Are These 8 Great Dividend Grower Underestimated By The Market?

I like it when stocks fall because they become cheaper. That's the reason why I always look at companies with a really bad stock performance.

I personally don't care about analysts and lead investors who are sometimes anxious about the future of the company. In other cases, they need to justify their portfolio risk.

I love it to see bad performing dividend stocks with a very long history of solid growing dividends, especially when the future outlook is still bright.

Below I've highlighted some of the worst performing and most disliked dividend growth stocks on the market with a negative 1-Year performance. They all got low forward P/E and yields over 3 percent.

What do you think, are they underestimated by the market?

8 Cheap Dividend Growth Stars You Must Know....

Dividend stocks are a passion for me but most of the long-term dividend payer and grower underperformed the market within the recent years.

However, I maintain my strategy because I know what I own and how much return they will deliver over the long-run. I don't care about my friends and other investor colleagues and what they might say about my boring strategy. 

Toady I've screened the market by cheap opportunities, stocks that look fundamentally cheap. It does not mean that they perform well in the near future but they offer a good yield with solid fundamentals which is a good seed of future crops.

My criteria are:

- Dividend growth of more than 5 consecutive years
- Debt-to-equity ratio under 0.5
- Dividend Yield above 3 percent
- Market Cap over $2 billion
- Forward P/E below 15

8 companies survived my screening. Below are the detailed stocks in review.

8 Cheap Dividend Stars you must know...

9 Dividend Achievers With A Strong Buy Rating

Analysts often have a good sense about the development of stocks due to their intensive research related to the company.

Not all analysts predict the correct economic development but they do a very good basic desk research and they have conversations with the management teams of the company, so not many people a as good informed as analysts.

Today I've listed all stocks with more than 10 years of consecutive dividend growth (Dividend Achievers) and a strong buy rating. Only nine companies have received the highest buy rating by analysts. Six of them are listed on the technology stock exchange NASDAQ.

Only four firms have a market capitalization over one billion US-Dollar. Keep in mind that those stocks also contain a higher risk for invvestors.

The only 9 Dividend Achievers with a strong buy rating are....

4 Cheap Dividend Stocks With A Single-Digit Forward P/E

If you are a yield hungry investor, you need to look at stocks with a low valuation in terms of earnings multiples and growth perspectives.

The lower the price, the shorter the period in which your investment pays-off. 

I have a strict focus on low priced stocks. Below is a small overview of all Dividend Champions and Contenders with a single-digit forward earnings multiple.

Stay disciplined when you invest your hard-worked money into the highly volatile stock market. You should be a part of the winner site of the market and not the person who loses cash to the better informed persons.

8 Top Dividend Stocks I Like In This Capital Market Environment

While I made my daily research, there came a lot of interesting stocks on my screen.

Most of them offer a great opportunity but they still have a risk.

I personally look for stocks with a 10+ billion market cap as well as a P/E ratio of less than 20 combined with a 5+ percent mid-term earnings growth.

Below are eight stocks with solid fundamentals and a good long-term dividend growth history that could be helpful for your own asset allocation. My favorite industries are telecoms and insurer.

8 top long-term dividend grower....

6 Top Long-Term Dividend Growth Stocks With A 20% Return On Investment

The markets hit new highs and valuations grow steadily. I notice that the fight for real and high quality assets is very hard. Today, investors pay 30 times for a solid and slow growing free cash flow. That's crazy in my view because you cannot make a good return with such a high price; it's a 3.3 percent initial yield.

Bonds yielding much lower at a yield of 2.5 for US Bonds to 1.5 percent or less for the German Government Paper. That's a damn low ratio.

But investors like you and me need a good yield to head off market fluctuations and to compensate inflation pressure, but most of the high-quality dividend growth stocks yielding below 3 percent.

My goal for today is to present you those stocks that pay more than the expected inflation rate and have a return on investment ratio above 20 percent. In addition, they should grow at a pace of 5 percent or more over the next five years. 

Below are those 6 results that have matched the above mentioned criteria and hiked dividends for 10 years or more. The results are very limited but can give you a good idea about the current market situation.

6 top long-term dividend growth stocks...

Find The Good Stocks That Pay And Grow Money For You Over Decades!

Every trade causes costs. I'm talking about taxes and transaction costs. You can adjust your portfolio risk with your trades but if you are right or wrong, it's in my view often hard to say. I have sold stocks many times and often they doubled or tenfold after I have decided to sell them; a bad choice from me. Recently, I wanted to sell 25 percent of my Mondelez stake because they got so big after the spin-off from Kraft Foods. The order was not executed because my limit was too high on the trading day, at USD 34. But because of my 70 percent gain, I needed to pay high taxes on my trade, a number that causes a potential 10 percent loss for the whole stake.

I believe that it makes more sense to buy high-quality stocks at fair prices and keep them for 20 years or more. Over this period of time, the stock should have paid your investment amount nearly completely back. No dream, just reality. Some stocks can pay you in 10 years, others need 50 years. The point is to find the good stocks that pay you.

Below are six stocks with over 10 years of consecutive dividend growth and solid debt and growth predictions.

6 Stock Ideas With Dividend Growth And Double-Digit Earnings Growth Forecasts

I always look for investment opportunities that offer growth and dividends combined. 

This weekend, I've summarized some stocks with over 5 years of consecutive dividend growth and expected 5-Year earnings growth above 10 percent yearly. 

It's hard to find cheap stocks that grow safely, especially when the overall market is really ambitious valuated.

Below are six stock ideas from each of the popular dividend growth categories (Dividend Champions, Dividend Contenders as well as Dividend Challengers), with a low forward P/E of less than 15 as well as double-digit earnings predictions by analysts.

8 Dividend Growth Stocks On The Sweet Spot

Out there happening very exciting moments on the market. Due to the recent stock market crash, stocks look a little bit more attractive than weeks before while the total number of potential dividend growers rise steadily.

The fantastic economic recovery of the recent years was the the most important item which helped to grow the total number of stocks with more than 5 years of consecutive dividend growth to 488! I expect that we would hit the 500 mark by the end of this year.

It's great to see that we've more and more opportunities in the dividend growth investing field but if we look at the valuations on the market, we definitely notice that it's still hard to find real bargains.

Some stocks are too expensive, others are cheap but those companies release falling earnings and sales figures or they are overloaded with debt. What we need are long-term dividend growth stocks on the sweet spot.

After the recent sell-off on the market, I screened my database by stocks with a current dividend yield over 3 percent and a low forward P/E of less than 15. In addition, the expected earnings should grow by at least 5 percent (analyst predictions), year by year for the next five fiscals.

Around 30 companies fulfilled these criteria at the moment. I try to highlight some of the best ideas. Below are 8 stocks, sorted by market capitalization.

5 Dividend Stocks With Fresh Billion Share Buyback Programs

Dividend growth is a fantastic value driver for your private wealth. But there are more possibilities to create directly shareholder values. Beside dividends, there is a way to give money back via share repurchase programs.

Recently, I wrote an article about stocks with the most recent billion share buyback programs on the market. Today I would like to expand the list by adding stocks that have announced to spend billions by buying back own shares.

Three names are not included in the list because they don't pay dividends. EBay, Valeant Pharmaceuticals International and Check Point Software Technologies are those stocks.

23 Stocks With Expected Dividend Growth Over The Next 3 Months

Consecutive dividend growth measures the number of years in which the corporate has increased dividends. Everything that a company needs to do is to hike dividends each 12 months or less.

Today I will highlight some special stocks that must increase dividends within the next 3 months in order to keep its dividend grower status alive. 23 companies are on the attached list of which 12 are recommended to buy. The bad thing is that only 4 have a really attractive forward looking P/E ratio of less than 15. The market is still expensive!

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)

--------------------------------------

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.

--------------------------------------

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%