This article presents a tool for dividend growth investors (DGIs) called Yield Channel Charts. These charts provide a way to assess market valuation relative to a stock's historical yield patterns.Yield channel charts are suitable for high-quality dividend growth stocks with long histories of paying higher dividends every year.
Yield channels can be seen as safety zones for stock prices. As long as the stock price remains within the yield channel, the stock can be considered fairly valued. Once the stock price moves outside the yield channel, the stock is either overvalued or undervalued relative to historical yields.
With earnings season over, only a few companies announced dividend increases this week.
Last year I decided to add options trading to complement DivGro's strategy of investing in dividend growth stocks.
Welcome to another edition of my monthly pulse article series.
By Charles Fournier
As a dividend growth investor, I love David Fish's
Welcome to another monthly review of DivGro, my portfolio of dividend growth stocks! This is monthly review number 55!