As a dividend growth investor, I am looking to invest in companies that have increased their annual dividend for a number of years. Luckily, lists of dividend growth stocks are maintained by various organizations for both the Canadian and U.S. markets.
For stocks listed in the United States, by far the most comprehensive list of Dividend Growth Stocks is the Dividend Champions list maintained by David Fish at the DRiP Investing Resource Center. This list is divided into companies that have raised dividends for more than 25 years (Champions), between 10 & 25 years (Contenders), and between 5 & 10 years (Challengers). In addition, dividend histories, growth rates, and ex-dividend dates are provided for all of the stocks. Best of all, it is updated monthly and free to download. If you’re interested at all in dividend growth investing in the US markets, this is the place to start your research.
In Canada, two separate lists are maintained by Mergent, through their Dividend Achievers Index, and by Standard and Poors, through their S&P/TSX Canadian Dividend Aristocrats Index Canadian Dividend Aristocrats Index). These lists are both available for free, though the S&P site requires registration. There is considerable overlap between the two lists; however each one does have a few unique entries.
Now, just because a company has raised its dividend for a number of years, does not automatically make it a good investment. In order to have a chance to generate exceptional returns, further analysis on the companies presented in these lists should be completed to determine their degree of risk and their potential for future return.
Over the coming weeks and months, I’ll be sharing the various analysis metrics that I use to screen these companies in order to better understand their historical performance, their operations, and their competitive position. Only after a thorough analysis to determine the possible risks to your investment capital should an investment in any company be considered.
Until next time,
Nathan @ EngineeringIncome.com
The data and opinions presented above are for educational purposes only and should not be construed as individualized investment advice or as a recommendation to buy or sell the securities in question. The investing methodology outlined on this site assumes that a stock will perform in the future as it has in the past. This is generally not true. It is the responsibility of individuals to perform their own due diligence and/or consult their investment adviser to determine the suitability of any given investment product for their specific situation. For more information, please see my disclaimer.
Full Disclosure: The author has long positions in a number of stocks listed as Dividend Champions.