- Listed on a major US stock exchange
- Market capitalization in excess of $1B
- Net Income 5-year CAGR > 10%
- Revenue 5-year CAGR > 10%
- P/E (trailing LTM) < 15X
- FCF LTM > 0
US Dividend Payers
US Non-Dividend Payers
Within the dividend blogging community, most of the names on the dividend payer list are pretty common. It is rare day that I do not see a tweet about Apple or T.Rowe Price on my Twitter feed. In contrast, outside of a couple of airlines (Ryanair and JetBlue) and American Axle who I used to analyze in a past job, the names on the second list are mysteries to me. Clearly, the non payers have been able to grow their businesses at impressive rates over the past five years, which makes me wonder why they have not rewarded their shareholders with a dividend. As as a dividend investor, the only justification I would find reasonable for not paying a dividend given such impressive business results is that a company that operates in a cyclical industry in which management must save during boom years to cover expenses/investments during down years.
My question to all the dividend investors out there is if there are any metrics that would convince you to invest in a company that does not pay a dividend? I look forward to reading your answers!