!

The article includes tables listing quality indicators, key metrics, and fair value estimates and encourages dividend growth investors to consider high-quality candidates trading below fair value.

Hopefully, dividend growth investors will find this information to be a good starting point for stock selection and further research. I've highlighted some stocks I find worthy of further consideration, especially those trading below fair value. As always, though, I encourage you to do your own due diligence before investing.

Please read this article at Seeking Alpha.

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