The Best Dividend Growth Stock In The Consumer Staples Sector

In this article, I will be explaining the process I used to identify the best dividend growth stock in the consumer staples sector (NYSEARCA: XLP). So far, in this series of dividend growth articles I have covered technology and energy.
Technology: The Best Dividend Growth Stock In The Technology SectorEnergy: The Best Dividend Growth Stock In The Energy SectorTo start my search I used the Zacks Stock Screener with the base criteria of the sector as consumer staples and a market capitalization $2 billion or greater. After adding these basic criteria, I started adding the following fundamental criteria that I feel are important when looking at dividend growth companies in the energy sector.
Screen Fundamentals
-Screen Criteria #1: Above Market Dividend Yield
I choose to include only companies that pay a dividend greater than 2.25%, because I wanted any potential candidate to have a dividend yield greater than the current yield on the 10-year treasury, which currently is 2.25%.
-Screen Criteria #2: Positive projected short & long-term earnings growth
I chose to include only companies that are projected to have at least 5% long-term earnings growth over the next five years. Many consumer staples companies have seen growth slow because of trends like the organic/natural foods movement, as well as consumers having more information than ever on what they are consuming. I wanted to make sure any companies that I include for consideration are projected to grow their... Read more