Summary

  • Only 47 stocks are both “qualified” and “on sale” out of 754 dividend stocks with five or more years of increasing dividends.
  • “Qualified” means the stocks meet or exceed the Dividend System’s requirements for safety, such as a reasonable payout ratio, low debt, etc.
  • The DivSys™ score allows you to compare the growth potential across industries, the higher the better.
  • The list is a starting point for further research.

What is “On Sale”?

To be considered “on sale,” a dividend stock’s yield must be higher than it’s 10 year average AND the PE ratio must be lower than the 10 year average. Most likely (to eliminate nominal price fluctuations) the difference between the current Yield or PE and the median should be at least 10%. If both the yield and the PE confirm a “sale” condition, research must be done to determine why the stock is selling below its historical measures of value. Perhaps the company has fallen on hard times. It also could be cyclical as investors have bought shares the price has pushed up so much that a pullback was inevitable.

The DivSys™ score as indicated by rectangular brackets “[ ]” consists of the 5-year score and the 10-year score. If a “+” follows the brackets it indicates that the 5-year score is higher than the 10-year score, meaning improvement in underlying cash flow and dividend growth.

BASIC MATERIALS

» (HWKN) Hawkins Inc ~ Chemicals [ 37.1 | 6.9 ] +

CONSUMER CYCLICAL

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

CONSUMER DEFENSIVE

» (CL) Colgate-Palmolive Co ~ Consumer Packaged Goods [ 7.8 | 8.6 ]

FINANCIAL SERVICES Sector Averages | Yield: 3.8 | Reliability: 1.1 | DivSys5 Score: 26

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

» (UFCS) United Fire Group Inc ~ Insurance [ -7.4 | 11.2 ]

» (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 ] +

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

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

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

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

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

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

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

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

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

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

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

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

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

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

» (OTC: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 ]

INDUSTRIALS Sector Averages | Yield: 2.9 | Reliability: 2.3 | DivSys5 Score: 26.8

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

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

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

REAL ESTATE Sector Averages | Yield: 4.8 | Reliability: 1 | DivSys5 Score: 11.6

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

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

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

SELECT STOCKS ON SALE

The following “on sale” stocks meet our “SELECT” criteria

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

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

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

Honeywell (HON) is only marginally on sale at this time.

CONCLUSION

We hope this listing of securities is helpful for value-oriented or dividend growth investors.

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Please Note: This information is not an offer to buy stocks, but just a list that has been narrowed down as starting point for your further research. We always recommend further due diligence before making your decision to invest or not. The author owns none of the stocks in this blog post and has no plans to buy in the next few weeks.

Sector averages are not shown where only one stock is “on sale.”

‘+’ 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.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.