10 Dividend Growth Stocks For February 2018

David Fish's CCC list is an excellent source for dividend growth investors. Compiled and updated every month, the CCC list contains U.S. companies with at least 5 consecutive years of increasing dividends. The accompanying spreadsheet provides key statistics of the CCC stocks.
In my monthly 10 Dividend Growth Stocks series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens and rank the remaining stocks using a proprietary ranking system. I also assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.
Trimming the CCC List The latest CCC list (dated 1/31/18) contains 844 stocks.
This month, I used the screener at DividendStocks.cash to trim the CCC list. The screener provides several dynamic filters, which measure the stability of dividend, earnings, and revenue growth over a 5-year period. For example, dividend growth stability measures the correlation between a stock's year over year dividend increases and dividend growth implied by the stock's 5-year dividend growth rate. A perfect correlation between dividend increases and time is defined as a correlation of +1. You can read more about dynamic filters here.

I used the illustrated filters to screen for dividend growth stocks with very high dividend and earnings stability. I also wanted stocks with earnings-based payout ratios of less than 60%. Finally, I required dividend yields of at least... Read more