Time for another ‘Article of Interest’ post. This is now the 17th post in this series, with the previous one having arrived last month. This time around I’ve got an article from TheStreet.com, from an author you might be familiar with. The article was released late in June (so about 2 weeks old), and it contains a handful of stocks that are considered discounted stocks with safe dividends.
To recap the intent of this series… every now and then, when perusing investing or personal finance articles across the Internet, I come across what I call an ‘Article of Interest’, or ‘A of I’ for short.
I decided it might be helpful to share a link to the article(s) in case some of my visitors would find it of interest as well.
In most cases, the articles will focus on dividend-paying stocks or dividend growth investing (DGI). However, other finance-related topics might be highlighted, too.
Now that we are up-to-speed, let’s get more details on what this A of I is about…
Link Overview
I’m a fan of FerdiS over at DivGro. He uncovers all sorts of dividend stocks, and provides some terrific content. I especially like his quality assessments and related rankings.
Ferdi also writes articles over at TheStreet.com. He posts articles in the Dividend Strategists section. This article is one of his from that area.
This one caught my attention since he detailed a couple of unique ways to screen for dividend growth stocks that I hadn’t seen before. As you know, I try to tilt my Portfolio more towards dividend growth compared to dividend yield. Thus, I was happy to see some additional ways to screen for dividend growers.
The pair of screens that stood out for me were the ones covering 5-year Yield on Cost (YoC) and Acceleration Factor – check them out.
In the article, Ferdi screened for dividend growth stocks from Dividend Radar (securities trading on U.S. markets that have consistently raised their yearly dividend payouts for at least five years). He then pared down that list by only looking at stocks with a ‘Safe’ or ‘Very Safe’ dividend safety score from Simply Safe Dividends. Further screens for investment-grade quality, as well as favorable Chowder Numbers and Acceleration Factors narrowed the list as well. Finally, the stocks were required to be trading below fair value, or discounted.
There were 15 stocks that came out of this screen, which he shares. One last screen to eliminate the stocks with irregular EPS over the past 10 years, left him with 5 stocks. Each of these 5 stocks got a closer look, and he provides some additional details on these.
https://www.thestreet.com/dividendstrategists/dividend-ideas/5-discounted-stocks-with-safe-dividends
I found that I own 3 of the 15 stocks from the initial list. These would be candidates for further investment. 2 of my 3 stocks made the final 5.
The 3 stocks I own are Pinnacle West Capital (PNW), Gilead Sciences (GILD) & AbbVie (ABBV), with PNW and ABBV making the cut into the final 5.
I probably won’t add to ABBV here since it already has the largest dividend weighting of any stock in my Portfolio. Adding to PNW would be good, since it’s a smaller position that I would like to see grow. However, I’d like to see a bigger discount before I add… perhaps if the price drops below $80 again. A price under $75 would almost certainly garner an additional investment.
As for the 12 stocks that I don’t already own, that leaves me with some good stocks to investigate. Insurer Allstate (ALL) could be worthy of some investigation on my part given the significant discount it appears to be sporting. Reinsurance Group of America (RGA) also piqued my interest.
Anyway, there is plenty of dividend meat to chew on here. 🙂
Do any of these stocks capture your interest? Do you own more than 3 of the 15 stocks from the initial list, or more than 2 of the final 5?
I hope you find the article useful and/or enjoyable. As always, please share your thoughts once you’ve had a chance to read the material.
See you next time…