13 Jul 2018 17:25
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I did not post any blog updates last weekend and if I disappointed anyone I apologize but it was for a good reason as I was hard at work developing a new list that I’m pretty excited about. With that being said, I developed a new list called the U.S. Inflation Beaters Index. This list is a compilation of companies who have grown their annual dividends for 25 or more consecutive years and their annual dividend increases exceed the inflation rate for each year.
When I first imagined this list I thought it was going to be a quick exercise in spreadsheet number crunching but I couldn’t have been more wrong. I started by using the ever-so valuable U.S. Dividend Champions List from http://www.dripinvesting.org/ as a base model. The limitations of that file was that dividend payment history only went back to the year 2000 and would not fit the analysis needed to be done. From there I spent the next 5 days downloading the dividend history for each champion (there were 123 companies) and then had to manually adjust for all stock splits.
Once I had all of the relevant information it was an easy analysis after that. Using the inflation table from https://www.usinflationcalculator.com/inflation/current-inflation-rates/, the inflation rate from each year was overlaid to see how often a dividend increase exceed inflation. The data was then formatted and migrated to google sheets and now available to all. This will be a fairly easy thing to maintain going forward so I am pretty happy with the way it turned out.
Now that the data is available, the largest surprise was of the original 123 dividend champions only 32% met the criteria of beating the inflation rate for 25+ years. The really impressive companies are those with 30+ year streaks as they did this while navigating the significant downturns from:
- Black Monday Crash of 1987
- S&L Crisis in the early 1990’s
- Dot-Com crash of 2000
- 9/11 Terrorist Attacks in 2001
- Financial Crisis of 2008-2009
.
Post preview:
Close previewSaved a copy so I can reference it later if a company is on sale
Thanks for compiling this.
You are welcome and it is being maintained daily if it helps
Just browsed through the list and love it, especially the dividend growth and beat inflation columns! I have bookmarked this and will definitely check back often for future buying sprees. ;)
Thanks for taking the time to create the list, and more importantly, thank you for sharing!
Best wishes and success on your personal journey! AFFJ
Thanks AFFJ,
I working on the contenders now and its a much bigger list. Once this is up and running I just have to monitor and update the "most recent increase" field. Other than that the only big update will be at the end of the year when actual dividend payouts get totaled and 2018's average inflation rate is applied.
as a footnote I do plan on slowly expanding the list to include inflation beaters that have 20 to 24 year streaks