The Long-term Dividend Growth portfolio’s objectives are to outperform the S&P 500 by at least 1% per year over any five-year rolling time horizon and generate annual dividend growth of at least 12% per year.
The portfolio is most appropriate for buy-and-hold investors seeking long-term income growth and capital appreciation.
Total return is expected to be composed of:
1.5% – 2.5% dividend yield
8% – 10% earnings growth
We invest in high quality companies with enduring competitive advantages, long operating histories, shareholder-aligned management, and large markets that provide opportunity for long-term growth. These businesses maintain relatively low payout ratios, generate consistent free cash flow, and have healthy balance sheets, providing a sturdy foundation for consistent dividend increases.
When we make an investment, we take a patient, long term investment horizon and expect to hold the stock for at least five years, keeping portfolio turnover low. Generally speaking, we will only sell a stock if the safety of the dividend payment has come into question, the company’s long term earnings power appears to have become impaired, the stock’s valuation reaches seemingly excessive levels, or we find a more attractive idea.
As of 5/7/2017
Market Value: $134,103
Dividend Yield: 1.6%
Forward P/E Ratio: 19.8
Increases: 44 Decreases: 0
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In addition to our Long-term Dividend Growth portfolio, we maintain four pre-filtered lists of dividend growth stocks to help you find great ideas faster.
High dividend yields aren’t everything. In many cases, you would be better served buying a lower yielding stock with better growth prospects and less fundamental risk. This list identifies stocks with high Growth Scores, above-average long-term sales and earnings growth, average-to-low debt, high dividend growth in recent years, and moderate-to-low payout ratios. View the list here.
Rising Small Caps
Do you ever wish you could have discovered and purchased shares of Coca-Cola when it traded for less than $1 in the early 1980s? Finding small cap companies with great long-term growth potential can provide decades of above-market returns. While the high potential small cap companies on this list pay a dividend, many payments are modest to allow the company to continue reinvesting to fuel future growth. If you have a long investment horizon and are looking to significantly grow your nest egg, this list could be for you. View the list here.
10+ Consecutive Years of Dividend Growth
These consistent dividend growth companies have raised their annual dividend for at least 10 consecutive years. View the list here.
20+ Consecutive Years of Dividend Growth
These consistent dividend growth companies have raised their dividend for at least 20 consecutive years. View the list here.
Real estate investment trusts (REITs) are some of the most popular high dividend stocks for income investors. Iron Mountain (IRM) is one such business and offers a dividend yield in excess of 6% today. The company has steadily lifted its dividend for over five consecutive years and offers mid-single-digit dividend growth potential going forward, too. Let's take a closer look at Iron Mountain to see if this could [...]
Regulated utilities are some of the best high dividend stocks that low risk income investors look to in order to meet their high-yield needs. That's understandable since the business model for these government sanctioned monopolies is highly stable, allowing for consistent cash flow with which to pay generous and highly secure dividends. However, investing is never done in a vacuum. After all, there are differences in quality between [...]
International dividend-paying companies can be a great way to gain diversification and potentially benefit from economic growth in faster-growing emerging economies. Unfortunately, like with U.S. dividend stocks, the governments of the world will want their cut in terms of taxes. And just as with U.S. dividend tax law, the fine details of how much you have to pay and what forms you need to fill out can be both [...]