Published Sun, 20 Sep 2020 14:18:27 -0400 on Seeking Alpha
Seeking AlphaDividend Quick PicksThe 5 Undervalued Blue Chip High Dividend Growth Stocks You Need To Buy NowSep. 20, 2020 2:18 PM ET|| Includes: AMGN, BBY, CLX, DIA, HD, IBM, JNJ, MO, NEE, PM, PRU, SNA, SPY, T, TROW, TXN, UNP, VFCby: Robert & Sam KovacsRobert & Sam Kovacs Long Only, Dividend Investing, Dividend Growth InvestingSummaryThe core of a dividend portfolio should be made of all weather dividend stocks.
Buying these stocks when they are undervalued is important if you want great performance.
It is once again difficult to find value, but it can be found in every market.
You just need to be willing to look.
Written by Sam Kovacs
A constantly changing market
Last week, I wrote an article on unknown dividend stocks which I believe make great additions to a portfolio. But many investors who read the article told me that they found such stocks speculative and would prefer blue chips.
This is quite understandable. In the framework Robert & I use, we call stocks “All Weather” or “Fair Weather” dividend stocks.
All Weather dividend stocks can be counted on to pay their dividend through thick and thin. They are the bedrock of your portfolio.
Depending on how conservative you are, these stocks could count for 70% to 100% of your portfolio.
I personally like a 80-20 to 90-10 split between All Weather and Fair Weather dividend stocks.
But there is a problem…
The market once again seems expensive, with the S&P 500 (SPY) hovering around pre-pandemic levels.
Source: Seeking Alpha
Some All Weather dividend stocks which we have recommended purchasing in the past year have soared.
Consider Clorox (CLX) for instance. It was already overvalued when I last wrote about the stock in April. As a consequence, it has underperformed the S&P 500. Yet it has still climbed to record prices and historically low dividend yields.
Or look at Union Pacific (UNP),... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|PHILIP MORRIS INTERNATIONAL||74.90||14.9||5.03||4.68||6.12|
|JOHNSON & JOHNSON||130.43||21.6||6.03||3.80||2.93|
|T. ROWE PRICE GROUP||118.12||14.9||7.95||3.04||2.58|
|SPDR DOW JONES INDUSTRIAL AVERAGE ETF TRUST||272.32||0.0||0.00||5.67||2.10|
|SPDR S&P 500 ETF||301.29||0.0||0.00||5.42||1.82|
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