I try to assemble my dividend portfolio by mixing three distinct types of dividend growth stocks. The first group consists of higher yielding companies which have lower dividend growth expectations. The second group includes companies in the sweet spot, which have average yields anywhere around 2.50% - 4% and average to above average dividend growth. The third group includes companies which have lower current yields, but offer the possibility of high dividend growth. When combining expected dividend growth with current yields, I determine the type of company I am reviewing, and also decide whether it is worth pursuing at some point in the future. I uncover those companies by screening the list of dividend champions or by reviewing the list of dividend increases for the week. I also use my process of reviewing recent dividend increases to monitor the performance of any companies I already own.
There were five companies last week I decided to review briefly in this blog post. I focused on the companies with at least a ten year streak of dividend growth and the right mix between dividend yield and dividend growth...