Fair Value Update and 6 Dividend Growth Stocks added to the Watchlist

The following dividend growth stocks received fair value increases by Morningstar for the week ending 4/8/2016.

APD from $140 to $146
CAH from $73 to $79
MCD from $122 to $128

There were several significant decreases in fair value as well mostly in the down beaten oil patch:

CL from $73 to $71
CVX from $111 to $95
GPS from $43 to $40
XOM from $92 to $79

The new fair value prices have been updated on the ‘Check for Undervalued Stocks’ and ‘Watchlist’ pages.

Watchlist Additions

I also added several more popular dividend growth stocks to the Watchlist to keep on the radar. Each one has some form of economic moat except ADM, and dividend growth rates above my minimum 5% per year. Companies like AT&T and Verizon which are popular with many dividend investors due to their high dividend yield only increase their dividend payments by 2-3% annually. I’m looking for companies that will beat inflation in retirement not just match it. The first three additions listed below GWW, BEN and BF.B are all strong dividend champions having raised their dividends over 25 consecutive years.

W.W. Grainger (GWW) – Industrial
Franklin Resources (BEN) – Financial
Brown-Forman (BF.B) – Consumer Staples
Dominion Resources (D) – Utilities
Archer Daniels Midland (ADM) – Industrial
Raytheon (RTN) – Industrial

Filed in: Dividend Growth Investing • Dividend Increase Announcements • Investment Principles