Cheap Dividend Challengers with Low Valuation at High Growth Forecasts

I often write about dividend growth stocks and dividends in general. One dividend growth category is the Dividend Challengers category. Those stocks have raised their dividend cash payments to shareholders over a period of more than five consecutive years but less than 10 years in a row. Because of the rising market valuation, I wanted to know which of the Dividend Challengers are still fair or even cheap compared to their growth forecasts by analysts.

I selected all stocks from the dividend growth category with a market cap over $10 billion and a low forward P/E below 15. In addition, the expected earnings per share growth should be above 5 percent yearly. Exactly 20 companies fulfilled these criteria. Fourteen of the results have a current buy or better rating and five stocks yielding over the 3 percent mark. Here are my favorite stocks: Intel Corporation (INTC), Smith & Nephew (SNN) and Gap (GPS).

Source: Guru Focus

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