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10 High-Quality Dividend Growth Stocks Trading Well Below Fair Value

Published Sat, 13 Apr 2019 08:00:00 -0400 on Seeking Alpha

I'm rebooting my series of DivGro Pulse articles to focus on high-quality dividend growth stocks trading at extreme yield levels.
When such stocks are trading at historically high yields, they are undervalued and worth considering as potential buys. Conversely, when these stocks are trading at historically low yields, they are overvalued and candidates for potential sells.
Last year I wrote an article about Yield Channel Charts, a tool for dividend growth investors to assess market valuation relative to historical yield patterns. Yield channels can be seen as "safety zones" for stock prices. As long as the stock price stays near the center of the yield channel, the stock is fairly valued.
In this article, I present yield channel charts for ten high-quality dividend growth stocks trading at undervalued yields. These are stocks I happen to own in my DivGro portfolio of 83 different positions, including 74 dividend growth stocks. In time, I hope to expand the number of dividend growth stocks I regularly monitor to about 120 stocks. The stocks I don't own will become my watch list stocks.
For each stock, I provide a short description of the company, a 7-year yield channel chart created from weekly yield data, and some key metrics to help with a superficial analysis of each stock. In addition to the price and yield, I provide 1-year and 5-year dividend growth rates, as well as the quality indicators used by David Van Knapp in a recent article:
Value Line's Safety Rank... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AT&T 32.35   12.1 2.68 2.04 6.34
IBM 135.76   14.3 9.48 6.48 4.77
EXXON MOBIL 74.35   17.1 4.34 3.48 4.70
UNITED PARCEL SERVICE 102.02   19.5 5.24 3.84 3.84
3M 166.69   17.7 9.43 5.76 3.41
AMGEN 176.08   14.0 12.53 5.80 3.30
COCA-COLA 51.31   32.7 1.57 1.60 3.10
CHUBB 150.26   17.9 8.41 3.00 1.96
FEDEX 165.67   12.2 13.56 2.60 1.63
WALT DISNEY 141.74   15.9 8.91 1.76 1.30

AT&T - T
AT&T - T  

Older articles featuring At&t (T):
3 Dividend Aristocrats To Buy With 4%+ Yields
Verizon: Back To A Troubling 4% Yield
Bert's May Dividend Income Summary
Dividend Update - May 2019
The Retirees' Dividend Portfolio - John And Jane's May Taxable Account Update: Monthly Income Record
A Dividend Portfolio For Transaction-Free Investing
Kiplinger's Most Reliable Dividend Stocks On Earth June Update
Fed's QE Infinity Will Drive A Flight To Yield
3 Dividend Aristocrats To Outlast A Trade War
My Dividend Growth Portfolio May Update: 42 Holdings, 1 Buy