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.
After years and years of screening for, and writing about, possibly undervalued dividend growth stocks I had to take a break earlier this year. Well, after a six month hiatus I am back! My goal is the same, it is to buy $500 to $1,000 worth of one or two companies per month, every month. The company will have increased its dividend every year for 20 years or more years and hopefully will be undervalued at least to its peers. My Screening Metrics In an attempt to find undervalued, unloved companies I use certain metrics which are defined below. First and foremost, [...]