I attempt to screen and purchase undervalued dividend growth stocks. These companies have increased their dividend for at least 15 years and have a lower than average price to earnings (PE) ratio, a higher operating margin, a low price to book, a reasonable dividend yield and payout ratio. This is easily my favorite part of my financial empire.
With October underway it is time to search the dividend champion list to see if I can buy something this month! My Screening Metrics In an attempt to find undervalued, unloved companies I use certain metrics which are defined below. First and foremost, the company must have increased their dividends for at least 20 years. To gather this information I use the Dividend Champion list (as well as part of the Dividend Contenders list). Both lists are updated monthly by David Fish. In the past, I used the Dividend Aristocrat list, but one of the criteria for the Dividend Aristocrat is that it is [...]