Up to date on October tenth, 2023 via Bob Ciura
Spreadsheet up to date day-to-day

The NASDAQ Dividend Achievers Index is made up of 370 shares with 10+ consecutive years of dividend will increase, that still meet sure minimal dimension and liquidity necessities.

It is without doubt one of the perfect assets to seek out top quality dividend enlargement shares.

The downloadable Dividend Achievers Spreadsheet Listing beneath accommodates the next for each and every inventory within the index:

• Sector
• Dividend yield
• Identify and ticker
• Worth-to-earnings ratio
• Ahead price-to-earnings ratio

You’ll obtain your unfastened Excel record of all Dividend Achievers via clicking at the hyperlink beneath:

Word: The Dividend Achievers record is up to date the usage of the holdings from this Invesco ETF.

Use The Dividend Achievers Listing To To find High quality Dividend Expansion Shares

The record of all Dividend Achievers is efficacious as it supplies dividend enlargement buyers with a protracted record of shares that experience larger their dividends for a minimum of 10+ consecutive years.

Those are corporations with shareholder-friendly control groups dedicated to rewarding buyers. They’ve a capability to take action on account of sustained revenue enlargement.

In combination, those two standards shape a tough pair. whats up transform much more tough for the investor who buys top quality dividend enlargement shares when they’re undervalued.

The spreadsheet above lets you type via price-to-earnings ratio (or dividend yield) so you’ll temporarily in finding undervalued dividend paying companies with 10+ years of consecutive dividend will increase.

Right here’s learn how to use the Dividend Achievers record to temporarily in finding top quality dividend enlargement shares doubtlessly buying and selling at a cut price:

1. Obtain the record
2. Type via P/E ratio (or ahead P/E ratio), lowest to perfect
3. Filter shares yielding not up to 3%
4. Analysis the best shares additional to seek out the most productive concepts

For the ones unfamiliar with Excel, right here’s learn how to filter shares yielding not up to 3%:

Step 1: Click on at the dividend yield clear out button:

Step 2: Pass to ‘Quantity Filters’, after which click on on ‘Higher Than or Equivalent To’:

Step 3: Input your required yield quantity (as a decimal), .03 within the instance above. Then press ‘OK’.

That’s it; the remainder shares will all have dividend yields above 3%.

Different Dividend Lists

The Dividend Achievers record isn’t the one solution to temporarily display for shares with lengthy histories of dividend enlargement.

The Dividend Aristocrats Index is created from 67 shares with 25+ years of consecutive dividend will increase. It’s extra unique than the Dividend Achievers Index.

There’s a equivalent crew referred to as the Dividend Champions, which even have raised their dividends for 25+ consecutive years.

The Dividend Champions is a larger record because it comprises shares that don’t qualify as Dividend Aristocrats on account of indexing or buying and selling quantity restrictions.

The Dividend Kings Listing is much more unique. It’s created from 50 shares with 50+ years of consecutive dividend will increase.

The Blue Chip Shares record has 350+ shares that belong to both the Dividend Achievers, Dividend Aristocrats, or Dividend Kings record.

Efficiency of the Dividend Achievers Index

Up to now 5 years, the key ETF that tracks the Dividend Achievers, the Invesco Dividend Achievers ETF (PFM), generated 8.12% annualized overall returns. It has underperformed the similar ETF that tracks the S&P 500 Index (SPY), in the similar length.

SPY has generated annualized overall returns of 10.35% previously 5 years. There are a pair causes for this.

First, the Dividend Aristocrats index is similarly weighted, whilst the Dividend Achievers index is marketplace cap weighted.

At the floor, this doesn’t sound adore it issues a lot, but it surely has severe repercussions for returns.

Which means that better shares with upper marketplace caps make up a better portion of the Dividend Achievers index. The highest 5 Dividend Achievers via weight are indexed beneath (together with their weight):

1. Microsoft (MSFT): 4.19%
2. Apple (AAPL): 3.97%
3. UnitedHealth Workforce (UNH): 2.92%
4. Exxon Mobil (XOM): 2.66%
5. JP Morgan Chase (JPM): 2.52%

I’m no longer announcing those massive holdings don’t make excellent dividend investments. Marketplace cap has just about no sway in figuring out the most productive Dividend Achievers. The issue with marketplace cap weighting is that it is the other of worth making an investment.

Consider {that a} shares’ price-to-earnings ratio rises from 10 to twenty whilst revenue don’t exchange. The corporate’s marketplace cap would double. In the true global, paying two times as a lot for a similar factor isn’t a ‘excellent deal’. With marketplace cap weighting, the Dividend Achievers index would dangle double its funding within the industry that noticed its P/E ratio double.

Additionally, the Dividend Achievers index does no longer building up possession in companies that experience observed their marketplace caps decline. Which means that if a distinct industry noticed its price-to-earnings ratio decline from 30 to fifteen (and revenue have been unchanged), the index would see its possession of this industry fall via 50%.

Marketplace cap weighting buys prime and sells low. Marketplace cap weighting does no longer benefit from valuation, whilst equivalent weighting does.

With equivalent weighting, if an organization’s price-to-earnings ratio falls via 50%, the fund must purchase extra to stay weights equivalent. In a similar way, an equivalent weighted fund must promote when the price-to-earnings ratio of a industry rises to stay the fund similarly weighted.

Every other distinction between the 2 teams is dividend historical past. Whilst 10 years is a sizeable streak of consecutive dividend bills, it covers (at perfect) 1 financial cycle.

25 years of consecutive dividend will increase covers a couple of financial cycles. Dividend Achievers would not have the similar stage of consistency as Dividend Aristocrats. Dividend historical past issues.

Ideas on Underperformance

SPY and PFM are each marketplace cap weighted. PFM has a better expense ratio, however earlier than operating ancient efficiency numbers I might have anticipated PFM to outperform SPY.

Dividend shares have traditionally outperformed non-dividend paying shares. Shares with lengthy dividend histories (Dividend Aristocrats) have traditionally outperformed the marketplace.

Why haven’t the Dividend Achievers outperformed? One reason why may well be that the valuation a couple of of the wider SPY fund has expanded at a quicker fee than for PFM.

The lack of the Dividend Achievers index to outperform the S&P 500 over a time period that has been somewhat favorable for dividend shares (because of falling rates of interest) is perplexing.

Regardless, there are higher dividend ETFs for fund buyers to choose between.

A Beginning Level

The Dividend Achievers record is perfect used as a start line for locating top quality dividend enlargement shares.

Being at the record in itself does no longer robotically ensure a person inventory has a sturdy aggressive merit, or that this can be a excellent funding.

Lengthy-term buyers will have to check that an funding has a powerful and sturdy aggressive merit, a shareholder pleasant control, and trades at a cheap (ideally low) valuation.

Combing the record for those form of companies can a great deal accelerate the seek for top quality shareholder pleasant companies buying and selling at honest or higher costs.

Different Dividend Lists & Ultimate Ideas

The Dividend Achievers record isn’t the one solution to temporarily display for shares that frequently pay emerging dividends..