Richard Shaw | Jul 18, 2013 10:05AM ET
As of 07/18/2013, there are only 6 stocks traded in the US that have these attributes:
This commentary is intended to be suitable for those portfolios that are required to seek consistent long-term growth of above average equity income, and for that income to be an important part of the overall total return due to approaching or current withdrawal requirements; and for which achievement of the income objective is more important than exceeding the total return of a broad equity index.
This commentary is not intended to be suitable for those portfolios for which maximizing price appreciation and exceeding broad index total returns is the primary objective. Neither is this commentary suitable for those portfolios engaged in short-term trading activities.
Each portfolio should be designed and operated to meet the real world needs and purposes for which it is intended.
SIMPLE STANDARD & POOR’S FILTER
32 stocks passed this filter:
• Fair Value rated 4 or 5
• Stars rated 4 or 5
• Earnings & Dividend Quality rated A+, A or A-
DIVIDEND CONSISTENCY & GROWTH FILTER
20 of the 32 stocks passed this filter:
• paid dividends for each of at least the past 5 years
• increased dividend payments in each year
ABOVE AVERAGE YIELD FILTER
11 of the 20 stocks passed this filter:
• yield greater than the yield on the S&P 500
SHORT-TERM TECHNICAL FILTER
6 of the 11 stocks passed this filter:
• BarChart net rating >= 50% BUY
STOCKS SURVIVING FILTERS
The 6 surviving stocks are:
Unfortunately for many (most?) dividend income seekers, none of these stocks have high yields — just above index yields. However, that’s the best you can do if you also want or need the stringent S&P filter terms. Highest quality stocks have been bid up so that high yield is not generally available among them at this time.
The charts below show the 5-year history of price, earnings and dividends for each stock.
Charts and ratings were obtained by subscription at the premium side
of Corporate Information (a description of Wright ratings is at our blog).
In brief, the three alpha Wright ratings are for liquidity, financial strength and profitability; and the numeric rating is for multi-factor growth on a 20 point scale.
K (rated ABA7)
Dividends can’t grow forever unless revenue grows too.
There is significant concern these days about weak revenue growth in general, with concerns about the ability of companies to maintain margins (and ultimately dividends) without good growth.
Here are the 5-year, 3-year and 1-year revenue growth rates for the 6 stocks.
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Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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