7 Dividend Champions Trading at Value

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 |  Includes: FDO, HRL, SCL, SYY, TGT, WMT, XOM
by: Scott's Investments

I recently started tracking the US Dividend Champions list on my site. Dividend Champions are a list of companies that have increased their dividend payout for at least 25 consecutive years. The list is compiled, updated monthly and tracked at DRIP Investing.

Starting with the Dividend Champions list, I performed a screen looking for some basic value metrics:

  • Forward Price/Earnings < 15
  • Price/Sales < 1
  • Payout Ratio < 50%
  • Return on Equity > 15%
  • Stock Trading above its 200 day moving average

Out of the 101 possible candidates on the current Dividend Champions list, 7 stocks qualified. There are certainly multiple ways to gauge value and the criteria above are just one potential method. The 200 day simple moving average criteria is intended to exclude stocks that are showing technical weakness. The results are below:

Ticker Company Trend Strategy Forward P/E P/S Dividend Yield Payout Ratio Price
FDO Family Dollar Stores Inc. Here 12.73 0.79 1.36% 22.95% 45.71
HRL Hormel Foods Corp. Here 14.88 0.88 1.86% 28.92% 45.08
SCL Stepan Company Here 10.06 0.48 1.51% 14.88% 63.77
SYY Sysco Corp. Here 13.59 0.46 3.44% 49.57% 29.09
TGT Target Corp. Here 12.34 0.59 1.85% 20.57% 54.07
WMT Wal-Mart Stores Inc. Here 12.1 0.46 2.27% 29.03% 53.25
XOM Exxon Mobil Corp. Here 10.32 0.94 2.70% 32.69% 65.3
Click to enlarge