10 Dividend Growth Stocks For January 2020

The Dividend Champions [CCC] list contains nearly 900 dividend growth [DG] stocks trading on U.S. exchanges that have paid higher dividends for at least five consecutive calendar years. An accompanying spreadsheet provides valuable data and is updated monthly, courtesy of SA author Justin Law.

In this article, I rank a subset of the CCC stocks and present the 10 top-ranked stocks for consideration. I now use a ranking system derived from David Van Knapp's Quality Scoring System, which employs five widely used quality indicators from independent sources to assess the quality of DG stocks.

This month I decided to rank quality CCC stocks with qualifying Chowder Numbers [CDNs] trading at discounted valuations.

The latest CCC list (dated 12/31/19) contains 866 stocks. There are 138 Dividend Champions with increasing calendar year payouts for the past 25 years; 265 Dividend Contenders (past 10-24 years); and 463 Dividend Challengers (past 5-9 years).

I decided to screen for DG stocks with quality scores of 14 and above (out of 25 points) that have qualifying CDNs and are discounted by at least 7% to my fair value estimates. Only 58 of the 866 DG stocks in the CCC spreadsheet qualifies.

To see the top 10 ranked stocks for January 2020, please read this article at Seeking Alpha. As usual, I provide fair value estimates and key metrics, as well as F.A.S.T. Graphs charts for a selection of DG stocks.

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