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!
There’s this dynamic that most of society believes is absolutely necessary, as if there’s no other way.
That dynamic is one where a person is paid only if they work for the money.
This means there’s a widespread belief that there’s always and only a direct correlation between effort/time expended and money received; if you don’t work, you don’t get paid.
I once believed wholeheartedly in this, that the only way I could ever get a check was to work for it.
But then I realized in my late 20s that there’s a fantastic way to circumvent this, and one can be paid for doing absolutely nothing.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
I have a relatively small position of CSCO and plan to add more if it hits below $31, preferably $30.5. But I don’t expect the annual dividend growth to top 10% for next few years. CSCO is a must-have dividend stock and will keep paying/increasing dividends for a long time.
I am now watching FLO and BGS after the Amazon-Whole Foods deal. The market seemed to react too much on the deal. Those two are indirectly related to the retail, especially the grocery biz. What do you think about those two? I believe that this Amazon deal sell-off is a good time to buy those two.
ER2019,
I’m with you. Relatively small position, but I wouldn’t mind adding to it if it were to drop just a little bit more. I think it’s undervalued, but a larger margin of safety would obviously be even more appealing.
As for FLO, I have a large position there, so I’m not looking to add. But if that weren’t the case, I’d be buying (as I was when it was last down at these prices).
Thanks for dropping by!
Best regards.
I own Cisco already and do want to own more, but I would like it a little lower around $25-$27
FV,
Cheaper is always better, if it can be had. 🙂
Cheers.
Jason,
For me, the X Factor with Cisco is the cash hoard. Companies with war chests have vast opportunities to either buy up competitors, flush share holders with dividends, and even change corporate directions if they want to. The flexibility is very important. It’s why I initiated a position in my only non-dividend payer: Google. The company rains down cash.I think Cisco offers a decent value at this time. I own a small portion, but would like to add around a 4%
Have you checked out GWW or GPC recently? I think those 2 aristocrats are coming into attractive valuations. Amazon looms as always, but those 2 are high on my watch list. Along with the battered food section: KR, and EAT. TJX starting to look better-valued in the retail sector.
Guy
Guy,
Absolutely. Using the DDM is only looking at the dividend and dividend growth, so it’s more of a gross valuation. Cash could certainly impact that, but it doesn’t directly factor in. The net valuation, including net cash (somewhere around $40 billion for Cisco) looks even more appealing.
I think GWW looks pretty good here. I have a position in FAST, so I’m probably just fine there. I thought GWW would be a good candidate for one of the articles; however, I believe S&P Capital IQ’s valuation was really conservative, last I looked. I may look again, but the numbers just didn’t support an article a few weeks ago.
EAT is interesting. It’s substantially undervalued from a fundamental perspective. But nobody seems to want to go there, so it’s something I’ve been pretty wrong on thus far. Voting machine now. Weighing machine perhaps later. We’ll see.
Best regards.