Are 20% EPS Growth and 20% Dividend Growth a Winning Combo?
Are 20% EPS growth and 20% dividend growth a winning combination?At first glance the answer seems obvious, but historical performance does not necessarily indicate future success. Value investors often look for strong dividend growth and attractive fundamentals, while growth investors look for -- naturally -- growth. Some companies have both.
Table 1 shows a list of companies that have achieved historical 5-year dividend growth in excess of 20% and historical 5-year EPS growth in excess of 20%, and currently are providing at least a 1.5% dividend yield. Since we're in the middle of the NBA season and right around from the NCAA March Madness tournament, I'll refer to these stocks as double-doubles, a term which traditionally refers to a basketball player getting at least 10 in two major statistical categories. However, in this case, I've upped the level to requiring at least 20% growth in both categories.
There are 21... Read more