The Dividend Achievers Index refers to all public companies that have successfully increase their dividend payments for at least ten consecutive years. While the Dividend King list includes 19 companies and the Dividend Aristocrats 52, the Dividend Achievers list now counts over 250 companies.
For those who didn’t know The Dividend Achievers list was introduce by Moody’s back in 1979. Their investor service developed a model to determine which are the best dividend paying stocks. In 2012, Nasdaq bought the brand and declined this index in many sub-categories.
Over the years, I’ve built my own model to identify the best dividend paying companies. The core of my investment strategy has been built around dividend growth. Overtime, I didn’t want to limit myself among a short list of 19 or 51 companies and rather starting the study of a wider group; the achievers. With the right combination of metrics, this list is probably the best starting point to build your dividend growth portfolio or to find your next addition.
The 2019 Achievers List
Here is the complete list of all 261 achievers taken from the PowerShares Dividend Achievers Portfolio from Invesco. If you are looking for additional metrics, a more detailed lists with additional value is available toward the end of this article.
The Achievers list has been updated on April 2019.
HoldingsTicker | Name | Sector |
---|---|---|
VZ | Verizon Communications Inc | Communication Services |
T | AT&T Inc | Communication Services |
CMCSA | Comcast Corp | Communication Services |
TDS | Telephone & Data Systems Inc | Communication Services |
MDP | Meredith Corp | Communication Services |
JW/A | John Wiley & Sons Inc | Communication Services |
MCD | McDonald's Corp | Consumer Discretionary |
NKE | NIKE Inc | Consumer Discretionary |
LOW | Lowe's Cos Inc | Consumer Discretionary |
TJX | TJX Cos Inc/The | Consumer Discretionary |
TGT | Target Corp | Consumer Discretionary |
ROST | Ross Stores Inc | Consumer Discretionary |
VFC | VF Corp | Consumer Discretionary |
BBY | Best Buy Co Inc | Consumer Discretionary |
GPC | Genuine Parts Co | Consumer Discretionary |
TIF | Tiffany & Co | Consumer Discretionary |
HAS | Hasbro Inc | Consumer Discretionary |
COLM | Columbia Sportswear Co | Consumer Discretionary |
PII | Polaris Industries Inc | Consumer Discretionary |
LEG | Leggett & Platt Inc | Consumer Discretionary |
WSM | Williams-Sonoma Inc | Consumer Discretionary |
CBRL | Cracker Barrel Old Country Store Inc | Consumer Discretionary |
AAN | Aaron's Inc | Consumer Discretionary |
MNRO | Monro Inc | Consumer Discretionary |
ISCA | International Speedway Corp | Consumer Discretionary |
WMT | Walmart Inc | Consumer Staples |
PG | Procter & Gamble Co/The | Consumer Staples |
KO | Coca-Cola Co/The | Consumer Staples |
PEP | PepsiCo Inc | Consumer Staples |
PM | Philip Morris International Inc | Consumer Staples |
COST | Costco Wholesale Corp | Consumer Staples |
MO | Altria Group Inc | Consumer Staples |
CL | Colgate-Palmolive Co | Consumer Staples |
WBA | Walgreens Boots Alliance Inc | Consumer Staples |
KMB | Kimberly-Clark Corp | Consumer Staples |
SYY | Sysco Corp | Consumer Staples |
GIS | General Mills Inc | Consumer Staples |
ADM | Archer-Daniels-Midland Co | Consumer Staples |
HRL | Hormel Foods Corp | Consumer Staples |
K | Kellogg Co | Consumer Staples |
CLX | Clorox Co/The | Consumer Staples |
KR | Kroger Co/The | Consumer Staples |
MKC | McCormick & Co Inc/MD | Consumer Staples |
CHD | Church & Dwight Co Inc | Consumer Staples |
BF/B | Brown-Forman Corp | Consumer Staples |
SJM | JM Smucker Co/The | Consumer Staples |
BG | Bunge Ltd | Consumer Staples |
CASY | Casey's General Stores Inc | Consumer Staples |
FLO | Flowers Foods Inc | Consumer Staples |
LANC | Lancaster Colony Corp | Consumer Staples |
JJSF | J&J Snack Foods Corp | Consumer Staples |
NUS | Nu Skin Enterprises Inc | Consumer Staples |
TR | Tootsie Roll Industries Inc | Consumer Staples |
VGR | Vector Group Ltd | Consumer Staples |
UVV | Universal Corp/VA | Consumer Staples |
ANDE | Andersons Inc/The | Consumer Staples |
XOM | Exxon Mobil Corp | Energy |
CVX | Chevron Corp | Energy |
EPD | Enterprise Products Partners LP | Energy |
OXY | Occidental Petroleum Corp | Energy |
ET | Energy Transfer LP | Energy |
OKE | ONEOK Inc | Energy |
MMP | Magellan Midstream Partners LP | Energy |
HP | Helmerich & Payne Inc | Energy |
HEP | Holly Energy Partners LP | Energy |
CB | Chubb Ltd | Financials |
SPGI | S&P Global Inc | Financials |
PRU | Prudential Financial Inc | Financials |
AFL | Aflac Inc | Financials |
TRV | Travelers Cos Inc/The | Financials |
TROW | T Rowe Price Group Inc | Financials |
AMP | Ameriprise Financial Inc | Financials |
BEN | Franklin Resources Inc | Financials |
PFG | Principal Financial Group Inc | Financials |
CINF | Cincinnati Financial Corp | Financials |
WRB | WR Berkley Corp | Financials |
FDS | FactSet Research Systems Inc | Financials |
TMK | Torchmark Corp | Financials |
AFG | American Financial Group Inc/OH | Financials |
SEIC | SEI Investments Co | Financials |
BRO | Brown & Brown Inc | Financials |
IVZ | Invesco Ltd | Financials |
ERIE | Erie Indemnity Co | Financials |
UNM | Unum Group | Financials |
CBSH | Commerce Bancshares Inc/MO | Financials |
CFR | Cullen/Frost Bankers Inc | Financials |
PBCT | People's United Financial Inc | Financials |
ORI | Old Republic International Corp | Financials |
RNR | RenaissanceRe Holdings Ltd | Financials |
AIZ | Assurant Inc | Financials |
BOKF | BOK Financial Corp | Financials |
PB | Prosperity Bancshares Inc | Financials |
EV | Eaton Vance Corp | Financials |
THG | Hanover Insurance Group Inc/The | Financials |
AXS | Axis Capital Holdings Ltd | Financials |
LAZ | Lazard Ltd | Financials |
UBSI | United Bankshares Inc/WV | Financials |
OZK | Bank OZK | Financials |
EVR | Evercore Inc | Financials |
UMBF | UMB Financial Corp | Financials |
RLI | RLI Corp | Financials |
CBU | Community Bank System Inc | Financials |
MCY | Mercury General Corp | Financials |
AEL | American Equity Investment Life Holding Co | Financials |
BANF | BancFirst Corp | Financials |
WABC | Westamerica Bancorporation | Financials |
TMP | Tompkins Financial Corp | Financials |
SRCE | 1st Source Corp | Financials |
SBSI | Southside Bancshares Inc | Financials |
CTBI | Community Trust Bancorp Inc | Financials |
BMRC | Bank of Marin Bancorp | Financials |
FLIC | First of Long Island Corp/The | Financials |
WHG | Westwood Holdings Group Inc | Financials |
JNJ | Johnson & Johnson | Health Care |
ABT | Abbott Laboratories | Health Care |
MDT | Medtronic PLC | Health Care |
SYK | Stryker Corp | Health Care |
BDX | Becton Dickinson and Co | Health Care |
MCK | McKesson Corp | Health Care |
ABC | AmerisourceBergen Corp | Health Care |
CAH | Cardinal Health Inc | Health Care |
WST | West Pharmaceutical Services Inc | Health Care |
PRGO | Perrigo Co PLC | Health Care |
CHE | Chemed Corp | Health Care |
ENSG | Ensign Group Inc/The | Health Care |
ATRI | Atrion Corp | Health Care |
NHC | National HealthCare Corp | Health Care |
MMM | 3M Co | Industrials |
UNP | Union Pacific Corp | Industrials |
UTX | United Technologies Corp | Industrials |
LMT | Lockheed Martin Corp | Industrials |
CAT | Caterpillar Inc | Industrials |
CSX | CSX Corp | Industrials |
RTN | Raytheon Co | Industrials |
FDX | FedEx Corp | Industrials |
ITW | Illinois Tool Works Inc | Industrials |
GD | General Dynamics Corp | Industrials |
NOC | Northrop Grumman Corp | Industrials |
EMR | Emerson Electric Co | Industrials |
WM | Waste Management Inc | Industrials |
ROP | Roper Technologies Inc | Industrials |
RSG | Republic Services Inc | Industrials |
CMI | Cummins Inc | Industrials |
SWK | Stanley Black & Decker Inc | Industrials |
CTAS | Cintas Corp | Industrials |
HRS | Harris Corp | Industrials |
FAST | Fastenal Co | Industrials |
GWW | WW Grainger Inc | Industrials |
DOV | Dover Corp | Industrials |
ROL | Rollins Inc | Industrials |
EXPD | Expeditors International of Washington Inc | Industrials |
CHRW | CH Robinson Worldwide Inc | Industrials |
JBHT | JB Hunt Transport Services Inc | Industrials |
GGG | Graco Inc | Industrials |
NDSN | Nordson Corp | Industrials |
RHI | Robert Half International Inc | Industrials |
AOS | AO Smith Corp | Industrials |
TTC | Toro Co/The | Industrials |
CSL | Carlisle Cos Inc | Industrials |
HUBB | Hubbell Inc | Industrials |
DCI | Donaldson Co Inc | Industrials |
LECO | Lincoln Electric Holdings Inc | Industrials |
ITT | ITT Inc | Industrials |
HEI | HEICO Corp | Industrials |
MSA | MSA Safety Inc | Industrials |
MSM | MSC Industrial Direct Co Inc | Industrials |
RBC | Regal Beloit Corp | Industrials |
R | Ryder System Inc | Industrials |
HI | Hillenbrand Inc | Industrials |
HCSG | Healthcare Services Group Inc | Industrials |
ABM | ABM Industries Inc | Industrials |
BRC | Brady Corp | Industrials |
FELE | Franklin Electric Co Inc | Industrials |
MGRC | McGrath RentCorp | Industrials |
MATW | Matthews International Corp | Industrials |
TNC | Tennant Co | Industrials |
LNN | Lindsay Corp | Industrials |
GRC | Gorman-Rupp Co/The | Industrials |
MSFT | Microsoft Corp | Information Technology |
V | Visa Inc | Information Technology |
IBM | International Business Machines Corp | Information Technology |
ACN | Accenture PLC | Information Technology |
TXN | Texas Instruments Inc | Information Technology |
ADP | Automatic Data Processing Inc | Information Technology |
QCOM | QUALCOMM Inc | Information Technology |
ADI | Analog Devices Inc | Information Technology |
XLNX | Xilinx Inc | Information Technology |
MCHP | Microchip Technology Inc | Information Technology |
MXIM | Maxim Integrated Products Inc | Information Technology |
BR | Broadridge Financial Solutions Inc | Information Technology |
JKHY | Jack Henry & Associates Inc | Information Technology |
BMI | Badger Meter Inc | Information Technology |
CASS | Cass Information Systems Inc | Information Technology |
ECL | Ecolab Inc | Materials |
APD | Air Products & Chemicals Inc | Materials |
SHW | Sherwin-Williams Co/The | Materials |
PPG | PPG Industries Inc | Materials |
NUE | Nucor Corp | Materials |
IFF | International Flavors & Fragrances Inc | Materials |
WLK | Westlake Chemical Corp | Materials |
ALB | Albemarle Corp | Materials |
RPM | RPM International Inc | Materials |
ATR | AptarGroup Inc | Materials |
SON | Sonoco Products Co | Materials |
RGLD | Royal Gold Inc | Materials |
SLGN | Silgan Holdings Inc | Materials |
BCPC | Balchem Corp | Materials |
SXT | Sensient Technologies Corp | Materials |
KWR | Quaker Chemical Corp | Materials |
FUL | HB Fuller Co | Materials |
SCL | Stepan Co | Materials |
HWKN | Hawkins Inc | Materials |
DLR | Digital Realty Trust Inc | Real Estate |
O | Realty Income Corp | Real Estate |
ESS | Essex Property Trust Inc | Real Estate |
WPC | WP Carey Inc | Real Estate |
ELS | Equity LifeStyle Properties Inc | Real Estate |
FRT | Federal Realty Investment Trust | Real Estate |
NNN | National Retail Properties Inc | Real Estate |
OHI | Omega Healthcare Investors Inc | Real Estate |
NHI | National Health Investors Inc | Real Estate |
SKT | Tanger Factory Outlet Centers Inc | Real Estate |
UHT | Universal Health Realty Income Trust | Real Estate |
UBA | Urstadt Biddle Properties Inc | Real Estate |
NEE | NextEra Energy Inc | Utilities |
DUK | Duke Energy Corp | Utilities |
D | Dominion Energy Inc | Utilities |
SO | Southern Co/The | Utilities |
XEL | Xcel Energy Inc | Utilities |
ED | Consolidated Edison Inc | Utilities |
WEC | WEC Energy Group Inc | Utilities |
PPL | PPL Corp | Utilities |
ES | Eversource Energy | Utilities |
EIX | Edison International | Utilities |
AWK | American Water Works Co Inc | Utilities |
CMS | CMS Energy Corp | Utilities |
CNP | CenterPoint Energy Inc | Utilities |
EVRG | Evergy Inc | Utilities |
ATO | Atmos Energy Corp | Utilities |
BIP | Brookfield Infrastructure Partners LP | Utilities |
LNT | Alliant Energy Corp | Utilities |
UGI | UGI Corp | Utilities |
OGE | OGE Energy Corp | Utilities |
WTR | Aqua America Inc | Utilities |
NFG | National Fuel Gas Co | Utilities |
MDU | MDU Resources Group Inc | Utilities |
POR | Portland General Electric Co | Utilities |
SWX | Southwest Gas Holdings Inc | Utilities |
BKH | Black Hills Corp | Utilities |
NJR | New Jersey Resources Corp | Utilities |
SR | Spire Inc | Utilities |
NWE | NorthWestern Corp | Utilities |
APU | AmeriGas Partners LP | Utilities |
SJI | South Jersey Industries Inc | Utilities |
AWR | American States Water Co | Utilities |
CWT | California Water Service Group | Utilities |
MGEE | MGE Energy Inc | Utilities |
NWN | Northwest Natural Holding Co | Utilities |
SJW | SJW Group | Utilities |
CPK | Chesapeake Utilities Corp | Utilities |
MSEX | Middlesex Water Co | Utilities |
I’ve combined my 7 investing rules the Achievers List
The Achievers list I built is a combination of my set of metrics I follow according to the 7 dividend growth investing principles and a list of strong dividend payers. Instead of searching through a universe counting thousands of stocks, we already reduce the number significantly You know for sure those companies have been generous with their shareholders for over a decade.
Over the next 12 months, I will be going through each company on this list and make a complete analysis. I will gradually add the Dividend Discount Model valuation to the list as a complete my report on each business.
How I use this powerful list to its full potential
I wanted to create a list that would satisfy most investors by meeting several needs. It would be foolish to select any companies from this list solely based on the fact management has issue raising payouts for over ten years.
If you are looking for a higher income, you can sort the list through dividend yield. You can then double check with the payout and cash payout ratio to make sure company distributions are not at risk. Remember that the payout ratio is calculated based on earnings. As earnings is calculated based on General Accepted Accounting Principles (GAAP), a company could show a high payout ratio, but a lower cash payout ratio. We use the following metrics from Ycharts using the following definition:
Definition:
“Proportion of free cash flow (after preferred dividends) that is paid as dividends to common shareholders. If Microsoft generates 50 million in operating cash flow, has capital expenditures of 20 million, pays preferred dividends 10 million and pays common dividends 5 million, Microsoft has a cash dividend payout ratio of 25%. 5/(50-20-10)
Because net earnings can be easily manipulated and cash flows are harder to manipulate, this ratio is useful to analyze cash flow being paid in dividends. If this number is consistently high, or greater than 1, it indicates that the firm is paying out more in dividends than it is receiving in actual cash.”
Formula:
Cash Dividend Payout Ratio = Common Stock Dividends / (Cash Flow from Operations – Capital Expenditures – Preferred Dividends Paid)
Note:
Payout ratios are normally calculated as Dividends/Net Income. To get a more accurate picture of cashflow available to shareholders, the above formula can be used instead.”
By combining both dividend yield and payout ratios, you will be in a better position to identify high yielding stocks that have better chance of increasing their distribution in the future.
If you are looking more for growth, I’d suggest sorting this list by the “5yr dividend growth” rate and double check this metrics with the “5yr revenue growth” and “5yr EPS growth”. In an ideal world, you would find a company showing consistent rate among dividend, revenue and earnings growth.
A sound company shows a strong business model enabling revenue growth. As sales increase, earnings should follow a similar trend. Then, it becomes easy for management to increase their distribution year after year.
Finally, if you are looking for the most undervalued stocks, I’d suggest you sort companies using the Dividend Discount Model valuation. The % indicate the premium (positive) or the discount (negative). Therefore, you are looking at the biggest negative numbers in this column. I’ve also included the P/E ratio, but it is important to compare this date to its industry and not to the global market. As mentioned earlier in this article, the Achiever list is a good start for search high quality company, but further analysis will be required.
Why the Achievers and not the Aristocrats?
If you have done your own research on dividend aristocrats, I’m positive you have seen how this elite group of companies outperformed the S&P 500 over the past decade:
The problem when you want to look at the Dividend Achievers performance is that the index has changed hands in late 2012 (it was bought by Nasdaq from Mergent). Therefore, we only have three years of history to compare:
As you can see, the Achievers stared performing well after the market experienced higher volatility. If we use the previous index managed by Mergent (the US Broad Dividend Achievers), we get a similar result:
Therefore, what is the purpose of taking the achievers over the aristocrats as both group seems to outperform the overall market for over a decade?
The first reason is because the aristocrats are simply not enough to create an interesting list. If I had to build a portfolio with 20 to 30 holdings, I need to select more than 50% of this list. You would then be better of buying shares of NOBL (ProShares S&P 500 Dividend Aristocrats ETF) and be done with it.
Which leads me to the second reason why I prefer the Achievers instead; this index has not only more stocks, but it also has a wider diversification.
As you can see, there is a clear dominance of 3 sectors (consumer defensive, industrials and healthcare) covering 60% of the aristocrats group. When you perform the same exercise with the achievers, you get a completely different result:
The same three sectors now only count for 36% and you have more weight towards Utilities, Real Estate and Financial Services. You also have the introduction of a new and very interesting sector: Technology. Companies such as Microsoft (MSFT) and Qualcomm (QCOM) are part of a completely new economy and offer another type of opportunity for investors.
By definition, I also appreciate a shorter dividend growth rate horizon (ten years) as this index can rapidly catch interesting companies. Companies like Apple (AAPL) (5 years consecutive increase), BlackRock (BLK) (7 years) and Disney (DIS) (8 years) are soon to be part of the Achievers group, but they are still a long road before reaching the Aristocrats status.
How to Download the Dividend Achievers List
Instead of simply send you toward the composition of the PowerShares Dividend Achievers Portfolio from Invesco, I decided to take the download the list and add my own sets of metrics. You can then now download the dividend achiever list including the following features:
- Company Name
- Ticker
- Sector
- Dividend Yield
- 5 yr Dividend growth
- 5 yr Revenue growth
- 5 yr EPS growth
- Payout ratio
- Cash Payout ratio
- P/E ratio
- Dividend Discount Model valuation (work in progress)
*Please note that I will update metrics on this list quarterly and update the full list once a year when Invesco proceed with their addition and deletion. The new Achiever list will be automatically sent to my readers.
A Decade of Growth is Not Everything
I can’t stress enough the importance of not depending on a single metric to invest in a company. I don’t believe there are 261 amazing companies you should buy. The Dividend Achievers List is a very good start but further analysis is mandatory before making any transactions.
Let me know if this list is helpful and how I can improve it!
Disclaimer: I hold AAPL, BLK, DIS, MSFT in my DSR portfolios.