Dividend Ambassadors – 10% Dividend Growth

Dividend AmbassadorsMany investors like to have a process that simplifies the chaos of the stock markets. To that end, indexes and stock lists are created by financial institutions based on pre-determine set of criteria to satisfy the demand for investors. For example, there is a Canadian Dividend Aristocrats list or a BMO Monthly Income Fund.

As it happens, a DIY dividend investor, like myself, work outside of those lists by establishing a more rigorous process to select the next dividend stock or holding to receive more funds. The Dividend Aristocrats, on both side of the border, were an initial step in my investing journey but I have since established a more rigorous set of criteria helping me narrow down a strong set of companies. I have put a comprehensive list of Canadian dividend stocks with many important key dividend metrics with the Dividend Snapshot service to help investors with their investing decisions.

However, one key discussion point I regularly have around the Canadian Dividend Aristocrats is on how poor the criteria really are for including a stock in the list. Investors use those lists to filter out stocks. It’s an important process to go from 1,000 companies to less than 100 but I don’t think it’s enough. While you can break it down by sector or industry, you want to filter out the great businesses from the others. You also want to filter out the companies that match a simple criteria of increasing dividend every year by 1 cent. Where is the growth in that for a dividend growth investor?

Since 2009, I have been working on my criteria for selecting stocks and while I usually select 90% of my holdings using the Dividend Ambassadors strategy the technology sector has usually thrown in a curve ball where instinct comes in.

Disclosure: Please note that links to merchants mentioned within this post might be using an affiliate link. Using an affiliate link means that, at zero cost to you, I might earn a commission if you buy something through that affiliate link.

Dividend Ambassadors

Dividend Ambassadors

Dividend Ambassadors StampI would like to introduce the Dividend Ambassadors where a stock needs to meet the following 2 criteria:

  • Have increase their dividends for 10 consecutive years
  • Have grown their dividend by 10% on average over the past 10 years

Once a stock matches the criteria, it earns the stamp of honour. It is actually quite an achievement to make it part of this list so take note of these blue chip stocks.

Canadian Dividend Ambassadors

ENB - Small

Enbridge

TSE:ENB

Market Trend

CNR - Small

Canadian National Railway

TSE:CNR

Market Trend

SU - Small

Suncor

TSE:SU

Market Trend

CNQ - Small

Canadian Natural Resources

TSE:CNQ

Market Trend

T - Small

Telus

TSE:T

Market Trend

SAP - Saputo

Saputo

TSE:SAP

Market Trend

SJR.B - Small

Shaw

TSE:SJR.B

Market Trend

CCL.B - Small

CCL Industries

TSE:CCL.B

Market Trend

SNC - Small

SNC Lavalin

TSE:SNC

Market Trend

MRU - Small

Metro

TSE:MRU

Market Trend

ACO.X - Small

Atco

TSE:ACO.X

Market Trend

FTT - Small

Finning International

TSE:FTT

Market Trend

PJC.A - Jean Coutu Group Inc

Jean Coutu Group

TSE:PJC.A

Market Trend

SJ - Small

Stella-Jones

TSE:SJ

Market Trend

CCA - Small

Cogeco Cable

TSE:CCA

Market Trend

CJR.B - Corus Entertainment

Corus Entertainment

TSE:CJR.B

Market Trend

CWB - Small

Canadian Western Bank

TSE:CWB

Market Trend

TCL.A - Small

TRANSCONTINENTAL

TSE:TCL.A

Market Trend

CGO - Small

Cogeco

TSE:CGO

Market Trend

GS - Small

Gluskin Sheff + Associates

TSE:GS

Market Trend

XTC - Small

Exco Technologies

TSE:XTC

Market Trend

US Dividend Ambassadors

Due to a large amount of dividend stocks to review, the first list will be filtered by the US Dividend Aristocrats followed by the US Dividend Achievers.

Out of the US Dividend Aristocrats, we have 22 strong dividend growth aristocrats as seen below listed by market capitalization.

WMT - Small

Walmart

NYSE:WMT

Market Trend

MCD - Small

McDonald

NYSE:MCD

Market Trend

MDT - Small

Medtronics

NYSE:MDT

Market Trend

WBA - Small

Walgreens Boots Alliance

NASDAQ:WBA

Market Trend

ABT - Small

Abbott Laboratories

NYSE:ABT

Market Trend

Low - Small

Lowe’s Companies

NYSE:LOW

Market Trend

GD - Small

General Dynamics

NYSE:GD

Market Trend

ADP - Small

Automatic Data Processing

NASDAQ:ADP

Market Trend

ITW - Small

Illinois Tool Works

NYSE:ITW

Market Trend

BDX - Small

Becton Dickinson & Co

NYSE:BDX

Market Trend

ECL - Small

Ecolab

NYSE:ECL

Market Trend

AFL - Small

Aflac

NYSE:AFL

Market Trend

TGT - Small

Target

NYSE:TGT

Market Trend

SHW - Small

The Sherwin-Williams Company

NYSE:SHW

Market Trend

BEN - Small

Franklin Resources

NYSE:BEN

Market Trend

ADM - Small

Archer Daniels Midland Co

NYSE:ADM

Market Trend

CAH - Small

Cardinal Health

NYSE:CAH

Market Trend

NUE - Small

Nucor

NYSE:NUE

Market Trend

HRL - Small

Hormel Foods

NYSE:HRL

Market Trend

CLX - Small

Clorox

NYSE:CLX

Market Trend

CTAS - Small

Cintas Corp

NASDAQ:CTAS

Market Trend

GWW - Small

W.W. Grainger

NYSE:GWW

Market Trend

 

The US Dividend Achievers is coming soon … Stay tuned.

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.