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D.A. Davidson Chief Investment Strategist Fred Dickson on the three dividend stocks investors should consider.
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Know that the dividend story has been a big one for more than a year now but how can you spot the highest achievers as so many.
Have been piled upon by investors right now well joining us now -- a Fox Business exclusive.
From -- -- -- -- -- again is Fred Dickson chief investment strategist at DA Davidson and Fred.
What I saw these three names I thought I cannot wait to present these to our viewers because.
Have a pretty stunning statistic don't that.
Absolutely was good to be within this afternoon and they absolutely do.
A fact that a lot of there's -- a lot of attention to dividend stocks but little attention to solid stable.
Annual dividend growth and that really is a big catalysts.
It is and the three names that you're going to give not only have had a pretty stunning record when it comes to paying out dividends but.
They've also gotten really really well in Europe for years so let's start with genuine parts ticker symbol GPC.
This stock is up about 25% over the past year how many years straight has it increased its dividend.
-- -- JPC has increased its dividend for 56 consecutive years I -- a stellar record.
Your viewers probably don't recognize the name the corporate name but I'll -- -- they recognize.
Napa auto stores around the country wonderful cash flow generator.
Big return on its invested capital and a lot of free cash flow growth behind it great management team.
56.
Years straight folks okay so somebody's doing something right now let's get your second name -- This one's called auto data processing and when you look at ADP this is a business that outsourcing solutions it's got all kinds of ideas when it comes to that for businesses.
This one up 21%.
Year over year at how many years has it paid out a dividend.
Well it's increased its dividend for 37 years in a row.
Anybody who's worked in a number of businesses probably receive a check a paycheck would they -- It has -- stellar management number one position and its industry branched out to provide a bunch of human resource services beyond the payroll processing.
And again very very good returns on its invested capital.
These names are not sexy some might say but here's another one I like that returns are pretty sexy this a lot of it's up 770%.
Year -- it's called it's called PP GP PG industries and they manufacture decorative coatings.
Real hot smoke and industrial stuff -- me what I what -- -- say okay boring but look this -- -- everybody this is looking so unbelievably well.
How many years has this one paid out a dividend.
What we're talking about 41 years in -- And PPG has the lowest actual yield of the three at about 2% the others are up -- three plus percent but PPG has -- story behind the story behind it.
Is that it diversified out.
Of its commodity met chemical business.
To concentrate on -- so it's coatings are going on everything from automobiles to industrial equipment the jet planes and I think that quote Wall Street's attention it should increase it's cash flow and even its rate of dividend payments as we look out over the next couple three years.
And it's been in existence since 1883.
-- when you pick a stock give us -- trade secrets of asking you to do to just cough up -- I think for free here.
You can't years of -- like it was Clinton says tell me -- trade secrets and seven seconds but.
A -- -- when you're looking to buy stock what are the two number one things but to number one thing is that was that you look for when -- purchasing stock.
Well in this particular model.
Which is one of two or three that we run -- Davidson were looking for consistent dividend growth annual dividend increases overall at least ten years.
We're looking for free cash flow queen balance sheets and would love to see the story behind the company.
That strengthens the company's industrial position -- it basically its competitive position.
Thus that should ensure those dividends keep increasing we wanna see those dividends increase in at least at the inflation rate.
And these three companies that we mentioned each successfully do that through the -- ID 798 period but also mention we've hear you mention -- -- guest earlier mentioned Google all three went up to.
Oh highs that were -- that were above their 2007 highs two years ago so the market does recognize.
These cut this kind of strategy that this.
Yeah and -- -- to say it it's a strategy that.
Basically was designed to kind of match market performance but cut the downside -- by third -- half.
In the 07808.
Period and it did that in 00103.
You know seven -- Well everybody who says that the market is is discounting good companies all you have to do is look at these three and it's a good indications that.
The good ones do do well -- Fred it's great to see you thank you so much for coming on.
Good to be within those Fred Dickson is chief investment strategist at DA Davidson by the way we will put up his picks on our FaceBook page FaceBook dot com slash was -- give us a few seconds till after the show.
