2024 Dividend Challengers List | See All 270 Now

Up to date on December fifteenth, 2023 by Bob Ciura

There are lots of was to measure the standard of a dividend inventory. A technique is the size of an organization’s dividend historical past. Normally, shares which have raised their dividends for a number of years in a row have demonstrated that they’re dedicated to rewarding traders with steadily rising dividends.

One lesser-known group of dividend development shares is the checklist of Dividend Challengers, which have raised their dividends for 5-9 years in a row.

Whereas 5 years will not be the longest historical past of dividend development, it does display a historical past of returning money to shareholders with dividends. It additionally represents an organization with a worthwhile enterprise mannequin, sturdy aggressive benefits, and a constructive development outlook.

With this in thoughts, we created a downloadable checklist of 270 Dividend Challengers.

You possibly can obtain your free copy of the Dividend Challengers checklist, together with related monetary metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the hyperlink under:

Buyers are doubtless accustomed to the Dividend Aristocrats, a bunch of 68 shares within the S&P 500 Index with 25+ consecutive years of dividend will increase. Dividend development traders must also familiarize themselves with the Dividend Challengers, which may very well be Dividend Aristocrats within the making.

This text will talk about an outline of Dividend Challengers, and why traders ought to think about high quality dividend development shares. Extra info relating to dividend shares in our protection universe might be discovered within the Certain Evaluation Analysis Database.

Desk of Contents

You possibly can immediately leap to any particular part of the article by clicking on the hyperlinks under:

Overview of Dividend Challengers

The requirement to change into a Dividend Challenger is easy: 5-9 consecutive years of dividend development. This isn’t precisely a excessive hurdle to clear, nevertheless it does separate dividend development shares from the businesses which have held their dividends regular for a few years. This can be a refined, however necessary, distinction.

Corporations that don’t elevate their dividends annually are sometimes unable to take action as a result of the underlying enterprise is struggling.

Whereas there are not any confirmed precursors to a dividend reduce, one potential pink flag is when a inventory freezes its dividend, significantly if that inventory had beforehand held an extended observe document of mountain climbing its dividend payout annually.

When enterprise situations deteriorate, corporations typically see their income and earnings-per-share decline. This might occur for a lot of causes, together with a recession, escalating competitors, or maybe an surprising occasion equivalent to a geopolitical battle or pure catastrophe. In any occasion, an organization with falling income and earnings-per-share will doubtless not be capable to elevate its dividend.

Relying on how issues go from there, the corporate in query may be capable to return to dividend development if its fundamentals enhance.

Alternatively, if situations worsen, the subsequent step may very well be a dividend reduce or suspension. A dividend freeze could be step one on this course of, which is why traders ought to listen if a dividend development inventory goes longer than a 12 months with out elevating its payout.

Instance Of A Dividend Challenger: Baxter Worldwide (BAX)

Baxter Worldwide develops and sells varied healthcare merchandise, together with organic merchandise, medical gadgets, and linked care gadgets used to watch sufferers. Its merchandise are utilized in hospitals, kidney dialysis facilities, nursing properties, medical doctors’ places of work, and for sufferers at dwelling underneath doctor supervision.

On November 2nd, 2023, Baxter Worldwide reported Q3 2023 outcomes for the interval ending September thirtieth, 2023. For the quarter, income elevated 3% to $3.71 billion, however this was $11 million greater than anticipated. Adjusted earnings per-share of $0.68 in contrast unfavorably to $0.82 within the prior 12 months, however this was in-line with estimates.

Click on right here to obtain our most up-to-date Certain Evaluation report on Baxter (preview of web page 1 of three proven under):

Last Ideas

The varied lists of shares by size of dividend historical past are an excellent useful resource for traders who give attention to high-quality dividend shares. To ensure that an organization to lift its dividend for at the very least 5 years, it will need to have sturdy aggressive benefits, the power to generate constant earnings even throughout recessions, and shareholder-friendly administration that’s devoted to returning money to traders.

Additionally they have long-term development potential and the obvious potential to lift their dividends sooner or later.

In case you are occupied with discovering high-quality dividend development shares appropriate for long-term funding, the next Certain Dividend databases will probably be helpful:

The foremost home inventory market indices are one other stable useful resource for locating funding concepts. Certain Dividend compiles the next inventory market databases and updates them month-to-month: