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.
I don't have a lot of faith that I'll find something new this month. The stock market seems to hit new weekly highs, so when I put it through my metrics it feels like I'll end up with the same companies. We'll see! 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. [...]