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.
Every month I attempt to purchase a lot or two (a lot for me is $500 - I hope to increase that in the future) of a possibly undervalued stock that has increased their dividend every year for the past 15 years. In an effort to find those undervalued dividend growers I use certain metrics with regard to the company's price to earnings, operating margin vs industry and price to book vs industry. I also screen for yield and market cap as well to further limit the watch list. Lastly, I compare the remaining companies to their 52 week and 52 week [...]