The Safest Dividend Challengers

I love high-quality dividend growth stocks, and the stocks with the longest history of consecutive payments are definitely Dividend Kings and Dividend Champions. But the big disadvantage of them is that they are also highly priced.You cannot make a greater return with stocks that have a P/E ratio of 22 and grow only at 5 percent. You need real bargains to make big profits with your assets.

Today I like to screen the third class of dividend growth stocks by the safest alternatives. The 20 safest dividend growth stocks have a beta ratio between 0.18 and 0.55. All three top picks come from the oil and gas pipeline industry, a branch with very stable sales and future growth perspectives due to the shale gas boom in the U.S. Here are the cheapest results in terms of forward P/E: Randgold Resources (GOLD), China Mobile (CHL) and The Hanover Insurance Group (THG).

Source: Guru Focus

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