The hallmark way I go about finding the best dividend stocks…the outliers, is by looking for quiet Big Money trading activity. Oftentimes, that can be institutional activity. I’ll go over why following the Big Money is so important in a bit. But, the 5 stocks I see as long-term dividend growth candidates are DPZ, LRCX, MSFT, SBUX, & EXR.

Over decades, I’ve learned that the true tell on great stocks is that big money consistently finds its way into the best companies out there… especially dividend paying stocks. Some of the biggest returns ever have come from holding stocks for many years and reinvesting dividends.

I want the odds on my side when looking for the highest quality dividend stocks…and I own many of them.

So, let’s get into it.

Up first is Domino’s, Inc. (DPZ), which is a large pizza chain. They’ve been raising their dividend for years.

Let’s first start with the technical picture.

When deciding on a strong candidate for long-term dividend growth, I look for stocks leading in price:

  • 1 month performance (+8.82%)

  • Historical Big Money buy signals

Below are the Big Money signals Domino’s has made since 2015. Blue bars are showing that DPZ was seeing big buy activity according to MAPsignals. Typically, the more Big Money signals, the stronger the stock:

Source: MAPsignals, End of day data sourced from Tiingo.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, DPZ has a strong dividend history:

  • 3-year dividend growth rate (+19.2%)

  • Current dividend per share = .94

  • Forward yield = .82%

  • 3-year earnings growth rate (+28.28%)

Next up is Lam Research Corp. (LRCX), which is a leading semiconductor company. They’ve also been a dividend grower for years.

When deciding on a strong candidate for long-term dividend growth, it’s a good idea to look for many years of dividend increases.

Now let’s look at recent performance:

  • 1 month performance (-.24%)

  • Historical big money signals

Below are the big money signals that Lam Research has made since 2015. I expect more buy signals in the years to come.

Story continuesSource: MAPsignals, End of day data sourced from Tiingo.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Lam Research has a nice dividend history. Their earnings growth has been stellar as well:

  • 3-year dividend growth rate (+40.7%)

  • Current dividend per share = 1.30

  • Forward yield = .82%

  • 3-year earnings growth rate (+15.48%)

Next, I’m looking at Microsoft Corp. (MSFT), which is a leading software company. They have a solid dividend history.

When deciding on a strong candidate for long-term dividend growth, recent performance in the shares is important:

  • 1 month performance (+7.63%)

  • Recent Big Money signals

Below are the big money signals that Microsoft has made since 2015. It’s clear the stock has been in a nice uptrend:

Source: MAPsignals, End of day data sourced from Tiingo.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, MSFT has a strong dividend history:

  • 3-year dividend growth rate (+9.2%)

  • Current dividend per share = .56

  • Forward yield = .84%

  • 3-year earnings growth rate (+43.33%)

Next, I’m looking at Starbucks Corp. (SBUX), which is a global coffee chain. They operate over 32,000 restaurants globally.

When deciding on a strong candidate for long-term dividend growth, recent muted performance is not a bad thing:

  • 1 month performance (-1.44%)

  • Historical Big Money signals

Below are the Big Money signals that Starbucks has made since 2015.

Source: MAPsignals, End of day data sourced from Tiingo.com

On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, Starbucks has a strong dividend history.

  • 3-year dividend growth rate (+17.9%)

  • Current dividend per share = .45

  • Forward yield = 1.61%

  • 3-year earnings growth rate (-6.23%)

Lastly, I’m looking at Extra Space Storage, Inc. (EXR), which is a leading storage company. They’ve been a leader in the Real Estate sector for years.

When deciding on a strong candidate for long-term dividend growth, I like to look for recent leaders:

  • 1 month performance (+11.22%)

  • Historical Big Money signals

Below are the Big Money signals that EXR has made since 2015.

Source: MAPsignals, End of day data sourced from Tiingo.com

On top of technicals, when deciding on the best dividend stock, you gotta see if the fundamental picture supports a long-term investment. EXR has been a steady grower:

  • 3-year dividend growth rate (+4.9%)

  • Current dividend per share = 1.00

  • Forward yield = 2.40%

  • 3-year earnings growth rate (-.11%)

The Bottom Line

DPZ, LRCX, MSFT, SBUX, & EXR represent solid dividend choices. Given the strong historical dividend growth and Big Money signals, these stocks could be worth an extra look for a dividend investor.

Disclosure: the author holds long positions in personal accounts in LRCX, MSFT, SBUX, & EXR and long positions in managed accounts in DPZ, LRCX, SBUX, & EXR.

To learn more about the MAPsignals process, click here.

Disclaimer

This article was originally posted on FX Empire

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