The last sell-off on the market gave me reasons to look back on my dividend growers lists to check the current price ratios.
You know that stocks are too expensive but some of them show good growth ratio and have also attractive price ratios in relation to the cash income and enterprise values.
This week I've screened all Dividend Achievers by cheap fundamentals, solid growth figures and low dividend payouts.
Dividend Achievers are stocks that have raised dividends over a period of 10 consecutive years or more.
These are my criteria in detail:
- Dividend Yield over 2 percent
- Dividend Payout below 40 percent
- Expected 5-Year Earnings Growth over 5 percent
- Forward P/E under 15
- Only Large Caps
- 10 Years of consecutive dividend growth or more
My screen delivered me 17 results. The best yielding results come from the oil and gas sector. Those stocks suffered under falling oil and gas prices. Russian crises and recession fears in Europe are main forces to the cheap fundamentals.
I'm a guy who believes in technology, old school technology. IBM is a top pick in my view. For sure IBM did not grow over the past decade but they have a strong focus on profit and shareholder return. Earnings doubled and due to massive buybacks, EPS skyrocket.
IBM is no island in a raw sea. It's only a big company with a strong cash flow and they must pay attention to the competition.
Which stocks did you buy from the list below? Or would you buy some of the top yielder?
Here are seven Dividend Achievers with cheap fundamentals from seven different sectors. A good and broad diversification is good for most investors because they can reduce your portfolio volatility.
7 cheap top yielding Dividend Achievers are....