The Final 10 of 50 Faster Growing Dividend Growth Stocks: Part 5


This is the fifth of a five-part series presenting 50 dividend growth stocks that I have screened for current fair value. With this article, I will be covering 10 additional dividend growth research candidates with moderate to higher yields in addition to the initial 40 that I presented in part 1 found here, part 2 found here , part 3 found here and part 4 found here.

The first 4 parts of this 5-part series presented research candidates ranging from high to moderate yielding attractively valued dividend growth stocks. With this part 5, most of the candidates are more oriented to dividend growth investors seeking a higher total return. To be clear, most of the research candidates in this group might appeal to investors who are still a few or more years away from retirement. Although dividends are still important to this investor type, portfolio and dividend income growth are more pertinent than a high current yield.

This is the final article in this 5-part series on not just 50 attractively valued dividend growth stocks, but also a series of insights into the principles of valuation itself. Consequently, a primary focus of this series of articles is on attractive valuation. Regardless of whether you are investing for growth, current income or income growth, valuation is a universal principle that should be applied with discipline and prudence. However, being disciplined to only invest at fair valuation is more about prudence and controlling risk than it is about generating the highest possible return. Nevertheless, I believe all successful investment strategies should start with the primary focus on identifying fair or intrinsic value. Accordingly, I will conclude this series by reposting many of my views on valuation I made in previous articles.

Furthermore, I suggest that valuation is a mathematical principle and not a vague concept. Therefore, when I speak of valuation, I am referring to the mathematical calculation of the returns (including both capital appreciation and dividend income) which you could prudently expect to earn from the company’s earnings and/or cash flows. Those returns should be large enough to compensate you more than you could earn from a theoretically riskless investment like a Treasury bond. If you are not being compensated for the extra risk you’re taking by investing in stocks, then I believe you are paying more than you should be.