A dividend champion is a company which has managed to raise annual dividends for a minimum of 25 years in a row. There are 142 companies in the US that are dividend champions.
The dividend champions list is one of my favorite lists to research. You can download it from this website.
It includes a lot of data, which can be used to identify companies for further research.
I recently obtained the list of Dividend Champions as of July 2021, and ran a simple screen, in order to identify companies that grew dividends at a fast pace.
I narrowed my search to:
1) Dividend champions, which are companies that have a 25 year track record of annual dividend increases
2) Companies with a ten year annualized dividend growth of 10%
I am looking for companies with a long streak of annual dividend increases, because I am looking for sustainable long-term dividend growth and total returns. My goal is to identify a group of companies to hold for the long run. I am not interested in identifying a company that I would then have to sell a few years later. That’s inefficient use of my time and could lead to a lot of taxes, especially if I sell stock with large unrealized capital gains.
The list of the 44 companies that fit the two criteria can be found below:
|
Company |
Ticker |
|
|
No. |
7/30/21 |
Div. |
DGR |
DGR |
|
Name |
Symbol |
Sector |
Industry |
Yrs |
Price |
Yield |
5-yr |
10-yr |
|
Automatic Data Proc. |
ADP |
Information Technology |
IT Services |
45 |
209.63 |
1.77 |
13.2 |
11.8 |
|
Albemarle Corp. |
ALB |
Materials |
Chemicals |
27 |
206.04 |
0.76 |
5.9 |
10.5 |
|
A.O. Smith Corp. |
AOS |
Industrials |
Building Products |
27 |
70.33 |
1.48 |
20.9 |
21.9 |
|
Air Products & Chem. |
APD |
Materials |
Chemicals |
39 |
291.03 |
2.06 |
10.1 |
10.4 |
|
BancFirst Corp. OK |
BANF |
Financials |
Banks |
27 |
55.48 |
2.45 |
13.5 |
10.7 |
|
Franklin Resources |
BEN |
Financials |
Capital Markets |
41 |
29.55 |
3.79 |
12.5 |
13.9 |
|
Badger Meter Inc. |
BMI |
Information Technology |
Electronic Equipment, Instruments
& Components |
28 |
101.03 |
0.71 |
12.4 |
10.4 |
|
Cardinal Health Inc. |
CAH |
Health Care |
Health Care Providers &
Services |
25 |
59.38 |
3.31 |
5.8 |
10.1 |
|
Church & Dwight |
CHD |
Consumer Staples |
Household Products |
25 |
86.58 |
1.17 |
7.5 |
20.0 |
|
Canadian National Railway |
CNI |
Industrials |
Road & Rail |
26 |
108.63 |
1.77 |
11.7 |
12.6 |
|
Carlisle Companies |
CSL |
Industrials |
Industrial Conglomerates |
44 |
202.24 |
1.04 |
13.3 |
12.0 |
|
Computer Services Inc. |
CSVI |
Information Technology |
IT Services |
50 |
58.06 |
1.86 |
14.4 |
16.2 |
|
Cintas Corp. |
CTAS |
Industrials |
Commercial Services & Supplies |
39 |
394.18 |
0.96 |
21.8 |
19.3 |
|
Donaldson Company |
DCI |
Industrials |
Machinery |
35 |
66.19 |
1.33 |
4.6 |
13.0 |
|
Ecolab Inc. |
ECL |
Materials |
Chemicals |
29 |
220.83 |
0.87 |
7.3 |
11.7 |
|
Enbridge Inc. |
ENB |
Energy |
Oil, Gas & Consumable Fuels |
25 |
39.35 |
6.62 |
10.4 |
11.3 |
|
Expeditors International |
EXPD |
Industrials |
Air Freight & Logistics |
27 |
128.25 |
0.90 |
7.6 |
10.0 |
|
First Farmers Financial Corp. |
FFMR |
Financials |
Banks |
31 |
44.00 |
3.09 |
17.0 |
15.6 |
|
General Dynamics |
GD |
Industrials |
Aerospace & Defense |
30 |
196.03 |
2.43 |
9.9 |
10.2 |
|
W.W. Grainger Inc. |
GWW |
Industrials |
Trading Companies &
Distributors |
50 |
444.58 |
1.46 |
5.3 |
11.1 |
|
Hormel Foods Corp. |
HRL |
Consumer Staples |
Food Products |
54 |
46.38 |
2.11 |
13.2 |
16.0 |
|
International Business Machines |
IBM |
Information Technology |
IT Services |
26 |
140.96 |
4.65 |
5.4 |
10.0 |
|
Illinois Tool Works |
ITW |
Industrials |
Machinery |
46 |
226.67 |
2.01 |
16.8 |
13.1 |
|
Jack Henry & Associates |
JKHY |
Information Technology |
IT Services |
31 |
174.09 |
1.06 |
11.5 |
16.3 |
|
Lincoln Electric Holdings |
LECO |
Industrials |
Machinery |
26 |
139.43 |
1.46 |
11.1 |
13.3 |
|
Lowe's Companies |
LOW |
Consumer Discretionary |
Specialty Retail |
59 |
192.69 |
1.66 |
17.1 |
18.9 |
|
Matthews International |
MATW |
Industrials |
Commercial Services & Supplies |
26 |
34.60 |
2.49 |
9.4 |
11.3 |
|
Medtronic plc |
MDT |
Health Care |
Health Care Equipment &
Supplies |
44 |
131.31 |
1.92 |
10.3 |
10.0 |
|
3M Company |
MMM |
Industrials |
Industrial Conglomerates |
63 |
197.94 |
2.99 |
7.5 |
10.8 |
|
NACCO Industries |
NC |
Energy |
Oil, Gas & Consumable Fuels |
36 |
25.07 |
3.15 |
18.4 |
13.9 |
|
Nordson Corp. |
NDSN |
Industrials |
Machinery |
57 |
226.13 |
0.69 |
11.2 |
14.6 |
|
NextEra Energy Inc. |
NEE |
Utilities |
Electric Utilities |
27 |
77.90 |
1.98 |
12.7 |
10.8 |
|
Bank OZK |
OZK |
Financials |
Banks |
25 |
40.71 |
2.80 |
14.4 |
21.8 |
|
Parker-Hannifin Corp. |
PH |
Industrials |
Machinery |
65 |
312.03 |
1.32 |
6.9 |
12.6 |
|
Polaris Industries |
PII |
Consumer Discretionary |
Leisure Products |
26 |
131.07 |
1.92 |
3.2 |
12.0 |
|
Roper Technologies Inc. |
ROP |
Industrials |
Industrial Conglomerates |
28 |
491.34 |
0.46 |
15.4 |
18.4 |
|
SEI Investments Company |
SEIC |
Financials |
Capital Markets |
30 |
60.80 |
1.22 |
7.8 |
13.9 |
|
Sherwin-Williams Co. |
SHW |
Materials |
Chemicals |
43 |
291.03 |
0.76 |
14.9 |
14.0 |
|
S&P Global Inc. |
SPGI |
Financials |
Capital Markets |
48 |
428.72 |
0.72 |
15.2 |
11.0 |
|
Stryker Corp. |
SYK |
Health Care |
Health Care Equipment &
Supplies |
28 |
270.94 |
0.93 |
10.8 |
14.4 |
|
Target Corp. |
TGT |
Consumer Discretionary |
Multiline Retail |
54 |
261.05 |
1.38 |
4.4 |
12.3 |
|
T. Rowe Price Group |
TROW |
Financials |
Capital Markets |
35 |
204.16 |
2.12 |
11.6 |
12.8 |
|
VF Corp. |
VFC |
Consumer Discretionary |
Textiles, Apparel & Luxury
Goods |
48 |
80.20 |
2.44 |
9.0 |
12.9 |
|
Walgreens Boots Alliance Inc. |
WBA |
Consumer Staples |
Food & Staples Retailing |
46 |
47.15 |
4.05 |
5.8 |
11.5 |
|
Total: |
1.96 |
11.11 |
13.41 |
|||||
The average yield as of July 31, 2021 is 1.96% and the average 10 year dividend growth is 13.41%.
When I start digging further and also looking at 5 year dividend growth that also exceeds 10%/year , I see that the list of companies drops down further to 26. That just goes to show you that a ten year high growth may hide the fact that recent dividend growth has slowed down. So you need to check for recent dividend growth, trends in earnings per share, trends in payout ratios as well as valuation. Investing is part art and part science.
|
Company |
Ticker |
|
|
No. |
7/30/21 |
Div. |
DGR |
DGR |
|
Name |
Symbol |
Sector |
Industry |
Yrs |
Price |
Yield |
5-yr |
10-yr |
|
Automatic Data Proc. |
ADP |
Information Technology |
IT Services |
45 |
209.63 |
1.77 |
13.2 |
11.8 |
|
A.O. Smith Corp. |
AOS |
Industrials |
Building Products |
27 |
70.33 |
1.48 |
20.9 |
21.9 |
|
Air Products & Chem. |
APD |
Materials |
Chemicals |
39 |
291.03 |
2.06 |
10.1 |
10.4 |
|
BancFirst Corp. OK |
BANF |
Financials |
Banks |
27 |
55.48 |
2.45 |
13.5 |
10.7 |
|
Franklin Resources |
BEN |
Financials |
Capital Markets |
41 |
29.55 |
3.79 |
12.5 |
13.9 |
|
Badger Meter Inc. |
BMI |
Information Technology |
Electronic Equipment, Instruments
& Components |
28 |
101.03 |
0.71 |
12.4 |
10.4 |
|
Canadian National Railway |
CNI |
Industrials |
Road & Rail |
26 |
108.63 |
1.77 |
11.7 |
12.6 |
|
Carlisle Companies |
CSL |
Industrials |
Industrial Conglomerates |
44 |
202.24 |
1.04 |
13.3 |
12.0 |
|
Computer Services Inc. |
CSVI |
Information Technology |
IT Services |
50 |
58.06 |
1.86 |
14.4 |
16.2 |
|
Cintas Corp. |
CTAS |
Industrials |
Commercial Services & Supplies |
39 |
394.18 |
0.96 |
21.8 |
19.3 |
|
Enbridge Inc. |
ENB |
Energy |
Oil, Gas & Consumable Fuels |
25 |
39.35 |
6.62 |
10.4 |
11.3 |
|
First Farmers Financial Corp. |
FFMR |
Financials |
Banks |
31 |
44.00 |
3.09 |
17.0 |
15.6 |
|
Hormel Foods Corp. |
HRL |
Consumer Staples |
Food Products |
54 |
46.38 |
2.11 |
13.2 |
16.0 |
|
Illinois Tool Works |
ITW |
Industrials |
Machinery |
46 |
226.67 |
2.01 |
16.8 |
13.1 |
|
Jack Henry & Associates |
JKHY |
Information Technology |
IT Services |
31 |
174.09 |
1.06 |
11.5 |
16.3 |
|
Lincoln Electric Holdings |
LECO |
Industrials |
Machinery |
26 |
139.43 |
1.46 |
11.1 |
13.3 |
|
Lowe's Companies |
LOW |
Consumer Discretionary |
Specialty Retail |
59 |
192.69 |
1.66 |
17.1 |
18.9 |
|
Medtronic plc |
MDT |
Health Care |
Health Care Equipment &
Supplies |
44 |
131.31 |
1.92 |
10.3 |
10.0 |
|
NACCO Industries |
NC |
Energy |
Oil, Gas & Consumable Fuels |
36 |
25.07 |
3.15 |
18.4 |
13.9 |
|
Nordson Corp. |
NDSN |
Industrials |
Machinery |
57 |
226.13 |
0.69 |
11.2 |
14.6 |
|
NextEra Energy Inc. |
NEE |
Utilities |
Electric Utilities |
27 |
77.90 |
1.98 |
12.7 |
10.8 |
|
Bank OZK |
OZK |
Financials |
Banks |
25 |
40.71 |
2.80 |
14.4 |
21.8 |
|
Roper Technologies Inc. |
ROP |
Industrials |
Industrial Conglomerates |
28 |
491.34 |
0.46 |
15.4 |
18.4 |
|
Sherwin-Williams Co. |
SHW |
Materials |
Chemicals |
43 |
291.03 |
0.76 |
14.9 |
14.0 |
|
S&P Global Inc. |
SPGI |
Financials |
Capital Markets |
48 |
428.72 |
0.72 |
15.2 |
11.0 |
|
Stryker Corp. |
SYK |
Health Care |
Health Care Equipment &
Supplies |
28 |
270.94 |
0.93 |
10.8 |
14.4 |
|
T. Rowe Price Group |
TROW |
Financials |
Capital Markets |
35 |
204.16 |
2.12 |
11.6 |
12.8 |