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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 30.79   10.7 2.87 2.04 6.36
IBM 139.95   14.8 9.48 6.28 4.52
EXXON MOBIL 81.76   16.8 4.88 3.28 3.96
COCA-COLA 47.98   30.6 1.57 1.60 3.38
UNITED PARCEL SERVICE 114.43   20.8 5.51 3.84 3.38
AMGEN 178.30   14.2 12.60 5.80 3.29
3M 219.08   24.6 8.90 5.76 2.64
CHUBB 140.55   16.6 8.46 2.92 2.12
WALT DISNEY 135.10   18.5 7.31 1.76 1.34
FEDEX 197.86   14.6 13.56 2.60 1.33

AT&T - T
AT&T - T  


Older articles featuring At&t (T):
This REIT Has 11% ROIC Along With 23% Dividend Growth
Kiplinger's April Shower Of Growth, Consumer, And Newer Dividends
The Retirees' Dividend Portfolio - John And Jane's March Taxable Account Update - Tax Season
The Retiree's Dividend Portfolio - John's February Update - Game Of Thrones Edition
Road To Financial Independence: New Dividend Record In March
March To Freedom Fund 1st Quarter Update: 12%+ Portfolio Growth And 31% Increase In Dividends
Business Plan For A Dividend Growth Investor
High Quality High-Yield Dividend Growth Stocks
My Dividend Growth Portfolio Q1 Update: 37 Holdings, 2 Buys, 2 Trims And 1 Sell
Your 69 Top S&P 500 Stocks For Yield, Gains, And Upside In April

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