It’s been wild ride lately, and in the chaos we can find true bargains if we know what to look for. Fortunately, for dividend growth investors, we have two metrics to guide us: Dividend Yield and Price/Earnings ratio.

Comparing Current Dividend Yield to the 10-year Average Yield

To find stocks on sale we need to compare the 10-year average yield to today’s yield. Underpriced dividend growth stocks have yields that are higher than their 10-year average, indicating a low price.

Comparing Current PE to the 10-year Average PE

We can also find value by comparing the 10-year price/earnings ratio to a stock’s current PE. Look for PEs that are lower than the 10-year average, indicating a reduced price.

Sale Buyer Beware

Stocks that meet both of our two metrics indicate a discount to their historical prices. However, prior to making an investment decision, you must determine why the stock is such a good value. Is it because a sinking tide pulls all boats down with it, or have the fundamentals of the underlying business changed for the worse? The wise investor will do their homework before commiting to a “Buy.”

STOCKS ON SALE (QUALIFIED) [ DivSys Score 5y/10y ]

This month, a total of 109 stocks match our two metrics of good value. value in matched our criteria, out of this month’s universe of 788 dividend stocks with five years or more of increasing dividends.

BASIC MATERIALS

» (RS) Reliance Steel & Aluminum Co ~ Steel [ 32.3 | 31.6 ] +

» (VMC) Vulcan Materials Co ~ Building Materials [ 94.1 | 19.5 ] +

» (HWKN) Hawkins Inc ~ Chemicals [ 11.3 | 5.1 ] +

COMMUNICATION SERVICES

» (DIS) The Walt Disney Co ~ Media – Diversified [ -8 | 24.8 ]

CONSUMER CYCLICAL

» (PKG) Packaging Corp of America ~ Packaging & Containers [ 31.7 | 49.4 ]

» (ROST) Ross Stores Inc ~ Retail – Cyclical [ 42.5 | 41.2 ] +

» (DDS) Dillard’s Inc ~ Retail – Cyclical [ 14 | 14.3 ]

» (SON) Sonoco Products Co ~ Packaging & Containers [ 8.5 | 8 ] +

» (SGC) Superior Group Of Companies Inc ~ Manufacturing – Apparel & Accessories [ 60.2 | 5.9 ] +

» (SMP) Standard Motor Products Inc ~ Vehicles & Parts [ 20 | -.3 ]

CONSUMER DEFENSIVE

» (TSN) Tyson Foods Inc ~ Consumer Packaged Goods [ 53.1 | 42 ] +

» (INGR) Ingredion Inc ~ Consumer Packaged Goods [ 6.2 | 27.7 ]

» (LANC) Lancaster Colony Corp ~ Consumer Packaged Goods [ 10.7 | 10.8 ]

FINANCIAL SERVICES

» (COLB) Columbia Banking System Inc ~ Banks [ 19.4 | 39.4 ]

» (AFG) American Financial Group Inc ~ Insurance [ 28.3 | 28.3 ]

» (NFBK) Northfield Bancorp Inc ~ Banks [ 25.7 | 26.9 ]

» (RE) Everest Re Group Ltd ~ Insurance [ 16.6 | 24.2 ]

» (LM) Legg Mason Inc ~ Asset Management [ 31.2 | 23.3 ] +

» (FFG) FBL Financial Group Inc ~ Insurance [ 6.5 | 23.3 ]

» (HNNA) Hennessy Advisors Inc ~ Asset Management [ 49.4 | 23.2 ] +

» (TRV) The Travelers Companies Inc ~ Insurance [ 21.2 | 22.8 ]

» (INDB) Independent Bank Corp ~ Banks [ 26.3 | 22.7 ] +

» (HIG) The Hartford Financial Services Group Inc ~ Insurance [ 28.9 | 21.7 ] +

» (SYBT) Stock Yards Bancorp Inc ~ Banks [ 20.5 | 21.7 ]

» (ALL) Allstate Corp ~ Insurance [ 29.8 | 20.5 ] +

» (SMBC) Southern Missouri Bancorp Inc ~ Banks [ 37.5 | 18.9 ] +

» (EBTC) Enterprise Bancorp Inc ~ Banks [ 31.5 | 18.5 ] +

» (HMN) Horace Mann Educators Corp ~ Insurance [ -2.7 | 17.8 ]

» (CATC) Cambridge Bancorp ~ Banks [ 14.6 | 17.7 ]

» (FMBH) First Mid Bancshares Inc ~ Banks [ 18.9 | 17.4 ] +

» (GABC) German American Bancorp ~ Banks [ 16.5 | 17.1 ]

» (MCY) Mercury General Corp ~ Insurance [ 19.8 | 16.7 ] +

» (FCBC) First Community Bankshares Inc ~ Banks [ 18.1 | 16.4 ] +

» (BMRC) Bank of Marin Bancorp ~ Banks [ 30 | 16.1 ] +

» (SFNC) Simmons First National Corp ~ Banks [ 134.6 | 16 ] +

» (DGICB) Donegal Group Inc ~ Insurance [ 9.9 | 15.6 ]

» (WAFD) Washington Federal Inc ~ Banks [ 30.5 | 15.6 ] +

» (EMCF) Emclaire Financial Corp ~ Banks [ 39.3 | 15.1 ] +

» (CZFS) Citizens Financial Services Inc ~ Banks [ 13.1 | 14.4 ]

» (BFIN) BankFinancial Corp ~ Banks [ 47.8 | 13.6 ] +

» (CHCO) City Holding Co ~ Banks [ 17.6 | 13.6 ] +

» (CB) Chubb Ltd ~ Insurance [ -.1 | 13 ]

» (BMTC) Bryn Mawr Bank Corp ~ Banks [ 18.2 | 12.1 ] +

» (AROW) Arrow Financial Corp ~ Banks [ 8.6 | 12 ]

» (CVBF) CVB Financial Corp ~ Banks [ 22.6 | 11.9 ] +

» (AMSF) AMERISAFE Inc ~ Insurance [ 11.2 | 11.8 ]

» (TBNK) Territorial Bancorp Inc ~ Banks [ 17.9 | 11 ]

» (GBCI) Glacier Bancorp Inc ~ Banks [ 15.3 | 10.9 ] +

» (ATLO) Ames National Corp ~ Banks [ 6.7 | 10.5 ]

» (TCBK) TriCo Bancshares ~ Banks [ 30.5 | 10 ] +

» (STBA) S&T Bancorp Inc ~ Banks [ 24.5 | 9.8 ] +

» (TMP) Tompkins Financial Corp ~ Banks [ 9.2 | 9.7 ]

» (BKSC) Bank of South Carolina Corp ~ Banks [ 13.2 | 8.7 ] +

» (QNBC) QNB Corp ~ Banks [ 19.7 | 8.4 ] +

» (NWFL) Norwood Financial Corp ~ Banks [ 12.3 | 8.3 ] +

» (CPKF) Chesapeake Financial Shares Inc ~ Banks [ 10.8 | 7.4 ] +

» (RBCAA) Republic Bancorp Inc ~ Banks [ 42.6 | 6.7 ] +

» (CTBI) Community Trust Bancorp Inc ~ Banks [ 11.3 | 6.1 ] +

» (THFF) First Financial Corp ~ Banks [ 4.9 | 6 ]

» (WTBA) West Bancorp Inc ~ Banks [ 20.7 | 5.9 ]

» (LARK) Landmark Bancorp Inc ~ Banks [ 10.5 | 5.9 ] +

» (UBCP) United Bancorp Inc ~ Banks [ 25.2 | 5.1 ]

» (HFWA) Heritage Financial Corp ~ Banks [ 18 | 5 ]

» (AFL) Aflac Inc ~ Insurance [ 8.3 | 4.6 ] +

» (FNLC) First Bancorp Inc ~ Banks [ 16.5 | 4.6 ] +

» (NIDB) Northeast Indiana Bancorp Inc ~ Banks [ 6.4 | 4.6 ] +

» (PKBK) Parke Bancorp Inc ~ Banks [ 67.4 | 4 ]

» (OVLY) Oak Valley Bancorp ~ Banks [ 54.7 | 3.7 ]

» (FRAF) Franklin Financial Services Corp ~ Banks [ 10.6 | 2.9 ]

» (OCFC) OceanFirst Financial Corp ~ Banks [ 11.8 | 2.4 ] +

» (UNB) Union Bankshares Inc ~ Banks [ 114.2 | 2.2 ] +

» (ARGO) Argo Group International Holdings Ltd ~ Insurance [ 29.2 | 0 ]

» (HBCP) Home Bancorp Inc ~ Banks [ 57.8 | 0 ]

» (CLDB) Cortland Bancorp ~ Banks [ 38.3 | 0 ]

» (FFMR) First Farmers Financial Corp ~ Banks [ 34.5 | 0 ]

» (CIVB) Civista Bancshares Inc ~ Banks [ 25.7 | -.6 ]

» (FXNC) First National Corp ~ Banks [ 53.4 | -1.8 ]

» (CCBG) Capital City Bank Group Inc ~ Banks [ 56.8 | -1.9 ]

» (MCBC) Macatawa Bank Corp ~ Banks [ 48.3 | -4.7 ]

HEALTHCARE

» (NHC) National Healthcare Corp ~ Healthcare Providers & Services [ 32.5 | 11.8 ] +

» (PFE) Pfizer Inc ~ Drug Manufacturers [ 3.1 | 8.7 ]

INDUSTRIALS

» (LII) Lennox International Inc ~ Industrial Products [ 45.4 | 37 ] +

» (ROP) Roper Technologies Inc ~ Industrial Products [ 24.4 | 31.5 ]

» (TT) Trane Technologies PLC ~ Industrial Products [ 36.9 | 29 ] +

» (FIX) Comfort Systems USA Inc ~ Construction [ 41.8 | 25.8 ] +

» (CSL) Carlisle Companies Inc ~ Construction [ 27.2 | 24.3 ] +

» (GRC) Gorman-Rupp Co ~ Industrial Products [ 25.1 | 23.1 ] +

» (HON) Honeywell International Inc ~ Industrial Products [ 22.9 | 20.3 ] +

» (EXPD) Expeditors International of Washington Inc ~ Transportation [ 22.8 | 19.7 ] +

» (MSM) MSC Industrial Direct Co Inc ~ Industrial Distribution [ 23.3 | 19 ] +

» (CASS) Cass Information Systems Inc ~ Business Services [ 20.9 | 18.8 ] +

» (CHRW) C.H. Robinson Worldwide Inc ~ Transportation [ 14.7 | 17.3 ]

» (LSTR) Landstar System Inc ~ Transportation [ 46 | 12 ]

» (WTS) Watts Water Technologies Inc ~ Industrial Products [ 20.3 | 11.3 ] +

» (RGP) Resources Connection Inc ~ Business Services [ 14 | 6.4 ]

» (HNI) HNI Corp ~ Industrial Products [ 18.5 | -2.2 ] +

REAL ESTATE

» (CUBE) CubeSmart ~ REITs [ 27.9 | 28.6 ]

» (REG) Regency Centers Corp ~ REITs [ 9.1 | 21.8 ]

» (PSB) PS Business Parks Inc ~ REITs [ 23.4 | 14.8 ] +

» (ESS) Essex Property Trust Inc ~ REITs [ 19.4 | 7.6 ] +

» (TCO) Taubman Centers Inc ~ REITs [ -.2 | 7.3 ]

» (NHI) National Health Investors Inc ~ REITs [ 13.1 | 6.9 ] +

» (AVB) AvalonBay Communities Inc ~ REITs [ 11.3 | 6.4 ] +

» (NNN) National Retail Properties Inc ~ REITs [ 9.4 | 3.2 ] +

» (APTS) Preferred Apartment Communities Inc ~ REITs [ 40.1 | 0 ]

» (FR) First Industrial Realty Trust Inc ~ REITs [ 25.9 | 0 ]

TECHNOLOGY

» (DOX) Amdocs Ltd ~ Software [ 8.6 | 3.9 ]

» (HCKT) The Hackett Group Inc ~ Software [ 30.2 | 0 ]

UTILITIES

» (SRE) Sempra Energy ~ Utilities – Regulated [ 38.8 | 9.6 ] +

__________

‘+’ indicates upward direction of DivSys™ score for stocks with positive 10 year dividend growth rates, basically giving us enough years of performance to mathematically determine if they are doing better or doing worse over time.