All About Interest

One man's journey to financial independence.

May 2014 10-year YOC CCC Rankings

by

ncf_power_ranking_b3_576.jpg

It’s time for another addition of my CCC rankings by 10-year YOC.

What I Did

I decided to take the CCC spreadsheet and rank the stocks based on their 10-year YOC.  If you are unfamiliar with what Yield-On-Cost is (YOC) then refer to my resources tab or see below for an example.  If you don’t know about David Fish’s Champion, Challenger and Contender (CCC) spreadsheet then you are doing yourself a disservice, the link is also on my resources tab.

Let’s say you purchased a stock at $10/share in 2013 that paid a 4% dividend or $0.40/share. In order to achieve a 10-year YOC of 10% that stock would need to pay out at least $1.00/share by 2023.

You may wonder why I care about a 10-year YOC instead of just the 1,3,5 and 10-year CAGR’s. The main factor that the CAGR leaves out is the starting dividend yield.  The starting dividend in combination with the dividend growth rate will greatly influence your returns.

There’s a variation of this screen used alot by members of the Seeking Alpha community and it’s coined the “Chowder Rule”.  This can also be found now on the CCC sheets.  The rule basically adds the starting yield with the dividend growth rate (5-year CAGR) and looks for it to be higher than a certain number.  While this can be a useful screen, there is still a discrepancy between dividend payers that have different growth rates but still arrive at the same number.  For instance, a 3% yielder with 5% growth would get the same grade (an 8) as a 5% yielder with 3% growth.  Holding a lower yielding stock with a higher growth rate will at some point provide higher returns assuming the growth rates don’t change.  My 10-year YOC would give this 3% and 5% yielder a 4.9 and 6.7 respectively.

Why I Did It

The purpose of this screening process will be to identify companies that have a high expected dividend growth rate combined with a starting yield that would produce greater returns. These companies may be good candidates for further research.

How I Did It

The first step was to sort all stocks by their current dividend yield and eliminate any stocks not paying at least a 2% yield.
Next I sorted all columns by TTM P/E and eliminated every stock with a TTM P/E over 18.  I do realize this eliminates a lot of REIT’s, MLP’s, and telecom stocks.  I’m ok with this since I’m not really targeting these stocks right now.Then I decided to eliminate any Champions with a 10-Year CAGR < 5%, followed by any Contenders with a 5-Year CAGR < 7 % and finally any Challengers with a 3-year CAGR < 7%.  This screen eliminates slow growing companies like utilities.

This last screen dropped the list of Champions, Contenders and Challengers to 16(-1), 51(+20) and 41(0) respectively.

Next I took the latest CCC sheet and added some new columns to calculate a 10-year YOC using each stock’s 1,3, 5 and 10-year compound annual growth rate (CAGR). I will call these new metrics 10YOC1, 10YOC3, 10YOC5, and 10YOC10 for simplicity.

After sorting, I looked for any companies that had a 10YOC1, 10YOC3, 10YOC5 or 10YOC10 of 10% or higher. I applied this to the list of Champions, Contenders and Challengers.
Next, I wanted to look to see if the DGR was increasing or decreasing. I highlighted in red the 10-year YOC’s of companies that were both reducing their rate of increases and still under 10%.
This is a previous example of how it looked:
Companies got credit for increasing their dividends at faster rates. For example: The 10YOC5 for AWR in the example above was 4.97 and did not get highlighted in red because its 10YOC5 was higher than its 10YOC10 of 4.09.
Next, I decided to remove any company that had a 10YOC1 in the red for Champions and a 10YOC1 or 10YOC3 in red for Contenders and Challengers.
For the Example Champions list above this removed LEG, MDT, NUE and WMT.
This new round of elimination dropped the list sizes for the Champions, Contenders and Challengers to 5(0), 9(+1) and 26 (-3) respectively.
My Results
Here are the 40 candidates left that may be worthy to do further research on:

Champions05_14_CCC_Champions

 (click to enlarge)
 

Contenders05_14_CCC_Contenders

 (click to enlarge)
 

Challengers05_14_CCC_Challengers

(click to enlarge)
On the Champions list, there were no changes from last month.  I did leave a couple of energy behemoths, CVX & XOM, since they aren’t far off from making the list.  If you noticed, I’ve added a very small amount of FDO into my portfolio and plan to slowly build up to at least a half position over the next 12 months.
There was just one new addition to the Contender’s list, AMP.  I don’t know much about the company but it may be worth some research.

The Challenger’s list dropped by 3.  It seems a few of the financial companies changed.

I like this list as an additional watch list.  I know I posted recently a Watch list of 50 companies that I’m interested in owning at some point if the price is right.  It’s more of a static list that I’ll change as I see fit.  The thing is that I’m already around my target portfolio size of 40, so the majority of my purchases will be of existing positions.

Keep in mind that this is just a starting point and I feel these companies need further research before making an investment.You can find previous months by following my CCC Rankings label.
*photo courtesy of ESPN

April 2014 10-Year YOC CCC Rankings

by



*photo courtesy of ESPN

Well, it’s time for another month of my CCC rankings by 10-year YOC.

What I Did

I decided to take the CCC spreadsheet and rank the stocks based on their 10-year YOC.  If you are unfamiliar with what Yield-On-Cost is (YOC) then refer to my resources tab or see below for an example.  If you don’t know about David Fish’s Champion, Challenger and Contender (CCC) spreadsheet then you are doing yourself a disservice, the link is also on my resources tab.

Let’s say you purchased a stock at $10/share in 2013 that paid a 4% dividend or $0.40/share. In order to achieve a 10-year YOC of 10% that stock would need to pay out at least $1.00/share by 2023.

You may wonder why I care about a 10-year YOC instead of just the 1,3,5 and 10-year CAGR’s. The main factor that the CAGR leaves out is the starting dividend yield.  The starting dividend in combination with the dividend growth rate will greatly influence your returns.

There’s a variation of this screen used alot by members of the Seeking Alpha community and it’s coined the “Chowder Rule”.  This can also be found now on the CCC sheets.  The rule basically adds the starting yield with the dividend growth rate (5-year CAGR) and looks for it to be higher than a certain number.  While this can be a useful screen, there is still a discrepancy between dividend payers that have different growth rates but still arrive at the same number.  For instance, a 3% yielder with 5% growth would get the same grade (an 8) as a 5% yielder with 3% growth.  Holding a lower yielding stock with a higher growth rate will at some point provide higher returns assuming the growth rates don’t change.  My 10-year YOC would give this 3% and 5% yielder a 4.9 and 6.7 respectively.

Why I Did It

The purpose of this screening process will be to identify companies that have a high expected dividend growth rate combined with a starting yield that would produce greater returns. These companies may be good candidates for further research.

How I Did It

The first step was to sort all stocks by their current dividend yield and eliminate any stocks not paying at least a 2% yield.  

Next I sorted all columns by TTM P/E and eliminated every stock with a TTM P/E over 18.  I do realize this eliminates a lot of REIT’s, MLP’s, and telecom stocks.  I’m ok with this since I’m not really targeting these stocks right now.  

Then I decided to eliminate any Champions with a 10-Year CAGR < 5%, followed by any Contenders with a 5-Year CAGR < 7 % and finally any Challengers with a 3-year CAGR < 7%.

This last screen dropped the list of Champions, Contenders and Challengers to 17(-1), 31(-6) and 41(+1) respectively.

Next I took the latest CCC sheet and added some new columns to calculate a 10-year YOC using each stock’s 1,3, 5 and 10-year compound annual growth rate (CAGR). I will call these new metrics 10YOC1, 10YOC3, 10YOC5, and 10YOC10 for simplicity.

After sorting, I looked for any companies that had a 10YOC1, 10YOC3, 10YOC5 or 10YOC10 of 10% or higher. I applied this to the list of Champions, Contenders and Challengers. 
Next, I wanted to look to see if the DGR was increasing or decreasing. I highlighted in red the 10-year YOC’s of companies that were both reducing their rate of increases and still under 10%.

This is a previous example of how it looked:

Companies got credit for increasing their dividends at faster rates. For example: The 10YOC5 for AWR in the example above was 4.97 and did not get highlighted in red because its 10YOC5 was higher than its 10YOC10 of 4.09.
Next, I decided to remove any company that had a 10YOC1 in the red for Champions and a 10YOC1 or 10YOC3 in red for Contenders and Challengers.
For the Example Champions list above this removed LEG, MDT, NUE and WMT.
This elimination dropped the list sizes for the Champions, Contenders and Challengers to 5(+1), 8(-3) and 29 (+3) respectively.   

My Results
Here are the 42 candidates left that may be worthy to do further research on.  

Champions

 (click to enlarge)


Contenders

 (click to enlarge)


Challengers

(click to enlarge)

The total list size went up by 1 from last month.
On the Champions list, Target and WMT were removed.  The price of TGT stock has gone up a little so this isn’t a big surprise.  Also a couple of new additions are added, FDO and MO.  I need to look into FDO more.

There are no new stocks on the contenders list but 3 were dropped probably due to price increase.  These were LMT, WEC and NU.

The Challengers list is by far the largest, having 29 stocks.  I own PM and TGH on this list.

Keep in mind that this is just a starting point and I feel these companies need further research before making an investment.

You can find previous months by following my CCC Rankings label.

March 2014 10-Year YOC CCC Rankings

by



*photo courtesy of ESPN

Well, it’s time for another month of my CCC rankings by 10-year YOC.

What I Did

I decided to take the CCC spreadsheet and rank the stocks based on their 10-year YOC.  If you are unfamiliar with what Yield-On-Cost is (YOC) then refer to my resources tab or see below for an example.  If you don’t know about David Fish’s Champion, Challenger and Contender (CCC) spreadsheet then you are doing yourself a disservice, the link is also on my resources tab.

Let’s say you purchased a stock at $10/share in 2013 that paid a 4% dividend or $0.40/share. In order to achieve a 10-year YOC of 10% that stock would need to pay out at least $1.00/share by 2023.

You may wonder why I care about a 10-year YOC instead of just the 1,3,5 and 10-year CAGR’s. The main factor that the CAGR leaves out is the starting dividend yield.  The starting dividend in combination with the dividend growth rate will greatly influence your returns.

There’s a variation of this screen used alot by members of the Seeking Alpha community and it’s coined the “Chowder Rule”.  This can also be found now on the CCC sheets.  The rule basically adds the starting yield with the dividend growth rate (5-year CAGR) and looks for it to be higher than a certain number.  While this can be a useful screen, there is still a discrepancy between dividend payers that have different growth rates but still arrive at the same number.  For instance, a 3% yielder with 5% growth would get the same grade (an 8) as a 5% yielder with 3% growth.  Holding a lower yielding stock with a higher growth rate will at some point provide higher returns assuming the growth rates don’t change.  My 10-year YOC would give this 3% and 5% yielder a 4.9 and 6.7 respectively.

Why I Did It

The purpose of this screening process will be to identify unfamiliar companies that have a high expected dividend growth rate combined with a starting yield that would produce greater returns. These companies may be good candidates for further research.

How I Did It

The first step was to sort all stocks by their current dividend yield and eliminate any stocks not paying at least a 2% yield.  

Next I sorted all columns by TTM P/E and eliminated every stock with a TTM P/E over 18.  I do realize this eliminates a lot of REIT’s, MLP’s, and telecom stocks.  I’m ok with this since I’m not really targeting these stocks right now.  

Then I decided to eliminate any Champions with a 10-Year CAGR < 5%, followed by any Contenders with a 5-Year CAGR < 7 % and finally any Challengers with a 3-year CAGR < 7%.

This last screen dropped the list of Champions, Contenders and Challengers to 18(-3), 37(+2) and 40(+5) respectively.

Next I took the latest CCC sheet and added some new columns to calculate a 10-year YOC using each stock’s 1,3, 5 and 10-year compound annual growth rate (CAGR). I will call these new metrics 10YOC1, 10YOC3, 10YOC5, and 10YOC10 for simplicity.

After sorting, I looked for any companies that had a 10YOC1, 10YOC3, 10YOC5 or 10YOC10 of 10% or higher. I applied this to the list of Champions, Contenders and Challengers. 
Next, I wanted to look to see if the DGR was increasing or decreasing. I highlighted in red the 10-year YOC’s of companies that were both reducing their rate of increases and still under 10%.

This is a previous example of how it looked:

Companies got credit for increasing their dividends at faster rates. For example: The 10YOC5 for AWR in the example above was 4.97 and did not get highlighted in red because its 10YOC5 was higher than its 10YOC10 of 4.09.
Next, I decided to remove any company that had a 10YOC1 in the red for Champions and a 10YOC1 or 10YOC3 in red for Contenders and Challengers.
For the Example Champions list above this removed LEG, MDT, NUE and WMT.
This elimination dropped the list sizes for the Champions, Contenders and Challengers to 4(-2), 11(0) and 26 (+6) respectively.   

My Results
Here are the 41 candidates left that may be worthy to do further research on.  

Champions


 (click to enlarge)


Contenders


 (click to enlarge)


Challengers


(click to enlarge)

The total list size went up by 4 from last month.
A few names on the Champions list are now removed as their prices have moved higher.  The companies no longer on my list are FDO and CVX.   HP is still on the list even though the stock has moved 10 points higher.  One of the best values I still see is TGT.  I’ve got a pretty full position and prices have come up a little lately so I’m content for now.

WEC is new on the Contenders list.  I own COP, CAT and LMT that are on this list.

RCI officially made the Challenger list this month after dropping a few points.  I own PM and TGH from this list.

Keep in mind that this is just a starting point and I feel these companies need further research before making an investment.

You can find previous months by following my CCC Rankings label.

February 2014 10-year YOC CCC Rankings

by





















*photo courtesy of ESPN

You can find previous months by following my CCC Rankings label.

I decided to take the CCC spreadsheet and rank the stocks based on their 10-year YOC.  If you are unfamiliar with what Yield-On-Cost is (YOC) then refer to my resources tab or see below for an example.  If you don’t know about David Fish’s Champion, Challenger and Contender (CCC) spreadsheet then you are doing yourself a disservice, the link is also on my resources tab.

Let’s say you purchased a stock at $10/share in 2013 that paid a 4% dividend or $0.40/share. In order to achieve a 10-year YOC of 10% that stock would need to pay out at least $1.00/share by 2023.

You may wonder why I care about a 10-year YOC instead of just the 1,3,5 and 10-year CAGR’s. The main factor that the CAGR leaves out is the starting dividend yield.  The starting dividend in combination with the dividend growth rate will greatly influence your returns.

There’s a variation of this screen used alot by members of the Seeking Alpha community and it’s coined the “Chowder Rule”.  This can also be found now on the CCC sheets.  The rule basically adds the starting yield with the dividend growth rate (5-year CAGR) and looks for it to be higher than a certain number.  While this can be a useful screen, there is still a discrepancy between dividend payers that have different growth rates but still arrive at the same number.  For instance, a 3% yielder with 5% growth would get the same grade (an 8) as a 5% yielder with 3% growth.  Holding a lower yielding stock with a higher growth rate will at some point provide higher returns assuming the growth rates don’t change.  My 10-year YOC would give this 3% and 5% yielder a 4.9 and 6.7 respectively.

The purpose of this screening process will be to identify unfamiliar companies that have a high expected dividend growth rate combined with a starting yield that would produce greater returns. These companies may be good candidates for further research.

The first step was to sort all stocks by their current dividend yield and eliminate any stocks not paying at least a 2% yield.  

Next I sorted all columns by TTM P/E and eliminated every stock with a TTM P/E over 18.  I do realize this eliminates a lot of REIT’s, MLP’s, and telecom stocks.  I’m ok with this since I’m not really targeting these stocks right now.  

Then I decided to eliminate any Champions with a 10-Year CAGR < 5%, followed by any Contenders with a 5-Year CAGR < 7 % and finally any Challengers with a 3-year CAGR < 7%.

This last screen dropped the list of Champions, Contenders and Challengers to 21(+3), 35(-4) and 35(+4) respectively.

Next I took the latest CCC sheet and added some new columns to calculate a 10-year YOC using each stock’s 1,3, 5 and 10-year compound annual growth rate (CAGR). I will call these new metrics 10YOC1, 10YOC3, 10YOC5, and 10YOC10 for simplicity.

After sorting, I looked for any companies that had a 10YOC1, 10YOC3, 10YOC5 or 10YOC10 of 10% or higher. I applied this to the list of Champions, Contenders and Challengers. After applying this rule the lists dropped to 9, 23, and 31 companies respectively.
Next, I wanted to look to see if the DGR was increasing or decreasing. I highlighted in red the 10-year YOC’s of companies that were both reducing their rate of increases and still under 10%.

This is a previous example of how it looked:

Companies got credit for increasing their dividends at faster rates. For example: The 10YOC5 for AWR in the example above was 4.97 and did not get highlighted in red because its 10YOC5 was higher than its 10YOC10 of 4.09.
Next, I decided to remove any company that had a 10YOC1 in the red for Champions and a 10YOC1 or 10YOC3 in red for Contenders and Challengers.
For the Example Champions list above this removed LEG, MDT, NUE and WMT.
This elimination dropped the list sizes for the Champions, Contenders and Challengers to 6, 11 and 20 respectively.   
Here are the 37 candidates left that may be worthy to do further research on.  Note that I included a few candidates highlighted in red that were close to making it.  

Champions


 (click to enlarge)


Contenders


 (click to enlarge)


Challengers


(click to enlarge)

The list I came up with in January had 33 candidates.  It’s not surprising that this number has increased as the markets have gone down, which has caused starting yields to go up.
A few new names on the Champions list are WEYS and FDO.  I also left AWR on since it barely missed qualification due to P/E.  I own TGT and CVX on this list.  I just recently added to CVX on weakness and have been adding to TGT also to average down my cost basis.

IBM, DE and GIS made the Contenders list.  I own DE, GIS and CAT.  I’ve been recently adding to DE and want to add to GIS soon.

A couple new names on the Challengers list include TUP and MAT.  I also left RCI and BCE on since I’m looking to increase my telecom exposure and they didn’t miss by much.  On the challengers list I already own TGH and PM.  PM was a spinoff from MO and I give them more credit than just being a challenger.  I’ve been adding to the position recently to average down.  

Here’s a couple bonus FAST Graphs of Weyco Group (WEYS) and Mattel (MAT):



























Keep in mind that this is just a starting point and I feel these companies need further research before making an investment.


January 2014 10-year YOC CCC Rankings

by

*photo courtesy of ESPN

I’m trying to do these each month as long as there’s interest but I was busy and didn’t get to for December.  

You can find previous months by following my Articles label.

I decided to take the CCC spreadsheet and rank the stocks based on their 10-year YOC.  If you are unfamiliar with what Yield-On-Cost is (YOC) then refer to my resources tab or see below for an example.  If you don’t know about David Fish’s Champion, Challenger and Contender (CCC) spreadsheet then you are doing yourself a disservice, the link is also on my resources tab.

Let’s say you purchased a stock at $10/share in 2013 that paid a 4% dividend or $0.40/share. In order to achieve a 10-year YOC of 10% that stock would need to pay out at least $1.00/share by 2023.

You may wonder why I care about a 10-year YOC instead of just the 1,3,5 and 10-year CAGR’s. The main factor that the CAGR leaves out is the starting dividend yield.  The starting dividend in combination with the dividend growth rate will greatly influence your returns.

There’s a variation of this screen used alot by members of the Seeking Alpha community and it’s coined the “Chowder Rule”.  This can also be found now on the CCC sheets.  The rule basically adds the starting yield with the dividend growth rate (5-year CAGR) and looks for it to be higher than a certain number.  While this can be a useful screen, there is still a discrepancy between dividend payers that have different growth rates but still arrive at the same number.  For instance, a 3% yielder with 5% growth would get the same grade (an 8) as a 5% yielder with 3% growth.  Holding a lower yielding stock with a higher growth rate will at some point provide higher returns assuming the growth rates don’t change.  My 10-year YOC would give this 3% and 5% yielder a 4.9 and 6.7 respectively.

The purpose of this screening process will be to identify unfamiliar companies that have a high expected dividend growth rate combined with a starting yield that would produce greater returns. These companies may be good candidates for further research.

The first step was to sort all stocks by their current dividend yield and eliminate any stocks not paying at least a 2% yield.  

Next I sorted all columns by TTM P/E and eliminated every stock with a TTM P/E over 18.  I do realize this eliminates a lot of REIT’s, MLP’s, and telecom stocks.  I’m ok with this since I’m not really targeting these stocks right now.  

Then I decided to eliminate any Champions with a 10-Year CAGR < 5%, followed by any Contenders with a 5-Year CAGR < 7 % and finally any Challengers with a 3-year CAGR < 7%.

This last screen dropped the list of Champions, Contenders and Challengers to 18, 39(+4) and 31(+3) respectively.

Next I took the latest CCC sheet and added some new columns to calculate a 10-year YOC using each stock’s 1,3, 5 and 10-year compound annual growth rate (CAGR). I will call these new metrics 10YOC1, 10YOC3, 10YOC5, and 10YOC10 for simplicity.

After sorting, I looked for any companies that had a 10YOC1, 10YOC3, 10YOC5 or 10YOC10 of 10% or higher. I applied this to the list of Champions, Contenders and Challengers. After applying this rule the lists dropped to 10, 25, and 27 companies respectively.
Next, I wanted to look to see if the DGR was increasing or decreasing. I highlighted in red the 10-year YOC’s of companies that were both reducing their rate of increases and still under 10%.

This is a previous example of how it looked:

Companies got credit for increasing their dividends at faster rates. For example: The 10YOC5 for AWR in the example above was 4.97 and did not get highlighted in red because its 10YOC5 was higher than its 10YOC10 of 4.09.
Next, I decided to remove any company that had a 10YOC1 in the red for Champions and a 10YOC1 or 10YOC3 in red for Contenders and Challengers.
For the Example Champions list above this removed LEG, MDT, NUE and WMT.
This elimination dropped the list sizes for the Champions, Contenders and Challengers to 4, 11 and 18 respectively.   
Here are the 33 candidates left that may be worthy to do further research on.

Champions

 (click to enlarge)


Contenders

 (click to enlarge)


Challengers

(click to enlarge)

The list I came up with in December had 37 candidates.  It’s not surprising that this number has dropped once again as the markets have gone up, which has caused starting yields to go down.
A new company, Helmerich & Payne (HP), is on the Champions list.    They have increased their dividend for 42 straight years!  However, they weren’t previously on my list because of a much lower yield.  HP paid out .07 quarterly in 2012 and paid .15, .15, .50, .50 in 2013. They also already declared another increase to .625 payable March 3rd of 2014 with an ex-dividend of Feb 12th.  HP is in the business of contract drilling of oil and gas wells both on and offshore.  I just recently picked up shares of ESV (mentioned here) which has similar services.  However, ESV is all offshore drilling.  Instead of adding to ESV I’m considering 1/2 positions in ESV and HP assuming the research I do on HP checks out.  I think the companies could compliment each other.

COP made the Contenders list.  I own COP and it’s at full weight currently but I’d add more if it gets back down to at least 65.

On the challengers list I’ve already recently added to PM.  Also on the challengers is BAX which I think is at fair value right here.  I haven’t considered the company before since I already own both BDX and MDT but I’ll be looking into the company more.  BAX does have a higher starting yield which I like.

Keep in mind that this is just a starting point and I feel these companies need further research before making an investment.

Feb. CCC List w/ 10-Year YOC ranking

by

Last month I decided to take the CCC spreadsheet and rank the stocks based on their 10-year YOC.  If you are unfamiliar with what Yield-On-Cost is (YOC) then refer to my resources tab or see below for an example.  If you don’t know about David Fish’s Champion, Challenger and Contender (CCC) spreadsheet then you are doing yourself a disservice, it can be found here.

Let’s say you purchased a stock at $10/share in 2013 that paid a 4% dividend or $0.40/share. In order to achieve a 10-year YOC of 10% that stock would need to pay out at least $1.00/share by 2023.

You may wonder why I care about a 10-year YOC instead of just the 1,3,5 and 10-year CAGR’s.  The main factor that the CAGR leaves out is the starting dividend yield.  The starting dividend in combination with the dividend growth rate will greatly influence your returns.

I’m doing this screen once again and applying it to the Feb. CCC sheet and will compare the results.  The original article used the Jan. CCC sheets and can be found here.

The purpose of this screening process will be to identify unfamiliar companies that have a high expected dividend growth rate combined with a starting yield that would produce greater returns.  These companies may be good candidates for further research.

The first step was to sort all stocks by their current dividend yield and eliminate any stocks not paying at least a 2% yield.  

Next I sorted all columns by TTM P/E and eliminated every stock with a TTM P/E over 18.  

Then I decided to take the latest CCC sheet and add some new columns to calculate a 10-year YOC using each stock’s 1,3, 5 and 10-year compound annual growth rate (CAGR). I will call these new metrics 10YOC1, 10YOC3, 10YOC5, and 10YOC10 for simplicity.
I looked for any companies that had a 10YOC1, 10YOC3, 10YOC5 or 10YOC10 of 10% or higher. I applied this to the list of Champions, Contenders and Challengers. After applying this rule the lists dropped to 8, 41, and 38 companies respectively.
Next, I wanted to look to see if the DGR was increasing or decreasing. I highlighted in red the 10-year YOC’s of companies that were both reducing their rate of increases and still under 10%.

This is a previous example of how it looked:

Companies got credit for increasing their dividends at faster rates. For example: The 10YOC5 for AWR in the example above was 4.97 and did not get highlighted in red because its 10YOC5 was higher than its 10YOC10 of 4.09.
Next, I decided to remove any company that had a 10YOC1 in the red for Champions and a 10YOC1 or 10YOC3 in red for Contenders and Challengers.
For the Example Champions list above this removed LEG, MDT, NUE and WMT.
This elimination dropped the list sizes for the Champions, Contenders and Challengers to 8, 21 and 29 respectively.  This compares to last months list sizes of 8, 16 and 23.  
Here are the 58 candidates left that may be worthy to do further research on.

Champions

(click to enlarge)

 
Contenders

(click to enlarge)

 
Challengers

(click to enlarge)

At a quick glance it seems that a lot of the companies are the same as last month which is expected.  However there have been some additions and removals.  This is mainly due to a price correction which increases a stock’s starting yield.
The additions to the Champions list were AFL and BDX.  The companies removed were WAG and VFC.

Some companies like Safeway (SWY) and Reynold’s American (RAI) ran up in price and are now off the list while companies like John Deere (DE) and Raytheon (RTN) have now made the cut.

Keep in mind that this is just a starting point and I feel these companies need further research before making an investment.

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

All About Interest will use the information you provide on this form to be in touch with you and to provide updates and marketing.