Analyzing Williams-Sonoma’s Dividend Growth Potential

Recap from June’s Picks

On a price return basis, the Dividend Growth Stocks Model Portfolio (+5.1%) outperformed the S&P 500 (+4.0%) by 1.1% from June 29, 2023 through July 25, 2023. On a total return basis, the Model Portfolio (+5.2%) outperformed the S&P 500 (+4.0%) by 1.2% over the same time. The best performing stock was up 21%. Overall, 16 out of 28 Dividend Growth stocks outperformed their respective benchmarks (S&P 500 and Russell 2000) from June 29, 2023 through July 25, 2023.

The methodology for this model portfolio mimics an “All Cap Blend” style with a focus on dividend growth. Selected stocks earn an attractive or very attractive rating, generate positive free cash flow (FCF) and economic earnings, offer a current dividend yield >1%, and have a 5+ year track record of consecutive dividend growth. This model portfolio is designed for investors who are more focused on long-term capital appreciation than current income, but still appreciate the power of dividends, especially growing dividends.