New Year - Dividend Growth Stocks On Sale?

[DividendGarden]

Hi, everyone. I know that there was a thread on this during late Q3. With the new year, I think we should revisit this. What DGI stocks are on your watchlist right now? What do you view as being on sale?

Right now, I'm watching:

AFL, CVX, COP, DPS, and WMT. I am already long all of these.

What's on your watchlist?

[EricL]

BAX, TGT, WFC, DE, IBM, QCOM, DLR, OHI

[Dividend Watcher]

I'm not finding much I'm interested in that's undervalued. Fairly valued -- yes -- but the damn recency bias is making be a little more patient. I have some dry powder I'd like to put to work (about 4% of the portfolio) and my wife's cash account balance is getting close to the point where I need to invest some of it. I have no problem being fully invested and, to my surprise, I don't really care if we have a correction. I'm just waiting for the stock price to drop into the top end of my value criteria. Here's what I'm watching/waiting for:

Already own but need to add
KO < $39
KRFT < $52.50
TU < US$30
DE < $82 (a long reach here)
NU < $40
UL < $38
O < $37

New positions interested in at least a partial
JNJ < $87
PG < $76
TJX < $50 (this is probably a bear market goal)
AMGN < $100

These aren't hard numbers, when they get close, I'll quickly review the latest news and earnings reports and then put a limit order in. I believe some will reach my price just with the normal bouncing around of prices. All I have to do is wait.

[rnsmth]

(01-07-2014, 12:33 PM)Dividend Watcher Wrote: Already own but need to add
KO < $39
KRFT < $52.50
TU < US$30
DE < $82 (a long reach here)
NU < $40
UL < $38
O < $37


New positions interested in at least a partial
JNJ < $87
PG < $76
TJX < $50 (this is probably a bear market goal)
AMGN < $100

These aren't hard numbers, when they get close, I'll quickly review the latest news and earnings reports and then put a limit order in. I believe some will reach my price just with the normal bouncing around of prices. All I have to do is wait.

Morningstar has PG fair value at $89, current price is at 92% of that fair value estimate. I added to my PG position in early December. It is part of the foundation of my Dividend Growth Portfolio.

This morning RBC has a note out on JNJ. They upgraded the company from Market Perform to Outperform. It is another name I added shares to in early December. Morningstar has it as slightly overvalued, at 105% of its fair value estimate.


Johnson & Johnson: Margin Gains and Stock Gains, RBC Says

I also have KO, KRFT, UL and O from your list.

[ronn38]

Though they're out of favor now, I have precious few ulititles in my portfolio ( and vertually no consumer defensive). Within a dollar of my limit are:

AEP, SO, SYY

And as I wont have a taxable income from employment after August, I'm thinking of selling off my RDS.B for BWP (also within a $1 of my buy price).

Ronn

[rnsmth]

(01-07-2014, 01:14 PM)ronn38 Wrote: Though they're out of tabor now, I have precious few ulititles in my portfolio ( and vertually no consumer defensive). Within a dollar of my limit are:

AEP, SO, SYY

And as I wont have a taxable income from employment after August, I'm thinking of selling off my RDS.B for BWP (also within a $1 of my buy price).

Ronn

Ronn,

Have you looked at WEC? The board has a goal of getting to 65-70% payout ratio in the next few years. Good divvy increases the past 3 years, and I anticipate good ones for a couple of more years.

[ronn38]

Thanks for the tip!

Ronn

[NilesMike]

(01-07-2014, 12:33 PM)Dividend Watcher Wrote: I'm not finding much I'm interested in that's undervalued. Fairly valued -- yes -- but the damn recency bias is making be a little more patient. I have some dry powder I'd like to put to work (about 4% of the portfolio) and my wife's cash account balance is getting close to the point where I need to invest some of it. I have no problem being fully invested and, to my surprise, I don't really care if we have a correction. I'm just waiting for the stock price to drop into the top end of my value criteria. Here's what I'm watching/waiting for:

Already own but need to add
KO < $39
KRFT < $52.50
TU < US$30
DE < $82 (a long reach here)
NU < $40
UL < $38
O < $37

New positions interested in at least a partial
JNJ < $87
PG < $76
TJX < $50 (this is probably a bear market goal)
AMGN < $100

These aren't hard numbers, when they get close, I'll quickly review the latest news and earnings reports and then put a limit order in. I believe some will reach my price just with the normal bouncing around of prices. All I have to do is wait.

Your target entries are along the same lines as mine, and I wait until hit as well. It is actually quite hard to get hurt too badly if one sticks to buying quality payers when they are on sale (out of favor)

[Dividend Watcher]

(01-07-2014, 01:24 PM)rnsmth Wrote: Ronn,

Have you looked at WEC? The board has a goal of getting to 65-70% payout ratio in the next few years. Good divvy increases the past 3 years, and I anticipate good ones for a couple of more years.

You know, when I was researching utes for my mother-in-law's portfolio, I kept thinking WEC has acted like a consumer staple stock the last few years rather than a boring, old utility. Almost seemed too good to last. I really need to look harder at them again.

[fiveoh]

My list:

PM
O
SO
T
WMT

I consider these currently close to fair value but none of them are really undervalued and I wont be buying them unless they decline a little more. All the rest of the stocks on my list aren't even close to what I consider fair value.

If I didn't already own a big chunk of them I would be looking at AAPL and AFL near the top of my list.

[DividendGarden]

(01-07-2014, 05:53 PM)Dividend Watcher Wrote:

(01-07-2014, 01:24 PM)rnsmth Wrote: Ronn,

Have you looked at WEC? The board has a goal of getting to 65-70% payout ratio in the next few years. Good divvy increases the past 3 years, and I anticipate good ones for a couple of more years.

You know, when I was researching utes for my mother-in-law's portfolio, I kept thinking WEC has acted like a consumer staple stock the last few years rather than a boring, old utility. Almost seemed too good to last. I really need to look harder at them again.

Speaking of WEC, they raised their dividend today, but it was only 2.0%. Not enough to keep pace with inflation. http://seekingalpha.com/news/1512131-wis...9-dividend

[EricL]

(01-16-2014, 03:51 PM)DividendGarden Wrote:

(01-07-2014, 05:53 PM)Dividend Watcher Wrote:

(01-07-2014, 01:24 PM)rnsmth Wrote: Ronn,

Have you looked at WEC? The board has a goal of getting to 65-70% payout ratio in the next few years. Good divvy increases the past 3 years, and I anticipate good ones for a couple of more years.

You know, when I was researching utes for my mother-in-law's portfolio, I kept thinking WEC has acted like a consumer staple stock the last few years rather than a boring, old utility. Almost seemed too good to last. I really need to look harder at them again.

Speaking of WEC, they raised their dividend today, but it was only 2.0%. Not enough to keep pace with inflation. http://seekingalpha.com/news/1512131-wisconsin-energy-corporation-declares-0_39-dividend

Its only 2%, but its their second increase in the last year. Also raised it with their August payment.

Nov 12, 2013 0.3825 Dividend
Aug 12, 2013 0.3825 Dividend
May 10, 2013 0.34 Dividend
Feb 12, 2013 0.34 Dividend
Nov 9, 2012 0.30 Dividend