I uncover a high-quality dividend growth stock that appears to be undervalued each week for Daily Trade Alert, which is a site that focuses on dividend growth investing, stocks, and unique investment opportunities. I’ve been writing for them for years now, and they’re just great over there. Each week, I publish an excerpt of my work, when it’s fresh off the press. That way, you readers are given the opportunity to check it out. The content is totally free. I hope you enjoy!
The stock market continues to defy gravity.
I mean, we’re sitting here with a Dow Jones Industrial Average that’s creeping up on 20,000 points.
Yet I’ve been almost incessantly hearing about how a market crash is imminent – for about four years now.
If you were one to believe in that and keep cash on the sidelines all this time, you would have missed out on a lot of long-term opportunities.
Even recently, we’ve seen how nobody can really predict the market.
Almost everyone believed that the market was going to drop substantially after Donald Trump became the President-elect.
Yet the S&P 500 is up 5% over just the last month!
While great for one’s net worth (assuming they’re invested in stocks), this has the effect of reducing the number of attractively valued stocks available.
But there are still some opportunities out there…
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
I thought the market would have dipped under Clinton, but that is just me. In addition it would not have mattered because you invested in quality companies! However I think we are all guilty of buying a non quality company at some point. Keep up the great work Jason!
Erik,
I’ll freely admit that I have no idea what the stock market is going to do over any day-to-day period. However, I do have a better inkling as to what’s going to happen over the long run. And that’s precisely why trying to predict things in the short term doesn’t really matter.
But I did have readers contacting me on Facebook about how they were finally ready to “load up” on stocks after Trump became President-elect. Well, they were apparently waiting for nothing. That’s why I just average in over time, reinvest those dividends, and grow the passive income. 🙂
Thanks for dropping by!
Cheers.
DCA is the easiest way to invest. It’s so much less stress than timing the market and it works pretty well too. Why make life more complicated that it already is? Well, I guess if you can time the market consistently, then it might be worth it.
Joe,
Couldn’t agree more. I don’t know why people like to complicate their lives so much. This goes for investing and just about everything else.
Simple is good. 🙂
Cheers!
Thanks for the article DM, you make quite the case for AMGN here. It’s getting more rare to find stocks that are trading at P/E ratios that low. I like the fact that you also compared the P/E to it’s own historical range which I highly recommend.
Captain,
Yeah, it’s not easy nearly as easy to find stocks for these articles these days. Do what I can, though. 🙂
I always compare the current metrics to recent historical averages. It’s not foolproof – nothing is – but it really helps to crystallize things.
Best regards.
Thanks for the analysis on Amgen. I’m looking to invest some money in our dividend portfolio.
On a side note, my parents had a small restaurant near Amgen in the 90s. The employees kept telling my dad to buy Amgen stocks, but he never did. That’s too bad because they did so well since then.
Joe,
That’s a shame. I’m sure there are many stocks that have done better overall, but I know Amgen has been a fantastic long-term investment.
That said, the market in general is a great long-term investment. So I hope he at least has that broad exposure. 🙂
Thanks for dropping by!
Best wishes.
I bought more around $136 when it dipped in November. Today they increased the dividend 15% Wooohoo! What I thought would be around a 3% divvy is now 3.37% YOC. THANKS AMGN!
This is how it works folks. Get a good yield and a consistent grower and over time your gains just multiply.
Daniel,
Nice! I can’t imagine you’ll be unhappy with that over the long run. 🙂
Amgen has been super consistent thus far. With everything I see, it looks like that’ll continue. I don’t foresee them continuing on with dividend growth like this for too much longer, but I’ll take it when I can get it. Gotta love a pay raise for doing nothing.
Cheers!