15 Fastest Growing And Attractively Valueated Dividend Growth Stocks

Growth is very important for long-term investors. It doesn't make much sense to buy a stock and pay 20 times of earnings when growth is zero.

Today's stock markets are irrational valuated but you must pay this price if you don't get hurt by potential inflation.

Today I've created a small compilation of mid-term and long-term dividend growers with great sales growth over the past five years (over 10 percent annually). In addition, they have a low forward P/E as well as double-digit earnings growth forecasts for the next five years.

The list contains 15 stocks of which half are large capitalized and ten are recommended to buy.

5 Dogs Of The Dividend Aristocrats Index

The Dogs of the Dow Jones strategy gained a major popularity within the recent years. The strategy is very simple: You only need to invest money into the 10 cheapest stocks of the Dow Jones, measured by expected growth and price to earnings ratios.

This investment rule can also be used for other indices or adjusted by several criteria. 

Toady I've used the formula in order to find the cheapest stocks from the Dividend Aristocrats index. The index has 54 constituents with more than 25 years of consecutive dividend growth.

I selected only those stocks with a forward P/E of less than 15 as well as future earnings growth of 5 percent for the next five years. Only eleven stocks fulfilled these criteria. The top five results by dividend yield ratio are listed below.

In general, I'm a real fan of long-term dividend growth stocks but due to the low interest policy of the Federal Reserve, stock prices also skyrocket and valuations are really high. It's not good to buy highly valuated stocks.

3 Stocks Warren Buffett Would Pick In His Earlier Years

I've released earlier this week an article about Warren Buffett's latest portfolio moves. Warren acts very cautious. 

He hold much cash and makes only a few big moves per year. People can say that he is a really lazy guy but also a smart investor when you look at his long-term performance.

If you copy Warren Buffett's investment style and cover his latest trades very tight, you will definitely make no bigger return. 

How was it possible to create a $50 billion net worth over 50 years, only by trading stocks?

Warren invested in his earlier year’s money into companies with operational problems. In addition, they were very small compared to the market potential. He bought the potential leaders in a growing market.

Looking into the past doesn’t help us to find new stock ideas. I've always look at higher capitalized stocks because of the bigger degree of safety. But large capitalized stocks are also stocks with modest or slow growth. 

Today I present you 3 long-term dividend growers (stocks that have raised dividends over 25 years or more), with the following criteria:

- Market capitalization under USD 2 billion

- Dividend Payout Ratio below 50 percent

- Debt-To-Equity less than 0.5

- Forward P/E fewer than 20

You can find a company overview of the three results below. I don't own any of them but believe that they cover some values inside.

These are the results:

4 Great Dividend Growth Stocks With Several Break-Out Signals

Do you know the feeling of when you buy a stock and nothing happens over years? 

It's very disappointing to put money into a great stock for that you have done the right research and nothing happens because the market doesn’t discover the potential of your target company.

Timing is also important for stock investors. On the capital market, you can make 100 percent in only six months if you catch the right purchasing time and you can make the same performance over ten years. Both is possible but its definitely better to take the first option.

I'm personally a long-term growth investor and more focused on fundamentals than on technical indicators but those can help you to receive a better return.

Today I try to find some stocks that have risen over the short and mid-term. I used a 20 day to 200 day average to get some great stock ideas. These are my fundamental criteria:

Dividend yield over 2%.
Dividend growth rate over the past five years greater than 5%. 
The dividend payout is under 75%. 
The forward P/E is below 15. 
The PEG ratio is under 1.50. 
Total debt to equity under 0.40.

3 Top Dividend Stocks With Low Payouts And Attractive Price Ratios

Cheap stocks are rare in a low interest environment. But cheap is also a question of the alternatives. You need to compare your investment with the industry average. 

Today I would like to present you three attractively valuated dividend growers with a very low dividend payout, all compared to their industry rivals. These are my criteria:

- Market cap is greater than $100 million.

- Dividend yield is greater than the dividend yield of the industry.

- The payout ratio is less than 100%.

- The annual rate of dividend growth over the past five years is greater than 5%.

- Annual rate of dividend growth over the past five years above the industry.

- Average annual earnings growth estimates for the next 5 years is greater than 5%.

- Average annual earnings growth for the past 5 years is greater than the average annual earnings growth of the industry.

20 companies fulfilled these criteria and some of them don't have a long dividend growth history. Below are some of my favorites, they are not selected by the longest dividend increases. 

I don't recommend them to buy or sell them. It's only a quick selection. Other stocks of interest are Dover, Deere, Medtronic, CSX, Illinois Tool Works and Coach.

Please don't be focused on a few stocks. A well diversification helps you to keep the big stock market risks small.

Agrium (NYSE:AGU) has a market capitalization of $12.88 billion. The company employs 14,500 people, generates revenue of $16.686 billion and has a net income of $1.498 billion. Agrium’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.637 billion. The EBITDA margin is 15.80 percent (the operating margin is 12.54 percent and the net profit margin 8.98 percent).

Financial Analysis: The total debt represents 24.79 percent of Agrium’s assets and the total debt in relation to the equity amounts to 57.27 percent. Due to the financial situation, a return on equity of 22.40 percent was realized by Agrium. Twelve trailing months earnings per share reached a value of $9.12. Last fiscal year, Agrium paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.75, the P/S ratio is 0.77 and the P/B ratio is finally 1.92. The dividend yield amounts to 3.38 percent and the beta ratio has a value of 1.43.

Long-Term Stock Price Chart Of Agrium (AGU)

Long-Term Dividend Payment History of Agrium (AGU)

Long-Term Dividend Yield History of Agrium (AGU)

Helmerich & Payne (NYSE:HP) has a market capitalization of $8.41 billion. The company employs 9,410 people, generates revenue of $3.387 billion and has a net income of $721.45 million. Helmerich & Payne’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.393 billion. The EBITDA margin is 41.13 percent (the operating margin is 28.24 percent and the net profit margin 21.30 percent).

Financial Analysis: The total debt represents 1.28 percent of Helmerich & Payne’s assets and the total debt in relation to the equity amounts to 1.80 percent. Due to the financial situation, a return on equity of 17.43 percent was realized by Helmerich & Payne. Twelve trailing months earnings per share reached a value of $6.66. Last fiscal year, Helmerich & Payne paid $0.87 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.85, the P/S ratio is 2.48 and the P/B ratio is finally 1.89. The dividend yield amounts to 2.53 percent and the beta ratio has a value of 1.20.

Long-Term Stock Price Chart Of Helmerich & Payne (HP)

Long-Term Dividend Payment History of Helmerich & Payne (HP)

Long-Term Dividend Yield History of Helmerich & Payne (HP)

UnitedHealth Group (NYSE:UNH) has a market capitalization of $74.24 billion. The company employs 133,000 people, generates revenue of $110.618 billion and has a net income of $5.526 billion. UnitedHealth Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.563 billion. The EBITDA margin is 9.55 percent (the operating margin is 8.37 percent and the net profit margin 5.00 percent).

Financial Analysis: The total debt represents 20.71 percent of UnitedHealth Group’s assets and the total debt in relation to the equity amounts to 53.74 percent. Due to the financial situation, a return on equity of 18.58 percent was realized by UnitedHealth Group. Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, UnitedHealth Group paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.94, the P/S ratio is 0.67 and the P/B ratio is finally 2.41. The dividend yield amounts to 1.52 percent and the beta ratio has a value of 0.76.

Long-Term Stock Price Chart Of UnitedHealth Group (UNH)

Long-Term Dividend Payment History of UnitedHealth Group (UNH)

Long-Term Dividend Yield History of UnitedHealth Group (UNH)

Dividend Growth And Value Combined: 4 Top Value Grower To Consider

Value and dividend growth investors are not far away when they invest money and start to find the next acquisition targets. 

Dividend growth investors are more focused on growth and the future income stream than on current assets like cash or other strong balance sheet assets. 

In many cases, growth stocks own a lot of hard values and value stocks give investors a huge opportunity of long-term dividend growth.

Today I will introduce some stocks that combine both, value and growth, in a very good way. 

Below is a detailed view about four value growers with somehow attractive price ratios for long-term investors by comparing the market multiples with the actual environment which is very ambitious.

Cheapest Dividend Paying Large Caps As of October 2013

Cheap large capitalized stocks with high growth originally published at “long-term-investments.blogspot.com. I always look for stocks with a cheap valuation and modest growth perspectives.

While the interest environment is low, the market valuation is extraordinary high and it’s more important to take care about a solid price in order to ensure not to overpay a stocks.

Each month I create a quick list that allows me to observe the market by the cheapest growth picks. You can find my criteria below.

These are the criteria for my cheapest dividend paying large cap screen:

- Market Capitalization over USD 10 billion

- Expected Earnings per share growth over 10 percent for the next five years

- Forward P/E ratio under 15

- P/S under 1 and P/B ratio under 2

- Positive Dividends

Only fourteen stocks fulfilled these criteria of which twelve have a current buy or better rating by brokerage firms.

Dogs Of The Dow Jones: A Compilation Of The Cheapest Stocks From The Index

Dogs of the Dow Jones originally published on “long-term-investments.blogspot.com”. Investing is hard work, especially when you don’t have a system or strategy to follow. An investing strategy helps you to avoid big failures and keeps you on track. One popular investing scheme is the dogs of the Dow Jones Strategy.

The Dogs of the Dow Jones Strategy is a popular investment rule or strategy which is used by many investors. The success is controversial. Some studies say that you can create an outperformance by following this rule; others say you don’t have a benefit from it.

The philosophy behind is to buy ten stocks of the Dow Jones with the highest dividend yield and lowest price to earnings ratio at the beginning of the year and to hold these stocks for a year. After this period, the investor should sell stocks that are no more Dogs of the Dow and buy therefore new Dogs of the Dow. Below is an updated sheet of the ten best Dogs of the Dow. They have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones index.

I’ve attached a full list of the current dogs of the Dow Jones in this article.

17 Cheap Large Cap Dividend Contenders Close To New 52-Week Highs

Cheaply valuated dividend growth stocks close to new 52-Week-Highs originally published at long-term-investments.blogspot.com. I published recently a small article about Large Cap stocks close to new one-year highs with a single P/E.

The idea behind is that there could be more room for a higher stock price due to the low valuation and the break-out signal. I know that this kind of method is more technically but it should give you some new ideas from a different perspective of the capital market.

Today I would like to screen my dividend income growth stock database by shares with 10 to 25 years of consecutive dividend growth that are 5 percent or less away from new one-year highs. In addition, the earnings income multiple for the next year should be under 15 and the market capitalization over USD 10 billion.

Only 17 stocks fulfilled these criteria of which ten are currently recommended to buy.

IBM Position Increase By 25% For The Dividend Yield Passive Income Portfolio

Last Friday I increased my IBM stake for the third time since I funded the Dividend Yield Passive Income Portfolio virtual.

I purchased only 4 shares at $173.78. The total purchase amount was only around $700. I think that the stock price can fall further. 

As of now, the position is still the biggest constituent in the portfolio with a 3.4 percent share. I think it makes sense to grow the position to five percent or so but that’s a question for the future.

IBM’s forward P/E is in a single digit range at 9.51 and growth for the next five years of 9.77 is predicted by analysts.

The current yield is still not high, only at 2.19 percent but the dividend payout is also only at a ratio of 24.60 percent. IBM buys many own shares to boost the current earnings per share growth in a successful way.

Latest Portfolio Transactions (Click to enlarge)

Latest Portfolio I (Click to enlarge)

Latest Portfolio II (Click to enlarge)

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

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Stock holdings of the portfolio are up 8.88 percent since the date of funding. The cash position is at $25,376 and should let the dividend income grow over time when it’s invested.

Latest Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield	Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	26.7	3.7	28.90	50	$64.75	$1,749.50
LMT	Lockheed Martin C	14.51	3.56	92.72	20	$92.00	$2,578.00
INTC	Intel Corporation	12.92	3.76	21.27	50	$45.00	$1,193.75
MCD	McDonald's Corpor	17.48	3.23	87.33	15	$46.20	$1,428.00
WU	Western Union Com	11.56	3.28	11.95	100	$60.00	$1,866.00
PM	Philip Morris Int	16.88	3.96	85.42	20	$68.78	$1,738.60
JNJ	Johnson & Johnson	20.51	2.76	69.19	20	$50.80	$1,832.60
MO	Altria Group Inc	16.28	5.05	33.48	40	$72.00	$1,434.40
SYY	Sysco Corporation	19.22	3.46	31.65	40	$44.40	$1,282.80
DRI	Darden Restaurant	18.4	3.96	46.66	30	$61.50	$1,562.10
CA	CA Inc.	13.11	3.33	21.86	50	$50.00	$1,505.00
PG	Procter & Gamble	20.58	2.93	68.72	25	$58.20	$1,985.25
KRFT	Kraft Foods Group	17.6	2.79	44.41	40	$80.00	$2,147.60
MAT	Mattel Inc.	19.04	3.16	36.45	40	$53.60	$1,707.60
PEP	Pepsico Inc. Com	19.45	2.64	70.88	20	$43.60	$1,660.20
KMB	Kimberly-Clark Co	21.06	3.13	86.82	15	$46.50	$1,487.70
COP	ConocoPhillips Co	12.25	3.64	61.06	20	$52.80	$1,468.60
GIS	General Mills In	18.35	2.8	42.13	30	$41.10	$1,475.70
UL	Unilever PLC Comm	18.76	3.37	39.65	35	$47.01	$1,398.95
NSRGY	NESTLE SA REG SHR	19.67	3.06	68.69	30	$65.31	$2,161.80
GE	General Electric	18.27	3	23.39	65	$48.10	$1,660.75
ADP	Automatic Data Pr	25.67	2.35	61.65	25	$43.50	$1,854.75
K	Kellogg Company C	23.36	2.92	61.52	25	$44.50	$1,536.25
KO	Coca-Cola Company	19.98	2.84	38.83	40	$43.80	$1,551.20
RTN	Raytheon Company	13.41	2.71	57.04	20	$42.00	$1,537.20
RCI	Rogers Communicat	11.98	3.78	46.5	50	$84.00	$2,252.00
GPC	Genuine Parts Com	18.19	2.56	77.06	20	$41.28	$1,573.00
TSCDY	TESCO PLC SPONS A	N/A	3.82	17.08	110	$75.68	$1,980.00
APD	Air Products and	23.45	2.46	85.71	15	$40.50	$1,652.85
GSK	GlaxoSmithKline P	19.45	4.64	52.16	30	$71.13	$1,530.90
WMT	Wal-Mart Stores	14.75	2.39	79.25	20	$36.16	$1,514.20
BTI	British American	16.4	3.9	111.13	23	$96.14	$2,469.05
CHL	China Mobile Limi	10.73	4.01	55.32	25	$54.95	$1,382.00
MMM	3M Company Common	19.19	2.03	110.27	15	$37.43	$1,842.60
TUP	Tupperware Brands	19.73	2.13	80.98	15	$29.40	$1,389.45
IBM	International Bus	12.41	2.06	193.17	20	$72.00	$3,475.60
HAS	Hasbro Inc.	18.94	3.25	44.09	30	$45.60	$1,417.20
T	AT&T Inc.	26.37	5.2	34.47	30	$53.70	$1,038.30
WAG	Walgreen Co. Comm	22.95	1.94	44.25	30	$34.20	$1,757.70
AFL	AFLAC Incorporate	9.18	2.12	59.39	20	$28.00	$1,315.60
TGT	Target Corporatio	15.63	2.33	68.69	32	$48.32	$2,069.44
CSCO	Cisco Systems In	12.25	2.72	25.12	90	$55.80	$2,066.49
DE	Deere & Company C	9.6	2.32	84.11	15	$29.10	$1,262.85
RGR	Sturm Ruger & Co	14.13	2.89	51.65	20	$38.52	$1,351.40
LO	Lorillard Inc Co	14.81	4.56	42.3	30	$65.00	$1,431.90
UNP	Union Pacific Cor	17.21	1.89	154.75	8	$22.88	$1,216.80
IDA	IDACORP Inc. Com	13.51	3.01	47.94	20	$30.40	$1,027.40
BAX	Baxter Internatio	16.78	2.74	66.38	20	$36.80	$1,320.00
MSFT	Microsoft Corpora	13.53	2.63	33.88	40	$36.80	$1,398.40
ACN	Accenture plc. Cl	14.77	2.22	77.71	20	$32.40	$1,457.60
						$2,561.63	$82,997.03
						Average Yield	3.09%
						Yield On Cost	3.36%