My 5 Dividend Champions And Their Alternatives

This research report was jointly produced with co-author Big Dog Investments.
Five dividend champions to choose

I have five dividend champions which have at times been a large portion of my portfolio over the last few years. As of now, I'm only invested in four of them because of the current market valuation. I chose dividend champions which I believed would be worth buying and holdings for decades. So far the five companies together have been performing very well and have given me better returns then if I just invested in the S&P 500. Well, with the notable exception of Target (NYSE: TGT). Target has not done well.
The dividends from Target keep piling up, but the market is convinced time is running out on this dividend champion.

Strategy for Choosing Investments
For my own personal investments in dividend champions, I emphasis buying companies with practical yields that have a high probability of growing their dividend at a reasonable rate over the conceivable futures. I'm also in favor of more defensive companies, especially now with how insanely valued the market is overall(personal opinion, P/E ratios are just too high). There's no way I'm able to tell when the market is going to panic, or even if it is, although I believe the risk of a major setback within the next few years is elevated. Defensive companies with a history of good dividends was a major criteria in my decisions for companies.
There's no way I can tell... Read more