19 Dividend Achievers Below Book Value

In a rising stock market, all eyes are on the income statement. But in a flat or falling market, the balance sheet moves into the spotlight. Investors want to know the real core accounted values of the company. 

If you look at the book value per share, you can easily identify stocks that are traded below their accounted assets.

If a company’s P/B ratio is less than one, the shares are selling for less than the value of the company’s assets.

What Is Book Value?

Book value is a measure of all of a company's assets: stocks, bonds, inventory, manufacturing equipment, real estate, etc. In theory, book value should include everything down to the pencils and staples used by employees, but for simplicity's sake companies generally only include large assets that are easily quantified.

Today I’ve screened my Dividend Achievers list by stocks with a current P/B ratio below one. 19 stocks matched exactly my criteria. The attached list shows all of them, sorted by the lowest ratio to the highest.

Here are the highest yielding results in detail…

20 Best Performing Dividend Stocks Year-To-Date 2016

The start in the year was not as perfect as we have expected. At the end of last year, we saw a small bounce back to all-time highs but during the first month of the year 2016 we saw a small disaster. 

The Dow Jones is down 7.29% and the S&P 500 6.88% for the first 4 weeks of the year. Despite the bad start into the year, a dozen of stocks gained more than 10 percent. 

If this is a small signal for the rest of the year or a simple different reaction, we will see it over the next months.

Today I like to show you the 20 best performing dividend stocks since the start of the year 2016. They gained from 11.23% to 50.57% in the first 30 days of the year 2016.

Here are the best dividend stocks since the start of the year 2016...

Stocks With The Highest Annual Dividend Growth Of The Past 3, 5 and 10 Years

Recently, I showed you how your investment portfolio grows over 30 years if you own sustainable long-term dividend growth stocks. 

The key notice from the article was that if you buy high yielding stocks with fast dividend growth, you could maximize your portfolio return. 

It sounds quite easy but it’s hard to find those stocks because no one of us can look into the future or has crystal ball. 

Today I like to show you those stocks with the highest short, mid and long-term dividend growth of the past 3, 5 and 10 years. 

Over the next upcoming days, I will also deliver a few stocks with the highest 10year dividend growth rate of the most consistent dividend raiser in the market. 

Here the best dividend growers of the past decade....

A Portfolio Of Stocks With A High Domestic Sales Share

A Portfolio Of Stocks With A High Domestic Sales Share (click to enlarge),
Source: Goldman Sach, MarketWatch

How Your Investment Portfolio Grows When You Bet On Dividend Growth Stocks

Each investor needs to balance yield and growth. If you put all your efforts into stocks with a high yield but no growth, you could also buy a high-yield bond. It seems to be much safer because dividends might be cut to satisfy bond holders and to pay debt down.

A growth strategy might work better; just think on Twitter, Facebook or the other unicorns on the market. But do you believe that billions of market valuations in a few years should be sustainable when the corporate has nothing to sell. The only asset unicorns have is a fast growing customer base. Often they have no clue about how they can make with them.

In addition, a company that earns money but did not give anything back to shareholders is also risky. Your wealth depends on high stock prices. I there is a crises, you might get some trouble.

A right way in my view is to find the right mix of growth and dividend payments. Below, you can find a good list of a portfolio that has a solid growth rate and pays a nice dividend per year.

You might see, the higher the growth at a high initial yield, the bigger the final value in the end. If you find investments with a 4% initial yield that grows dividends by 12% yearly, your 100k portfolio will end in USD 1.6 million in 30 years.

How Your Investment Portfolio Grows 
When You Bet On Dividend Growth Stocks 
(click to enlarge)

The results of the spreadsheet are shown above for the value of a portfolio with initial capital $100,000 after 30 years. The initial dividend yield ranges from 1% to 4% while the dividend growth rate ranges from 2% to 12%.

In the following week I like to show you those stocks that have achieved a 12% Growth rate in the past 10 years while paying yields over 4%.