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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 38.38   16.1 2.38 2.04 5.43
EXXON MOBIL 71.98   17.3 4.15 3.48 4.83
IBM 143.62   14.8 9.68 6.48 4.47
3M 170.58   20.6 8.28 5.76 3.41
UNITED PARCEL SERVICE 122.56   22.4 5.47 3.84 3.14
AMGEN 194.00   15.4 12.62 5.80 2.95
COCA-COLA 55.11   33.6 1.64 1.60 2.94
CHUBB 160.10   19.6 8.15 3.00 1.88
FEDEX 173.51   93.8 1.85 2.60 1.51
WALT DISNEY 137.50   17.3 7.93 1.76 1.30

AT&T - T
AT&T - T  


Older articles featuring At&t (T):
How To Analyze Dividend Stocks In 14 Points
My Dividend Growth Portfolio: Q3 2019 Summary
The Most Undervalued And Overvalued Dividend Champions - October 2019
The Most Undervalued And Overvalued Dividend Aristocrats - October 2019
Dividend Champion And Contender Highlights: Week Of October 6
My Dividend Growth Portfolio Q3 Update: 41 Holdings, 6 Buys, 5 Sells, 3.81% Yield
5%+ Dividend Yield Portfolio: Defensive Positioning Paying Off (Sep 2019 Review)
Q3 2019 Dividend Portfolio Update: New September Dividend Record
S&P 500 Dividend Aristocrats Rake Up October
AT&T Declares Quarterly Dividend, on Track to Deliver Record Free Cash Flow and Strong Dividend Coverage For 2019

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