Four Attractively Valued Dividend Challengers

I present the fast graphs of four attractively valued “Dividend Challengers” from David Fish’s CCC list.  These businesses have 5-9 straight years of dividend growth.  (For those unfamiliar with Fast Graphs, when the black current price line moves into the dark green earnings area it indicates the business is undervalued.  Here is a basic demo on how to read fast graphs):

BlackRock, Inc (BLK)

BlackRock Inc along with its subsidiaries, provides investment management services to institutional clients and to individual investors through various investment vehicles ~ Seeking Alpha

2015_july_fg_blk
  • Dividend Growth Rate 5 Year Average: 18.49%
  • Dividend Payout Ratio: 42%
  • 10 Year Annual Revenue Growth Rate: 16.20%
  • Total Return Last 5 Years: 168%

Celanese Corporation (CE)

Celanese Corp is a producer of chemicals.It operates through four business segments: Advanced Engineered Materials, Consumer Specialties, Industrial Specialties and Acetyl Intermediates. ~ Seeking Alpha

  • 2015_july_fg_ceDividend Growth Rate 5 Year Average: 50.55%
  • Dividend Payout Ratio: 27%
  • 10 Year Annual Revenue Growth Rate: 1.5%
  • Total Return Last 5 Years: 152.47%

Cummins Inc. (CMI)

Cummins Inc designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products. ~ Seeking Alpha

  • 2015_july_fg_cmiDividend Growth Rate 5 Year Average: 29.20%
  • Dividend Payout Ratio: 25%
  • 10 Year Annual Revenue Growth Rate: 8.40%
  • Total Return Last 5 Years: 90.66%

Comcast Corporation (CMCSA)

Comcast Corp is a media and technology company. The Company’s business segments are: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks. ~ Seeking Alpha

  • 2015_july_fg_cMCSDividend Growth Rate 5 Year Average: 30%
  • Dividend Payout Ratio: 29%
  • 10 Year Annual Revenue Growth Rate: 19.30%
  • Total Return Last 5 Years: 269.15%

I’m currently researching and considering CMI, but have no current plans for the other names.

Do you own any of these stocks?  Are any on your radar?

My Dividend Growth

http://www.mydividendgrowth.com

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14 thoughts on “Four Attractively Valued Dividend Challengers
  1. roadmap2retire

    Thanks for sharing, Ryan. I am not familiar with Celanese – the Basic Materials industry is something that I am interested in and have been reading up on Dow Chemical to understand a bit more about the industry…I will have to check CE out. I am still very new to understand the whole Chemicals and Industrial Gases space…need a lot more reading and research done before I can make a decision on whether I want to invest in them.

    Other choices are great companies – are you thinking of buying any of those?

    Best
    R2R

     
    Reply
    1. My Dividend Growth

      I want to own a basic materials businesses as well and am still not sure where I’ll invest. CE appears very undervalued and I like the estimated growth, but historic revenues might be a bit too cyclical for my taste. I really like PX, especially if it gets to the $110 or lower range.

      I’m currently researching and considering CMI of the names mentioned with no other plans. Hope all is well and take it easy, R2R!

       
      Reply
      1. roadmap2retire

        I dont understand much about the chemicals and the industrial gases business. I have been reading up a bit and understand part of each business. I read up a bit on DOW, ARG, APD, PX etc. But I still need to do a lot of research and understand the space before I can invest anything.
        Basic Materials have taken quite a beating and they seem to follow the cycle of the economy and theres not much the businesses can do except ride it. Might be a good opportunity coming to initiate long positions.

        Happy investing!
        R2R

         
        Reply
  2. JC

    Any that youre thinking of adding? I own CMI and think theyre a great long term play on power generation and heavy duty trucks. Theyre also a play on higher efficiency and cleaner fuels. BLK looks interesting too and I really like the ETF offerings they have because I see ETFs continuing to grow in popularity. It might be better to purchase them though when the markets arent on such a roll. Interesting group of companies here.

     
    Reply
    1. My Dividend Growth

      I’m considering joining you in CMI, I’m still researching and getting familiar. So far I like what I see a lot. No plans for the others at the moment, though Comcast’s health surprised me quite a bit. I like your thoughts on BLK providing a different area of asset management than my current holdings of TROW and BEN. There is definitely room and reason to eventually own all of them. I wish the markets weren’t on such a roll, I’m eyeing MMM, ITC, BEN, TROW, ETN, and UNP for my next purchase. Could change completely tomorrow! Hope all is well and take care!

       
      Reply
  3. Dividend Legion

    Hey Ryan,

    Loving the selection, particularly Cummins. 3% yield with a dividend growth rate of 29% and payout ration of only 25%?! Sign me up!

    Thanks for the idea, I will keep a close watch on Cummins!

    DL

     
    Reply
    1. My Dividend Growth

      I completely agree, DL. CMI appears to be super attractive at the moment. I’m still digging in and trying to make sure I understand their business as best I can. They’re on my radar.

      Hope all is well and thanks for the comment!

       
      Reply
  4. Brazo264

    Good morning, thanks for the article. I particularly like your inclusion of fast graphs. I am also a basic subscriber of fast graphs and I have a question for you. Do you feel like always selecting the 20 year button to analyze a stock is fair? Take comcast for example, the normal P/E Ratio is 50 but we have not seen that level for a decade plus. Would it prove more valuable to also include a 12 or 10 year fast graph along with analysis with your 20 year fast graph as well? A lot of times what a company has done over the past 5-10 years is more valuable than 2 decades ago. Please let me know your thoughts on this and keep up the good work!

     
    Reply
    1. My Dividend Growth

      Hi Brazo264, thanks for the comment! The ability to set a time frame in the fast graph is one of my favorite aspects of the tool and I play with it all the time. I love that I can select specific dates like 2001-2006 to see what would have happened after investing at specific P/E’s. You make a good point as to which dates are most important when featuring dividend growth candidates with only 5-9 years of raises. I can definitely do a better job than just publishing a few graphs and quick fundamental stats, I hope to have more time to do more in depth analysis in the future so keep reading! I appreciate the feedback 🙂

       
      Reply
  5. Brazo264

    Thank you for your response, I think you are doing great and will be on the lookout for new content!

     
    Reply
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  8. Vivianne

    With recent success and a few movies coming out, comcas time Warner and media companies are making a killing. I can’t pick a winner, I’ll just have a buy a mini etf in entertainment :). Great finds.

     
    Reply

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