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!
Are dirty deeds done dirt cheap?
Only AC/DC would know the answer to that question.
But good deeds are definitely not expensive, and they can radically change your life for the better if they’re adapted as part of a holistic lifestyle that prioritizes good habits.
One of the good habits I adopted years ago was to intelligently invest my excess capital (which was generated by another good habit – living below my means) into high-quality dividend growth stocks.
Investing in great businesses can see your wealth and passive income grow exponentially, right before your very eyes.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
As always Jason I enjoyed the read. I think grocery stores are always an interesting business these days with all the changes. I don’t see how Amazon will impact Kroger with Whole Foods as they operated in two different business models. Kroger is food for normal people with budget, Whole Foods caters to the organic crowd and is quite pricey. I always enjoy their food when I get it, but shopping there will break the bank for those of us working towards FIRE faster. I think that grocers are one of the brick and mortar businesses that won’t be going anywhere and with the population continuing to increase there is always room to grow!!
DD,
Definitely. The business model isn’t going anywhere. People have to eat. So it’s a pretty strong long-term bet to sit back and bet money on companies that provide a basic necessity like food.
However, I don’t necessarily equate the whole Amazon threat with just Whole Foods and the demographic that shops there. It’s a footprint/logistics thing. Amazon isn’t buying Whole Foods just for Whole Foods. They’re thinking way bigger than that. As such, Kroger (and its ilk) has to think bigger, too. They’re in a great spot to turn that corner, but they have to move in that direction.
Thanks for dropping by!
Cheers.
Another nice article. I recently nibbled on some Kroger a few weeks back on that massive initial dip. Would love to buy more under $20/share. I think the Amazon/Walmart factors are looming, and I agree – the balance sheet could definitely improve, but it appears those risks are factored into the price right now. One thing to consider long-term is US population trends. Multiple factors have been slowing down population growth, but as long as we continue to add a couple million people per year, I think grocers will be alright.
Some serious bargains in retail right now. What are your thoughts on LB ? I see you have written about them in past. I have been torn on this stock. That yield is massive, but I don’t like Victoria’s Secret’s recent moves (getting out of swimwear etc) and declining mall traffic is an ever-growing concern.
Guy
Guy,
Right. I agree. The risks largely appear priced in. The balance sheet is arguably a bigger problem than the recent Whole Foods move. Kroger’s fundamentals are good, but they could definitely improve.
As for LB, the business has deteriorated more and faster than I anticipated. Much (but not all) of the valuation compression is certainly warranted if they don’t recover strongly from here. In hindsight, I think management must concur by now that moving out of swimwear was a mistake. If the business is suffering this much due to the change, the change shouldn’t have been made. Seems pretty straightforward to me. I think the brands are some of the strongest in retail, but they have to continue working on the business. As of now, management hasn’t been as clear on what the future looks like as they should be, which just adds to the woes.
Best regards!
I also picked up a position @ 21.80 after the double whammy hit them. They were hit so hard that my value whiskers started tingling and I had to grab some. Going to be getting that first dividend on the 1st of September!
MDD,
Nice. Enjoy that first dividend from the new position. The first of many, I’m sure! 🙂
Cheers.
Ouch, another blow from Amazon. If it gets into the teens I might have to see about doubling down. 🙂
MDD,
Doubling is your middle name. 🙂
Cheers!