Which Stocks To Buy In Market Corrections - 40 Best Dividend Growth Ideas Now!

When the market falls, it tends to drag everything down -- good or bad companies. I think that companies that have increased their dividends by 10% or higher in the last 10-years should be considered good companies. 

One way to combat the market downturn is to buy high growth dividend-growth companies that are fairly valued or undervalued. 

These companies are expected to grow earnings per share at a rate higher than 5% in the foreseeable future and have a history of increasing dividends with payout ratios of less than 60%. 

In addition, I like to invest into low leveraged companies. If rates rise or money is needed for investments, the company doesn’t need to raise capital. It's also a hedge for rising dividends.

I also look for stocks with a midcap market valuation or higher. I love the diversification and developed status of those companies.

63 stocks fulfilled my criteria. I like to show you only the 20 best yielding. Half of them have a beta higher than the market. They seem to be more risky.

For safe heaven investors, I also attached a list of the 20 best yielding stocks with a beta below one. Hope you have some fun by discovering the lists. If you like my work, please subscribe to my free newsletter by leaving your email in the right box above. Thank you for reading. 

These are the results...

18 Best Dividend Growth Stocks For The Long Term

The best dividend stocks pay rising dividends year after year. These are typically well known businesses with long dividend histories.

But that's not all. You have to look at much more than on consequent paid dividends. You must look at debt ratios, growth figures, valuation levels, and much more.

However, global economic headwinds are leaving investors perplexed about which stocks to bank on. The markets have been on a roller coaster ride in the recent past – either due to the flagging Chinese economy, the Eurozone debt crisis or the U.S. Federal Reserve’s pending decision over the first rate hike. Moreover, weakness in the energy sector and a strong dollar are nagging concerns.

We have to focus on stocks with long-term potential to avoid short-term problems. Today's screen is long-term orientated. I've put my focus on the best 5 year earnings growth forecast.

These are my screening criteria in detail

- Dividend Achiever Member (over 10 year's consecutive dividend growth)
- 5 Year Predicted EPS Growth Over 5%
- Market Cap over 2 Billion
- Forward P/E under 15
- Debt/Equity under 0.5

18 stocks jumped on my screen. The results can be found at the end of this wonderful article.

Here are the 5 top yielding results...

18 Most Attractive Mid-Cap Dividend Growth Stocks

I'm a big fan of large capitalized stocks due to the higher degree of safeness I could enjoy. But the price I pay for those extra points is return.

High quality large cap stocks often give you a smaller return than companies with a small capitalization.

Mid-cap stocks combine attributes of both large and small companies. Similar to large companies, these mid-size companies can have seasoned management teams, a strong market presence and access to capital markets, for instance.

They can also grow quickly, with fewer layers of management and bureaucracy, and offer a more entrepreneurial spirit than large competitors.

Attached I've tried to list some smaller capitalized dividend growth stocks with a market cap under 10 billion and a history of consecutive dividend of more than 10 years.

Exactly 210 companies have such a long dividend growth history. In order to limit my selection, I've tighten my criteria.

Each of the stocks must fulfill the following restrictions:

- Forward P/E under 15

- Debt-to-equity under 0.5

- 5-Year estimated EPS growth over 5%

18 small- and mid capitalized stocks survived my screening criteria of which five yield over 3 percent. 8 of the results have a buy or better rating.

Here are the top yielding results in detail...

40 Cheapest Dividend Growth Stocks By P/E And PEG

Value investors have a strong focus on stocks with a low valuation compared to its expected earnings. A very popular tool for investors to identify an undervaluation is the P/E ratio.

The P/E ratio often looks cheap but they are cheap for a reason. Mostly a dying operating business is responsible for the low P/E. On the other side, a high P/E could show that we have to deal with a high-growth company.

This general problem could be solved with the PEG ratio. By definition, it describes the value compared to its growth or Price-Earnings-To-Growth Ratio.

Definitions

The P/E ratio is simply: Price / Earnings
Essentially, this tells you how much an investor is willing to pay for each unit (year) of earnings. If a stock is trading at a P/E ratio of 30, it is said to be trading at 30x times its annual earnings.

In general, the lower the P/E ratio the better. A common threshold for many investors is a P/E of 20 or less. (For the record, at the time of this writing, the S&P 500 Index was trading at a P/E (using F1 Estimates) of 15.33.)

A PEG ratio is the: P/E Ratio divided by the Growth Rate

Conventional wisdom says a value of 1 or less is considered good (at par or undervalued to its growth rate), while a value of greater than 1, in general, is not as good (overvalued to its growth rate).
Many believe the PEG ratio tells a more complete story than just the P/E ratio. (The S&P at the time of this writing had a PEG ratio of 1.93.)

Comparison

Let's take a look at both of these in action.
For example: a company with a P/E Ratio of 25 and a Growth Rate of 20% would have a PEG ratio of 1.25 (25 / 20= 1.25).

While a company with a P/E Ratio of 40 and a Growth Rate of 50% would have a PEG Ratio of 0.80 (40 / 50= 0.80).

Traditionally, investors would look at the stock with the lower P/E ratio and deem it a bargain (undervalued). But looking at it closer, you can see it doesn't have the growth rate to justify its P/E.

The stock with the P/E of 40, however, is actually the better bargain since its PEG ratio is lower (0.80) and is trading at a discount to its growth rate.

In other words, the lower the PEG ratio, the better the value. That's because the investor would be paying less for each unit of earnings growth.

So which one is better?

They both have their usefulness. I do like how the PEG positions the P/E ratio in relation to its growth rate to put everything into perspective.

Quite frankly, I use both, so I'm going to say it's a tie. Plus, you couldn't even create the PEG ratio without the P/E.


Attached you can find the 20 cheapest dividend growers by PEG and P/E. The results include only stocks with a constant dividend growth history of at least 10 years. They are classical Dividend Achievers.

Here are the results:

11 Stocks With Strong Potential To Double Dividends

Dividend stocks are often the foundation for a great retirement portfolio. Dividend payments not only put money in your pocket, which can help hedge against any downward move in the stock market, but they're usually a sign of a financially sound company.

Dividend payments also give investors the opportunity to reinvest into more shares of stock, thus boosting future dividend payments and compounding gains over time.

Yet not all income stocks are living up to their full potential. Utilizing the payout ratio, or the percentage of profits a company returns in the form of a dividend to its shareholders, we can get a good bead on whether or not a company has room to increase its dividend.

Ideally, we like to see healthy payout ratios between 50% and 75%. Here are a few income stocks with payout ratios currently far below 50% that could potentially double their dividends.

Stocks to double dividend payments are....

These 14 Promising Income Stocks Should Grow Earnings Over 10% Yearly

Investors often pick between growth and income. Why limit yourself? I sit here and watch my market screener, trying to find the next stock that could deliver me a good return. 

I'm a strong believer in growth and hope that dividends could bring me some risk compensation. Today I've created a forward orientated screen for U.S. domiciled stocks.

These are my criteria:

- Market Cap over 2 billion
- Positive Dividend Yield
- EPS growth forecasts over 10% yearly for the next half decade
- P/E less than 15
- Sales growth over 5% in the past 5 years
- Operating Margin over 15%
- Debt to Equity under 1

14 stocks fulfilled exactly these criteria for the moment. There are some pretty known companies on the screen. 

All stocks discussed in this article all pay dividends and have double-digit growth rates. Some of these companies are industry-dominating forces, stocks that you have undoubtedly heard of, while others are lesser known.

Here are the top yielding results...

11 Dividend Growth Opportunities For November 2015

Investing in stocks that pay dividends can be agreat way to build wealth over time, as companies that regularly dish out cash payments to their investors tend to outperform the market over the long-term.

However, investors can't just pick any dividend paying company and expect to do well, as many other factors like the companies growth prospects balance sheet, and valuation also need to be factored in to the equation.

Attached you will find my best picks for November 2015.

Check out my research results here:

12 Cheapest Dividend Achievers By PEG Ratio

Each investor try's to figure out if a stock is cheap or not. Fundamentally, there are two basic methods to identify a cheap company by price ratios: PER and PEG.

PER

The P/E ratio is simply to calculate: Just divide Price with Earnings. Essentially, this tells you how much an investor is willing to pay for each unit (year) of earnings. 

If a stock is trading at a P/E ratio of 30, it is said to be trading at 30x times its annual earnings. In general, the lower the P/E ratio the better. 

A common threshold for many investors is a P/E of 20 or less. (For the record, at the time of this writing, the S&P 500 Index was trading at a P/E (using F1 Estimates) of 15.33.) 

PEG

A PEG ratio is the: P/E Ratio divided by the Growth Rate Conventional wisdom says a value of 1 or less is considered good (at par or undervalued to its growth rate), while a value of greater than 1, in general, is not as good (overvalued to its growth rate). 

Many believe the PEG ratio tells a more complete story than just the P/E ratio. (The S&P at the time of this writing had a PEG ratio of 1.93.) 

 Let's take a look at both of these in action. For example: a company with a P/E Ratio of 25 and a Growth Rate of 20% would have a PEG ratio of 1.25 (25 / 20= 1.25). 

While a company with a P/E Ratio of 40 and a Growth Rate of 50% would have a PEG Ratio of 0.80 (40 / 50= 0.80). 

Traditionally, investors would look at the stock with the lower P/E ratio and deem it a bargain (undervalued). 

But looking at it closer, you can see it doesn't have the growth rate to justify its P/E. The stock with the P/E of 40, however, is actually the better bargain since its PEG ratio is lower (0.80) and is trading at a discount to its growth rate. In other words, the lower the PEG ratio, the better the value. That's because the investor would be paying less for each unit of earnings growth.

Attached you will find a sheet of Dividend Achievers with the lowest PEG Ratio on the market. Those stocks have risen dividends over more than 10 consecutive years and a PEG ratio of less than one.

Twelve companies fulfill these criteria of which three pay dividends over three percent.

Here are the top yielding results....

How You Find Really Good Dividend Bargains On The Market

What to look for when your try to find real dividend paying bargains that might deliver a solid return in the future? I've compiled a few essential factors to look at when you put your money into the market.

Once you've identified stocks that appear cheap for reasons that aren't company specific, it's time to do a little more digging. 

For starters, you'll want to ask the following questions:

- Does the company have a strong history of increasing its dividend? There are many companies that have increased their dividends for decades, but it's not a requirement. You simply want to verify that the company makes an effort to increase shareholders' income over time, and doesn't have a history of dividend cuts or suspended payments.

- Does the company have a reasonable payout ratio that will sustain the dividend? A payout ratio tells you how much of the company's income is paid out as dividends, and the lower this number is, the easier the dividend is to sustain. For example, if a company earns $3.00 per share and pays a dividend of $1.00, its payout ratio is 33% -- which leaves plenty of room for increases, as well as a nice cushion if income suffers during a recession.

- Is the company's debt load reasonable and manageable -- even if times get tough? A "reasonable" debt load is open to interpretation, and some companies can responsibly borrow more than others. A good metric to look at is the company's interest coverage, which tells you how much the company earns for every dollar in interest expenses. For example, if a company's interest coverage is five-to-one, it can absorb a huge drop in revenue before paying its debt becomes a problem.

- Is the company's income steady and (reasonably) predictable? While it's impossible to accurately project a company's future income, there should be a steady pattern of earnings growth, as well as absorbing tough times without much of an earnings drop.

However, attached are 20 dividend growth stock ideas that might fulfill some of the criteria to find an attractive investment target.

There is no perfect stock but some companies come close to it.

Which companies to you like?

These Dividend Contenders May Rise Dividends Within The Next 3 Months

Recently, I wrote about DividendChampions that may rise dividends within the next 3 months in order to keep their status as dividend grower alive.

It's fantstic to know what companies should hike it's dividends because the current yields are so low that each investor get tears in his eyes.

A potential dividend hike could lift the current dividend yield on a new level.

Today I like to introduce some Dividend Contenders with potential to hike dividends over the next quarter. As a result, I found 20 companies; nine of them yield over 3 percent.

Dividend Growth is a wonderful investing space on which I personally spend a lot of time. 

I love it to see dividends grow but it's only possible if a company grows and has low debt ratios.

These are my 6 highlights... 

4 Long-Term Dividend Growth Picks For 2014

Happy new year for all readers! The year 2014 is really fresh and we must look for new stock ideas that could bring us a great return over the year.

This blog discovers primarily dividend growth stocks but has also income in focus. Below are 4 dividend stocks that have grown dividends in the past. Their management is shareholder friendly and has shared their business success with the owner of the company. 

Not enough: The best thing is that they have big potential to boost future dividends. With low payout ratios and high growth rates, these stocks future dividend growth rates will likely double, triple, or even quadruple the rate of inflation for years to come.

4 picks with potential to boost dividends for the year 2014 are....

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!

15 Dividend Contenders With Over 20% Return on Equity and Return on Investment

Dividend growth stocks with very high returns on equity and returns on investment originally published at long-term-investments.blogspot.com. A solid investment delivers also solid returns over the time. Dividend growth is not the only criteria for a good investment. There are also many dividend growth stocks outside with low or negative return on investments and return on equity ratios.

Today I screened the Dividend Contenders Database by stocks with high return ratios. I fixed the 20 percent level in order to get the best results.

Only 15 companies fulfilled both, a return on equity as well as a return on investment over 20 percent. The difference between those two ratios is that the return on investment does not include the leverage effect. A corporate with high debts will automatically generate high returns on equity. The second ratio is a performance measure that looks only at the investment by dividing the investment return by the costs of the investment.

One High-Yield is below the results and 10 stocks got a buy or better rating by brokerage firms. Leverage is the key for high returns in my screen. As you might see in the attached sheet, the debt ratios are modestly high but in the end, the investor will pay a higher price for a leveraged company.

Consumer Dividend Stocks With Highest Float Short Ratios

Consumer goods dividend stocks with highest float short ratios originally published at "long-term-investments.blogspot.com". Consumer goods stocks are often the most preferred source for dividend growth investors. I don’t know why but the consumer sector has the largest amount of stocks with a solid dividend history. They are less volatile and work with good margins. For sure, the growth perspectives are not a good as for technology stocks and the debt is also everything else than slim but they are still attractive.

Today I like to close my monthly article serial about dividend stocks with the highest float short ratio. Here are the links from the serial:

· 20 Basic Material Dividend Stocks With Highest Float Short Ratio

· 20 Industrials With Highest Bets On A Falling Stock Price

· 20 Most Hated Dividend Stocks From The Services Sector

· 20 Highly Shorted Financial Dividend Stocks

· 8 Utility Dividend Stocks With The Highest Float Short Ratio

· 20 Technology Dividend Stocks, Most Shorted By Investors

· 13 Highly Shorted Healthcare Dividend Stocks

Today I like to look at the consumer goods stocks and excluded stocks with a market capitalization below 300 million as well as stocks without dividends.

My top 20 stocks have a float short ratio between 8.21 percent and 28.92 percent. The highest short selling stock is Pitney Bowes. The company is followed by the auto parts seller Monro Muffler Brake.

Despite the huge number of pessimistic investors, analysts recommended 13 of the results.

Ex-Dividend Stocks: Best Dividend Paying Shares On May 30, 2013

The best yielding and biggest ex-dividend stocks researched by ”long-term-investments.blogspot.com”. Dividend Investors should have a quiet overview of stocks with upcoming ex dividend dates.

The ex dividend date is the final date on which the new stock buyer couldn’t receive the next dividend. If you like to receive the dividend, you need to buy the stock before the ex dividend date. I made a little screen of the best yielding stocks with a higher capitalization that have their ex date on the next trading day.

A full list of all stocks with payment dates can be found here: Ex-Dividend Stocks May 30, 2013. In total, 49 stocks and preferred shares go ex dividend - of which 16 yield more than 3 percent. The average yield amounts to 3.21%.

Here is the sheet of the best yielding, higher capitalized ex-dividend stocks:

Company	Ticker	Mcap	P/E	P/B	P/S	Yield
Realty Income Corp.	O	9.57B	68.72	1.70	17.90	4.45%
Lockheed Martin Corporation	LMT	34.52B	12.43	114.63	0.74	4.27%
Agnico-Eagle Mines Ltd.	AEM	4.94B	19.19	1.43	2.65	3.08%
Kellogg Company	K	23.80B	25.58	8.42	1.63	2.72%
The Wendy's Company	WEN	2.40B	-	1.22	0.96	2.62%
Principal Financial Group Inc.	PFG	11.15B	15.14	1.15	1.21	2.42%
Associated Banc-Corp	ASBC	2.60B	14.93	0.89	3.65	2.06%
Polaris Industries, Inc.	PII	6.40B	20.16	8.73	1.95	1.80%
ITC Holdings Corp.	ITC	4.66B	24.25	3.20	5.47	1.70%
ManpowerGroup	MAN	4.43B	25.22	1.77	0.22	1.60%
Expeditors International of Washington	EXPD	8.18B	24.74	3.89	1.37	1.52%
Hillshire Brands Company	HSH	4.36B	55.31	10.32	1.09	1.41%
Nike Inc.	NKE	56.55B	25.11	5.30	2.25	1.33%
Alliant Techsystems Inc.	ATK	2.58B	9.46	1.70	0.59	1.32%
Hartford Financial Services Group	HIG	13.96B	-	0.64	0.50	1.31%
Imperial Oil Ltd.	IMO	33.27B	9.69	2.01	1.08	1.20%
Silgan Holdings Inc.	SLGN	3.03B	22.88	5.93	0.84	1.18%
Ball Corporation	BLL	6.62B	17.87	6.16	0.76	1.17%
Fluor Corporation	FLR	10.47B	22.95	3.00	0.37	1.00%
Lufkin Industries Inc.	LUFK	2.99B	33.19	3.64	2.27	0.57%