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Dividend Kings Analysis: 3M Is The Most Undervalued

Published Tue, 13 Oct 2020 09:50:09 -0400 on Seeking Alpha

Seeking AlphaDividend StrategyDividend Kings Analysis: 3M Is The Most UndervaluedOct. 13, 2020 9:50 AM ET|| Includes: ABM, AWR, CBSH, CINF, CL, CWT, DOV, EMR, FMCB, FRT, FUL, GPC, HRL, JNJ, KO, LANC, LOW, MMM, MO, NDSN, NFG, NWN, PG, PH, SCL, SJW, SWK, SYY, TGT, TRby: Dividend PowerDividend Power Long-term horizon, Dividend Growth Investing, Growth, Long OnlyDividend Power.cls-1{fill:#024999;}SummaryA dividend growth analysis of the 30 Dividend Kings is presented.
Commerce Bancshares, Target, Stepan Company, Hormel, and Cincinnati Financial are the Top 5 Dividend Kings in the ranking model.
The highest yielding Dividend King is Altria. The one with the lowest valuation is 3M.
The two gas utilities, Northwest Natural Gas and National Fuel Gas have yields over 4%. Federal Realty Trust is yielding over 5%.
3M is discussed in greater detail.
Introduction
In this article I analyze the 30 Dividend Kings, an exclusive group of stocks that have increased their dividend for 50+ consecutive years. The top five stocks in the ranking model in order are Commerce Bancshares (CBSH) [DP Score = 9.09], Target (TGT) [DP Score = 9.07], Stepan Company (SCL) [DP Score = 9.05], Hormel Foods (HRL) [DP Score = 9.04], and Cincinnati Financial (CINF) [DP Score = 9.03]. The highest yielding Dividend King at the moment is Altria (MO). The two gas utilities in the Dividend Kings, Northwest Natural Gas (NWN) and National Fuel Gas (NFG) have yields over 4%and may represent good value at this time. The most undervalued Dividend King from the perspective of earnings multiple is 3M Company (MMM). I view 3M as a buy at a stock price below $160 per share.
Source: Pixabay
Background
In these analyses I use nine criteria that permits rapid quantitative screening based on the dividend, earnings growth, dividend growth, dividend safety, and valuation. The nine criteria used in quantitative screening are:
History of increasing dividends Dividend yield 5-year EPS growth rate 5-year... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALTRIA GROUP 44.46   13.2 3.36 3.36 7.23
NATIONAL FUEL GAS 48.74   14.4 3.39 1.74 3.53
3M 170.58   20.6 8.28 5.76 3.41
GENUINE PARTS 97.52   18.1 5.38 3.05 3.14
EMERSON ELECTRIC 64.71   18.4 3.52 1.96 3.02
FEDERAL REALTY INVESTMENT TRUST 135.76   40.4 3.36 4.20 3.00
COCA-COLA 55.11   33.6 1.64 1.60 2.94
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
NORTHWEST NATURAL GAS 72.03   30.5 2.36 1.90 2.72
PROCTER & GAMBLE 122.77   90.3 1.36 2.98 2.49
TARGET 108.94   18.0 6.04 2.64 2.43
COLGATE PALMOLIVE 72.29   27.5 2.63 1.72 2.38
SYSCO 77.72   24.3 3.20 1.56 2.03
DOVER 99.67   24.4 4.08 1.96 2.02
ABM INDUSTRIES 36.85   27.5 1.34 0.72 2.00
CINCINNATI FINANCIAL 113.24   15.3 7.41 2.24 2.00
PARKER HANNIFIN 181.60   15.8 11.46 3.52 1.94
HORMEL FOODS 44.00   24.3 1.81 0.84 1.92
LOWES COMPANIES 113.88   35.6 3.20 2.20 1.91
STANLEY BLACK & DECKER 147.12   31.3 4.70 2.76 1.87
SJW 68.28   37.5 1.82 1.20 1.81
LANCASTER COLONY 146.18   26.8 5.46 2.60 1.79
COMMERCE BANCSHARES 60.78   16.2 3.75 1.04 1.74
CALIFORNIA WATER SERVICE GROUP 54.31   44.2 1.23 0.79 1.49
AMERICAN STATES WATER 90.79   44.1 2.06 1.22 1.37
HB FULLER 48.08   19.6 2.45 0.64 1.35
NORDSON 146.80   26.7 5.50 1.52 1.05
STEPAN 98.17   21.9 4.48 1.00 1.02
TOOTSIE ROLL INDUSTRIES 37.68   0.0 0.00 0.36 0.99

ALTRIA GROUP - MO
ALTRIA GROUP - MO  


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