I was finally able to update my watch list of dividend stocks I consider worth to watch closely and potentially add to my portfolio. I had the watch list created in my Google Spreadsheet, but today I finally changed my watch list page to reflect the table. It currently shows my most recent list of great dividend payers.
The list is not a buy list however. It is a list of stocks I found on the internet or thru the screening process or even recommendations. For example my recent (as of this writing, 01/30/2013) addition to the watch list is a Morningstar web site recommendation. They published a featured stock – Corning (GLW) as a great company with maturing business and better than expected earnings. So I quickly checked the stock if it pays dividends and if so, what is the yield, dividend history, expected growth, etc.
I found that Corning pays 0.09 dividend per share which equals to 2.63% yield, the projected yield is 3.00%. The company has a 2 year history of consecutive dividend increase (which is nothing extra and not within my criteria, but interesting metric anyway). The dividend growth is at 30%, which may not be sustainable, but even if it will be slowing down over time, I am fine with it as long as the growth stays positive and above 6% in every consecutive year.
The valuation of the company is also interesting. The Morningstar lists the fair value to be $15.00 a share (the stock is currently trading at $12.00 a share). My own calculation indicates the fair value to be $18.88 a share and calculated expected annual growth at 26%. These metrics are quite impressive to me so I decided to put this stock to my watch list into a group of hot candidates for closer review before purchasing.
Similar hot candidates from my watch list currently are:
Again, even though these are just “hot candidates”, they still are not a buy list, just a shortened list of stocks I want to analyze closely to decide whether to buy or not.
Check my watch list page to see the entire list of my dividend paying stocks.