“Don’t settle for measly yields”

MarketWatch has an article on the importance of dividends. They go on to quote yours truly:

The new 10-year screen was inspired by Eddy Elfenbein, who discussed Public Storage PSA, +1.18% in his CWS Market Review on Oct. 19.

“I really like PSA’s dividend,” he wrote, explaining that the annual payout had quadrupled over the past 15 years. “Think of it this way: If you had bought PSA 15 years ago, you’d now be yielding close to 10% based on your original purchase price.”

Fifteen years is a very long time to hold a stock, so this time around we’re looking back 10 years, with a screen similar to the previous five-year list. Here’s the breakdown:

There were 204 stocks in the S&P 500 with dividend yields of at least 2.00% as of the close on Oct. 20, 2011.

Among the 204 stocks, 91 had at least tripled in price (with prices adjusted by FactSet for splits and spinoffs) for 10 years through Oct. 20, 2021. (We had limited our previous five-year dividend-compounders list to companies whose shares had at least doubled in price.)

Among the remaining 91 companies, 49 had achieved 10-year compound annual growth rates (CAGR) for dividends of at least 10%.

MarketWatch then lists 20 stocks from the remaining list for which the dividend yield would be highest based on a buy price from 10 years ago.

Posted by on October 24th, 2021 at 4:20 pm


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