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 years (minus a few breaks), I have been screening for possibly undervalued stocks that have increased their dividend payments to owners for 20 or more years. The goal of this account is to eventually be turn on another income stream when it is needed. Originally, I used various stock metrics (price to earnings, operating margins, etc.), and then about half way through 2018 I learned about the Acquirer's Multiple / Magic Formula and used those techniques. Since my goal for 2019 is to get back to the basics, this year I am going to go back to those easy to understand stock metrics [...]