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 7/1/2017
Market Value: $137,054
Dividend Yield: 1.5%
Forward P/E Ratio: 21.8
Increases: 46 Decreases: 0
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Click on any ticker symbol below to learn more about the company, view 25+ years of dividend data, and quickly analyze 10+ years of key fundamental metrics. Each stock has been analyzed in-depth. Please review our dividend newsletter for the most recent trade alerts, stock analysis, and performance data.
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.
Nordson (NDSN) has the 14th longest dividend growth streak among U.S. public companies with 53 consecutive years of increases, but many investors have never heard of this member of the dividend kings list here. However, Nordson is certainly a business that's worth getting to know. The company has sticky customer relationships, a large base of recurring revenue, extremely diversified end markets, low payout ratios, and excellent dividend growth prospects. [...]
C.H. Robinson (CHRW) reported second-quarter earnings results after the market closed yesterday. The company announced that diluted earnings per share came in at 78 cents, which was well short of the 90 cents that analysts were expecting. As a result, CHRW's stock price dropped more than 9% in after-hours trading before recovering for a more modest 5% decline today. Let's review the business and take a closer [...]
Over the past decades boring old insurance specialist Aflac (AFL) has done a remarkable job of enriching long-term income growth investors thanks to its impressive 34-year dividend growth streak. That's courtesy of its strong, cash-rich business model, which has allowed it to grow its dividend by 14.6% annually over the past quarter century, resulting in annual total returns that easily beat the S&P 500's. Of course past performance is no guarantee [...]