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Monday, August 19, 2019

High-Quality Dividend Stocks

I've been using a slightly modified version of David Van Knapp's quality scoring system to assess the quality of dividend growth [DG] stocks.

The quality scoring 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 call the total score a stock's quality score.

It occurred to me that I could use the quality scoring system to find high-quality stocks. I simply screen for stocks that match predetermined levels for each quality indicator. This article presents a ranked list of 36 stocks with quality scores of 24-25.

The list contains both dividend stocks and DG stocks.

I distinguish dividend stocks from DG stocks by not requiring regular dividend increases. Of course, not requiring regular dividend increases is a fuzzy distinction.

To be a DG stock, a stock must have paid increasingly higher split-adjusted dividends every year for at least the past five years. In contrast, the only requirement for dividend stocks is that they must pay dividends regularly, whether monthly, quarterly, semi-annually or annually.

Please read this article at Seeking Alpha.

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