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 apply certain screening metrics, defined below, to sift through those companies that have increased their dividend for at least 20 years. The screening metrics will change every 6 months, since I am not convinced that I have a fool proof way to determine when a company’s stock price is undervalued. Thoughts before the screen: With volatility creeping back in vogue, I am not entirely sure what to expect in terms of an outcome. My hope is that some of that volatility has spilled into some of these long term dividend paying companies. Maybe, an unloved sector provides me with [...]