5 High-Quality Dividend Growth Stocks I Don't Own

Seeking AlphaDividend Strategy5 High-Quality Dividend Growth Stocks I Don't OwnSep. 1, 2020 12:30 AM ET|| Includes: CL, ECL, EMR, LLY, WMTby: FerdiSFerdiS Dividend Growth Investing, portfolio strategy, long-term horizon, ValueDivGro.cls-1{fill:#024999;}SummaryUsing DVK Quality Snapshots, I assess the quality of dividend growth stocks in Dividend Radar, a weekly auto-generated spreadsheet of stocks with dividend increase streaks of at least five years.
Stocks with quality scores of 23-25 are high-quality stocks and I rate them Excellent (23-24) and Exceptional (25). There are 31 Excellent and 7 Exceptional stocks in Dividend Radar.
I own all but 5 of these high-quality stocks. This article explains why I don't own them and what needs to happen before I would consider opening positions.
In the past year or so, I've written many articles about assessing the quality of dividend growth stocks. I use DVK Quality Snapshots, an elegant and effective system that employs five widely used quality indicators from independent sources. The system assigns 0-5 points to each quality indicator, for a maximum of 25 points.
Since May, I've been using Dividend Radar as my primary watch list of dividend growth stocks. Dividend Radar tracks stocks with dividend increase streaks of at least five years and is updated and published every Friday.
While Dividend Radar provides a multitude of metrics of interest to dividend growth investors, including fundamental data and added value metrics, I calculate quality scores and consider them when screening candidates for further research and possible investment.
The latest edition of Dividend Radar (dated August 21, 2020) contains 751 stocks. Of those, only seven stocks have a perfect quality score of 25. I rate these stocks Exceptional and I happen to own all of them in my DivGro portfolio.
Stocks with quality scores of 23-24 are rated Excellent, and there are 31 in Dividend Radar. Nineteen have quality scores of 24, and... Read more