This article was co-produced with James Marino Sr of Portfolio Insight.
In May, we introduced
Dividend Radar, a weekly auto-generated spreadsheet of dividend growth stocks with dividend
increase streaks of at least five years. Based on community feedback, we
recently added two new added value metrics to Dividend Radar, the
5-year average yield and the
percentage above or below fair value.
This article introduces these added value metrics and illustrates how they can
be used to find undervalued dividend growth stocks for further research and
possible investment.
We'll show how these metrics can be used in tandem to find undervalued dividend growth stocks for further research and possible investment.
Specifically, both metrics provide key insights into whether a stock is fairly valued. In fact, there is a strong correlation between them. Of 407
Dividend Radar stocks currently at or below fair value, 372 (over 91%) have a current yield greater than the 5-year average yield.
In our view, fair value should be considered from multiple angles and these
two metrics provide a compelling way to do so.
No comments :
Post a Comment
Please don't include links in comments. I will mark such comments as spam and the comment won't be published. To make me aware of your blog or website, comment on my Blogrole page instead.