5 Dogs Of The Dividend Aristocrats Index

The Dogs of the Dow Jones strategy gained a major popularity within the recent years. The strategy is very simple: You only need to invest money into the 10 cheapest stocks of the Dow Jones, measured by expected growth and price to earnings ratios.

This investment rule can also be used for other indices or adjusted by several criteria. 

Toady I've used the formula in order to find the cheapest stocks from the Dividend Aristocrats index. The index has 54 constituents with more than 25 years of consecutive dividend growth.

I selected only those stocks with a forward P/E of less than 15 as well as future earnings growth of 5 percent for the next five years. Only eleven stocks fulfilled these criteria. The top five results by dividend yield ratio are listed below.

In general, I'm a real fan of long-term dividend growth stocks but due to the low interest policy of the Federal Reserve, stock prices also skyrocket and valuations are really high. It's not good to buy highly valuated stocks.

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4 Top Dividend Picks From The Discount Variety Stores Industry To Benefit From Black Friday

The last month of the year is the most important month within the whole year because up to 1/4 of the full-year sales are generated within December. 

Everybody loves to buy great things that helps you to improve you life quality, makes living easier and keeps your friends and family members happy.

Black Friday is the first day on which analysts start to measure the consumer activity by spending money. Black Friday gives us a good sign if the shopping season will end at new records or not.

Today I would like to present you four of the most popular discount store operators that pay the best industry dividends and have managed to grow them over the past years.
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16 Dividend Aristocrats With Cheap Forward P/E’s

Dividend Aristocrats income growth stocks with low forward P/E’s originally published at long-term-investments.blogspot.com. Dividend growth is one of the core items of my blog. I always screen the market by stocks with a very long dividend payment history and try to discover some opportunities for you.

What we’ve seen over the recent months is that the market get’s more and more expensive due the low interest environment. It’s really hard to find low valuated stocks with a high quality and proven business model.

Today I would highlight some of the cheapest Dividend Aristocrats on the market. Those stocks have a forward P/E of less than 15.

Only sixteen companies from the index have such a low valuation and one of them has a yield over five percent. Ten are currently recommended to buy.
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17 Cheap Dividend Achievers With Very Low P/S Ratios

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.

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2 Stock Buys For My Passive Income Portfolio: Cisco Systems And Target

The small sell-off on the market hit me a bit with my assets and I would like to increase two positions now for a very small amount.

First, I purchased Cisco Systems Shares at $23.55. I bought 40 shares which resulted in a total buying amount of $942 dollar. The stake war down around 10 percent and is now accounted with a book loss of 6.28 percent. I believe that the company is still healthy and should benefit from the growing web traffic.

The second purchase was the discount retailer Target. The position was down 11.74 percent and I decided to raise the stake by 60 percent. I bought 12 shares at $63.29. The total purchase amount was around $759. The average position is now down 7.89 percent.

Portfolio Overview I (Click to enlarge)

Portfolio Overview II (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

I think both companies are great dividend growth stocks with a solid dividend in a low interest environment. The yield is around 2.7/2.8 percent and has additional potential to grow. Let’s look how they will develop in the future.

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

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The full year estimated dividend income is now at $2,374. With still $32,000 in cash on the account, it’s still possible to reach my goal of $3,000 dividend income by the end of this year.

Portfolio Performance (Click to enlarge)

The portfolio holdings are up 5.33 percent since the date of funding. Due to the high cash amount and slow purchasing process, the full portfolio is only up 4.59 percent, a clear underperformance to the market. My strategy should perform better on rainy days, days we haven’t had during the past years. However, the strategy is not to make fast money on the market. I want to show you how you can build a portfolio with solid dividend growth stocks by eliminating the big risks and getting solid dividend cash payments per year. It’s a long-term strategy.

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield		Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	25.77	3.83		28.90	50	$64.75	$1,697.00
LMT	Lockheed Martin C	13.92	3.71		92.72	20	$92.00	$2,474.60
INTC	Intel Corporation	12.21	3.98		21.27	50	$45.00	$1,133.50
MCD	McDonald's Corpor	17.51	3.22		87.33	15	$46.20	$1,443.90
WU	Western Union Com	11.38	2.63		11.95	100	$47.50	$1,806.00
PM	Philip Morris Int	16.34	4.09		85.42	20	$68.78	$1,683.80
JNJ	Johnson & Johnson	19.32	2.92		69.19	20	$50.80	$1,743.20
MO	Altria Group Inc	15.65	5.14		33.48	40	$70.40	$1,376.00
SYY	Sysco Corporation	19.22	3.46		31.65	40	$44.40	$1,281.60
DRI	Darden Restaurant	14.95	4.37		46.66	30	$61.50	$1,423.50
CA	CA Inc.	12.86	3.4		21.86	50	$50.00	$1,480.00
PG	Procter & Gamble	19.98	3.02		68.72	25	$58.20	$1,928.75
KRFT	Kraft Foods Group	17.31	3.76		44.41	40	$80.00	$2,128.40
MAT	Mattel Inc.	18.45	3.26		36.45	40	$53.60	$1,649.20
PEP	Pepsico Inc. Com	18.63	2.79		70.88	20	$44.20	$1,585.20
KMB	Kimberly-Clark Co	19.62	3.44		86.82	15	$47.55	$1,395.90
COP	ConocoPhillips Co	11.3	3.94		61.06	20	$52.80	$1,364.00
GIS	General Mills In	17.6	2.79		42.13	30	$41.10	$1,475.70
UL	Unilever PLC Comm	17.93	3.53		39.65	35	$47.01	$1,340.15
NSRGY	NESTLE SA REG SHR	17.88	3.36		68.69	30	$65.31	$1,957.80
GE	General Electric	17.14	3.2		23.39	65	$48.10	$1,505.40
ADP	Automatic Data Pr	25.07	2.35		61.65	25	$42.50	$1,828.25
K	Kellogg Company C	23.15	2.95		61.52	25	$44.50	$1,505.75
KO	Coca-Cola Company	20.14	2.8		38.83	40	$42.80	$1,534.00
RTN	Raytheon Company	13.09	2.77		57.04	20	$42.00	$1,512.20
RCI	Rogers Communicat	11.17	4.02		46.5	50	$83.30	$2,067.00
GPC	Genuine Parts Com	17.64	2.69		77.06	20	$42.12	$1,573.20
TSCDY	TESCO PLC SPONS A	230	3.99		17.08	110	$75.68	$1,903.00
APD	Air Products and	22.16	2.6		85.71	15	$40.50	$1,544.85
GSK	GlaxoSmithKline P	19.57	4.61		52.16	30	$71.13	$1,550.10
WMT	Wal-Mart Stores	14.15	2.49		79.25	20	$36.16	$1,451.80
BTI	British American	15.54	4.11		111.13	23	$96.14	$2,366.24
CHL	China Mobile Limi	10.82	4.05		55.32	25	$55.95	$1,394.50
MMM	3M Company Common	17.98	2.17		110.27	15	$37.43	$1,725.60
TUP	Tupperware Brands	17.63	2.38		80.98	15	$29.40	$1,232.40
IBM	International Bus	13.07	1.95		197.09	16	$57.60	$2,928.48
HAS	Hasbro Inc.	19.23	3.2		44.09	30	$45.60	$1,439.70
T	AT&T Inc.	25.53	5.37		34.47	30	$53.70	$1,002.30
WAG	Walgreen Co. Comm	21.96	2.27		44.25	30	$34.20	$1,483.80
AFL	AFLAC Incorporate	8.19	2.38		59.39	20	$28.00	$1,167.60
TGT	Target Corporatio	15.3	2.38		68.69	32	$48.32	$2,025.28
CSCO	Cisco Systems In	12.74	2.62		25.12	90	$55.80	$2,119.50
DE	Deere & Company C	9.47	2.35		84.11	15	$29.10	$1,239.15
RGR	Sturm Ruger & Co	11.64	3.5		51.65	20	$38.52	$1,080.60
LO	Lorillard Inc Co	13.49	5		42.3	30	$65.00	$1,320.90
							$2,374.64	$72,869.80
							Average Yield	3.26%
							Yield On Cost	3.44%

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