9 Best Undervalued Stocks To Buy And Hold For The Next 9 Years

The best holding period is forever, according to Warren Buffett, and we all should agree. 

Buying shares of high-quality businesses and holding them for years is the best way to compound your wealth. 

And if you can buy those shares at a discount to fair value, even better.

I evaluated 60 different companies this week to determine whether they are suitable for Defensive Investors. 

Out of those 60 companies, only 21 were found to be undervalued or fairly valued and suitable for either Defensive or Enterprising Investors.

Here are the 9 best results...

Despite Market Sell-Off: 16 S&P 500 Stocks Close To Fresh 52-Week Highs

Stock markets are in correction mode but not all stocks declined within the past months. 

Not so surprisingly, they’re mostly defensive names like staples and utilities. 

After all, we’ll need to stock up on plenty of cans of Campbell soup and Hormel SPAM for our bunkers to ride out the market volatility (not to mention the 2016 elections!). 

Looking back at 2011, not only did most of these stocks perform respectably during the 2011 selloff, they participated in the rally back (although on a low beta).Attached you will find a selection of stocks near 52-Week Highs.

Only 16 companies from the S&P 500 have achieved this.

Here are the results...

10 Cheaply Valuated Stocks Boosting Earnings For The Next Years

Companies delivering superior growth in sales and earnings tend to be winning names over the long term. However, these companies rarely sell for low valuations, so you generally need to pay premium prices for top-growth stocks. With this in mind, it makes sense to look for strong-growth companies going through temporary challenges and trading at convenient valuations.

I've created a screen of dividend paying stocks with a solid growth momentum. Those stocks have shown investors increasing sales over years while analysts predicting a rosy future. Earnings should grow for the mid-term at double-digit rates.

In addition, my focus is on higher capitalized stocks with a lower beta and debt. Twelve stocks fulfilled my criteria of which one has a yield of more than 3 percent and ten are recommended to buy.

These are the highest yielding results:

Money Raiser Of The Week: 7 Top Stocks With Fresh Dividend Growth Or Share Buybacks

Dividend growth and share buybacks are two main activities to increase the potential shareholder value and give money back to their owners. 

I like those transactions because it's a clear signal to investors which get rewarded by taking risk and borrowing money.

There is no free lunch and you might agree with me that each good managed company should raise dividends in order to satisfy investors. 

For sure some companies have no possibility to give money back to the financial market because of slipping sales and margin pressure. My answer: Those stocks are not in focus of my research!

Today I like to highlight stocks that gave investors more money via dividend growth or share buybacks within the recent week. These are some of the biggest companies:

Cheapest Dividend Paying Large Caps As of August 2013

Cheap large capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. Dividend stocks with great looking fundamentals and cheap price ratios can promise you a good return but they are also very rare and hard to find in my view. The higher your efforts of your screen are, the lower the number of results you get.

Today I would like to update my monthly screen about the cheapest dividend paying stocks on the capital market. I use six very strong criteria and only around a dozen companies remain each month.

My criteria for the cheap large cap screen are:

- Market Capitalization over USD 10 billion

- Expected Earnings per share growth over 10 percent for the next year.

- P/E ratio under 15

- P/S and P/B ratio under 2

- Positive Dividends

Twelve companies fulfilled the above mentioned criteria and ten of them have a current buy or better rating. One stock has a high yield (5 percent dividend yield or more). To buy cheap stocks is no guarantee for a return but you get value for what you pay and the possibility to overpay a stock is also low if the business model is stable.

20 Cheapest Consumer Dividend Stocks

Consumer dividend stocks with cheap price ratios originally published at "long-term-investments.blogspot.com". 

I love consumer dividend stocks. Nearly 60 percent of my own stock allocation have a relationship to the sector. For sure they also had a very low performance compared to other stocks but they give me stability and trust to invest bigger amounts of money into the stock markt.

A few years before, I purchased consumer stocks for an average yield of 3.5 percent. Today the sector has a yield of 2.78 percent despite the fact that most of the consumer stocks raised year over year their dividends. Consumer stocks getting more and more expensive and the only core reason for this development is the expansive monetary policy.

Today I like to go forward with my monthly screens of the cheapest dividend stocks measured by the lowest forward P/E. The 20 cheapest stocks with a higher market capitalization are valuated between 7.8 and 12.5. Only one High-Yield is part of the results. Nearly all companies, 17 in total, are currently recommended to buy.

13 Dividend Growth Potentials With Really Cheap Price Ratios

Stocks with dividend growth potential and cheap price ratios originally published at "long-term-investments.blogspot.com". I often publish sheets and lists of dividend growth stocks. Mostly I use Dividend Champions, Achievers or Contender lists. All stocks from the lists have a consecutive dividend growth of more than 10 years.

I ever try to discover the best stocks with the most attractive fundamentals in order to get the best results. But these lists have one big failure: They include also stocks with high debt and low growth. Not enough some of them pay a dividend which is bigger than the earnings per share of the recent quarters.

Those companies are on the edge to cut the dividend payments. If they do so, they would be kicked off the lists and you sit on a low yielding stock and wait for a recovery which could costs you 5 or 10 years to realize a positive return.

I am a dividend growth investor and made most of my money with dividend growth stocks. But if I am honest, the biggest returns I made were with stocks at a lower yield and higher growth. That’s the reason why I always look for stocks with not a perfect dividend growth history but a more attractive debt and growth situation.

Today I like to highlight some dividend potentials, stocks with potential to boost dividends over the next five years or so. My list includes 110 companies and I show you the cheapest stocks measured by a forward P/E ratio of less than 10.

Thirteen companies have such a low P/E ratio of which twelve are currently recommended to buy. This alone shows the quality of my screen compared to the Dividend Champions lists.

14 Of The Hottest Dividend Stocks Within The S&P 500

Attractive Dividend Stocks From The S&P 500 Researched By Dividend Yield - Stock, Capital, Investment. The S&P 500 is a major index and of huge importance for investors worldwide. Many of them allocate their funds on the weighting from the S&P 500 which was created by the rating agency Standard & Poors. In order to find the hottest stocks from the index, I made a screen of dividend stocks with a P/S and P/B ratio of less than one. In order to get the cheapest results, I selected only those companies with a P/E below 10. Fourteen stocks remained of which two are high yields.