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. That way, you readers are given the chance to check it out. The content is totally free. I hope you enjoy!
My life has been radically transformed for the better after making one critical decision back in 2010.
That decision was to invest in high-quality dividend growth stocks.
Before that decision, I was completely reliant on a job, an employer, and my ability to continue working until I was old.
All work and no play makes Jason a dull boy.
But after that decision, I became less and less reliant on all of that.
Until one day, I wasn’t reliant at all.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
Great review. Not one I have owned or considered. I tend to run a little light on financial service sector stocks in my portfolio. Thanks for putting it together. Tom
Tom,
Happy to share a compelling idea. 🙂
Cheers!
And they are due for another raise.
Good write up- I looked at DFS a few quarters ago but a few other companies showed up on the radar as more attractive. Time to give this one another look.
-Mike
Mike,
It’s a pretty solid business. The valuation seems to indicate the payments business is thrown in for free.
Their most recent dividend increase was already announced weeks ago. It’s noted in the article. They’ll be due another one in about a year.
Best regards!
Are you concerned about the increase in DFS’ charge-off rate? In Q1, DFS’ charge-off rate increased to 3.09%, up from 2017’s Q1 2.6%. Its net principal charge-offs rose to $635 million, a 30% increase year over year, hurting the bottom line. Just wondered your thoughts on the only real negative I could find with DFS. As always, I appreciate your insight!
Dustin,
Not particularly concerned. Numbers are still quite low in absolute terms. I actually just got the email today about June’s delinquency and charge-off numbers, showing unchanged numbers month-over-month. They oscillate, but there doesn’t appear to be anything problematic. It’s a cheap bank by itself, mitigating those concerns further. Then you get the payments on top of that. 🙂
Cheers!
Thank you!