As our readers know, we focus on acquiring those great American businesses that are Dividend Champions. DCs are the currently 145 businesses that have paid increasing dividends for at least 25 years. We know some folks find the DC limitation too rigid. We recognize that some investors may need to Scratch the Itch and acquire a business not on the DC list. STI businesses are those that don’t necessarily fit into the DC profile. We have some STIs too. For example, we think we have some special knowledge of Washington DC area banks. We are investors in a five-year old de novo bank (Trustar) that has not gone public and doesn’t even pay a dividend, yet. We are also investors in what we call Tech DC Wannabes. That’s nine IT businesses we believe will become DCs if given enough time. Here’s the list we previously disclosed in a previous daily diary post:
Name | Symbol | Yrs Dividend Increasing | % Increase | VL Rating |
Apple | AAPL | 13 | 8.5 | 3*1*3 |
Accenture | ACN | 19 | 10.3 | 3*1*1 |
Analog Devices | ADI | 22 | 9.7 | 4*2*3 |
Broadcom | AVGO | 14 | 36.0 | 3*3*3 |
Cisco | CSCO | 14 | 9.1 | 3*1*4 |
Microchip Technology | MCHP | 23 | 8.4 | 3*3*3 |
Microsoft | MSFT | 22 | 11.1 | 3*1*2 |
Oracle | ORCL | 15 | 13.7 | 3*1*2 |
Texas Instruments | TXN | 20 | 16.7 | 3*1*4 |
Today we are adding a 10th IT business and that’s Amdocs Ltd. (DOX). Amdocs has paid an increasing dividend for 13 years and has increased its dividend at at annual rate of 12.6% over the last decade. The most recent Value Line ratings are 2*1*4 and that increasing dividend is very well covered by growing earnings.
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