How about a list of some great dividend stocks that have long history of increasing their dividends, some for decades? These aren't just any dividend stocks they are supported by a powerful balance sheet and have a track record of generating consistent cash flows. Even better, they are well-managed, and aside from the normal bumps in the road from the economic downturn, they are doing quite well, but...
Don't you hate that final "but" that always seems to come just when things are looking good? The "but" here relates to valuation. Over the last several weeks, the list of great companies that are under-valued has diminished as a result of the recent market recovery. The curse of the value-based contrarian in a rising market. Below are six stocks that have been "cursed" with increased valuations since the market's bottom on March 6, 2009:
Illinois Tool Works Inc. (ITW) – Yield: 3.00% – 2 Stars – Analysis
Illinois ToolWorks Inc. is a diversified manufacturer that operates a portfolio of about 750 industrial and consumer businesses located throughout the world. (45 consecutive years of dividend increases)
3M Co (MMM) – Yield: 2.86% – 2 Stars – Analysis
3M Co. is a diversified technology company with a presence in various businesses, including industrial & transportation, healthcare, display & graphics, consumer & office, safety, security & protection services, and electro and communications. (51 consecutive years of dividend increases)
General Dynamics Corp. (GD) – Yield: 2.65% – 3 Stars – Analysis
General Dynamics is the world's sixth largest military contractor and also one of the world's biggest makers of corporate jets. (16 consecutive years of dividend increases)
Genuine Parts Co. (GPC) – Yield: 4.26% – 3 Stars – Analysis
Genuine Parts Co is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies, and office products. (53 consecutive years of dividend increases)
AFLAC Inc. (AFL) – Yield: 2.66% – 4 Stars – Analysis
Aflac Incorporated engages in the marketing and sale of supplemental health and life insurance plans in the United States and Japan. (27 consecutive years of dividend increases)
Nucor Corp. (NUE) – Yield: 2.99% – 4 Stars – Analysis
Nucor Corporation is engaged in the manufacture and sale of steel and steel products. As the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas. (35 consecutive years of dividend increases)
So how do you overcome the overvaluation "curse"? Patience and research. What goes up usually comes down or the economic fundamentals of the business catch up with the stock price. Every stock goes on sale at some point, but usually it is at a time we are afraid to buy.
Full Disclosure: Long ITW, MMM, GD, GPC, AFL, NUE. See a list of all my income holdings here.
Related Articles:
How about a list of some great dividend stocks?
Posted by D4L | Sunday, August 23, 2009 | commentary | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
When many investors think about tech stocks, they often think first about high-growth names that come with outsized risk -- not mature, divi...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.