7 High-Quality Dividend Growth Stocks Trading At Or Below Fair Value

This article presents 7 high-quality and discounted dividend growth [DG] stocks with a high likelihood of delivering annualized returns of at least 8%.

For each stock, I present key metrics, quality indicators, a fair value estimate, and the so-called Chowder number.

In my view, the stocks are good candidates for further research and possible investment.

Stock Analysis: Hormel Foods Corporation

Hormel Foods Corporation (HRL) is a multinational manufacturer and marketer of consumer-branded food and meat products. The company sells its products through sales personnel, as well as through independent brokers and distributors. Customers include retailers, hospitals, nursing homes and marketers of nutritional products. HRL was founded in 1891 and is based in Austin, Minnesota.

HRL was the top ranked stock in the August edition of my 10 Dividend Growth Stocks series of articles on Seeking Alpha. The stock made the list again in the September edition, this time in second place. The stock is a Dividend Champion with a track record of 50 consecutive years of dividend increases and a 10-year dividend growth rate of 14.4%. HRL pays quarterly dividends of 14.5¢ per share in the months of February, May, August, and November.

Recent Buy: Nike Inc

This article originally appeared on The DIV-Net on Wednesday, August 26, 2016.

24 June 2016: Bought 47 shares of NKE at $52.84 per share. Founded in 1964 and headquartered in Beaverton, Oregon, Nike Inc (NYSE:NKE) is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, and accessories. The company's portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse. NKE sells its products to retail accounts, through NIKE-owned retail stores and Internet Websites, and through a mix of independent distributors and licensees.

NKE was the top ranked stock in the June edition of my 10 Dividend Growth Stocks series. The stock is a Dividend Contender with a track record of 14 consecutive years of dividend increases and a 10-year dividend growth rate of 16%. NKE pays quarterly dividends of 16¢ per share in the months of January, April, July and October.

The Blogger's Dividend Growth Portfolio, 2015 Edition

This article originally appeared on The DIV-Net on Wednesday, 23 December 2015.

In January 2013, I joined a growing number of dividend growth investment (DGI) bloggers when I created DivGro. As a starting DGI blogger, I learned a lot by reading other DGI blogs and mimicking what seemed to be good ideas. For me, the best learning came from reviewing the portfolios of DGI bloggers who chose to make their portfolios public.

My blogroll contains over 100 DGI blogs and I include links to public portfolios. Having direct access to public portfolios gives me a quick overview of a blogger's investment philosophy. By now, I know most of the tickers usually found in DGI portfolios, so a quick glance at a public portfolio tells me a lot. Of course, if bloggers choose to include more details than just a list of tickers, that is most useful.

Recently, I updated my blogroll by separating blogs into different categories based on date and activity. New Blogs are blogs that are less than one year old. More established blogs are either Active Blogs (blogs with at least 50 posts in the past year) or Steady Blogs (blogs with fewer than 50 posts in the past year). I also have an Honor Roll containing well-known and popular blogs that contain high quality or inspirational articles.

Recent Buy: HCP Inc.

This article originally appeared on The DIV-Net on Friday, 27 November 2015.

6 Nov 2015: Bought 75 shares of HCP at $34.00 per share. Formed in 1985 and based in Irvine, California, HCP, Inc (NYSE:HCP) is an independent hybrid REIT (real estate investment trust). The company invests primarily in properties serving the healthcare industry in the United States, including sectors such as senior housing, life science, medical office, hospital and skilled nursing. HCP acquires, develops, leases, manages and disposes of healthcare real estate and provides financing to healthcare providers.

HCP is a Dividend Champion with an impressive track record of 30 consecutive years of dividend increases. The company pays quarterly dividends of 56.5¢ per share in the months of February, May, August and November.

Recent Buy: Apple Inc

This article originally appeared on The DIV-Net on Wednesday, 2 September 2015. 

Jul 30, 2015: Bought 22 shares of AAPL at $121.98 per share.
Aug 10, 2015: Bought 22 shares of AAPL at $118.43 per share.

Headquartered in Cupertino, California, Apple Inc (NASDAQ:AAPL) designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players. The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content. AAPL was founded in 1977.

Stock Analysis: Archer Daniels Midland

This article originally appeared on The DIV-Net on 6 May 2015.

Founded in 1898 and headquartered in Chicago, Illinois, Dividend Champion Archer Daniels Midland Company (NYSE:ADM) is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural commodities. The company manufactures protein meal, vegetable oil, corn sweeteners, flour, and other value-added food and feed ingredients, as well as biodiesel and ethanol.

ADM is the Consumer Staples sector winner and 7^th ranked stock in the April 2015 edition of my 10 Dividend Growth Stocks article series. The company has an impressive 40-year streak of consecutive dividend increases and pays quarterly dividends of 28¢ per share in the months of March, June, September and December.

Recent Buy: Gap Inc.

This article originally appeared on The DIV-Net on 1 April 2015.

Mar 16, 2015: Bought 60 shares of GPS at $41.42 per share.

Gap Inc. (NYSE:GPS) is a global apparel retail company that offers apparel, accessories, and personal care products under the Gap, Banana Republic, and Old Navy brands, among others. The company operates in the specialty, outlet, online, and franchise channels. It has 375 franchise stores in 41 countries. GPS was founded in 1969, and is headquartered in San Francisco, California.

GPS is the Consumer Discretionary sector winner and top ranked stock in the March 2015 edition of my 10 Dividend Growth Stocks article series. The company has an 11-year streak of consecutive dividend increases. It pays quarterly dividends of 23¢ per share in the months of January, April, July and October.