Undervalued Dividend Kings: October 2024

Dividend Kings are exceptional dividend companies that have increased their annual dividend payouts for 50 or more consecutive years. This achievement is remarkable because these companies have delivered ever-increasing dividends to investors through economic recessions, market crashes, technological revolutions, and changes in consumer tastes!

In this article, I rank the Dividend Kings by quality score and present undervalued stocks for further research and possible investment. 

To determine if stocks are undervalued, I use these valuation screens:

Lockheed Martin Dividend Increase

On 3 October, Lockheed Martin (LMT) increased its quarterly dividend by 4.76%, from $3.15 to $3.30 per share.

The dividend will be paid on 27 December to shareholders of record on 2 December. The ex-dividend date is 2 December.

LMT's contribution to DivGro's projected annual dividend income will increase by $24 to $528.

Honeywell International Dividend Increase

On 27 September, Honeywell International (HON) increased its quarterly dividend by 4.63%, from $1.08 to $1.13 per share.

The dividend will be paid on 6 December to shareholders of record on 15 November. The ex-dividend date is 15 November. 

HON's contribution to DivGro's projected annual dividend income will increase by $16 to $452.00.

Accenture Dividend Increase

On 26 September, Accenture (ACN) increased its quarterly dividend by 14.73%, from $1.29 to $1.48 per share.

The dividend will be paid on 15 November to shareholders of record on 10 October. The ex-dividend date is 10 October. 

ACN's contribution to DivGro's projected annual dividend income will increase by $60.80 to $473.60.

McDonald's Dividend Increase

On 26 September, McDonald's (MCD) increased its quarterly dividend by 5.99%, from $1.67 to $1.77 per share.

The dividend will be paid on 16 December to shareholders of record on 2 December. The ex-dividend date is 2 December. 

MCD's contribution to DivGro's projected annual dividend income will increase by $30 to $531.

Microsoft Dividend Increase

On 17 September, Microsoft (MSFT) increased its quarterly dividend by 10.67%, from 75¢ to 83¢ per share.

The dividend will be paid on 12 December to shareholders of record on 21 November. The ex-dividend date is 21 November.

MSFT's contribution to DivGro's projected annual dividend income will increase by $25.60 to $265.60.

Realty Income Dividend Increase

On 10 September, Realty Income (O) increased its monthly dividend by 0.19%, from 26.30¢ to 26.35¢ per share.

The dividend will be paid on 15 October to shareholders of record on 1 October. The ex-dividend date is 1 October.

O's contribution to DivGro's projected annual dividend income will increase by $1.50 to $790.50.

Broadcom Dividend Increase

On 5 September, Broadcom (AVGO) increased its quarterly dividend by 0.95%, from 52.5¢ to 53¢ per share.

The dividend will be paid on 30 September to shareholders of record on 19 September. The ex-dividend date is 19 September.

This is an unusually small increase for AVGO, likely aimed at smoothing out its fractional dividend following the company's 10-for-1 stock split. I expect AVGO to announce a more significant increase in December. 

AVGO's contribution to DivGro's projected annual dividend income will increase by $2 to $212.

Verizon Communications Dividend Increase

On 5 September, Verizon Communications (VZ) increased its quarterly dividend by 1.88%, from 66.50¢ to 67.75¢ per share.

The dividend will be paid on 1 November to shareholders of record on 10 October. The ex-dividend date is 10 October.

VZ's contribution to DivGro's projected annual dividend income will increase by $25 to $1355.

September 2024 Newsletter

Welcome to the SEPTEMBER edition of my DivGro 2.0 newsletter!

The September Newsletter provides a quick market recap and overview of my DivGro portfolio (as of 31 August 2024). It also reveals four new top-10 lists of discounted stocks!

In August, I added shares to six positions and trimmed four positions. DivGro still contains 76 positions.

I'm continuing to align DivGro more closely to its desired target weights. 

10 Undervalued Dividend Growth Stocks: August 2024

After taking two months off from my 10 Dividend Growth Stocks series, I'm refocusing the series to identify top-ranked undervalued stocks. 

By implication, such stocks are suitable candidates for your dividend growth portfolio because they're high-quality dividend growth stocks trading at or below fair value. 

This month, I'm presenting the ten top-ranked undervalued DG stocks in Dividend Radar. In future articles, I'll use additional screens to focus on other aspects of dividend growth investing. 

Altria Dividend Increase

On 22 August, Altria (MO) increased its quarterly dividend by 4.08%, from 98¢ to $1.02 per share.

The dividend will be paid on 10 October to shareholders of record on 16 September. The ex-dividend date is 16 September.

MO's contribution to DivGro's projected annual dividend income will increase by $48 to $1,224.

August 2024 Newsletter

Welcome to the AUGUST edition of my DivGro 2.0 newsletter!

The August Newsletter provides a quick market recap and overview of my DivGro portfolio (as of 31 July 2024). It also reveals four new top-10 lists!

In July, I opened two new positions and added shares to three existing positions. Additionally, I closed two positions and reduced my holdings in two positions.

I'm continuing to align DivGro more closely to its desired target weights. 

Illinois Tool Works Dividend Increase

On 2 August, Illinois Tool Works (ITW) increased its quarterly dividend by 7.14%, from $1.40 to $1.50 per share.

The dividend will be paid on 11 October to shareholders of record on 30 September. The ex-dividend date is 30 September.

ITW's contribution to DivGro's projected annual dividend income will increase by $34.00 to $510.

American States Water Dividend Increase

On 1 August, American States Water (AWR) increased its quarterly dividend by 8.30%, from 43¢ to 46.56¢ per share.

The dividend will be paid on 3 September to shareholders of record on 16 August. The ex-dividend date is 16 August.

AWR's contribution to DivGro's projected annual dividend income will increase by $34.08 to $446.88.

Mondelez Dividend Increase

On 1 August, Mondelez (MDLZ) increased its quarterly dividend by 10.59%, from 42.5¢ to 47¢ per share.

The dividend will be paid on 14 October to shareholders of record on 30 September. The ex-dividend date is 30 September.

MDLZ's contribution to DivGro's projected annual dividend income will increase by $36 to $376.

Home Run Number 52

Today, DivGro delivered my 52^nd Home Run stock. When a stock in my portfolio doubles my original investment in total returns, I assign it Home Run status. 

This is a milestone worth celebrating!

As a dividend growth investor, I invest in high-quality dividend growth stocks. Unless the underlying fundamentals change, there's rarely a reason to sell these stocks. And if I hold dividend growth stocks long enough, eventually they'll double my original investment in total returns and become Home Run stocks!

Ten-Bagger Number One

Today, I'm starting a new series of milestone articles, similar to my series of articles on DivGro's Home Runs.  

Articles in this series will be exceptionally rare! 

In fact, I would be surprised to write more than three of these articles in the next decade! 

The reason is that achieving a Ten-Bagger is exceptionally rare in Dividend Growth Investing. A Ten Bagger is a stock with total returns of at least ten times the original investment (or a 1,000% return on investment).

Amphenol Dividend Increase

On 23 July, Amphenol (APH) increased its quarterly dividend by 50%, from 11¢ to 16.5¢ per share.

The dividend will be paid on 9 October to shareholders of record on 17 September. The ex-dividend date is 17 September.

APH's contribution to DivGro's projected annual dividend income will increase by $88 to $264.

Cintas Dividend Increase

On 23 July, Cintas (CTAS) increased its quarterly dividend by 15.6%, from $1.35 to $1.56 per share.

The dividend will be paid on 3 September to shareholders of record on 15 August. The ex-dividend date is 15 August.

CTAS's contribution to DivGro's projected annual dividend income will increase by $33.60 to $249.60.

Union Pacific Dividend Increase

On 17 July, Union Pacific (UNP) increased its quarterly dividend by 3.08%, from $1.30 to $1.34 per share.

The dividend will be paid on 30 September to shareholders of record on 30 August. The ex-dividend date is 30 August.

UNP's contribution to DivGro's projected annual dividend income will increase by $16 to $536.

NNN REIT Dividend Increase

On 15 July, NNN REIT (NNN) increased its quarterly dividend by 2.65%, from 56.5¢ to 58¢ per share.

The dividend will be paid on 15 August to shareholders of record on 31 July. The ex-dividend date is 31 July.

NNN's contribution to DivGro's projected annual dividend income will increase by $15 to $580.

July 2024 Newsletter

Welcome to the JULY edition of my DivGro 2.0 newsletter!

The July Newsletter provides a quick market recap and overview of my DivGro portfolio (as of 30 June 2024).

I opened two new positions in June and added shares to eight existing positions. Additionally, I closed two positions and reduced my holdings in ten positions.

I'm continuing to align DivGro more closely to its desired target weights. 

Home Run Number 51

I'm celebrating a wonderful milestone today! DivGro just delivered my 51^st Home Run stock, doubling my original investment in total returns!

If you invest in high-quality dividend growth stocks, then there's rarely a reason to sell your stocks. And if you hold dividend growth stocks long enough, eventually, they'll double your original investment in total returns and become Home Run stocks!

Dividend growth investing is the ultimate Get Rich Slow Scheme. It's boring but beautiful and a perfect example of Slow and Steady wins the Race!

The Highest Quality Dividend Growth Stocks In 2024

In this June 2020 article, David Van Knapp screened the so-called CCC list of Dividend Champions, Contenders, and Challengers for stocks that placed in the top two scoring categories of each quality indicator in his Quality Snapshots system. He called stocks that passed these stringent screens the highest-quality dividend growth stocks.

In this article, I revisit the idea of finding the highest-quality dividend growth stocks. My universe of dividend growth stocks is Dividend Radar, and I use a variation of Quality Snapshots for screening. 

The article updates one I wrote in August 2022. While the scoring system and universe of DG stocks are different, comparing the 2022 and 2024 results is quite informative.