Time for another ‘Article of Interest’ post.  This is now the 19th post in this series, with the previous one posting a little over a month ago.

I’m back to an article from Kiplinger.  This one is hot off the press… released just today.  The article covers a baker’s dozen of dividend stocks that, according to the author, offer both dividend safety and dividend growth while maintaining a decent yield.  Maybe it’s possible one or more of these look interesting enough to crack your watchlist.

To recap the intent of this series… every now and then, when perusing investing or personal finance articles across the Internet, I come across what I call an ‘Article of Interest’, or ‘A of I’ for short.

I decided it might be helpful to share a link to the article(s) in case some of my visitors would find it of interest as well.

In most cases, the articles will focus on dividend-paying stocks or dividend growth investing (DGI).  However, other finance-related topics might be highlighted, too.

Now that we are up-to-speed, let’s get more details on what this A of I is about…

 

Link Overview

One point highlighted in the article is an idea I try to implement in my Portfolio.  It’s the thought that we are better off compromising on high-yield stocks while instead seeking stocks for our portfolios that offer a decent yield but above-average dividend growth.  Over many years, this should lead to more dividend income to fund your future.

This idea makes great sense to me, especially since I’m in accumulation mode and have years before I plan to use my dividends for my living expenses.  Thus, I don’t need to focus on high yields to generate income in the present.

The 13 stocks selected in the article have yields that range from 1.4% to 3.3%.  Take out the one at 3.3% and the next highest yield is 2.8%.  I don’t think anyone would consider these high-yield stocks.

While the selected stocks might seem “less than” by only sporting reasonable yields, they make up for it in dividend growth.  The author says each of the stocks on the list offer dividend growth over the next 12 months of 10% or more.

Unfortunately, I don’t think the author does a good job of explaining how the dividend growth estimates were established.  This was something I wanted more details on, especially once I saw the dividend growth estimates for some of the last few stocks in the list.  Check them out.. they are huge!

Keep in mind these are not long term dividend growth estimates, but just next 12-month estimates.  However, short-term success for these companies can lead to longer-term growth should the company manage to sustain that success.

Here’s a link to the article…

 

https://www.kiplinger.com/investing/stocks/dividend-stocks/603622/safe-dividend-stocks-to-buy

 

I own 2 of the 13 selected stocks in my dividend Portfolio.  Those stocks are Lowe’s Companies (LOW) & Nexstar Media Group (NXST).  Both have provided outstanding dividend growth for me.  LOW has a 5-year dividend growth rate of 17.14% through 2020, with a 33.33% raise this past May.  As for NXST, they sport a 5-year dividend growth rate of 24.13% through 2020, with a 25% raise this past January.

A couple of the other 13 stocks were once part of my Portfolio.  Those stocks are Hershey (HSY) and Target (TGT).  I don’t think HSY will provide 10% dividend growth over the next few years, but it did with its last raise, and it may again next year.  TGT was realizing low dividend growth for several years until a blowout 32.4% raise in May.  TGT has been performing very well in the past couple of years and its dividend growth is reflecting that.  Will it continue?

It appears there are a good handful of Financial stocks to choose from in the list.  Thus, if you are in the market for a stock from the Financial sector, you should see multiple options to investigate.

Once question is… are any of these 13 stocks offering a reasonable price for entry or addition?   I’ll leave that for you to decide.  Just remember, we don’t want to pay too much for the dividend growth.

 

Did any of the highlighted stocks pique your interest?  Do you own any of these stocks already?

 

I hope you find the article useful and/or enjoyable.  As always, please share your thoughts once you’ve had a chance to read the material.

See you next time…