20 Dogs Of The Dividend Champions, Each Yielding Over 4%

The investing strategy which focuses on Dogs of the Dow was popularized by Michael Higgins in his book, "Beating the Dow". The strategy's simplicity is one of its most attractive attributes. The Dogs of the Dow strategy is very simple to implement:

1) Take the 30 stocks that make up the DJIA
2) Rank in yield from highest to lowest on January 1
3) Buy the 10 stocks in equal weight

The premise of this investment style is that the Dow laggards, which are temporarily out-of-favor stocks, are still good companies because they are still included in the DJIA; therefore, holding on to them is a smart idea, in theory.

Once these companies rebound and the market has revalued them properly (or so you hope), you can sell them and replenish your portfolio with other good companies that are temporarily out of favor. 

Companies in the Dow have historically been very stable companies that can weather any market decline with their solid balance sheets and strong fundamentals.

Furthermore, because there is a committee perpetually tinkering with the DJIA's components, you can rest assured that the DJIA is made up of good, solid companies.

Today I like to enlarge this concept by looking at the Dogs of the Dividend Champions as of January 2016.

Attached you can also find a list with more fundamentals of the 20 top yielding Dividend Champions as of January 04, 2016.

If you like those ideas and the articles I write, you can easily subscribe my daily news for free. Just submit your email address in the side box or follow me via RSS feed. Thank you for reading.

Here are the 10 Dogs of Dividend Achievers in detail...

18 Most Attractive Mid-Cap Dividend Growth Stocks

I'm a big fan of large capitalized stocks due to the higher degree of safeness I could enjoy. But the price I pay for those extra points is return.

High quality large cap stocks often give you a smaller return than companies with a small capitalization.

Mid-cap stocks combine attributes of both large and small companies. Similar to large companies, these mid-size companies can have seasoned management teams, a strong market presence and access to capital markets, for instance.

They can also grow quickly, with fewer layers of management and bureaucracy, and offer a more entrepreneurial spirit than large competitors.

Attached I've tried to list some smaller capitalized dividend growth stocks with a market cap under 10 billion and a history of consecutive dividend of more than 10 years.

Exactly 210 companies have such a long dividend growth history. In order to limit my selection, I've tighten my criteria.

Each of the stocks must fulfill the following restrictions:

- Forward P/E under 15

- Debt-to-equity under 0.5

- 5-Year estimated EPS growth over 5%

18 small- and mid capitalized stocks survived my screening criteria of which five yield over 3 percent. 8 of the results have a buy or better rating.

Here are the top yielding results in detail...

These 14 Dividend Champions Could Double Their Dividends

Dividend stocks are often the fundament of a great retirement portfolio. Dividend payments not only put money in your pocket, which can help hedge against any downward move in the stock market, but they're usually a sign of a financially sound company.

Dividend payments also give investors the opportunity to reinvest into more shares of stock, thus boosting future dividend payments and compounding gains over time. Yet not all income stocks live up to their full potential.

Utilizing the payout ratio, or the percentage of profits a company returns in the form of a dividend to its shareholders, we can get a good bead on whether a company has room to increase its dividend. Ideally, we like to see healthy payout ratios between 50% and 75%.

Attached you can find a few  income stocks with a long dividend growth history and payout ratios currently below 40% that could potentially double their dividends over the next years.

Our assumption for such big dividend moves are positive earnings growth and low debt levels. Both are very important for dividend hikes over the next years.

The screen delivered 14 results of which 4 yield over 2 percent. The results can be found in the attached list with some fundamentals.

Here are the best yielding results in detail...

5 Cheap Value Stocks To Invest In 2016

When looking ahead to 2016, investors must ask themselves what is the best way to gauge the market and what metrics they should be using. 

2015 was a really good year for my portfolio stock holdings. But if I look forward, I need to position myself for the fiscal year 2016. By using value ideas, A few names came into my mind.

Energy stocks or energy related companies look cheap if you bet on a rising oil price. Retailers like Kohl’s or GameStop are also underestimated if you believe that Online will not kill their business.

Attached you can find a few least expensive stock ideas. In determining the “least expensive” companies, these were merely based on the lowest forward price-to-earnings (P/E) ratio. 

Included along with each was the recent trading history, the consensus analyst price target from Thomson Reuters and additional color for what is happening or may need to be watched ahead. 

Whether these companies are ripe and ready to buy or a value trap is the question that will be answered in 2016. It is no surprise that this list would be dominated by major airlines, as the result of incredibly low oil prices, but we have only chosen one, with a couple of honorable mentions.

Here are the results...

17 Dividend Kings Compiled In A Fundamental List

The best dividend growth stock of all time is a dividend king, a company that has raised dividends constantly over time. A dividend king is a company that has managed to increase dividends to shareholders for at least fifty years in a row. 

There are only a handful of these companies worldwide, most of them being US based. A company that has managed to increase dividends each year for over half a century has a stable business model that has endured a lot over a long period of time. 

As investors who want to live off dividends in retirement, we want to concentrate on quality businesses that operate in industries with significant competitive advantages. This will allow those businesses to grow earnings and pay higher dividends over time.

In order to give you a quick overview of the current market valuation and fundamentals of the 18 Dividend Kings, you can find attached a list with more details.

Here are the actual Dividend Kings...