These are not normal times. The COVID-19 pandemic, occurring simultaneously with an oil price war has caused a market crash. Here I examine nine popular dividend growth blue chips that have been hit, in varying degrees, by the crash.
As I sat down to write my monthly Valuation Zone article, the idea almost seemed silly. Why discuss a stock that is undervalued when the whole market is crashing? So this month, instead of highlighting a single undervalued stock, let’s discuss the answer to that question.
This stock offers an attractive opportunity to obtain a solid, investment-grade company, with a good 4.1% yield, a steady pace of dividend growth, high dividend safety, and the potential that shares are more than 40% undervalued.
In my opinion, at its current pricing, this stock — which appears 19% undervalued right now — is an attractive opportunity to obtain a solid, investment-grade company, with a good 4.1% yield, 49-year record of increasing its dividend every year, and high dividend safety.