Dividends4Life: Best Undervalued Dividend Growth Stocks To Buy Today

We all occasionally have the planned or accidental amount of spare cash to invest, dry powder to enable us to continue seeking alpha, the incremental return from astute investing. This article will help you make sound decisions and select the right opportunities for you, today. Your guidelines would include a minimum yield, which could be from 2.75% up to 4.00%. Other hurdles might include a debt level or payout ratio. A standard for valuation might include determining a low enough valuation to allow a margin of safety. If you have a $300,000 DG portfolio of 40 stocks, you might open positions at $5,000, have an average position of $7,500 and a limit of $10,000.

From my core portfolio of 23 stocks, 22 of them met the portfolio requirements for inclusion as a new or additional investment. Of those 22, the portfolio-position-limit-size would allow additional investment of at least $1,000 in 13 of them. Of these 13 stocks, 7 passed my initial value screen in which I used the Morningstar Fair Value amount and the calculated Price/Fair Value ratio of under 99% as a limit. Of these 7, 5 passed the next value screen, FAST Graphs. Of those 5, only two seemed to have an adequate margin of safety. That is a phrase coined by legendary investor Benjamin Graham to describe the amount below the intrinsic value that one should pay to assure a more certain outcome. The remaining two stocks do not have an ideal margin of safety, but they will further my goals. I am going to place a buy order for $2,000 of AstraZeneca (AZN) and $1,000 of Westpac Bank (WBK).

Source: Seeking Alpha

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