Dividend Champions with low payout ratios and small debt figures originally published at long-term-investments.blogspot.com. Dividend Champions are stocks with a very long history of consecutive dividend hikes. They have achieved to boost dividends year over year for more than 25 years without an interruption.
Only 105 stocks have managed this very important goal for long-term dividend growth investors. I like those stocks but some of them have a really high dividend payout ratio.
Earlier, I talked about the importance of the dividend growth rate and that it would be better to buy lower yielding stocks with a much higher growth rate than stocks with very big yields. Two main criteria for future dividend growth are the debt ratios and dividend payout figures.
This month, I started an article serial about dividend stocks with potential to boost dividends. Today I would like to present you Dividend Champions with the lowest dividend payouts. Only 10 income growth firms have a payout ratio of less than 20 percent. Seven of them are currently recommended to buy.
Most of them are modestly leveraged. Not low but also not too high but the right leverage ratio is also a question of the business model and the strong cash-flow of a corporate as well as the costs for growth.Read More »
Cheaply priced stocks traded below its own book values originally published at long-term-investments.blogspot.com. I love it to look for high quality dividend stocks with a proven long-term track record but one thing I often noticed in my research is that the market gets more and more expensive. But if you would like to make a solid return, you definitely need cheap stocks.
With low yields, the valuation rises in an inflationary environment. That's the key premise in our economy.
Today I would like to try my best to discover some of the best dividend growth stocks with a current cheap valuation. I use two criteria for screening the Dividend Achievers database: A forward P/E below 15 as well as a price to sales ratio below one.
Exactly 17 dividend growth stocks fulfilled the mentioned criteria. Eight of them got a buy or better rating by brokerage firms. The yields are between 0.95 and 2.91 percent. That’s not much in my view but growth forecasts are positive for all of the results. Read More »
Dividend Champions with high beta ratios and low valuation originally published at long-term-investments.blogspot.com. The Dividend Champions list is a compressed compilation of stocks with the longest dividend growth history. Those stocks raised their cash dividend payments over a period of more than 25 years.
In my current article serial, I write about high beta stocks and the possibility to make more money in a bullish market with high beta stocks. High beta stocks are stronger correlated with the market and can result in a higher performance.
Today I would like to observe those Dividend Champions with a beta ratio above one as well as a forward P/E below 15. It’s very important to make sure that the companies are cheap because only with a high initial earnings yield you can increase the possibility of a good long-term total return. Thirteen stocksfulfilled the above mentioned criteria of which ten are currently recommended to buy.Read More »
