When such stocks are trading at historically high yields, they are undervalued and worth considering as potential buys. Conversely, when these stocks are trading at historically low yields, they are overvalued and candidates for potential sells.
Last year I wrote an article about Yield Channel Charts, a tool for dividend growth investors to assess market valuation relative to historical yield patterns. Yield channels can be seen as "safety zones" for stock prices. As long as the stock price stays near the center of the yield channel, the stock is fairly valued.
In this article, I present yield channel charts for ten high-quality dividend growth stocks trading at undervalued yields. These are stocks I happen to own in my DivGro portfolio of 83 different positions, including 74 dividend growth stocks.
Please see this article at Seeking Alpha for details.
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