8 Dividend Stocks Passing Vigorous Fundamental, Yield And ESG Criteria

We relied upon the extensive research of institutional ETF sponsors and the rules-based strategies they follow to identify individual stocks demonstrating multi-dimensional strength. 

Eight stocks pass these filter criteria:

  • Held by Vanguard multi-factor fund (VFMF) which selects stocks for value, quality and momentum within the Russell 3000
  • Held by Vanguard value factor fund (VFVA) which selects stocks within Russell 3000 for value — giving the filter a value bias
  • Held by Vanguard high dividend yield fund (VYM) which tracks the FTSE High Dividend Yield Index
  • Paid and increased dividend each year for at least 5 years
  • Held by Vanguard ESG fund (ESGV) which is based on the Sustainalytics service which uses “traditional” ESG criteria 
  • Held by Goldman Sachs fund (JUST) which tracks non-traditional ESG-types of criteria based on surveys of what the general population wants to see in a business
  • Were seen technically as of 12/24/19 by BarChart.com as clear Buy ratings
  • Have a 12-month trailing distribution yield of at least 3% according to BarChart.

For reference, here is the 1-year performance of the ETFs we used as data sources, compared to the performance of SPY (S&P 500).

These are the 8 stocks:

  • AT&T (T) 5.22% yield
  • Verizon (VZ) 4.01% yield
  • Huntington Bancshares (HBAN) 3.97% yield
  • Keycorp (KEY) 3.65% yield
  • Regions Financial Corp (RF) 3.61% yield
  • Citizens Financial Group (CFG) 3.56% yield
  • Metlife (MET) 3.45%
  • First Horizon National Corp (FHN) 3.38% yield

All but Verizon outperformed the Vanguard Multi-Factor fund over 1 year. First Horizon nearly matched SPY performance. All the other stocks outperformed SPY.

Five-year monthly, dividend-adjusted price charts for the 8 stocks, show the stock in black; the performance relative to the S&P 500 (SPY) in red; and the Dollar amount of dividends paid in the lower panel in green.

(Click on image to enlarge)

Here is how Morningstar describes them quantitatively:

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Disclaimer: "QVM Invest”, “QVM Research” are service marks of QVM Group LLC. QVM Group LLC is a registered investment advisor.

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Frank Underwood 2 months ago Member's comment

Good article.