6 Undervalued Div-Growth Stocks – September 2019

This is my monthly update about US dividend growth companies.

As usual my preference go toward undervalued large companies with good competitive advantage (MOAT) , solid balance sheet, low debt and a healthy cash flow.

In this selection I considered the following criteria :

  • US Large Cap Companies
  •  Competitive Advantage ≥ Narrow
  • Trading Lower than their Price/Fair Value (Morningstar DCF model)
  • Forward P/E ≤ P/E
  • P/E or Forward P/E lower than their benchmark (Russell 1000 Index)
  • Free Cash Flow >0
  • EPS forecast > 0
  • Free Cash Flow cover Dividends
  • Dividend Yield higher than Russell Index dividend yield
  • Dividend Yield higher than Companies 5 Year Average
  • Dividend Growth past 5 year > 3%

Good reading and please do your own due diligence before investing.

Thank you.

(Source : Morningstar ; Reuters; Bloomberg; Finviz; Yahoo)

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