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7 Dividend Growth Stocks For November 2021

These Dividend Kings are discounted valuations, and all but one have Very Safe or Safe dividends. The exception offers a high yield to compensate for the somewhat higher risk of a Borderline Safe dividend.

Every month, I identify seven high-quality dividend growth stocks [DG] for further analysis and possible investment. I usually select stocks from my watch list of DG stocks, .

Dividend Radar tracks stocks trading on U.S. Exchanges that have dividend increase streaks of five or more years. maintains Dividend Radar and publishes it every Friday as a free resource for DG investors.

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trading well below my Buy Below prices. Dividend Kings are stocks of companies that have increased their annual dividend payouts for 50 or more consecutive years.

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

, membership of the Dividend Kings is not maintained by a specific organization. Instead, membership is defined loosely based on a stock's dividend increase streak. For this article, I used Dividend Radar and as sources, including all but one of the stocks listed as Dividend Kings by either source. The exception is Farmers & Merchants Bancorp (FMCB), a stock that trades over-the-counter and one not tracked in Dividend Radar.

to determine quality scores (out of 25) for each DG stock. My stock ratings are simply mapped from quality scores, as is the distinction between Investment and Speculative grades:

Screen Shot 2021-11-15 at 10.26.05 AM

I present risk-adjusted Buy Below prices along with key metrics of interest to DG investors. Each Buy Below price is determined by adjusting my fair value [FV] estimate according to the stock’s quality score. For Exceptional and Excellent stocks, I allow premiums of up to 10% and 5%, respectively. For Fine stocks, the Buy Below price equals my FV estimate. And for Decent stocks, I require a discount of at least 10%.

To estimate FV, I use a survey approach, collecting FV estimates and price targets from several sources, including Morningstar, , and Portfolio Insight. I also 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 FV estimate.

(dated November 5, 2021) contains 736 stocks.

Exactly seven Dividend Kings pass this month’s screens!

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:

' Dividend Safety Scores
  • Forward Dividend Yield
  • The tables below show the seven Dividend Kings in rank order.

    7 Top-Ranked Dividend Growth Stocks for November

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

    Screen Shot 2021-11-15 at 10.27.31 AM

    I own the five 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 Yield ≥ 5-Avg Yield.

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

    Key metrics and fair value estimates of November’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 2021-11-15 at 10.31.29 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

    The Coca-Cola Company (KO)

    KO is the world's largest beverage company and the leading producer and marketer of soft drinks. Along with Coca-Cola, recognized as the world's best-known brand, The Coca-Cola Company markets four of the world's top five soft drink brands, including diet Coke, Fanta, and Sprite. KO was founded in 1886 and is headquartered in Atlanta, Georgia.

    Screen Shot 2021-11-15 at 10.37.33 AM
    KO non-GAAP EPS and dividends paid (TTM), with stock price overlay

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

    Emerson Electric Co. (EMR)

    EMR provides technology and engineering solutions to industrial, commercial, and consumer markets worldwide. The company is engaged in designing, manufacturing, and selling a broad range of electrical, electromechanical, and electronic products and systems. EMR was founded in 1890 and is headquartered in St. Louis, Missouri.

    Screen Shot 2021-11-15 at 10.39.24 AM
    EMR non-GAAP EPS and dividends paid (TTM), with stock price overlay

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

    3M Company (MMM)

    MMM is a diversified technology company with worldwide operations. The company has leading positions in consumer and office; display and graphics; electronics and telecommunications; health care; industrial; safety, security and protection services; transportation; and other businesses. MMM was founded in 1902 and is headquartered in St. Paul, Minnesota.

    Screen Shot 2021-11-15 at 10.41.11 AM
    MMM non-GAAP EPS and dividends paid (TTM), with stock price overlay

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

    Hormel Foods Corporation (HRL)

    HRL is a multinational manufacturer and marketer of consumer-branded food and meat products. The company sells its products through sales personnel, as well as through independent brokers and distributors. Customers include retailers, hospitals, nursing homes, and marketers of nutritional products. HRL was founded in 1891 and is based in Austin, Minnesota.

    Screen Shot 2021-11-15 at 10.42.49 AM
    HRL non-GAAP EPS and dividends paid (TTM), with stock price overlay

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

    PPG Industries, Inc. (PPG)

    PPG manufactures and distributes a variety of coatings, specialty materials, and glass products. The company’s Performance Coatings segment provides light industrial and specialty coatings, protective and marine coatings and finishes, and sealants. The company also operates in two additional segments: Industrial Coatings and Glass. PPG was founded in 1883 and headquartered in Pittsburgh, Pennsylvania.

    Screen Shot 2021-11-15 at 10.44.45 AM
    PPG non-GAAP EPS and dividends paid (TTM), with stock price overlay

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

    Altria Group, Inc. (MO)

    MO was founded in 1919 and is headquartered in Richmond, Virginia. The company manufactures and sells cigarettes, smokeless products, and wine in the United States. In March 2008, MO spun off the subsidiary Phillip Morris to protect it from litigation in the United States.

    Screen Shot 2021-11-15 at 10.46.31 AM
    MO non-GAAP EPS and dividends paid (TTM), with stock price overlay

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

    Note that Altria spun off Phillip Morris International (PM) in 2008 and reduced its dividend by an amount equivalent to the size of the spin-off. However, the combined dividend of MO and PM continued to increase every year, so some investors consider MO to be a Dividend King.

    Concluding Remarks

    Screen Shot 2021-11-15 at 10.48.32 AM

    I ranked Investment Grade Dividend Kings trading at least 7% below my Buy Below prices in this article. Dividend Kings are remarkable stocks with higher annual dividend payouts for at least five decades!

    I’m long five of this month’s seven candidates. All but one of my positions are full-sized positions based on my dynamic and flexible portfolio target weighting strategy, so I’m not planning to add shares to those positions at this time. The exception is my HRL position, which I could increase by about 100 shares to turn into a full-sized position.

    Neither of the two stocks I don’t own looks interesting to me. I’d like to see stronger 5-YOC and C# metrics, and EMR and PPG just don’t deliver the goods! Both have metrics colored red, which indicates unacceptable values in my view.

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

    • For income investors: MO
    • For value investors: KO, MMM, MO
    • For dividend growth-oriented investors: HRL

    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
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    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:

    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

    My Dividend Growth Investing Buying Process

    How To Generate Income From Stocks You Don't Own