Starting with the March 2015 investment results as provided by Dave Fish on DripInvesting.org, I have taken the +/- 250 stocks listed in the Dividend Contenders spreadsheet, and applied screens to reduce the selections to a few investment candidates in each sector.
Summing up the criteria for the initial stock screen we have:
- The stock must have achieved 10-24 straight years of dividend increases
- The dividend yield must be 2.5% or higher
- Dividend payout ratio must be less than 65%
- Dividend growth rate for 10-, 3-, and 1-year periods must be at least 5%
- The Price/Earnings ratio must be less than 20.5
- EPS growth must be positive in the trailing twelve months
- Average EPS growth for the past 5 years must be 5% or greater
The result of this strict criteria is usually a list of +/- 25 stocks per month. Additional research is done to include the dividend coverage ratio, current ratio, and revenue growth for the trailing twelve months (which was only conducted on the highlighted stocks below).
The full results of this screen can be downloaded below. Here are the highlights of the screen, for April 2015 investment consideration:
- Hasbro, Inc. (NASDAQ:HAS) - Financials
- Lockheed Martin (NYSE:LMT) - Industrials
- Caterpillar, Inc. (NYSE:CAT) - Industrials
- Qualcomm, Inc. (NASDAQ:QCOM) - Information Tech
- International Business (NYSE:IBM) - Information Tech
- Microsoft Corp (NASDAQ:MSFT) - Information Tech
- Xilinx Inc. (NASDAQ:XLNX) - Information Tech
These securities may warrant additional research. As they are Dividend Contenders, they have proven the management's ability to issue increasing dividends for a period of 10-24 years. They are tend to have more volatility than Dividend Champions, and thus may be a riskier investment or greater opportunity for growth, or not!
Lockheed Martin (LMT) has delivered great results and has a very high ROE. Qualcomm (QCOM) may be poised to grow into the place left blank by Intel's (NASDAQ:INTC) recent removal from the Dividend Champions clubhouse. Hasbro (HAS) has done well but can it continue?
Additional securities than those listed above passed the screen - for the full results of the screen, download it here.
Please let me know if you find this interesting in the comments.
Disclosure: The author is long LMT.