Wide moat is a term coined by Warren Buffett also known as the “Oracle of Omaha” to describe stocks having a great and sustainable competitive advantage over their peers.
Such a company will usually earn more than its competitors year after year and with that extra cash, will be able to gain more market shares and grow at a faster pace than a no moat or narrow moat company.
For the dividend growth investor, this usually means years and years of growing dividends deposited in his account and a growing wealth.
If you start investing, the S&P500 dividend aristocrats list is already a nice place to seek for great companies paying growing dividends.
But, I thought I could give you (and myself) a little kickstart by screening only the wide moat stocks out of this list. While I wouldn’t recommend all of these stocks, I think it provides a nice place to start seeking for great dividend growth stocks.
As usual, perform your own due diligence as I’m not a professional!
Here’s the list.
Wide Moat Stocks in the S&P500 Dividend Aristocrats
|Automatic Data Processing||ADP|
|Cardinal Health inc||CAH|
|Exxon Mobile Corp||XOM|
|Franklin Ressources inc||BEN|
|WW Grainger inc||GWW|
|Johnson & Johnson||JNJ|
|McCormick & Co inc||MKC|
|Procter & Gamble Co||PG|
|T Rowe Price Group||TROW|
|Wal Mart stores inc||WMT|
* Wide moat based on Morningstar analysis
Full Disclosure : long MCD, WMT, JNJ, XOM[author] [author_image timthumb=’on’]http://quityourdayjob101.com/wp-content/uploads/2014/03/ID-10050051.jpg[/author_image] [author_info]Hi, my name is Allan. I’m the masked blogger. Like you I’m a modern slave, prisoner of a 9@5 job in Corporate America. They told us when we were young that we would live in a society of leisure and that technology would permit us to work only a couple of hours per day. But we live in a society of stress and uncertainty. My situation could be a lot worse and I know it. So many humans are suffering on this planet. But a golden cage remains a cage anyway. At least, I have an escape plan. I will retire before 45 years old over my passive income. This is a dream that is so powerful that I will make sure it happens. To build my wealth, I mainly invest in undervalued dividend growth stocks. [/author_info] [/author]
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