3 Dividend Screeners

October 25, 2022 Printer Friendly Printer Friendly

Introduction

2022 has been a very difficult year for the markets. Since January 1st, the S&P is down 19.4%, the Dow 30 is down 13.3%, and Nasdaq has shed 29.6%.

Dividend investing can help mitigate market losses, especially during periods of economic downturns by offering a steady cash flow. In addition, dividends can provide a hedge against inflation.

Stock Rover comes with some 25+ dividend screeners available in the Investor’s Library. From that group, we are going to select three of the popular dividend screeners that focus on dividend growth. And then based on the passing tickers from each screener, we are going to build three portfolios, one for each screener. Each portfolio will equal weight the capital allocation to each ticker in the portfolio.

And then in 90 days, We’ll then come back and report the real-world performance of each of the portfolios via Portfolio Analytics.

The screeners we have selected are:

  1. Top 25 S&P 500 Dividend Growers
  2. Top 50 Dividend Growers
  3. Safe Dividend Growth

For each of the screeners we’ll first use Stock Rover’s Screener Manager to display the screener’s filtering criteria. We’ll then use the results of each screener to construct an equal-weight portfolio, where each ticker starts with the same dollar value in the portfolio. In our model portfolios, the starting investment value of each ticker is $10,000.

The Three Dividend Screeners

Top 25 S&P 500 Dividend Growers

The 25 fastest dividend growers in the S&P 500 is a ranked screener that looks at a weighted average of the dividend growth rates for the 1 year period through the 10 year period, as well as expected future dividend growth rates. A minimum yield of 1.5% and a payout ratio of less than 75% is required to pass the screener.

Top 25 S&P 500 Dividend Growers

Top 50 Dividend Growers

The 50 fastest dividend growers is a ranked screener that looks at a weighted average of the dividend growth rates for the 1 year period through the 10 year period, as well as expected future dividend growth rates. A minimum yield of 1.5% and a payout ratio of less than 50% is required to pass the screener. Additionally, the company must have a market cap of at least 5 billion dollars.

Top 50 Dividend Growers

Safe Dividend Growth

This hybrid screener is a ranked screener that looks for modest dividend-growing stocks that have outperformed their sector and industry in the last year. The screener returns the top 50 tickers. Sales growth is weighted to ensure that the companies are increasing their top lines, while the financial safety decile helps find stocks that are financially healthy relative to their sector peers. A payout ratio of less than 40% ensures the dividend is sustainable.

Safe Dividend Growth

The Three Dividend Portfolios

Top 25 S&P 500 Dividend Growers

Derived from the Top 25 S&P 500 Dividend Growers screener, this portfolio consists of 25 holdings each seeded with a $10,000 investment for an initial portfolio value of $250,000.

Below is the sector allocation for the 7 sectors represented in the portfolio:

Sector Percentage
Consumer Defensive 8%
Energy 12%
Financial Services 16%
Healthcare 4%
Industrials 20%
Technology 12%
Utilities 4%

The “Top 25 S&P 500 Dividend Growers 10-19-2002” portfolio is available for import from the Investors’ Library.

Once a portfolio is imported its performance can be displayed in the Dashboard.

For a deeper dive Stock Rover’s Portfolio Analytics (Premium and Premium Plus users) delivers detailed analytics of the overall performance of the portfolio as well as the performance of the individual holdings.

In addition, we’ve made the portfolio available for download as a spreadsheet.

The portfolio positions listed below are as of the 10/19/2022 purchase date.

The Correlation Facility is showing that this portfolio’s holdings are well diversified.

portfolio correlation

Top 50 Dividend Growers

Derived from the Top 50 Dividend Growers screener, this portfolio consists of 41 holdings each seeded with a $10,000 investment for an initial portfolio value of $410,000.

Note: Nine companies returned multiple symbols to the screener and were de-duplicated.

Below is the sector allocation for the 10 sectors represented in the portfolio:

Sector Percentage
Basic Materials 10%
Communications Services 5%
Consumer Cyclical 17%
Consumer Defensive 5%
Energy 12%
Financial Services 12%
Healthcare 5%
Industrials 19%
Technology 10%
Utilties 5%

The “Top 50 Dividend Growers 10-19-2022” portfolio is available for import from the Investors’ Library.

In addition, we’ve made the portfolio available for download as a spreadsheet.

The portfolio positions listed below are as of the 10/19/2022 purchase date.

The Correlation Facility is showing that the portfolio’s holdings are highly diversified.

portfolio correlation

Safe Dividend Growth

Derived from the Safe Dividend Growth screener, this portfolio consists of 49 holdings each seeded with a $10,000 investment for an initial portfolio value of $490,000.

Note: One company, Lennar, returned multiple symbols (LEN and LEN.B), LEN.B was not included in the portfolio.

Below is the sector allocation for the 9 sectors represented in the portfolio:

Sector Percentage
Basic Materials 14%
Communications Services 2%
Consumer Cyclical 8%
Consumer Defensive 8%
Financial Services 39%
Healthcare 4%
Industrials 8%
Technology 14%
Utilties 2%

The “Safe Dividend Growth 10-19-2002” portfolio is available for import from the Investors’ Library.

In addition, we’ve made the portfolio available for download as a spreadsheet.

The portfolio positions listed below are as of the 10/19/2022 purchase date.

The Correlation Facility is showing a slightly less diversified portfolio (the deeper red cells), which is expected given that 39% of the holdings are in Financial Services.

portfolio correlation

Summary

We have presented three growth-centric dividend screener strategies along with their accompanying model portfolios. Later we’ll come back and see which strategies are performing the best and which are performing the worst given the current bearish market environment. We will also see if the screeners are beating the market and how much risk they are taking to achieve their return.

In the meantime, you are welcome to import these portfolios from the Investor’s Library and track their performance.




Comments

Peter Kaczmar says:

Really appreciate the articles (especially this one)
Very helpful
Thanks

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