Evenlode's ten dividend stocks for the next five years

Evenlode Income manager Hugh Yarrow identifies ten stocks he expects to product long-term sustainable dividend growth.

Our screen has been devised based on both dividend sustainability and the potential for long-term growth. It takes into account firms' cash flow return on invested capital, net debt to EBITDA, the capex/cash flow from operations ratio, dividend growth rate, free cash flow/dividend ratio, and dividend yield. Free cash flow cover is the first building block of dividend growth. It gives a company plenty of room to increase its dividend steadily. Over the longer-term, growth in free cash flow is key. Companies with a high and consistent return on capital are particularly well placed. T...