Instead, he focuses on a five-year time horizon to see how dividend growth is trending and pays attention to valuations.
"You don't want to overpay for something just because it has an attractive history of increasing its dividend," Simpson said in an interview with CNBC.
"The most important part is the dividend is increasing because the company has the earnings to support the dividend growth," Simpson noted.
JPMorgan Chase has a five-year compound annual dividend growth rate of 10.3%, Simpson said.
The last two names on his list have dividend yields under 1%, which means some investors may overlook them as dividend-payers.
Persons:
Kevin Simpson, Simpson, doesn't, JPMorgan Chase
Organizations:
Dow Jones, Nasdaq, Wealth, CNBC, JPMorgan, Marathon Petroleum, Visa, Mastercard, Microsoft