I hope one day to have a steady stream of income provided by multiple companies with a long standing history of increasing their dividend annually. In my mind it is almost like creating my own private pension. Due to other focuses right now (specifically, pay down the debt I just took on to finish up my pool) I have slowed down my screen and investment from a monthly to every “so often.” With all the turmoil in the markets I thought now would be a good time to run the screen and see if anything interesting pops up.

Previous Screens From this Year:

  1. January 2021 Stock Screen
  2. February 2021 Stock Screen

Dividend Stocks with 20+ Years of Dividend Growth

First and foremost, I want companies that have dividend growth in their DNA. As such, I use the Dividend Champion (25+yrs) and part of the Dividend Contenders List (20+ Years). While the number will change month to month it should be unusually stable as companies don’t often drop off (and to get on they would have had to started while Bush was President, and survived the dot.com bubble, 2007 – 2009 and the first phase of COVID).

This provides me with 171 companies that have increased their dividend for the past 20 years (in February that amount was 167).

Metric Screens

Once I have those companies I can screen them for particular metrics. Please review my larger discussion on screening for undervalued dividend growth stocks for definitions and thoughts on each:

  • Company has to have a P/E under 20;
  • A Dividend Yield of over 2%;
  • Payout Ratio under 50%; and
  • Positive EPS Growth for the past 5 years.

Now to cross reference the two lists to see what I end up.

My Third Undervalued Divided Growth Watch List for 2021

ADMArcher-Daniels-Midland CompanyConsumer DefensiveFarm Products
AFLAflac IncorporatedFinancialInsurance – Life
AROWArrow Financial CorporationFinancialBanks – Regional
ATOAtmos Energy CorporationUtilitiesUtilities – Regulated Gas
CINFCincinnati Financial CorporationFinancialInsurance – Property & Casualty
CTBICommunity Trust Bancorp, Inc.FinancialBanks – Regional
EBTCEnterprise Bancorp, Inc.FinancialBanks – Regional
FLICThe First of Long Island CorporationFinancialBanks – Regional
GDGeneral Dynamics CorporationIndustrialsAerospace & Defense
MCYMercury General CorporationFinancialInsurance – Property & Casualty
MDUMDU Resources Group, Inc.Basic MaterialsBuilding Materials
NCNACCO Industries, Inc.EnergyThermal Coal
ORIOld Republic International CorporationFinancialInsurance – Diversified
OZKBank OZKFinancialBanks – Regional
SBSISouthside Bancshares, Inc.FinancialBanks – Regional
SRCE1st Source CorporationFinancialBanks – Regional
THFFFirst Financial CorporationFinancialBanks – Regional
TMPTompkins Financial CorporationFinancialBanks – Regional
TROWT. Rowe Price Group, Inc.FinancialAsset Management
UGIUGI CorporationUtilitiesUtilities – Regulated Gas
NUSNu Skin Enterprises, Inc.Consumer DefensiveHousehold & Personal Products
CATCCambridge BancorpFinancialBanks – Regional
PBProsperity Bancshares, Inc.FinancialBanks – Regional
RBCAARepublic Bancorp, Inc.FinancialBanks – Regional
SJMThe J. M. Smucker CompanyConsumer DefensivePackaged Foods

Look at all those regional banks! Instead of digging deep into each one, or the metrics that would make one better than another I decided to just move away from them leaving me with:

  • ADM
  • AFL
  • ATO
  • CINF
  • GD
  • MCY
  • MDU
  • NC
  • ORI
  • TROW
  • UGI
  • NUS
  • SJM

Next I put those against their 52 week high and 52 week low for a margin of saftey

52 Week High52 Week Low

Interestingly, both are in a sector that I have no exposure, energy:

NACCO Industries, Inc is an American publicly traded holding company, headquartered in Cleveland, Ohio. Through a portfolio of mining and natural resources businesses, the company operates under three business segments: Coal Mining, North American Mining and Minerals Management

Atmos Energy Corporation, headquartered in Dallas, Texas, is one of the United States’ largest natural-gas-only distributors, serving about three million natural gas distribution customers in over 1,400 communities in nine states from the Blue Ridge Mountains in the East to the Rocky Mountains in the West.

Atmos Energy also manages company-owned natural gas pipeline and storage assets, including one of the largest intrastate natural gas pipeline systems in Texas

I am going to open a small position in each (just $500/company).