Bookmark and Share

17 Dividend Aristocrats With Double-Digit EPS Growth Predictions Over 5 Years

Last month we looked at the Canadian dividend aristocrats, a list of companies that have increased dividends each year for the past five years.

The list of stocks is a good starting point for dividend investors, but it also reveals a number of flaws when looking to invest in a company.

Some companies grow their dividend by a small amount in order to remain on the list, while others ignore poor earnings and continue to distribute more in dividends then they earn.

Dividend growth stocks make an excellent choice for investors seeking both income and growth. Dividend growth stocks raise their dividend year after year, growing their owner’s income streams.

Who doesn’t want a rising standard of living year after year? Not only do dividend growth stocks have practical appeal, they have also historically outperformed non-dividend paying stocks by about 7.8 percentage points per year from 1972 through 2013. Not a bad excess return, for simply buying stocks that raise their dividends year after year.

That’s why it’s important to include additional criteria in your search for the best dividend stocks. One thing to look for is the 5-year average dividend growth rate, which shows how consistently a company raises its dividend over time.

Today I ran a stock screen that looked for companies that should increase earnings per share by 10 percent or more for the next five years. The results showed seventeen companies that should produce five years of double digit eps growth and possible double digit dividend growth. Here’s what we found:


17 Dividend Aristocrats With Double-Digit EPS Growth
Predictions Over 5 Years
(click to enlarge)

3 comments:

  1. Great list of companies. Happy to see many of them already in my portfolio.

    ReplyDelete
  2. I have been benefitting from a few great divis too for the last few years, check these out and let me know what you think? I will just give their Ticker symbols and you c an do some home work! PSEC, OXLC, ABDC, TPVG,and SCM. These have done me very well and when incorporated as DRIPs even better. What say you?

    ReplyDelete
  3. I wonder if you ran the screen 5 years ago if the stocks would have held up to the prediction

    ReplyDelete

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.