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:
- 7 Dividend Growth Stocks For November 2021
- 7 Dividend Growth Stocks For October 2021
- 7 Dividend Growth Stocks For September 2021
- 7 Dividend Growth Stocks For August 2021
- 7 Dividend Growth Stocks For July 2021
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
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:
I own the six highlighted stocks in my DivGro portfolio.quality score
The Fwd Yield column is colored green if Fwd Yield ≥ 5-Avg Yield.
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.
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.
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.
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.
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.
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.
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.
Concluding Remarksstrategy, 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!
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