Skip to main content

7 Dividend Growth Stocks For December 2021

These Dividend Radar stocks have high defensiveness scores and trade below my Buy Below prices. Given recent market volatility and concerns about rising inflation, these stocks may offer a somewhat safer shelter for your investment dollars.

Welcome to another edition of my monthly 7 Dividend Growth Stocks series in which I present seven high-quality dividend growth stocks for further analysis and possible investment.

I apply different screens every month to narrow down my watch list of more than 730 dividend growth stocks, . Changing the screens from month to month highlights different aspects of dividend growth [DG] investing. For example, value investors tend to look for deep discounts, income investors prefer higher-yielding stocks, and growth-oriented investors favor higher DG rates.

developed by David Van Knapp as my primary screen. The system awards points based on satisfying common notions of safety rather than for being in a certain economic sector. Additionally, I screened for stocks trading below my risk-adjusted Buy Below prices.

and my .

In case you missed previous articles in this series, here are links to them:

About Defensiveness

There are at least three that group stocks based on sectors or industries. I use the Global Industry Classification Standard (), a market-based system also employed by the S&P 500 Index.

Sectors can be further categorized into based on how they tend to perform during different phases of the :

  • Defensive Sectors: Consumer Staples, Health Care, Utilities
  • Cyclical Sectors: Consumer Discretionary, Financials, Materials, Real Estate
  • Sensitive Sectors: Communication Services, Energy, Industrials Information Technology
[SSD]
  • [VL]
  • Dividend performance during the Great Recession (2007-2009)
  • Defensiveness scoring system developed by David Van Knapp (source: A Different Look At 'Defensiveness').

    Defensiveness scoring system developed by David Van Knapp (source: A Different Look At 'Defensiveness').

    , , and Portfolio Insight. Additionally, I using each stock’s five-year average dividend yield. With up to eleven estimates and targets available, I ignore the outliers (the lowest and highest values) and use the average of the median and mean of the remaining values as my fair value estimate.

    (dated December 3, 2021) contains 733 stocks. Of these, 56 have defensiveness scores of 11 or 12, but only 29 trade below my risk-adjusted Buy Below price.

    I ranked these candidates by sorting their quality scores (as determined by DVK Quality Snapshots) in descending order and used the following metrics, in turn, to break any ties:

    • SSD Dividend Safety Score
    • Forward Dividend Yield

    The tables below show this month’s picks in rank order.

    7 Top-Ranked Dividend Growth Stocks for December

    Here are top-ranked dividend growth stocks that passed this month’s screens:

    Screen Shot 2021-12-06 at 9.45.05 AM

    I own the six highlighted stocks in my DivGro portfolio.

    quality score
  • 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-YOC: the projected yield on cost after five years of investment
  • C#: , a popular metric for screening dividend growth stocks
  • 5-TTR: 5-year compound trailing total returns
  • VL Safety Rank: 's
  • VL Fin Stren: Value Line's ratings
  • MS Econ Moat: 's
  • S&P Cred Rating: 's
  • SSD Divi Safety: '
  • 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
  • The Fwd Yield column is colored green if Fwd Yield5-Avg Yield.

    Key metrics and fair value estimates of December’s Top 7 Dividend Growth Stocks (includes data sourced from Dividend Radar).

    Key metrics and fair value estimates of December’s Top 7 Dividend Growth Stocks (includes data sourced from Dividend Radar).

    Next, let's look at each stock in turn. All data and charts are courtesy of Portfolio-Insight.com.

    Johnson & Johnson (JNJ)

    Founded in 1886 and based in New Brunswick, New Jersey, JNJ has grown into one of the largest companies in the world. The company is a leader in the pharmaceutical, medical device, and consumer products industries. JNJ distributes its products to the general public, retail outlets and distributors, wholesalers, hospitals, and health care professionals.

    Screen Shot 2021-12-06 at 9.50.13 AM
    JNJ non-GAAP EPS and dividends paid (TTM), with stock price overlay

    JNJ non-GAAP EPS and dividends paid (TTM), with stock price overlay

    Walmart Inc (WMT)

    WMT is the world's largest retailer and the biggest private employer in the world. Based in Bentonville, Arkansas, and founded in 1962, the company is a multinational retailer with more than 11,000 stores worldwide. Additionally, the company operates e-commerce websites in many countries. WMT operates through three segments: Walmart U.S., Walmart International, and Sam's Club.

    Screen Shot 2021-12-06 at 9.52.38 AM
    WMT non-GAAP EPS and dividends paid (TTM), with stock price overlay

    WMT non-GAAP EPS and dividends paid (TTM), with stock price overlay

    Merck & Co, Inc (MRK)

    Founded in 1891 and headquartered in Kenilworth, New Jersey, MRK is a global health care company that offers health solutions through prescription medicines, vaccines, biologic therapies, and animal health products. MRK markets its products to drug wholesalers and retailers, hospitals, government entities and agencies, physicians, physician distributors, veterinarians, distributors, animal producers, and managed health care providers.

    Screen Shot 2021-12-06 at 9.55.28 AM
    MRK non-GAAP EPS and dividends paid (TTM), with stock price overlay

    MRK non-GAAP EPS and dividends paid (TTM), with stock price overlay

    Medtronic plc (MDT)

    MDT manufactures and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. The company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Therapies Group, Restorative Therapies Group, and Diabetes Group. MDT was founded in 1949 and is headquartered in Dublin, Ireland.

    Screen Shot 2021-12-06 at 9.56.59 AM
    MDT non-GAAP EPS and dividends paid (TTM), with stock price overlay

    MDT non-GAAP EPS and dividends paid (TTM), with stock price overlay

    General Dynamics Corporation (GD)

    Headquartered in Falls Church, Virginia, GD is an aerospace and defense company offering products and services in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. Formed in 1952, GD has grown steadily through the acquisition of many businesses.

    Screen Shot 2021-12-06 at 9.58.30 AM
    GD non-GAAP EPS and dividends paid (TTM), with stock price overlay

    GD non-GAAP EPS and dividends paid (TTM), with stock price overlay

    Lockheed Martin Corporation (LMT)

    Founded in 1909 and headquartered in Bethesda, Maryland, LMT is a global security and aerospace company engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems. LMT operates through four segments, Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems.

    Screen Shot 2021-12-06 at 10.02.56 AM
    LMT non-GAAP EPS and dividends paid (TTM), with stock price overlay

    LMT non-GAAP EPS and dividends paid (TTM), with stock price overlay

    Air bovada and Chemicals, Inc (APD)

    Founded in 1940 and headquartered in Allentown, Pennsylvania, APD produces atmospheric gases (such as oxygen and nitrogen), process gases (such as hydrogen and helium), and specialty gases, as well as the equipment for the production and processing of gases. APD also provides semiconductor materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives.

    Screen Shot 2021-12-06 at 10.04.32 AM
    APD non-GAAP EPS and dividends paid (TTM), with stock price overlay

    APD non-GAAP EPS and dividends paid (TTM), with stock price overlay

    Concluding Remarks

    Screen Shot 2021-12-06 at 10.05.54 AM
    strategy, so I’m not planning to add shares at this time.

    I would recommend looking at the following stocks, depending on your investment style and goals:

    • For income investors: MRK
    • For value investors: LMT, MRK
    • For dividend growth-oriented investors: APD

    As always, I advise readers to do their due diligence before investing.

    Thanks for reading and take care, everybody!

    Please follow me here:

    • Twitter: @div_gro
    • Facebook: @FerdiS.DivGro

    I’d be happy to answer any questions you may have!

    Note: Interested in getting periodic e-mail notifications when articles are published here? Drop your e-mail in the box below!

    Also read:

    4 High Yield Closed-End Funds For Your Income Portfolio

    2 Dividend Stocks On My Buy List

    Focusing On Income, Too Many Stocks & Wrong Valuation: More Mistakes You Could Be Making

    18 Dividend Stocks To Consider For The Next Decade

    Hybrid Funds To Complement High Yield Portfolios

    5 Discounted Dividend Contenders

    2 Investing Mistakes We All Make

    The Top 10 Dividend Growth Opportunities