Standard & Poor's has speculated that the dollar amount of S&P 500 dividend payments will drop 10% in the fourth quarter, the biggest drop since 1958. However, more than half of companies will pay more in 2008 vs. 2007. This oddity is driven by the banks, which have historically paid some of the highest dividends. As any dividend investor can tell you, the banks have led the way in dividend cuts. In September and October, 16 financial companies cut their dividend payments by $14.6 billion.
S&P 500 Dividend Aristocrats is designed to measure the performance of S&P 500 index constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years. The constituents are equally weighted and rebalanced each quarter. Members are removed during the December update if calendar-year dividends did not increase from the previous year, or they are removed intra-year if the stock is dropped from the underlying S&P 500.
Dividend investors have a lot to be thankful for. The 60 companies making up the Dividend Aristocrats have outperformed the S&P 500 index year-to-date by almost 12 percentage points.
SmartMoney recently published a dividend growth stock screen with the following criteria:
That screen produced the following 6 stocks:
Of the stocks that I have reviewed, I currently rate:
After running the remaining 3 companies through my D4L-PreScreen.xls model, BDK with a NPV of MMA Differential of $49,200 qualifies for a more complete evaluation. However, since it is time for a dividend increase and BDK has only increased its dividend for 5 consecutive years, I would wait to see what the company does prior to performing a full evaluation. DRI has only seriously raised their dividend for the last 3 years. GRMN has only paid a dividend (annual) since 2003.
As always, you should never act solely on a screen or recommendation. You should perform your own research and reach your own conclusion before buying or selling an investment security.
Sources:
S&P 500 Dividend Aristocrats
6 Stocks With Improving Dividends
Full Disclosure: At the time of this writing, I was long in CAT, INTC, PFE
Related Articles:
Stock Screen For Improving Dividends
Posted by D4L | Thursday, November 20, 2008 | commentary | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
The silver lining of the market sell-off in 2022 is that it has created plenty of dirt cheap dividend stocks that investors can buy now and ...
-
The S&P 500 recently fell into a bear market, defined as a 20% year-to-date drop, which has ramifications for dividend stocks. The good ...
-
Rising interest rates are good for banks because it allows them to charge more for lending services. However, if those higher rates squash h...
-
Through wars and recessions, terrorist attacks and pandemics, dividend stocks as a category have always generated positive returns, even dur...
-
Looking to take advantage of supply chain disruptions and inflation? With Europe shifting from Russian energy supplies, there has been a lot...
-
Many companies will see their interest expenses rise, but the ones whose management was savvy enough to lock in debt at fixed rates should d...
-
How long do you think the average stock gets held? Not very long, it turns out. Reuters calculated in June 2020 that the average holding per...
-
You can work for money. But you can also have your money work for you. One great way to make passive income is to invest in dividend stocks....
-
Stocks generally will offer the best cushion against inflation, especially the reliable high-yield dividend payers. First, stocks have a lon...
-
Earlier we looked at the RQ (Risk/Quality) ratings of individual stocks. This was a good start to help us understand the risk profile of a ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.