Grow Your Dividend Income Now...With These Cheaply Valuated Dividend Stocks

...that's what I can pray to every income investor. I've made tons of money by investing capital into dividend growth stocks. For sure, I had luck and the Lehman Crises helped me a little to attract stocks at a cheap valuation.

Today, it's more difficult to catch bargains on the market. The Federal Reserve banks around the world flooded the markets with cheap money and pushed down the interest rates at the lowest level for decades! I'm pretty sure that this constellation is not sustainable but gives us investors also great possibilities to buy stocks.

Good dividend growth stocks grow their earnings payouts to shareholders each year and they don't want to stop it. That's a good way to improve your personal, passive income by a significant amount. Below are five stocks that have risen dividends over more than 25 consecutive years, a cheap forward P/E of less than 15 als well as a double digit earnings growth forecast.

6 Low Beta And High Yield Dividend Stock Ideas

Over the past months, I've published a lot of long-term orientated stock ideas on my blog. The aim was to get new and fresh ideas for our asset allocation and I generated tons of great articles but most of them have a clear focus on dividend growth.

This weekend, I've also looked at my dividend growth stock database but I still notice that yields are low and price ratios are very ambitious.

I decided to start a new screen which is not based on dividend growth but count in safe heaven criteria like the beta ratio and high market valuations.

I've attached 6 big names below with some great charts about the long-term yield, dividend and price developments.

The 6 top safe heaven stocks with yields above 3.5 percent are...

5 Long-Term Dividend Growth Stocks To Stay Hedged In A Market Correction

The market shows a clear signal that the interest rates should rise in the near future but what should this mean for your long-term orientated dividend growth stocks?

I believe that the high valuations must come down in some way. It could also be possible that the market prices stay stable due to a solid business growth and the high liquidity in the market. 

We still have dividend yields of more than 2 percent for the average market, that's a solid and defensible value during a market correction. What's your opinion about a rising interest rates? Should stocks fall or rise?

However, to stay productive, I've attached a few long-term orientated dividend growth stock ideas with low beta ratios and high dividend yields.

Each of them have raised dividends by more than five consecutive years and cover the market volatility with a beta ratio of less than 0.5.

These are the final criteria:
- Beta ratio below 0.5
- Market Cap over USD 10 billion
- Expected 5-Year earnings growth of more than 5 percent
- Forward P/E under 15

The Top 5 results are...

5 Attractive Long-Term Dividend Growth Stocks

I made good money with dividend growth stocks but I also lost big values with stock trading. Most of the stock losses are mid-term caused and reasonable to lower capitalized stocks which looked cheap at the time of purchasing but the market turned into the wrong direction.

In general, I love it to buy higher capitalized and well diversified stocks that have a good growth potential.

Today, I've screened the Dividend Champions database by stocks with 10 billion plus market capitalization as well as forward P/E of less than 20. In addition, stocks from the screen should have a solid debt-to-equity ratio below the 0.5 mark and growth should be estimated at 5 percent level for the next half decade.

I've listed the 5 top yielding stocks below. The lowest yielder is Emerson Electric with a 2.63 percent dividend yield. It's a good sign that stocks are still available for acceptable earnings multiples to fight inflation.

The top 5 dividend stocks are...

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.