Wednesday, March 4, 2015

Dividend Growth Checkup

As part of my annual review process for my portfolio, I read through the latest quarterly or annual reports for the companies I own, as well as checked up on the organic dividend growth for each position and for the portfolio as a whole. The dividend is only one piece of the dividend growth strategy. The other very important aspect is the organic growth of the said dividend.

When constructing a dividend growth portfolio, you'll generally find three types of companies to choose from. The low-yield, high-growth companies, think 0-2% yield with 15%+ annual growth, such as Visa (NYSE:V) or Starbucks (NASDAQ:SBUX). In general, these companies are early in their dividend growth phase, with plenty of runway for future growth through both growth in earnings and expansion of the payout ratio. You'll also find the opposite end of the spectrum, the high-yield, low-growth companies, think 4%+ yield with < 5% annual growth...

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  2. Hi, JC:
    Thank you very much for showing us how to calculate Weighted DGR.
    is there anyway for me to download a workable google sheet for Weighted DGR, like your portfolio sheet?
    I am not very familiar with google spreadsheet and could not figure out how to make a copy of your Weighted DGR.
    Thanks again.

    1. jj,

      No problem. I'll see what I can do to get that set up so you can download it. It's pretty simple to get set up but it's a pain in the beginning. I'll try and work on it over the next few days. Email me at so I can send it to you or let you know. In the meantime you can check out this post that can maybe walk you through the steps.

      Thanks for stopping by!