11 Oversold Dividend Growth Stocks With Cheap P/E's And Growth Forecast

When a stock price falls, I believe that a high quality company becomes cheaper and more attractive. That is a good thing in my view.

Today I like to share eleven stocks with an oversold label, measured by an RSI-40 level.

I've compiled only stocks with 10 or more years of consecutive dividend growth. In addition, on the list are only stocks with a low forward P/E as well as expected earnings growth of more than 5 percent for the next five years.

These are the results....

Why You Should Look At These 16 Stocks With Cheap Free Cash Flows

When you put money into the market, you should be aware of the market valuation. One of the major problems in valuation is definitely to predict future cash-flows.

Nobody of us has a crystal-ball and no one can predict the future.

The second problem is that there are companies that must invest massively into the business model in order to boost growth or to replace old machines or buildings.

Investors often calculate with free cash flows. Those are the real income of the company, available for dividends, buybacks or mergers and acquisitions.

Today I like to introduce the cheapest Dividend Achievers with a low price to free cash flow of less than 15.

16 companies fulfilled my criteria of which four have a dividend yield over 3 percent. The most of the results come from the property and casualty insurance industry.

Insurer generates massive cash but they have also big problems with decreasing premiums and increasing competition. There are always good reasons why some companies are cheap.

You may also like my article about the best dividend stocks from the title insurance industry. I still prefer, like Warren Buffett, the fastest growing companies from the insurance sector. Those are ACE, UNH and TRV.

What do you think about the screen?

Ex-Dividend Stocks: Best Dividend Paying Shares On July 22, 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 July 22, 2013. In total, 13 stocks go ex dividend - of which 5 yield more than 3 percent. The average yield amounts to 3.23%.

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

Company	Ticker	Mcap	P/E	P/B	P/S	Yield
Select Income REIT Common Share	IR	1.09B	13.33	1.21	7.87	6.32%
Costamare Inc.	CMRE	1.37B	16.04	2.55	3.62	5.91%
MVC Capital, Inc.	MVC	308.57M	432.33	0.79	13.36	4.16%
New Hampshire Thrift Bancshares	NHTB	105.41M	12.65	0.81	2.83	3.48%
The Clorox Company	CLX	11.45B	20.38	75.67	2.04	3.26%
Lowe's Companies Inc.	LOW	48.19B	25.45	3.64	0.96	1.63%
Brinks Co.	BCO	1.35B	15.40	2.86	0.35	1.43%
West Pharmaceutical Services	WST	2.54B	30.90	3.40	1.97	1.03%
Pier 1 Imports, Inc.	PIR	2.50B	19.37	4.61	1.44	0.85%
VSE Corp.	VSEC	247.03M	9.52	1.45	0.47	0.77%
The Cooper Companies Inc.	COO	6.14B	21.64	2.65	3.99	0.05%

16 Very Cheap Dividend Challengers With A Single P/E Ratio

Dividend Challengers With Very Low P/E Ratios Researched By “long-term-investments.blogspot.com”. Dividend Challengers are dividend growth stocks from the third category. They raised dividends over a period of more than five consecutive years but less than ten years. Behind Dividend Contenders (10-24 years) and Dividend Champions (>25 years) is this investment class the latest stage for dividend growth investments.

In order to find the cheapest Challengers, I screened all 184 companies by a very low P/E ratio of less than ten. Sixteen stocks fulfilled these pricing criteria of which five are high-yields and six are currently recommended to buy.

13 Dividend Challengers For Less Than Book Value

Cheap Dividend Challengers In Terms Of Price To Book Value Researched by Dividend Yield - Stock, Capital, Investment. Here is a current overview of Dividend Challengers, stocks that have raised dividends for 5-9 consecutive years, with a price to book ratio below one. The ratio shows that the company is currently priced under the reproduction value. Cheap or not? To answer this question, we need additional ratios. The screen matched 13 stocks of which 3 yielding over 4 percent. American Equity Investment Holding (AEL) is the only stock with a strong buy recommendation.

Here are my favorite stocks:

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American Greetings (NYSE: AM) has a market capitalization of $528.00 million. The company employs 7,400 people, generates revenues of $1,592.57 million and has a net income of $87.02 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $215.75 million. Because of these figures, the EBITDA margin is 13.55 percent (operating margin 10.97 percent and the net profit margin finally 5.46 percent).


The total debt representing 15.04 percent of the company’s assets and the total debt in relation to the equity amounts to 30.47 percent. Due to the financial situation, a return on equity of 12.30 percent was realized. Twelve trailing months earnings per share reached a value of $1.99. Last fiscal year, the company paid $0.56 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 6.92, Price/Sales 0.31 and Price/Book ratio 0.73. Dividend Yield: 4.35 percent. The beta ratio is 1.74.

Long-Term Stock History Chart Of American Greetings Corp. (Click to enlarge)

Long-Term History of Dividends from American Greetings Corp. (NYSE: AM) (Click to enlarge)

Long-Term Dividend Yield History of American Greetings Corp. (NYSE: AM) (Click to enlarge)

The Travelers Companies (NYSE: TRV) has a market capitalization of $24.51 billion. The company employs 32,000 people, generates revenues of $25,112.00 million and has a net income of $3,216.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,496.00 million. Because of these figures, the EBITDA margin is 33.83 percent (operating margin 17.15 percent and the net profit margin finally 12.81 percent).


The total debt representing 6.29 percent of the company’s assets and the total debt in relation to the equity amounts to 25.95 percent. Due to the financial situation, a return on equity of 12.09 percent was realized. Twelve trailing months earnings per share reached a value of $3.78. Last fiscal year, the company paid $1.41 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 15.69, Price/Sales 0.98 and Price/Book ratio 1.02. Dividend Yield: 2.76 percent. The beta ratio is 0.70.

Long-Term Stock History Chart Of The Travelers Companie... (Click to enlarge)

Long-Term History of Dividends from The Travelers Companie... (NYSE: TRV) (Click to enlarge)

Long-Term Dividend Yield History of The Travelers Companie... (NYSE: TRV) (Click to enlarge)

National HealthCare Corp. (NYSEAMEX: NHC) has a market capitalization of $585.92 million. The company employs 12,760 people, generates revenues of $715.50 million and has a net income of $52.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $88.84 million. Because of these figures, the EBITDA margin is 12.42 percent (operating margin 8.55 percent and the net profit margin finally 7.36 percent).


The total debt representing 1.21 percent of the company’s assets and the total debt in relation to the equity amounts to 1.78 percent. Due to the financial situation, a return on equity of 11.80 percent was realized. Twelve trailing months earnings per share reached a value of $3.99. Last fiscal year, the company paid $1.10 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 10.61, Price/Sales 0.82 and Price/Book ratio 1.48. Dividend Yield: 2.83 percent. The beta ratio is 0.55.

Long-Term Stock History Chart Of National HealthCare Corp. (Click to enlarge)

Long-Term History of Dividends from National HealthCare Corp. (NYSEAMEX: NHC) (Click to enlarge)

Long-Term Dividend Yield History of National HealthCare Corp. (NYSEAMEX: NHC) (Click to enlarge)

Here is the full table with some fundamentals (TTM):

14 Dividend Challengers For Less Than Book Value

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 15.08 while the forward price to earnings ratio is 8.29. The dividend yield has a value of 2.63 percent. Price to book ratio is 0.80 and price to sales ratio 0.77. The operating margin amounts to 9.05 percent.

Related stock ticker symbols:

UCBA, CHEV, AM, TWGP, THG, ACI, LSBK, NHC, TRV, AFG, AIZ, VSEC, AEL

Selected Articles:

· 12 Dividend Challengers With Low PEG Ratios

· 6 High Yielding Dividend Challengers Close To 52-Week High

· Best Yielding Low Beta Dividend Challengers

· 14 Cheap Dividend Challengers

* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.