Dividend Challengers with lowest beta ratios originally
published at "long-term-investments.blogspot.com". I love high-quality
dividend growth stocks and the stocks with the longest history of consecutive
payments are definitely Dividend Kings and Dividend Champions. But the big
disadvantage of them is that they are also highly priced.
You cannot make a greater return with stocks
that have a P/E ratio of 22 and grows only at 5 percent. You need real bargains
to make big profit with your asset.
This problem can be solved when you look into
the dividend potentials. Those stocks haven’t yet reached a longer dividend
payment history but they can become a great Dividend Champion within the next
years. The price ratios are also lower for some companies and you have a better
choice to find good investments because out there are around 160 stocks with
five or more years of consecutive dividend payments and 207 with a payment
between 10 to 25 years.
Today I like to screen the third class of
dividend growth stocks by the safest alternatives. The 20 safest dividend growth stocks have a beta ratio between 0.18 and 0.55. All three top picks come from the
oil & gas pipeline industry, a branch with very stable sales and future growth
perspectives due to the shale gas boom in the United States.
From the 20 safest Dividend Challengers have nine
a current buy or better rating.