"A stock can clear the bar for double-digit dividend raises, a narrow or wide moat, and low or medium uncertainty, and still be priced for poor forward returns."
"Buying a great dividend grower at a stretched multiple compounds the income, but a price drawdown can still erase years of payout."
"The discounts run deepest at Zoetis at 32%, Accenture at 30%, Domino's Pizza at 23%, Intuit at 19%, and SBA Communications at 13%."
"The discount widens the runway for total return, too. Zoetis trades at a forward P/E of 19 against an analyst target of $150."
The screening process for exceptional dividend growers does not consider valuation, which can lead to poor forward returns despite strong dividend increases. Investing in high-quality dividend stocks at inflated prices can erase years of income. A valuation filter is necessary to identify stocks that are undervalued while still offering aggressive dividend growth. Five stocks, including Zoetis and Accenture, are highlighted for trading at significant discounts to fair value while increasing dividends, emphasizing the importance of entry price in total returns.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]