What to trade? A great way is to start with stocks! So you can trade more than 6000 companies at the New York Stock Exchange and the NASDAQ. But how to find stocks to buy?
In the first part, we demonstrated how you could find stocks to buy by using the Investor’s Business Weekly newspaper. In this second part, we are now looking for dividend stocks.
For dividend stocks are most vital that they have increased their dividend every year. In the Dividend Investing Resource Center www.dripinvesting.org, you can download in the menu Info / Tools / Forms the Dividend Champions Excel Spreadsheet. In this spreadsheet, you find the Champions (25+ years increasing dividend), the Contenders (10-24 years), and the Challengers list (5-9 years).
The Champions List has today 139, the Contenders, and the Challengers 456 stocks, total 869. In the spreadsheet, you find more statistical data for more selection. We use only these lists for technical screening.
On dividata.com shows for every dividend stock the dividend history:
The so-called Dividend Aristocrats are stocks from the Champions list with the restriction to be in the S&P 500. In the next chart you see the outperformance of the Dividend Aristocrats versus the S&P 500:
Impressive is the outperformance in the bear market:
You can trade the Dividend Aristocrats with an ETF too. The issuer is ProShares, and the symbol is NOBL. It has 65 holdings. You can download the holdings here.