Why Dividends Matter? Companies that pay regular dividends tend to be in better financial health and produce sustained earnings and revenue growth.
Dividends help identify well-managed companies; every dividend declaration represents a promise by management and a vote of confidence by the board of directors in the company's leadership.
Companies that consistently raise their dividend payouts also raise the bar on their own performance expectations.
Shares of dividend-paying companies possess built-in value that makes them generally more resilient in down markets, with solid appreciation potential during earnings-driven market upturns — with less price volatility.
That's the theory. In real, there are several indices you can follow in order to discover the best dividend paying stocks.
Very poplular are Dividend Aristocrats and the CCC Lists. But those have in common that they are focussed on national domiciled stocks.
For sure, on an international basis, the number of stocks with a long dividend growth history is very limited. That's the reason why we need to turn down the classic rules of Dividend Growth.
Today I screened the lists of International Dividend Achievers, stocks with more than 5 consecutive years of dividend growth by companies with good looking fundamentals and growth perspectives.
Attached you will find 17 of my top results. The list contains 6 stocks with a yield over 4 percent.
Here are the results...
There are a number of ways in which a company can return wealth to its shareholders.
Although stock price appreciation and dividends are the two most common ways of doing this, there are other useful, and often overlooked, ways for companies to share their wealth with investors: Dividends and share buybacks.
Buybacks is one way to build values for investors. It's a kind of income usage. Buying back own shares increases future eps when the net income is constant.
Today I would like to introduce a number of stocks with interesting fundamentals and price ratios that have bought own shares in a significant amount back.
Each of the attached stocks have fulfilled all of the following criteria:
- Share reduction over the past year over 5%
- Forward P/E under 15
- Debt-to-equity under 1
- Positive ROA
- EPS growth for the next five years over 5%
- Dividend yield at least 2%
Here are the results...
Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don't understand how the strategy works?
They confuse a buy-and-hold strategy with day trading with a longer duration. A true implementation of buy-and-hold includes a focus on blue-chip stocks with a sustainable advantage, along with a reasonable asset allocation framework.
One sign of a blue-chip stock is a long string of dividend increases.
Below all companies that have recently raised the bar by increasing their cash dividends
In total, 71 stocks announced a higher dividend of which 14 have a high yield (over 5%) and 40 a cheap forward P/E (less than 15).
Attached you will also find my 19 favorite stocks from the list. Each stock has solid fundamentals and earnings growth potenital while the debt situation is acceptable.
Here are the stocks:
Dividend stocks can be the foundation of a great retirement portfolio. Not only do the payments put money in your pocket, which can help hedge against any dips in the stock market, but they're usually a sign of a financially sound company.
Dividends also give investors a painless opportunity to reinvest in a stock, thus compounding gains over time.
However, not all income stocks live up to their full potential.
Using the payout ratio -- i.e., the percentage of profits a company returns to its shareholders as dividends -- we can get a good bead on whether a company has room to increase its dividend. Ideally, we like to see healthy payout ratios less than 30%.
Attached you will find those Dividend Contenders with the highest possibility to raise dividends by more than 100% for the years to come.
Each of the stocks fulfilled the following criteria:
- Dividend Growth over 10 consecutive years and less than 25 years
- Payout Ratio under 30%
- Debt to Equity under 0.5
- EPS Growth for the next five years expected at 5% yearly.
19 stocks fulfilled the above mentioned criteria of which 12 got a buy or better rating by analysts.
Here are the best yielding results in detail...
Today's screen is focused on high yields and low P/E within the Dividend Challengers space. Those stocks managed to raise dividends by more than 5 years in a row.
Challengers jumped over the first level of dividend growth barriers. One day they could become a Dividend Contender, Achiever, Champion, Aristocrat or even a Dividend King.
Most Challengers have in common that they could fail to raise dividends in the future. There are more cyclic stocks on the list.
The top yielding results com the credit services, REIT and oil and gas sector.
My favorites are GMLP, SSW, STX, WDR, SSI, and SAFT. Which stocks do you like from the screen? Please let me know some of your thoughts by leaving a comment.
Here are the 20 cheapest high-yield Dividend Challengers….
Here
are the 20 cheapest high-yield Dividend Challengers…
