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Tuesday, November 29, 2022

The Highest Quality Dividend Achievers

The Dividend Achievers are companies that have increased their annual regular cash dividend payments for at least each of the last ten consecutive calendar or fiscal years. A trademarked property of the Nasdaq, the Dividend Achievers are tracked under license by several exchange-traded funds, including Invesco's PFM. 

In this article, I present the highest quality Dividend Achievers based on Quality Snapshots, an eloquent system developed by David Van Knapp for assessing the quality of dividend growth stocks. The system employs five quality indicators from independent sources and assigns 0-5 quality points to each quality indicator for a maximum score of 25 quality points.

I decided to use a variation of the original Quality Snapshots system to find the highest quality DG stocks among the Dividend Achievers. The variation uses Value Line's Price Stability instead of Value Line's Safety Rank.

Value Line's Price Stability is based on a ranking of the standard deviation (a measure of volatility) of weekly percent changes in the price of a company's stock over the last five years. It is reported on a scale of 100 (highest) to 5 (lowest) in increments of 5. 

To identify the highest quality Dividend Achievers, I considered only Dividend Achievers scoring at least 20 out of 25 points and only ones scoring in the top two categories of all five quality indicators. These are very stringent screens! Of the universe of 371 Dividend Achievers, only 40 Dividend Achievers pass the screens!

Please read this article at Seeking Alpha to review the highest-quality Dividend Achievers.

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