These dividend growth stocks have increased their earnings every year for at least ten years.
As a dividend growth investor, I highly value consistent
earnings growth.
Consistent earnings growth gives a company options to grow
the business, pay off debts, buy back shares, or pay dividends. Of course, I'm
primarily interested in dividends, so I look for consistent dividend growth in
addition to consistent earnings growth.
I consider dividend growth stocks to be stocks with
increasing dividend payouts in each of the past five years. Dividend Radar
tracks such stocks every week and publishes a comprehensive spreadsheet,
downloadable for free, every Friday.
This article presents seven dividend growth stocks with
remarkably consistent earnings growth over the past ten years.
For this article, I consider earnings growth to be
consistent if a graph of the earnings over the past ten years increases
monotonically. Here, monotonically increasing means that not a single year’s
earnings are lower than the prior year’s earnings.
Portfolio Insight provides a powerful screener that allows
users to create watch lists based on different fundamental metrics. But it
doesn’t offer a screen that directly checks for monotonically increasing
earnings.
Instead, I used the Non-GAAP EPS CAGR screen, requiring
growth rates of at least 10% over each of the 1, 3, 5, and 10-year trailing
periods. The screen produced no fewer than 82 candidates, but not all of them
have monotonically increasing earnings. The reason is a decrease in one or more
years can be “smoothed over” by the CAGR calculations.
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