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Sunday, December 22, 2019

The 28 Dividend Kings Ranked By Quality Score

Dividend Kings are companies that have increased their dividend payouts for at least 50 consecutive years. These are remarkable companies that have maintained regular dividend increases even in periods of economic recessions, market crashes, technology revolutions, and shifting consumer tastes.

David Van Knapp presented an elegant quality scoring system in this article on high-quality, high yield dividend growth [DG] stocks. 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.

introduced slight modifications to the quality scoring system and presented a way to break ties to allow stocks to be ranked. In this article, I use a slightly modified version of David Van Knapp's quality scoring system to rank the 28 Dividend Kings.

Image result for kingThe article includes tables listing key metrics, quality indicators, key metrics, and fair value estimates. Each table also includes the so-called Chowder Number [CDN], a metric that favors stocks likely to produce annualized returns of at least 8%.

Dividend Kings have performed quite well when compared to the S&P 500. While tracking the performance of the Dividend Kings suffers from survivorship bias, nevertheless, it is informative to consider historical performance.

Please read this article at Seeking Alpha.

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