The Top Dividend-Growing Consumer Staples Stocks
Consumer Staples Select Index sales, earnings, and dividends have grown at a CAGR[1. Compound annual growth rate] of 2.3%, 2.9%, and 7.4%, respectively, between 2012 and 2017.
Utilities Select Index sales, earnings, and dividends have grown at a CAGR[1. Compound annual growth rate] of 1.9%, 1.7%, and 3.6%, respectively, between 2012 and 2017.
The sector has seen the weakest growth in its top and bottom lines due to uncertainty in terms of sector reforms.
Mercury General (MCY) has consistently recorded revenue growth since fiscal 2011, except for a minor decline in fiscal 2015
Consumer Discretionary Select Index sales, earnings, and dividends have grown at a CAGR (compound annual growth rate) of 6%, 7.2%, and 10.7%, respectively between 2012 and 2017.
This series will discuss how these stocks have been able to achieve continuous dividend growth.
Garmin (GRMN) recorded three-year annualized growth of 5.3%, and its five-year annualized growth fell ~1%. Its growth dipped ~24% in 2016.
For IBM (IBM), 1Q17 marked the 22nd year of annual dividend growth despite being the 20th successive quarter with no revenue growth.
Qualcomm (QCOM) recorded a year-over-year decline in revenues for 2Q17 after growth in the preceding quarter.
Telus Corp. (TU) recorded five-year annualized growth of 11%. However, it recorded three-year annualized growth of ~2%.
AT&T (T) has recorded year-over-year revenue growth in the past seven years, a feat unmatched by its peers. AT&T has the lowest debt-to-equity ratio among its peers.
The SPDR S&P 500 Growth ETF (SPYG) has generated a YTD return of 13.3% versus 4.3% from the SPDR S&P 500 Value ETF (SPYV).
If we compare the performances of the defensive sectors, we can see that their YTD performance and one-year performances have been reasonably uniform with the exception of the energy and telecom sectors.
The S&P 500 (SPY) defensive sectors tend to offer an attractive yield to investors during low-interest environments or when the economy is slowing down.
After regaining strength last week, the S&P 500 opened higher on Monday and closed the day at the highest levels in three weeks.
The Dow Jones Industrial Average closed at 20,578.71. Like the S&P 500 and Dow Jones, the NASDAQ Composite Index closed positive on Thursday.
The S&P 500 weakened and fell lower on Wednesday. Weakness in the energy, financials, and utility sectors weighed on the market.
After a volatile day on Wednesday, the S&P 500 regained some strength on April 6. It bounced back from its 50-day moving average and closed positive.
On April 4, the S&P 500 Consumer Discretionary sector fell 0.14%. In the Consumer Discretionary sector, the Auto Components sector fell the most—it fell 2.9%.
The energy sector regained strength on Tuesday. On April 4, the S&P 500 Energy Sector rose 0.71% and reached the highest levels in almost a month.