Watchlist Fixed, No buys last week
The Watchlist page has been fixed! It now displays all relevant data to find the best dividend growth stocks and when they are trading at a discount to fair value. With the market returning to November highs (DJIA above 17,500) I did not buy any stock this week or add to any positions. Personally I like to buy on market dips to increase my initial dividend yield, so I’ll be keeping a close eye on the market this week and checking the Watchlist to see if any buying opportunities present themselves.
Also, now that the Watchlist page data retrieval problem is fixed I plan on adding a few other meaningful ways to sort the data this week.
Filed in: Uncategorized
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
Hello Div Geek. I love your site and posts. So from your watch list if i am reading it correctly Qcom is a great buy right now. Is that correct? I am new to investing and really want to build a dividend growth portfolio. I only own csco at the moment.
Thanks.
Hi Jeff!
I’m glad you like the website. Yes QCOM is currently a good value for a long-term investor trading 25% below fair value. However, if you look at the first column of the Watchlist “Sector” it identifies which of the 10 major sectors each company falls into. Both CSCO and QCOM are tech companies that fall into the Technology sector. Since you already own CSCO (and it’s your only holding) you should consider making diversification of your portfolio a high priority.
There are several other high quality dividend growth companies trading below or near fair value in the other sectors. Also, when you are new to investing and beginning to build your dividend growth portfolio deep value should take a backseat to high quality stocks. I suggest all new investors to build a core of 10 of the highest quality dividend growth stocks one from each of the 10 sectors for diversification. Naturally higher quality companies cost more, but as long as you buy them at or below fair value you will not overpay and get good value. This follows the famous investment advise of Warren Buffett who said:
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
You can find a list of these core DGI companies near the bottom of the ‘Check for Undervalued Stocks’ page under the heading ‘Conservative Dividend Growth Stocks.’ They are also marked with a single asterisk (eg: Hershey*) on the Undervalued Stock page. As you build your portfolio of these core holdings look to purchase them when they are NOT highlighted in red (trading over value) in the ‘% Fair Value’ column.
I hope this helps.
All the best!
-Dividend Geek
Thanks for the direction. What do you think about ADM Archer Daniels Midland Co as a long term dividend hold.
I have added ADM to the Watchlist so you can compare it against the other dividend growth stocks. As I was gathering all of the data for ADM I was wondering to myself why it was not on my original list. Then I looked up the Economic Moat rating “None” ah-ha that explained it. One of my personal requirements to own a company long-term is that it has to have some sort of economic moat (competitive advantage over other companies).
However, since that may not be a personal requirement for other Dividend Growth investors I’m going to open up the Watchlist to other popular DG stocks. After all it is a “Watchlist.” The “Check for Undervalued Stocks” page will continue to list only the top DG stocks that meet my requirements.
Hope that helps.
-Dividend Geek
BigGeek, what are your thoughts on using Loyal3 as a drip. I been reading a lot of the dividend blogs and many people are using it.
Jeff,
Loyal3 is an excellent brokerage service for drip investing. There are several advantages as well as limitations that I’m going to more fully cover in a blog post about Loyal3 this week. So check back.
Thanks,
-Dividend Geek