- 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).
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
If you like what you've just read, consider subscribing via the "Subscribe Here" form at the top right so that you will receive an email notification when I publish a new article.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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