Upgraded Watchlist

January 2, 20175 Comments

I made some major improvements and updates to the Dividend Geek Watchlist. I hope they benefit you as much as they have helped me!

  • The most noticeable is that I combined the Champions & Contenders list and the Challengers list into one single list called (you guessed it) the ‘Champions, Contenders & Challengers’ watchlist. I found myself going back and fourth between the two lists comparing the stocks listed in the same sector or comparing DGI stocks with the lowest price to fair value rating. It seemed to make sense to just combine them for better visibility and easy comparison of all the dividend growth stocks.
  • All of the data has been updated to reflect David Fish’s most recent US Dividend Champions Dec 30, 2016 spreadsheet, so all of the latest end-of-year data is there.
  • Companies added to the Watchlist include:
    • Flowers Foods (FLO)
    • Nike (NKE)
    • Stryker (SYK)
    • Williams-Sonoma (WSM)
  • Companies dropped from the Watchlist include:
    • Archer Daniels Midland (ADM) – Thinned out some of the no economic moat companies.
    • HCP, Inc (HCP) – They spun off part of their business which caused a reduction in dividends.
    • Norfolk Southern (NSC) – Did not raise there dividend this year and were dropped from David Fish’s CCC list.
    • Version (VZ) – High yield but dividend growth is so low (3%) it will not beat inflation.
    • YUM – They spun off their China business which caused a reduction in dividends.
  • Now that the Global Industry Classification Standard (GICS) recently made REIT’s their own sector I updated the sector groupings, while maintaining a total of 10 sectors, as follows:
    • Separate ‘REIT’s’ sector (no longer combined with Utilities)
    • ‘Utilities’ is an individual sector
    • Dropped the ‘Retail’ sector and moved those companies into their respective GICS classification which was either the ‘Consumer Staples’ or the ‘Consumer Discretionary’ sector.
  • On the far right side of the Watchlist under the Score heading I added a column called (Dividend Growth Type) (Div Grw Type). This is my own classification to quickly identify the dividend growth rate type of stock.
    I have grouped dividend growth stocks into the following three growth rate types:

    1. Low (L) – Dividend growth rate between 5-7%, these are typically your older ‘cash cow’ blue chip type of companies with higher current yields that are good core holdings for stable long-term sources of income.
    2. Medium (M) – Dividend growth rate between 8-11%, youngish companies still growing but not as fast as the High dividend growth companies.
    3. High (H) – Dividend growth rates of 12% or more. These are young high growth companies typically with low dividend payout ratios with low current dividend yields, that are able to increase their dividend payments at a high percentage rate, but will not be able to sustain the high rate.

    Similar to diversifying across industry sectors I like to have a good mix of all three dividend growth stock types to improve my dividend growth rate while reducing risk.

I hope you will find these changes useful as you track and research the best dividend growth stocks!

Filed in: Dividend Growth InvestingWebsite Tools

Comments (5)

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  1. dakotabelliston0830 says:

    Thank you for the updates !!!

  2. dakotabelliston0830 says:

    I may be slightly off topic but I wanted to ask about a couple tickers that I noticed are in my portfolio which are no longer on your list. I believe they used to be on your list unless I went rogue and purchased them on my own, which I cannot imagine since I usually only pick stocks off your list. Granted I have not been very active in watching my account for the past year & am now becoming active again with new 2017 contributions to my ROTH IRA.

    TEVA – No longer on your list but I believe it used to be. The stock took a major hit in October. 3.88% yield, sitting near 52 wk low.

    BBL – I believe BBLE split last December 2015 but has since recovered & has been performing well. I no longer see on your list. After looking into this while typing It appears BBL no longer has a dividend. Looks like I need a exit strategy.

    NUE – No longer on your list. I bought this ticker 2 years ago, currently up over 30%. 2.53% yield.

    I was also curious if there are recommendations on sites you use that’s helps you easily research your stocks in order to find easy & accurate information.

    Thank you very much !!!

  3. bump513 says:

    Thank you for these useful updates!

    The google docs portfolio tracker is working very well for me, too. I’ve updated my copy with the new sectors and the other changes noted here.

  4. TPOHappiness says:

    Thanks for the updates!

  5. FLO and HCP are great! FLO did just miss their earnings so I’m hoping they can turn it around next quarter. I’m sad I missed the dip!

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