To create the following list we started by compiling a universe of "Dividend Champions,” companies with a history of increasing dividends each year for at least the past 25 consecutive years. From there, we searched for the names that appear undervalued by low foward P/E.
Buying cheap stocks is important in order to have a solid return on investment. Only at reasonable prices, related to the expected growth, you will have a good total return.
Today I've screened the Dividend Champions list by stocks with a low foward P/E of less than 15. Out of 105 stocks with a dividend growth history of more than 25 years, there are only 12 with cheap price multiples.
These are the results...
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| 12 Cheapest Dividend Champions (click to enlarge) |