Learning how to use a stock screener is mostly a matter of ordering the filters correctly: start with the universe, apply the hard requirements, then rank what is left. A dividend growth shortlist built this way on September 18, 2026 produces Procter & Gamble (PG) with a 2.9 percent yield and 70 consecutive annual increases, Johnson & Johnson (JNJ) with 2.0 percent and 64 increases, Coca-Cola (KO) with 2.4 percent and 64 increases, and Microsoft (MSFT) with a 0.7 percent yield but a 10.2 percent five-year dividend growth rate [1] [2] [3] [4] [5]. This article walks through the screen step by step so that readers can rebuild it, change the thresholds and apply it to other strategies.
Step 1: define the universe and the goal
A screener is only as useful as the question behind it. The question here is: which large U.S. companies pay a dividend that has grown reliably, is covered by earnings and is likely to keep growing? That rules out the highest yields, which often signal a payout the market expects to be cut, and it rules out companies that only started paying recently. In the DataPorium stock screener, the first filters are the practical ones: U.S. listing, market capitalization above $50 billion and a dividend yield above zero, which cuts the universe of more than 38,000 tickers to a few hundred names [1].
Step 2: apply the hard filters for dividend growth
The next three filters do most of the work.
- Dividend growth history. Require a higher dividend per share in each of the last five calendar years. DataPorium's dividend history shows Johnson & Johnson paying $3.98 per share in 2020 and $5.14 in 2025, Procter & Gamble $3.12 and $4.18, Coca-Cola $1.64 and $2.04, and Microsoft $2.09 and $3.40, with no down year for any of them [2].
- Payout ratio below 70 percent. Divide the trailing twelve-month dividend by trailing earnings per share from the latest four quarterly income statements. A ratio above 70 percent leaves little room for growth in a weak year.
- Five-year dividend growth rate above 4 percent. This removes companies that raise the payout by a token cent each year to protect a streak.
Applied to six familiar payers, the filters give the following result as of September 18, 2026.
| Company | Close Sept 18, 2026 | TTM dividend per share | Yield | Dividend per share 2020 to 2025 | 5-year growth rate | Payout ratio (TTM EPS) | Result |
|---|---|---|---|---|---|---|---|
| Procter & Gamble (PG) | $146.39 | $4.29 | 2.93% | $3.12 to $4.18 | 6.0% | 64% | Pass |
| Coca-Cola (KO) | $88.25 | $2.10 | 2.38% | $1.64 to $2.04 | 4.5% | 66% | Pass |
| Johnson & Johnson (JNJ) | $269.99 | $5.28 | 1.96% | $3.98 to $5.14 | 5.2% | 61% | Pass |
| Microsoft (MSFT) | $493.78 | $3.64 | 0.74% | $2.09 to $3.40 | 10.2% | 22% | Pass |
| Apple (AAPL) | $336.13 | $1.06 | 0.32% | $0.81 to $1.03 | 5.0% | 13% | Pass |
| ExxonMobil (XOM) | $163.54 | $4.12 | 2.52% | $3.48 to $4.00 | 2.8% | 68% | Fail (growth rate) |
Prices and dividend history are from DataPorium; trailing EPS uses net income and diluted shares from the latest four quarterly income statements in DataPorium's data, which run through the March 2026 quarter [1] [2].
What the primary sources add
The screener output should be checked against the companies' own announcements, which confirm the streaks and the current rates. Johnson & Johnson announced on April 14, 2026 a 3.1 percent increase in its quarterly dividend from $1.30 to $1.34 per share, its 64th consecutive year of increases, for an indicated annual rate of $5.36 [3]. Procter & Gamble declared on April 14, 2026 a quarterly dividend of $1.0885 per share, a 3 percent increase, extending its record to 70 consecutive years of increases and 136 consecutive years of payments [4]. Coca-Cola's board approved on February 19, 2026 its 64th consecutive annual increase, raising the quarterly dividend about 4 percent from 51 to 53 cents, or $2.12 a year, after returning $8.8 billion in dividends in 2025 [5].
Step 3: rank the survivors and read the trade-offs
Five of the six names pass, and the ranking depends on what the investor values. Sorted by yield, Procter & Gamble leads at 2.93 percent, followed by Coca-Cola at 2.38 percent and Johnson & Johnson at 1.96 percent. Sorted by growth, Microsoft leads at 10.2 percent a year with a payout ratio of only 22 percent, which means its dividend could double without exceeding half of earnings [2]. Apple passes every filter but yields just 0.32 percent, so it belongs on a growth list rather than an income list.
ExxonMobil fails on the growth-rate filter. Its dividend rose from $3.48 in 2020 to $4.00 in 2025, a 2.8 percent annual rate, and its payout ratio of 68 percent sits near the limit [2]. It has raised the dividend every year in the period, so a screen built only on streak length would include it; the growth-rate filter is what separates a reliable payer from a growing one. Investors who prioritize current income may still consider it, and that is the point of running the screen with explicit thresholds: the choice becomes visible.
A useful final check is the payout against free cash flow rather than earnings. DataPorium's cash flow statements show Coca-Cola generating about $12.6 billion of free cash flow over its latest four reported quarters against an estimated $9.1 billion of dividends at the current rate, and Apple generating $98.5 billion against about $15.6 billion, so both dividends are well covered by cash [2].
Step 4: save, monitor and adjust
- Save the screen and rerun it after each earnings season, when trailing EPS and payout ratios change.
- Watch the quarterly dividend declarations on the companies' investor pages; a smaller-than-usual increase, such as a move from 4 percent to 2 percent, often precedes a pause [3] [4] [5].
- Raise the payout limit to 80 percent for utilities and real estate investment trusts, whose cash flows support higher ratios.
- Add a balance sheet filter, such as debt-to-equity below 1.5, to avoid companies funding dividends with borrowing.
- Track the yield of the shortlist against the 10-year Treasury yield to judge whether the income is competitive.
A dividend growth screen works when it filters on growth rate and payout coverage, not on yield or streak length alone, and on September 18, 2026 that approach passes Procter & Gamble, Coca-Cola, Johnson & Johnson, Microsoft and Apple while failing ExxonMobil.
Key takeaways
- Order the filters: universe first (U.S., market cap above $50 billion, pays a dividend), then five years of increases, then payout below 70 percent, then growth above 4 percent.
- Procter & Gamble (2.93 percent yield, 70-year streak) and Coca-Cola (2.38 percent, 64 years) lead the shortlist on income; Microsoft leads on growth at 10.2 percent a year [2] [4] [5].
- Johnson & Johnson raised its quarterly dividend 3.1 percent to $1.34 in April 2026, its 64th straight increase [3].
- ExxonMobil fails the growth filter at 2.8 percent a year despite raising its dividend every year [2].
- Confirm every screener result against the company's own dividend announcement and its cash flow statement.
Frequently asked questions
What filters should I use in a dividend growth stock screener?
A common set is five consecutive years of dividend increases, a payout ratio below 70 percent of earnings, a five-year dividend growth rate above 4 percent and a market capitalization large enough to ensure stable earnings. Yield is used to rank the survivors, not as a filter.
What is a good payout ratio for a dividend growth stock?
Between 30 and 60 percent of earnings is typical for companies that grow their dividends, because it leaves room for increases in weak years. Ratios above 70 percent, such as ExxonMobil's 68 percent on trailing earnings, leave little margin.
Which large companies have the longest dividend increase streaks in 2026?
Procter & Gamble reached 70 consecutive years of increases in April 2026, and Johnson & Johnson and Coca-Cola each reached 64 consecutive years in 2026, according to their announcements.
How do I screen stocks on DataPorium?
The DataPorium stock screener lets users combine fundamentals, valuation, dividend and momentum filters across more than 38,000 tickers, then open each result to see dividend history, financial statements and analyst data on one page.
Sources & References
- [1] DataPorium Stock Screener
- [2] DataPorium Stock Market Analytics (dividend history, prices and statements)
- [3] Johnson & Johnson Announces 64th Consecutive Year of Dividend Increase, Raises Quarterly Dividend by 3.1% (April 14, 2026)
- [4] P&G Declares Dividend Increase for April 2026 (Procter & Gamble Investor Relations)
- [5] Board of Directors of The Coca-Cola Company Approves 64th Consecutive Annual Dividend Increase (February 19, 2026)
