| Stock | Div Yield | 5Y Div Growth | Signal | Since entry |
|---|---|---|---|---|
BEN Franklin Resources | 7.1% | +9.4% | HOLD | +8.4% |
TGT Target Corp | 5.1% | +13.5% | HOLD | +6.2% |
TROW T. Rowe Price | 5.1% | +8.3% | HOLD | +4.8% |
AMGN Amgen Inc | 3.4% | +8.9% | ADD | +3.1% |
HSY Hershey Company | 3.0% | +14.8% | HOLD | −1.2% |
Dividend Compounder invests in 8 Dividend Aristocrats — S&P 500 companies with at least 25 consecutive years of dividend growth — screened for high dividend growth momentum and reasonable valuation. The strategy ranks stocks by dividend yield × 5-year dividend CAGR, a yield-on-cost proxy that favors compounding income over raw yield.
Unlike high-yield strategies that chase income at the cost of capital loss, Dividend Compounder targets quality compounders: companies growing their dividends at ≥8% annually with sustainable payout ratios. The result is a portfolio that generates growing income while appreciating over time.
| # | Stock | Sector | Div Yield | 5Y Div CAGR | Score | Since entry |
|---|---|---|---|---|---|---|
| 1 | BEN Franklin Resources | Asset Management | 7.1% | +9.4% | 7.77 | +8.4% |
| 2 | TGT Target Corp | Retail / Consumer | 5.1% | +13.5% | 5.79 | +6.2% |
| 3 | TROW T. Rowe Price | Asset Management | 5.1% | +8.3% | 5.52 | +4.8% |
| 4 | AMGN Amgen Inc | Biotech | 3.4% | +8.9% | 3.70 | +3.1% |
| 5 | HSY Hershey Company | Consumer Staples | 3.0% | +14.8% | 3.44 | −1.2% |
| 6 | NEE NextEra Energy | Utilities | 3.0% | +10.1% | 3.30 | +2.8% |
| 7 | UNH UnitedHealth Group | Healthcare | 2.5% | +14.1% | 2.85 | +1.4% |
| 8 | AVY Avery Dennison | Packaging / Industrials | 2.3% | +10.0% | 2.53 | +3.8% |
Dividend Compounder is a quality-income strategy focused exclusively on Dividend Aristocrats — companies that have grown their dividend every year for at least 25 consecutive years. Within this elite universe, the strategy selects the stocks with the strongest dividend growth momentum, filtered for sustainability.
The optimal parameters were discovered via grid search over 96 combinations (payout thresholds: 50/60/70%; min growth: 3/5/8%; portfolio size: 8/10/12/15; rebalance: Q/A) backtested from 2015 to 2025.
| Min Growth | Top N | Rebal | CAGR | Sharpe | Max DD | Win Rate |
|---|---|---|---|---|---|---|
| 8% ✓ | 8 ✓ | Q ✓ | +14.7% | 0.93 | −16.6% | 62.0% |
| 8% | 12 | Q | +13.3% | 0.88 | −19.3% | 60.5% |
| 8% | 15 | Q | +13.3% | 0.88 | −20.1% | 60.5% |
| 8% | 10 | Q | +13.1% | 0.86 | −16.8% | 62.0% |
| 5% | 8 | Q | +10.2% | 0.72 | −21.4% | 58.3% |
| Year | Strategy | SPY | Alpha | Cumulative |
|---|---|---|---|---|
| 2015 | +2.6% | +1.4% | +1.2% | +3% |
| 2016 | +26.6% | +12.0% | +14.6% | +30% |
| 2017 | +15.7% | +21.8% | −6.1% | +51% |
| 2018 | +0.3% | −4.4% | +4.7% | +51% |
| 2019 | +28.1% | +31.5% | −3.4% | +93% |
| 2020 | +27.2% | +18.4% | +8.8% | +146% |
| 2021 | +29.3% | +28.7% | +0.6% | +218% |
| 2022 | −2.2% | −18.2% | +16.0% | +211% |
| 2023 | +2.7% | +26.3% | −23.6% | +219% |
| 2024 | +16.6% | +23.3% | −6.7% | +272% |
| 2025 | +17.8% | +8.0% | +9.8% | +338% |