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10 Dividend Growth Stocks For October 2023

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Top 10 Letterpress

Welcome to the October edition of my monthly series of 10 Dividend Growth Stocks!

In this series, I rank a selection of Dividend Radar stocks and present the ten top-ranked stocks for further research and

ACN = min(10%,Y) + min(30%,average(min(D,E,R),median(D,E,R)))

where:

  • Y = forward dividend yield
  • D = 5-year dividend growth rate
  • E = 5-year earnings growth rate
  • R = 5-year revenue growth rate

  • For DG stocks yielding less than 3%: ACN ≥ 15%
  • For DG stocks yielding at least 3%: ACN ≥ 12%
  • For utility stocks yielding at least 4%: ACN ≥ 8%

5-year YOC = Forward Dividend Yield × (1 + 5-year DGR)^5

Rank Company (Ticker) Sector Supersector
1 NextEra Energy (NEE) Utilities Defensive
2 Lowe’s (LOW) Consumer Discretionary Cyclical
3 Home Depot (HD) Consumer Discretionary Cyclical
4 American Electric Power (AEP) Utilities Defensive
5 Bristol-Myers Squibb (BMY) Health Care Defensive
6 Tractor Supply (TSCO) Consumer Discretionary Cyclical
7 Eversource Energy (ES) Utilities Defensive
8 Evergy (EVRG) Utilities Defensive
9 Enterprise Products Partners (EPD) Energy Sensitive
10 L3Harris Technologies (LHX) Industrials Sensitive

  • Yrs: years of consecutive dividend increases

  • Qual: Quality score out of 30

  • Fwd Yield: forward dividend yield for a recent share Price

  • 5-Avg Yield: 5-year average dividend yield

  • 5-DGR: 5-year compound annual growth rate of the dividend

  • 5-EGR: 5-year compound annual growth rate of EPS

  • 5-RGR: 5-year compound annual growth rate of revenue

  • 5-YOC: the projected yield on cost after five years of investment

  • ACN: Adjusted Chowder Number

  • 5-TTR: 5-year compound trailing total returns

  • VL PS: Value Line Price Stability

  • VL FS: Value Line Financial Strength ratings

  • MS EM: Morningstar Economic Moat

  • SP CR: S&P Global Credit Ratings

  • SS DS: Simply Safe Dividends Dividend Safety Scores

  • PI DG: Portfolio Insight Dividend Quality Grades

  • Buy Below: my risk-adjusted buy-below price

  • –Disc +Prem: discount or premium of the recent share Price to my Buy Below price

  • Price: recent share price

Color-coding

  • Ticker: highlighted for stocks I own in my DivGro portfolio

  • Fwd Yield: green if Fwd Yield5-Avg Yield

  • 5-YOC: green if 5-YOC ≥ 4.0%, yellow if 5-YOC ≥ 2.5% (but less than 4.0%), and red if 5-YOC < 2.5%

  • ACN: colored based on the likelihood of delivering annualized returns of 8%, according to the Chowder Rule: green means likely, yellow means less likely, and red means unlikely

  • Price: green if PriceBuy Below

  1. Stock Quality: Quality scores ≥ 21 (Exceptional, Excellent, or Fine ratings)
  2. Stock Valuation: Price ≤ Buy Below price (trades below my risk-adjusted Buy Below price
  3. Growth Outlook: Qualifying ACNs (likely to deliver annualized returns of 8%)
  4. Income Outlook: 5-year YoC ≥ 4.00% (likely to have high YoCs after 5 years of ownership)
  5. Dividend Quality: A+ or A Dividend Quality Grades

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