In order to get a nice return on your investment, you need to buy stocks at a cheap or reasonable price related to the expected growth. Today I like to share a screen with you that includes some in my view attractive dividend stocks.
I started with a custom made list of the dividend champions. Being a dividend champion fulfills the quality criterion.
I then sorted the list by P/E ratio, and picked the companies with a P/E below 20. I have a maximum P/E requirement in order to avoid overpaying for companies. Even the best company in the world is not worth overpaying for.
The next step in the process included evaluating trends in earnings per share and dividends per share. As I mentioned above, I want companies that can grow earnings per share over time. Earnings per share growth should be over5 percenjt for the next half decade.
This will drive future increases in dividends, and protect the purchasing power of my income in retirement.
I do not want companies that increase dividends merely by increasing their payout ratios, or who have slowed down on dividend increases because their earnings are stagnant.
Six stocks remain at the end of my screening process.
These are the results...