My goal is to find companies that are undervalued by 10%-30%. This is the margin of safety I'm looking for. If I find companies with a margin of safety over 30%, I tend to doubt my analysis as there is usually no free lunch on the stock market. I'm not saying I wouldn't buy a company showing a 30% margin of safety, but I would be more cautious about it. Dividend growth assumptions and the use of different discount rates (rate of returns you expect to earn from this investment) will greatly affect the calculations.
I run such calculations weekly on various company shares I own or follow. Here are four companies that are among my Top 10 Dividend Growth Stocks and that show interesting margins of safety: BlackRock (NYSE:BLK), 3M Co (NYSE:MMM), Johnson & Johnson (NYSE:JNJ) and Wells Fargo (NYSE:WFC).
Source: Seeking Alpha
Related Articles:
- All Investing Involves Risk
- 7 Dividend Stocks With Room To Increase Their Payout
- High-Quality, Low-Risk Dividend Stocks
- 10 Stocks Building Wealth Through Higher Dividends
- 10 Dividend Stocks With A 10% Yield In 10 Years
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Each of these high-yield dividend stocks has a dividend yield exceeding 6.5%. That’s is a very high dividend yield few stocks have. In addit...
-
I like high-yield dividend stocks that also have the ability to buy back their shares. These are called total yield dividend stocks. They of...
-
Because their financials must support a monthly dividend payment, the companies in this space are stable by nature — their operations are st...
-
While there are a number of factors responsible for pushing the stock market lower, the spread of COVID-19 looks to be the match that lit th...
-
As veteran traders will attest, though, nothing lasts forever. It might not be a bad idea to start adding exposure to the market's lagga...
-
Dividend payments are, by nature, a conservative strategy for companies to use, and as a rule of thumb the more conservative companies are l...
-
In a soaring market, a few percentages of dividends may not seem like much. Over the past few months, the Dow Jones Industrial Average, the ...
-
So if the economy does putter out, what should you do with your money? You could do worse than bet on recession-proof dividend stocks. That ...
-
There’s a group of companies that have started catering specifically to retirees: monthly dividend stocks. Admittedly, the universe of month...
-
It operates in a great location. Florida has seen a material influx of residents in recent years as people look to move to a warmer climate ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.