10 More of 50 Fairly-Valued Dividend Growth Stocks Offering Moderately High Yields: Part 2

While Most Dividend Growth Stocks Remain Too Expensive – Here Are 50 That Are Not! Part 1

This is the third of a five-part series presenting 50 dividend growth stocks that I have screened for current fair value. With this article I will be covering 10 additional dividend growth research candidates with moderate to higher yields in addition to the initial 20 that I presented in part 1 found here and part 2 found here. This will be the last part of this series where I am primarily presenting dividend growth stocks with current dividend yields of 3% or better.

As I have been moving down the dividend yield curve, the reader might notice that both historical and estimated earnings growth and/or cash flow growth will be higher on many of these companies. Therefore, there will be several candidates in this group that I believe can generate above-average total long-term returns in addition to consistent dividend growth. Nevertheless, the future total return will be a function of the relative current valuation in conjunction with each company's earnings and dividend growth potential.

The Ying and Yang of Valuation

For those not familiar with FAST Graphs there are three important lines on the graph that I would like to focus the reader's attention on. The first two lines (orange and dark blue) represent important valuation references.

The dark blue line is essentially a normal P/E ratio calculated as a trimmed average over this timeframe. Trimmed average simply means that one high and one low valuation is removed to normalize this valuation reference.However, please note that the normal P/E is exaggeratedly high due to the initial high valuations. The dark blue color-coded rectangle in the “FAST FACTS” boxes to the right of the graph indicate that the dark blue line (the normal P/E ratio that the market has applied over this timeframe) is drawn as a historically normal multiple of 18.5.