I briefly described the process that I employ for selecting stocks for my dividend growth watchlist back in June of 2007. I maintain this list of dividend growth stocks that I tend to watch regularly on an Excel spreadsheet, complete with the prices at which they get my attention for a potential new position. Qualifying for the list is difficult, and only the cream of the crop end up on my watchlist and stay on my watchlist. A high degree of consistency in earnings and dividend growth is usually required. Consistency gives me better faith in the company's future, and at the same time allows me to better determine my buy price for the firm.
Here are two of the latest additions I've made to my watchlist. I'll elaborate on these three companies on separate posts in the future.
The Clorox Company (CLX) is an $8 Billion dollar consumer products firm that manufactures and markets brands such as Clorox, Armor All, STP, Glad, and Brita. Clorox recently acquired natural products company Burt's Bees and is very recently marketing a line of environmentally friendly cleaning goods called Green Works.
United Parcel Service Inc. (UPS) is a $75 Billion dollar package delivery and supply chain management company. Package delivery is a very easy business to understand, with very high barriers to entry, and lots of room for different added value services. In supply chain management, UPS is the industry leader and at the forefront of the continuing trend of globalization.