Which companies have a future to be in the Dividend aristocrats list? The current list is very boring, who can come in this list in the near future, I mean eventually.
OK, you asked This is different than the aristocrats. Aristocrats are determined by membership in the S&P 500. This one is not. But the Champions have the same 25 year history as the Aristocrats. Then look on the Contenders tab for stocks with 10 to 24 and the Challengers with 5 to 9 years. Many income investors are fine with a five year history. The main caution on those with less than 10 years is that they have not been tested in a recession. http://www.dripinvesting.org/tools/U.S.DividendChampions.xls
That's the risk. But, if they have 10 years or more history of growing dividends that means they went through the 2007 to 2009 recession and not only did not cut but continued to grow dividends. Risk for them is better then the ones with a 5 year history of growing dividends as they have not demonstrated the ability to continue growing dividends in down times. Does not mean they won't, but untested they are higher risk. So, risk is there with all of them but less risky the longer they have been raising. How about one more list? The Dividend Kings list has 18 stocks on it. Those have paid rising dividends for over 50 years. Even less risk during recessions. http://www.suredividend.com/dividend-kings/
I am going to invest in the long term dividend stocks like: The Coca-Cola Co The company increased its quarterly dividend in February by six percent to $0.35 per share. At today’s price, KO stock has an annual dividend yield of 3.28%. In the past 10 years, the company’s quarterly dividend payment has more than doubled. Procter & Gamble Co Procter & Gamble’s products are sold in 180 counties, with over $65.0 billion in annual sales. The company has been in business for 178 years and has increased dividends for each of the past 60. Wal-Mart Stores, Inc. Wal-Mart pays a $0.50-per-share dividend on a quarterly basis, with an annual dividend yield of 2.95%. In the past 10 years, Wal-Mart’s quarterly dividend rate has nearly tripled. In addition to its recession-proof status, Wal-Mart has increased dividends for 42 consecutive years. Source: Best Dividend Stocks Any inputs??
I took a look at payout ratios, current P/E and projected earnings growth, and debt ratios. PG sounds and looks the best. Note that KO is the ticker of interest for Coca-Cola Co. (and NOT COKE). KO is already paying out 82% of profits, so to raise dividends some more they'd need to increase profits, or increase debt, I am thinking. Neither scenario looks problem-free, since KO only has 1.84% EPS growth next 5 years, and Debt/Equity ratio is over 100% (http://finviz.com/quote.ashx?t=ko&ty=c&ta=1&p=d). WMT looks okay.
At least you started your post with "I wouldn't invest" as that is fine that you don't. It does not make the rest of what you have to say accurate for those that practice long term investing rules. Long term dividend drip investing is a PROVEN method of long term investing returning much higher then normal stock market returns including holding through down markets. That's a fact. Any stock paying over the S&P yield average is not a mistake and not a low yield. While things do have to be researched and entry points figured out for best chances, the point is to be able to set and forget the investment for 10 or more years. Not everyone wants to sit and watch charts all day and try to time the best time to get in and out. I would agree that there are many different styles of investing and each one has it's own set of rules and things to look for and level of monitoring required. I'm sure your method is a good one if it works for you but it is not the only one and this thread is about dividend investing
Boy you put a lot of thought into that for nothing. I think you are obnoxious and pompous and will no longer have any conversation with you. You get the last word above. You are correct in all of your thinking and everything you said about me. Just went to your profile here and "ignored" you. Would appreciate it if you would do the same on my profile.