Over the last 20years, nearly half of the Australian stock market's return can be attributed to healthy, reliable dividends. This dividend stream needs to eventually grow, and companies that are well placed to do this are called Gary. No, not your neighbour Gary, rather Growth-at-reasonable-yield companies.

GARY companies tend to have a high quality business model, with solid earnings and cashflow. Some measures for GARY include adding the grossed up dividend yield, with the 2 year dividend per share compound annual growth rate.

Deutsche Bank's recent screen shows some utilities and infrastructure assets as top of the list. Banks also feature.

Quantitative screens are great as a starting point... but sometimes (even for the Garys out there) they can be either backward looking or a value trap. In the example above, a number of these stocks have been beneficiaries of unusually low interest rates. The interest rate tide is turning, which will put earnings at risk. Others such as the banks will have their earnings under pressure after greater scrutiny from the Royal Commission.

The trick with Gary is to certainly identify him, but to also make sure that his top quality fundamentals are sustainable in the future.