2024 Dividend Contenders List | Dividend Yield, Payout Ratio, & More

Up to date on December twenty eighth, 2023 by Bob Ciura

Revenue traders could be tempted to purchase shares with the very best dividend yields. However that is typically a mistake, as excessive high-yielding shares are sometimes in doubtful monetary situation. Whereas excessive yields are necessary, we imagine it’s equally necessary to deal with high quality.

One method to measure the standard of a dividend inventory is by its dividend historical past. We imagine shares with established histories of dividend development, usually tend to proceed rising their dividends transferring ahead. That is why we deal with teams of shares with lengthy histories of accelerating their dividends, such because the Dividend Aristocrats.

In the meantime, traders also needs to look over the checklist of Dividend Contenders, which have raised their dividends for 10-24 years.

With this in thoughts, we created a downloadable checklist of 300+ Dividend Contenders. You possibly can obtain your free copy of the Dividend Contenders checklist, together with related monetary metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the hyperlink beneath:

This text will talk about an summary of Dividend Contenders, and why traders ought to take into account high quality dividend development shares.

Extra data concerning dividend shares in our protection universe will be discovered within the Positive Evaluation Analysis Database.

Desk of Contents

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Overview of Dividend Contenders

The requirement to grow to be a Dividend Contender is pretty easy: 10-24 consecutive years of dividend development. Whereas 10-24 years might not seem to be the longest monitor document, and certainly there are shares with for much longer streaks of annual dividend hikes, it’s nonetheless a constructive indicator.

In spite of everything, there are a selection of firms which have by no means paid a dividend. Or, even amongst firms that do pay dividends, many haven’t been in a position to elevate their dividends constantly because of a scarcity of underlying enterprise development.

Many firms can’t pay dividends, or elevate dividend payouts from yr to yr, as a result of their enterprise fashions don’t generate sufficient income or money movement.

Cyclical firms even have bother becoming a member of lists of long-running dividend development shares, as a result of their income collapse throughout recessions.

Automakers and oil shares are good examples of extremely cyclical firms that can typically freeze or lower their dividends throughout recessions.

In recessions, company income usually decline, significantly inside industries which are intently tied to shopper spending. In 2020-2021, firms throughout a number of industries suspended or eradicated their dividend payouts as a result of influence of the coronavirus pandemic on the worldwide economic system.

That mentioned, there have been many firms that maintained their dividends over the previous two years, and even continued to lift them, regardless of the pandemic.

The best-quality dividend development shares that continued to extend their dividends, as soon as once more proved the endurance and sturdy aggressive benefits of their enterprise fashions.

That is why earnings traders on the lookout for protected dividends and dependable dividend development, ought to deal with firms with established histories of efficiently rising their dividends, even throughout recessions.

Instance Of Excessive-High quality Dividend Contenders: Comcast Corp. (CMCSA)

Comcast is a media, leisure and communications firm. Its enterprise items embody Cable Communications (Excessive-Pace Web, Video, Enterprise Companies, Voice, Promoting, Wi-fi), NBCUniversal (Cable Networks, Theme Parks, Broadcast TV, Filmed Leisure), and Sky, a number one leisure firm in Europe that gives Video, Excessive-speed web, Voice, and Wi-fi Telephone Companies on to customers.

Comcast reported its Q3 2023 outcomes on 10/26/23. For the quarter, the corporate’s revenues climbed 0.9% to $30.12 billion, adjusted EBITDA (a money movement proxy) rose 5.1% to $9.96 billion, adjusted earnings-per-share (EPS) climbed 12.5% to $1.08. And it generated free money movement (FCF) of $4.03 billion. The Connectivity & Platforms phase’s revenues rose by 1.1% to $20.27 billion and adjusted EBITDA development was 3.0% to $8.22 billion.

Click on right here to obtain our most up-to-date Positive Evaluation report on Comcast (preview of web page 1 of three proven beneath):

Last Ideas

Traders on the hunt for shares with a excessive probability of accelerating their dividends annually reliably, ought to deal with shares with the longest histories of dividend development.

For a corporation to lift its dividend for at the very least 10 years, it should have sturdy aggressive benefits, regular profitability even throughout instances of financial downturns, and a constructive future development outlook.

This may present them with the power to lift their dividends going ahead. Consequently, high-quality Dividend Contenders like Qualcomm are engaging for long-term dividend development traders.

If you’re all in favour of discovering high-quality dividend development shares appropriate for long-term funding, the next Positive Dividend databases shall be helpful:

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