DIVCON 5 (the place to be ;-)
Reality Shares’ so-called DIVCON Indexes predict companies’ ability to raise dividends!
(see also this marketwatch-article from 5th Oct. 2015: http://www.marketwatch.com)
San Diego-based investment manager Reality Shares has a new way of selecting winners by predicting their ability to raise dividends. That may seem overly simplistic, but it takes into account quite a number of factors. A company’s financial health, indicated by a high likelihood of raising dividends, can serve you well...
The DIVCON is a score that predicts the likelihood a company will raise or cut its dividend. It’s similar to the DEFCON scale used by the military, with 5 being a safe or good situation, and 1 being a dangerous or very bad predicament.
“If you are at the top of the DIVCON 5 score, there is a 96% chance of a dividend increase over the next 12 months,” Ervin said. “At the bottom of the DIVCON 1 score, there is a 38% chance of a dividend cut over the next 12 months.”
Among the factors used by Reality Shares are income-statement analysis, dividend history and buybacks, which “give some flexibility to maintain dividends,” according to Ervin. The idea is that a company consistently increasing earnings, cash flow and dividends is likely to see a rising stock price as well.
But the dividend yield isn’t the point.
“This doesn’t mean you will get most of your return from a dividend payment, but there is a bias at the board of directors and management levels to keep themselves honest by increasing the payout over time,” Ervin said.
You can check the DIVCON score for any of the largest 1,000 stocks traded in the U.S., by market capitalization, by clicking here: http://www.realitysharesadvisors.com/divcon
Follwoing the current line-up of stocks with a DIVCON 5-score i selected as per 5th Oct. 2015 several stocks carrying this "quality-sign" given by Reality Shares:
please find the selected stocks (following a subjective view i filtered out specific companies furtheron):
sounds like a very interesting approach and easy-to-access database to me - GREAT!