Gyroscopic Investing

I use www.FinViz.com to screen dividend stocks using the criteria below.

P/E = Under 15
Forward P/E = Under 15
P/S = Under 1

Country = USA
Dividend Yield = Positive
Volume = Over 1 million

In addition, I use http://www.reuters.com/finance/stocks to locate the dividend stocks with over 10% for 5-year dividend growth rate.

5-Year Dividend Growth Rate = Over 10%


Here is the list.


DE Deere & Company Industrial Goods
GD General Dynamic Industrial Goods
PH Parker Hannifin Industrial Goods
RTN Raytheon Industrial Goods
CMI Cummins Inc Industrial Goods
ETN Eaton Industrial Goods

AET Aetna Healthcare
UNH Unitedhealth Group Healthcare

CAH Cardinal Health Services
SPLS Staples Services
TGT Target Services
DV DeVry Services
SWY Safeway Services

WRB W.R. Berkley Financial
AFL AFLAC Financial

CLF Cliffs Natural Resources Basic Materials
HFC HollyFrontier Basic Materials

JCI Johnson Controls Consumer Goods

Disclaimer: This is for sharing with you what I am researching and I do not advise nor recommend these stocks.

If wanted to go the dividend stock route I'd take a hard look at VDIGX.

When you, or anyone else, refers to a dividend growth rate, you're not referring to the percentage rate, you're referring to the nominal dividend itself right?

For example if a stock is $100/share and offers a $5 dividend, the rate is 5%.

If you had a 10% increase in the dividend rate, it would be 5.5%.

But if you had a 10% appreciation to the stock, and a 10% appreciation to the dividend itself, the dividend rate would remain at 5%, but the nominal dividend itself would be 10% higher.

I'm guessing it has to be the second one, because otherwise at a certain point you'd have a 50% dividend rate if the rate itself kept growing by 10% annually.

TripleB wrote: When you, or anyone else, refers to a dividend growth rate, you're not referring to the percentage rate, you're referring to the nominal dividend itself right?

For example if a stock is $100/share and offers a $5 dividend, the rate is 5%.

If you had a 10% increase in the dividend rate, it would be 5.5%.

But if you had a 10% appreciation to the stock, and a 10% appreciation to the dividend itself, the dividend rate would remain at 5%, but the nominal dividend itself would be 10% higher.

I'm guessing it has to be the second one, because otherwise at a certain point you'd have a 50% dividend rate if the rate itself kept growing by 10% annually.

Yeah it is the dollar amount.

Some people think the future return of a stock is driven by its current dividend yield plus its dividend growth rate. I think this can leave out the importance of buybacks, but hypothetically if you knew the future growth rate of a dividend it would be a perfectly reasonable method.

Thank you, Slotine and Others.

The Dividend Achievers at the link below have about 200 dividend stocks.

http://www.invescopowershares.com/produ ... ticker=pfm

Using the www.FinViz.com screener, I narrow it down to almost 20 dividend stocks below using trailing p/e of under 15, forward p/e of under 15, and average volume of over 1 million.

UTX United Technologies
COP ConocoPhillips
MMM 3M
CAT Caterpillar
WAG Walgreen

GD General Dynamics
NSC Norfolk Southern
PH Parker Hannifin
HP Helmerich & Payne
NUS Nu Skin Enterprise

MDT Medtronic
TGT Target
SYK Stryker
CAH Cardinal Health
DOV Dover

AFL AFLAC
CB Chubb Corporation
NEE NextEra Energy
PPL PPL Corporation



XOM, CVX, IBM are also in this group but I do not include them because their market cap is over $200 billion and it is harder for their share prices to increase further. I also do not include PBI because its dividend yield is over 10%.