Wednesday, April 17, 2019

Ten High-Quality Dividend Growth Stocks Trading Well Above Fair Value

In a recent companion article, I presented ten high-quality dividend growth stocks that are trading well below fair value. I presented 7-year yield channel charts for each stock to illustrate how the price line has moved lower to meet the undervalued yield line.

This article considers the opposite scenario, presenting ten high-quality dividend growth stocks that are trading well above fair value (at least when considering current yield relative to historical yield patterns).

In my view, it is useful to know when a stock becomes overvalued. I don't want to buy shares of a stock at premium prices. And, in some scenarios, replacing an overvalued stock with an equivalent undervalued stock can be quite lucrative. One could earn a higher yield and also increase the upside potential of your investment dollars. On the other hand, when selling an overvalued stock you're likely making a profit, which will be taxed as capital gains in the case of taxable accounts.

In the article, I present yield channel charts for ten high-quality dividend growth stocks trading at overvalued yields. Please read this article at Seeking Alpha for details on the ten stocks.

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