10 Dividend Growth Stocks For July 2020

Jul. 26, 2020 11:13 AM ETAAPL, AMGN, BLK, HD, HRL, ITW, MSFT, NEE, NKE, UNH69 Comments
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FerdiS
26.53K Followers

Summary

  • In my monthly series of 10 Dividend Growth Stocks, I rank a selection of dividend growth stocks in Dividend Radar and present the 10 top-ranked stocks for consideration.
  • I rank stocks using DVK Quality Snapshots to obtain quality scores and break ties by considering additional metrics.
  • This month, I'm presenting stocks with 5-year dividend growth rates of at least 10% and 1-year trailing total returns of at least 16%.
  • It is somewhat surprising to see seven GICS sectors represented in the top 10 list!

In my monthly series of 10 Dividend Growth Stocks, I rank a selection of dividend growth [DG] stocks in Dividend Radar and present the 10 top-ranked stocks for consideration. Dividend Radar a weekly automatically generated spreadsheet listing stocks with dividend increase streaks of five years or more.

This month I decided to rank DG stocks with high 5-year dividend growth rates and 1-year trailing total returns. Both these metrics are available in the Dividend Radar spreadsheet on a trailing twelve-month basis.

I use DVK Quality Snapshots to assess the quality of DG stocks and break ties in quality scores by considering additional metrics.

Screening and Ranking

The latest Dividend Radar list (dated July 24, 2020) contains 766 stocks.

I decided to screen for DG stocks with dividend growth rates [DGRs] of at least 10%. Additionally, I only wanted to consider stocks that have performed well in the past twelve months, despite the challenges presented by the COVID-19 pandemic. So I screened for DG socks with 1-year trailing total returns [TTRs] of at least 16%

No fewer than 58 stocks pass these two screens.

Ranking by Quality

I use the scoring system of DVK Quality Snapshots to obtain quality scores, and consider the following factors to break ties in order to rank the stocks:

  • SSD Dividend Safety Scores
  • S&P Credit Ratings
  • Dividend Yield

Each stock's Rank is shown in the tables that follow.

Fair Value Estimates

To estimate fair value, I reference fair value estimates and price targets from several sources, including Finbox and Morningstar. I also estimate fair value using the five-year average dividend yield of each stock using data from Simply Safe Dividends.

With several estimates and targets available, I ignore the outliers (the lowest and highest values) and use the average of the median and mean of the remaining values

This article was written by

FerdiS profile picture
26.53K Followers
FerdiS invests in dividend growth stocks and writes options to boost dividend income. He manages DivGro, a portfolio of mainly dividend growth stocks created in January 2013. With investment and trading experience spanning nearly 20 years, FerdiS enjoys writing articles about dividend growth investing, options trading, stock selection, portfolio management, and passive income generation. His DivGro blog hosts more than 1,000 posts and a live, public spreadsheet with full details of his DivGro portfolio, allowing readers to follow along in his investment journey. FerdiS is collaborating with the founders of Portfolio Insight, an online platform for portfolio management and investment analysis. Together, we maintain and publish Dividend Radar, a free spreadsheet of dividend growth stocks, on a weekly basis.

Disclosure: I am/we are long AAPL, AMGN, BLK, HD, HRL, ITW, MSFT, NEE, NKE, UNH. 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.

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