Time for another ‘Article of Interest’ post. This is now the 18th post in this series, with the previous one posting 2 months ago. Once again I’ve got an article from Dividend Strategist Ferdi S. at TheStreet.com. The article was released 9 days ago (very early Sept.), and it lists several dividend growth stocks with safe dividends, reasonable valuations and appealing total return prospects over the next 5 years. Perhaps you’ll find some of these stocks worthy enough to add to your watchlist.
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
As usual, 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 changes up the screens regularly to shrink the list of more than 750 stocks and highlight different aspects of dividend growth investing, such as high-yield, attractive valuations or excellent dividend growth.
In this case, he screened for stocks with a ‘Safe’ or ‘Very Safe’ dividend safety score from Simply Safe Dividends. He additionally screened for stocks trading at reasonable valuations and with a good total return outlook over the next 5 years.
There were only 10 stocks that came out of this screen! The 7 best stocks were highlighted and inspected further, however, the other 3 were also listed so that you could see those that just missed the cut. Here’s a link to the article…
I found that I own 3 of the 7 highlighted stocks in my dividend Portfolio. Those stocks are Illinois Tool Works (ITW), Amgen (AMGN) and Pinnacle West Capital (PNW).
Additionally, I own Gilead Sciences (GILD) from the list of 3 stocks that just missed the cut.
After the losses in the market this week, ITW seems to have dropped into fair value territory. Still, I’d like to see the stock price drop further before I consider putting more investment dollars into the Industrials sector.
Both AMGN and PNW are already on my watchlist. AMGN has dipped so far that a purchase now would lower my cost basis. PNW is my smallest Portfolio position and adding below $75 was my preference – guess I’ve got the green light.
Of the stocks I don’t own, I’m most intrigued by Allstate (ALL). The discount on that stock looks attractive. Yet, I’d prefer to initiate a position below $128.
Do any of the highlighted stocks pique your interest? Do you own any of these stocks already?
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…