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Summary

  • CCC Universe Reaches 543 Companies.
  • Seasonal Slowdown Should Continue in July.
  • Challengers' Youth Movement Remains Strong.

The Dividend Champions spreadsheet and PDF have been updated through 6/30/14 and are available here. Note that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. "CCC" refers to the universe of Champions, Contenders, and Challengers.

Expansion Slows

The slow pace of dividend-increase announcements in May continued in June, raising the number of Dividend Champions, Contenders, and Challengers from 540 to 543 companies by the end of the month. That trend should continue in July, before a pick-up in activity in August. Again this month, the Near Challengers listing wasn't diminished by the latest "graduations," but the continuing wave of firms headed toward declaring a fifth year of increases in 2015 also slowed in June, with only 7 "NEW" notations appearing in Appendix B (on the Notes tab), bringing the number of Near-Challengers to a record 258 companies, keeping the CCC universe on pace to top 600 companies by year-end and 700 by mid-2015.

June closed with many new all-time highs and the average price of CCC stocks, which rose by 67¢ in May, rose another $1.06 in June, while the new Challengers pushed the average "age" of the dividend streaks from 16.5 down to 16.4 years. The average yield dipped from 2.78% to 2.71% and the average of the Most Recent Increases moved from 9.78% up to 9.86%, benefiting from the influx of new companies.

As always, please use the CCC only as a starting point for more in-depth research. Feel free to leave any suggestions in the Comment area below.

Quick Summary

The Summary tab includes a table comparing the composite numbers from the latest update to those from the previous month and the end of the previous year. Below that is a summary of the latest month's activity, in terms of companies added, deleted, or promoted. That is reflected below:

Quick Summary:

6/30/14

Champions

Contenders

Challengers

Total

No. of Companies

106

231

206

543

Ave. No. of Years

40.2

14.5

6.4

16.4

Average Price

66.14

65.79

60.07

63.69

Average % Yield

2.48

2.64

2.92

2.71

Ave. MR % Increase

8.02

8.64

12.42

9.86

5/30/14

Champions

Contenders

Challengers

Total

No. of Companies

106

231

203

540

Ave. No. of Years

40.1

14.5

6.4

16.5

Average Price

64.80

64.71

59.12

62.63

Average % Yield

2.53

2.67

3.03

2.78

Ave. MR % Increase

8.17

8.43

12.38

9.77

12/31/13

Champions

Contenders

Challengers

Total

No. of Companies

105

210

161

476

Ave. No. of Years

39.8

14.5

7.1

17.6

Average Price

64.42

65.14

57.74

62.48

Average % Yield

2.49

2.60

3.06

2.73

Ave. MR % Increase

8.68

8.78

11.10

9.49

MR = Most Recent

Additions:

Avago Technologies Ltd. (NASDAQ:AVGO) to Challengers

DTE Energy Company (NYSE:DTE) to Challengers

Stage Stores Inc. (NYSE:SSI) to Challengers

UnitedHealth Group Inc. (NYSE:UNH) to Challengers

Deletions:

Teche Holding Co. (NYSEMKT:TSH) from Contenders

Promotions:

Health Care REIT Inc. (NYSE:HCN) from Challenger to Contender

(Table from author; may include underlying data from FinViz.com)

Every Picture Tells a Story

As a bonus, I'm inserting one of Chuck Carnevale's F.A.S.T. Graphs below, highlighting one of the companies listed above. When the price line is in the green area, it suggests possible undervaluation.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.