Every Sunday, I uncover a high-quality dividend growth stock that appears to be undervalued. These pieces are published at 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 here, when it’s fresh off the press. This is your opportunity to check it out. I hope you enjoy!
The stock market has been extremely volatile since COVID-19 went global.
This is why it’s always a good idea to “keep your eye on the prize”.
That prize isn’t stock prices tomorrow or next week.
No.
The prize is significant wealth and passive income after decades of compounding.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
P.S. If you’re interested in achieving financial freedom in your life, particularly via dividend growth investing, check out some amazing resources I’ve personally used on my way to becoming financially free at 33!
I liked your article. I think it is a good long term play. I notified it spiked with TSLA on the recent run up before the market fell apart on the COVID concerns. Quick question, would you ever consider preferred shares in your portfolio? I scooped up the preferred for SO and EBAY for waaay under par during the downturn and locked in some really high yields of safe companies. I know the yield won’t grow, and the stock can be called in, but I see it as a safe way to add some yield when I can. Hope all is well with you, and keep up the good writing.
Presone,
Yeah, I think the stock was off to the races before the pandemic came into view. But if you missed out before the last run, here’s another opportunity for you.
As for preferred, no. I’m a dividend growth investor, not just a dividend investor.
Cheers.
It sounds like you are wanting the stock to be more expensive, but then it would not be undervalued.
Jason, ALB stock… 10K invested in 2010 is 18K now for a CAGR of 6.3%. 10K invested in 2015 is worth 11K CAGR of 1.8%. We are talking about bull market. Am I missing something here. I think this is a poor stock.
Sashi,
Well, total return is always a moving target. If you were to have looked at the numbers just a few months ago, they would have looked a lot better. This stock (and the market as a whole) is down considerably since late February.
Ultimately, however, investors invest in a business for where it’s going, not where it’s been. If you invest in Albemarle (or any other business), you’re looking to capture a piece of the growth they’ll produce from now until the time you cease to remain an investor. What the stock was doing in 2012 (or whatever) is fairly inconsequential to you as it relates to your decision moving forward.
Cheers.