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.
For the past few years, I have shared the painstaking task of taking the dividend champion (25+ years of dividend growth) and part of the dividend contender list (20+ years of dividend growth) and screen against stated metrics to narrow down my watch list for the month. I then buy a lot or two depending on the month; a lot being defined as $500. I am rather excited to apply my new screening metrics (outlined again below) to see what I am buying this month. It is my goal this year to apply some real record tracking to this account this and [...]