9 Cheap Dividend Champions To Buy For Growth And Yield

Regardless of how well or poorly the stock market is performing, one thing is for certain: dividend stocks are always in style.

I've often said that dividend stocks are the foundation of a great retirement portfolio -- and for good reason.

For starters, companies that pay dividends usually have a long history of profitability and a sound long-term outlook. A business that doesn't have a clear path to growth typically isn't going to pay a dividend.

In other words, buying dividend stocks often means buying into high-quality, profitable companies with long histories of success.

But some of the best dividend stocks can be found floating well below investors' radars. Today I screened the market by the cheapest long-term dividend growth stocks. Each of the attached stocks managed to raise dividends by more than 25 years in a row.

In addition to the selection criteria, the forward P/E should be under 15. Only 9 stocks are still cheap by forward P/E if you look at the market nice of long-term dividend raiser. That's sad but good to get an impression about how hot valuated the market is.

Here are 9 bargain bin high-yielding dividend champions....

6 Triple-Net REITs For A Suitable Portfolio

The following 6 triple-net real estate investment trusts (REITs) are suitable for a portfolio that requires dependable income.

A triple net lease is a lease agreement that designates the lessee, which is the tenant, as being solely responsible for all the costs relating to the asset being leased, in addition to the rent fee applied under the lease.

The structure of this type of lease requires the lessee to pay the net amount for three types of costs, including net real estate taxes on the leased asset, net building insurance and net common area maintenance. This type of lease can also be referred to as a net-net-net (NNN) lease.

Here are the results...

4 Stocks To Buy

We all know the secret to successful investing is buying low and selling high. But what does that mean, exactly – do we simply buy companies growing their top lines aggressively in today’s low-growth world?

There are dangers in this approach, which put you at risk for drastic losses.

Smart, cautious investors avoid these dramatic losses by buying high quality, established companies when their earnings are cheap. Even better, they buy stocks that pay dividends – and raise them consistently.

This is why Warren Buffett’s favorite holding time for an investment is “forever.” He wants to buy good quality stocks that will pay him to keep those stocks. This is also the secret to dividend growth investing, which has been a winning strategy for conservative investors for decades.

If you’re investing for retirement, dividend growth investing is your best bet to securing a growing passive income stream in the future. There’s only one problem: there are thousands of dividend paying companies out there, and not all of them are promising investments.

Sure, you could buy an ETF but a fund like this is blindly managed, meaning it will hold a lot of winners AND losers. It will also buy stocks when they are overpriced—a big concern now that the market continues to climb higher and higher.

With a bit of research, we can find dividend growth stocks that haven’t gotten to absurdly high levels in the last year with the broader market—yet they are stocks that also pay a solid and growing dividend.

How do we do this? Our goal should be to find stocks that have consistently grown earnings per share over the last 10 years but haven’t gone up more than 8% in the last year. This is getting harder to do, because returns for stocks are declining.

There are four great stocks that fit the bill and that are worth buying right now.

Here are the results...

14 Dividend Paying Stocks With Low P/E's And High Returns On Invested Capital

I built a screen that I would like to share that acts as a starting point in identifying quality stocks that have great historical returns on invested capital and relatively low current valuations.

Only companies that had a market cap over $1 billion and headquarters located in the U.S. were included.

I used EBIT as the earnings metric, so it is not a perfect after-tax return on invested capital. I calculated invested capital two ways, one with goodwill, and one without goodwill.

In addition, each of stocks has a low forwad P/E, a positive dividend yield and payout ratios below 52 percent. The return on assets is between 7.50% and  32.70%.

14 stocks fulfilled my critera.

These are the results...

14 Dividend Paying Stocks With Low P/E's
And High Returns On Invested Capital
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50 NASDAQ Dividend Dogs

50 NASDAQ Dividend Dogs
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