I’ve often wondered how well I can predict dividend growth and whether I can accurately forecast which stocks will have better dividend growth than others. It’s time to find out how good my picks really are!
I’m going to start tracking the dividend income return for the dividend stocks that I’m favorable on, and the ones I’m not so favorable on, and the stock price return that’s generated over time for these stocks.
I’ll make dividend growth and dividend income my main focus, but my thinking is that stock price appreciation should naturally follow dividend growth, so I’ll be tracking that also.
As an investor with a medium to long term horizon, I’ll be monitoring these stocks over a 5 year period (which, should coincide nicely with my $50k/yr dividend income goal, if things happen to work out!). There will be annual progress updates to see how things are going.
I’ll also look to test out my theory that select small caps and mid cap dividend payors can produce outsized dividend income and stock price return.
I’ll be finalizing the list of stocks to track in the next couple of weeks, but thus far, the candidates that I have are as follows:
Favorable Dividend Growth:
Chicago Mercantile Exchange (NYSE:CME), Quality Systems (NDAQ:QSII), Novartis (ADR: NVS)
Unfavorable Dividend Growth:
Johnson & Johnson (NYSE:JNJ)
Separately tracked will be some Mid Cap & Small Cap stocks. Currently, these are mainly Australian stock holdings, but I will be looking around for some relevant US companies.
Mid Caps & Small Caps:
Quality Systems (NDAQ: QSII), Big Air Limited (ASX: BGL), XRF Scientific (ASX: XRF), Energy Action (ASX: EAX), Clover (ASX: CLV).
I’d love to hear from any of you if you have particular favorites that you’d like to be tracked also.
I’ll be updating my list of stocks to be tracked these next couple of fridays with the aim of finalizing this by the end of the month.
Thanks for stopping by and enjoy the weekend!.