What Stocks Are Most Commonly Held By Dividend Growth Investors?

by: David Van Knapp

Last year, I did a survey on this subject, and I want to update it.

Investors are interested in the most common dividend growth stocks. There is a wisdom-of-crowds dimension to such a list. It represents where dividend growth investors, after having applied a variety of analytical techniques, have placed their actual bets.

I will be speaking to my local AAII chapter in June, and (after noting last year's list) they asked me to address this subject specifically. Thus it becomes a way to introduce the dividend growth strategy to those who are less familiar with it, by showing them a list of stocks that they can relate to. Specific stocks can convey stories that theory cannot.

This year we have the advantage of being able to start with last year's final list of 39 stocks. Last year, I omitted REITs, MLPs, and BDCs, because I was working on a particular research project where they were not involved. This year I want to include the most widely held ones, since they are in many portfolios of dividend growth investors. I want the list to be representative of what self-identified dividend growth investors actually hold as they implement their versons of the strategy.

Last year, the final list included two stocks that did not have dividend-increase streaks: Exceleon and Pfizer. Apparently many dividend growth investors held on to them through their dividend cuts. I want to see if that remains true this year.

Please help. If you are a dividend growth investor (you know who you are), please examine the list and tell me if there are any stocks missing or any that should be deleted.

Important note: I am not looking for reasons that a stock should be sold or bought, nor for suggestions as to what would make a good dividend growth stock. Don't suggest stocks that you wish you could buy if you could just get a good price. I want to know what people who identify themselves as dividend growth investors actually own. Where is your money?

If a commenter suggests one that I missed, and the comment gets a few thumbs up, I'll consider adding it to the list. Similarly if several people suggest that a certain stock should be deleted, I will consider deleting it.

Thanks!! I will be back in a few days with the results plus some interesting statistics about the new 2013 list of stocks most widely held by dividend growth investors.

Here is the final list from last year.

Stock

Ticker

3M

MMM

Abbott Laboratories

ABT

AFLAC

AFL

Altria

MO

AT&T

T

Automatic Data Processing

ADP

Becton Dickinson

BDX

Chevron

CVX

Chubb

CB

Cincinnati Financial

CINF

Clorox

CLX

Coca-Cola

KO

Colgate-Palmolive

CL

Emerson Electric

EMR

Exelon

EXC

ExxonMobil

XOM

Hasbro

HAS

Intel

INTC

Johnson & Johnson

JNJ

Kimberly Clark

KMB

Leggett & Platt

LEG

Lockheed Martin

LMT

McDonald's

MCD

Medtronic

MDT

Microsoft

MSFT

Paychex

PAYX

PepsiCo

PEP

Pfizer

PFE

Phillip Morris

PM

Procter & Gamble

PG

Raytheon

RTN

Southern

SO

Sysco

SYY

Target

TGT

United Technologies

UTX

Verizon

VZ

Walgreen

WAG

Wal-Mart

WMT

Waste Management

WM

Click to enlarge

Disclosure: I am long AFL, T, CVX, HAS, INTC, JNJ, KMB, MCD, PEP, PG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.