7 Super Dividend Champions To Combat The Market Correction

Summary

  • Looking to supercharge the growth and dividend growth of your portfolio?
  • I filtered 107 Dividend Champions down to 7.
  • These 7 super Dividend Champions have 29 to 57 years of consecutive dividend growth history and have increased dividends by 10% or higher in the last few years.
  • These Super 7 are anticipated to have strong earnings growth to continue supporting healthy dividend growth.
  • Do you have the Super 7 on your radar? What other high-growth dividend stocks do you have on your watchlist?

One way to combat the market downturn is to buy high growth dividend-growth companies that are fairly valued or undervalued. These companies are expected to grow earnings per share at a rate higher than 8% in the foreseeable future and have a history of increasing dividends with payout ratios of less than 65%.

I went through a rigorous process to filter 107 Dividend Champions down to 7 super Dividend Champions. The final list consisted of companies with:

  • dividend growth rates of 10% or higher for the past 1-year, 3-year, and 5-year periods
  • payout ratios of less than 65%
  • consensus analyst EPS estimates to be higher than 8% in the next year
  • S&P credit ratings of BBB+ or higher
  • valuations that are fair or cheap according to F.A.S.T Graphs and cross-referenced with Morningstar’s star system

The 7 super Dividend Champions include: 3M Company (NYSE:MMM), Franklin Resources (NYSE:BEN), Illinois Tool Works (NYSE:ITW), Lowe’s Companies (NYSE:LOW), Sherwin-Williams Co. (NYSE:SHW), T. Rowe Price Group (NASDAQ:TROW), and VF Corp. (NYSE:VFC).

Conclusion

Out of the Super 7, 3M, Lowe’s, Sherwin-Williams Co., and VF Corp look particularly interesting at these levels. If they’re pushed lower by the current market correction, they could provide exception returns in a few years time.

Are these companies on your radar? If not, which high-growth dividend growth companies do you have on your watchlist?

This is primarily an excerpt from my Seeking Alpha article: 7 Super Dividend Champions To Combat The Market Correction

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Disclosure: At the time of writing, I didn’t own any stock mentioned in this article.

Disclaimer: I am not a certified financial advisor. This article is for educational purposes, so consult a financial advisor and or tax professional if necessary before making any investment decisions.

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