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SDS (Seductive Dividend Stocks)
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Sorry I hide my true identity but I'm a physicist/engineer, native contrarian and idea generator. I am an eclectic dividend investor with motto "In God We Trust, All Others Pay Cash" applied to companies I invest in. I like to read /and read a lot - did you look on my SA photo 8-)? /... More
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  • Reconstruction Of January 2008 David Fish's List Of US Dividend Growth Companies 0 comments
    Jun 30, 2013 8:34 PM

    David Fish list of US dividend growth companies (a.k.a CCC list) is really the best source of information any DGi can find. David started the list at the end of 2007 and improved it with time. Robert Allan Schwartz keeps old versions of CCC list at www.tessellation.com/dividends/index.html. One improvement David almost constantly makes is inclusion of companies with long DG histories overlooked early.
    On another hand, several SA researches have compared performance of DG stocks with market using original January 2008 CCC list (see e.g. seekingalpha.com/article/1456171-it-s-ok...). Unfortunately, these comparisons are incorrect because several DG companies were missed in January 2008 CCC list (it has 138 companies).

    I try to reconstruct the list as it should appeared 1 January 2008 if ALL information was known. I combined Mergent 2008 Winter Dividend Achievers Handbook (MDA), companies from May 2013 CCC list with 10+ years of DG history, and companies I found in the framework of Dividend Heritage Project (seekingalpha.com/instablog/725729-sds-se...) which were qualified for MDA on 1/1/2008 (1,2).

    This updated list contains more than 400 companies, i.e. almost 3X more than number of firms in January 2008 CCC list. As expected, previously "unknown" companies are mostly banks and other (mostly small) finance firms which decreased or froze dividends in 2008-2010.

    From 403 companies in the updated list 127 reduced and 69 froze dividends between 1/1/2008 and 6/1/2013. Also 19 companies were involved in corporate actions like merge, spin-off, etc and were disqualified (I wasn't able to find market caps and other non-dividend info for 14 of them). The updated list contains 66 companies with small market cap /below 150 M$/ and/or average trading volume less than 20K shares. Probably not each investor included such companies in stocks portfolio. From remimning 337 companies 97 firms (~ 28.8%) cuted and 56 firms (~ 16.6%) froze dividends, and 15 firms (~4.4%) were involved in varios corporate actions.

    MS-Excel file with the updated list is available upon the request.

    Footnotes:

    (1) Please note that company must increase dividends each year to be qualified for MDA, while bi-annual increase is enough for eligibility for CCC list.

    (2) It is interesting that some companies included in Mergent's 2008 Winter Dividend Achievers Handbook were NOT qualified according to
    Mergent selection rules. I guess this poor quality leads to bad performance of MDA based index and ETFs along with other factors.

    30 June 2013

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