High dividend growth stock

Screening Filters

1. Market Cap ≥ $10B ('market_cap': {'min': '10000000000'})

   • Purpose: Focus on larger, more established companies.
   • Rationale: High and sustainable dividend growth is more common among mature, financially stable businesses with proven cash flow. Large-cap stocks are less likely to cut dividends abruptly and often have long track records of disciplined capital allocation.

2. EPS 5-Year CAGR ≥ 5% ('eps_5yr_cagr': {'min': '5'})

   • Purpose: Ensure earnings are growing at a healthy rate.
   • Rationale: Dividend growth ultimately comes from earnings growth. A company can’t raise dividends for long unless its profits are rising. A 5%+ compound annual growth rate in EPS over five years suggests the business is expanding and can support increasing payouts.

3. Dividend 5-Year CAGR ≥ 8% ('dividend_5yr_cagr': {'min': '8'})

   • Purpose: Directly target high dividend growth.
   • Rationale: This is the core filter for your request. A dividend CAGR of at least 8% over five years indicates the company has a strong recent history of materially increasing its dividend, not just token raises. This helps surface genuine “dividend growth” stocks, not just high but stagnant yielders.

4. Dividend Yield (TTM) 2%–6%
   ('dividend_yield_ttm': {'min': '2', 'max': '6'})

   • Purpose: Balance current income with growth.
   • Rationale:
     • A minimum of 2% screens out very low-yield stocks where the dividend might not be meaningful today.
     • A maximum of 6% avoids many “yield traps” (very high yields that may be unsustainably high or signal distress).
   • For high dividend growth investors, this range is typical of companies that may not have the highest yield now, but are raising it quickly over time.

5. Dividend Payout Ratio 20%–70%
   ('dividend_payout_ratio': {'min': '20', 'max': '70'})

   • Purpose: Check sustainability and room for future increases.
   • Rationale:
     • Below ~20%: The company may be under-returning cash to shareholders; dividend growth might be limited by policy rather than capacity.
     • Above ~70%: The company is paying out most of its earnings; limited buffer for downturns and less room to grow the dividend without faster earnings growth.
   • The 20–70% range targets firms that already commit a meaningful part of profits to dividends but still retain enough earnings to reinvest and keep raising the payout.

Why Results Match “High Dividend Growth Stock”

• The dividend 5-year CAGR ≥ 8% filter directly targets companies with a strong recent history of increasing dividends.
• EPS growth ensures those higher dividends are backed by expanding earnings, not just financial engineering.
• Payout ratio and yield range focus on dividends that are both meaningful today and more likely to be sustainable and capable of continued growth.
• Large market cap improves the odds of finding established, financially solid businesses that can maintain long-term dividend growth.