Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

The following is a list of “dividend champions,” identified by the DrIP Investing Resource Center as having increased dividends for more than 25 consecutive years. Additionally, all these stocks are undervalued relative to their competitors when comparing them to the following metrics:

  • MRQ P/E Ratio
  • PEG Ratio
  • TTM Price/Cash Flow Ratio

If these companies continue to pay their dividends and catch up to their industries' valuations, this list might offer a great starting point for investors looking to grow their dividend income and their portfolio's returns.

Valuation ratios sourced from Fidelity, all other data sourced from Finviz.

List sorted by dividend yield.

1. Abbott Laboratories (NYSE:ABT): Drug Manufacturer. Market cap of $75.0B. Dividend yield at 3.96%. P/E ratio at 13.17 vs. the industry average at 14.65. PEG ratio at 1.78 vs. the industry average at 2.49. Price/Cash Flow ratio at 8.72 vs. the industry average at 13.21. Relatively low correlation to the market (beta = 0.29), which may be appealing to risk averse investors. The stock has lost 7.94% over the last year.

2. RPM International Inc. (NYSE:RPM): General Building Materials Industry. Market cap of $2.94B. Dividend yield at 3.72%. P/E ratio at 14.88 vs. the industry average at 123.52. PEG ratio at 1.52 vs. the industry average at 3.62. Price/Cash Flow ratio at 11.81 vs. the industry average at 14.66. Current ratio at 2.54, and quick ratio at 1.81. The stock has gained 13.68% over the last year.

3. Bemis Company, Inc. (NYSE:BMS): Packaging & Containers Industry. Market cap of $3.45B. Dividend yield at 2.98%. P/E ratio at 16.78 vs. the industry average at 18.88. PEG ratio at 2.16 vs. the industry average at 3.15. Price/Cash Flow ratio at 8.12 vs. the industry average at 15.79. The stock has gained 12.58% over the last year.

4. SJW Corp. (NYSE:SJW): Water Utilities Industry. Market cap of $433.66M. Dividend yield at 2.96%. P/E ratio at 13.57 vs. the industry average at 19.56. PEG ratio at 1.28 vs. the industry average at 1.89. Price/Cash Flow ratio at 7.12 vs. the industry average at 10.94. The stock has gained 0.39% over the last year.

5. The Coca-Cola Company (NYSE:KO): Beverage Industry. Market cap of $148.69B. Dividend yield at 2.9%. P/E ratio at 6.59 vs. the industry average at 13.64. PEG ratio at 1.46 vs. the industry average at 1.68. Price/Cash Flow ratio at 5.91 vs. the industry average at 8.28. The stock has gained 25.19% over the last year.

6. Wal-Mart Stores Inc. (NYSE:WMT): Discount, Variety Stores Industry. Market cap of $187.33B. Dividend yield at 2.78%. P/E ratio at 9.32 vs. the industry average at 13.7. PEG ratio at 1.21 vs. the industry average at 1.37. Price/Cash Flow ratio at 6.7 vs. the industry average at 9.91. The stock has lost 0.06% over the last year.

7. The Chubb Corporation (NYSE:CB): Property & Casualty Insurance Industry. Market cap of $17.44B. Dividend yield at 2.64%. P/E ratio at 7.31 vs. the industry average at 21.3. PEG ratio at 0.93 vs. the industry average at 1.2. Price/Cash Flow ratio at 6.9 vs. the industry average at 18.08. The stock has gained 19.63% over the last year.

8. PPG Industries Inc. (NYSE:PPG): Specialty Chemicals Industry. Market cap of $14.05B. Dividend yield at 2.51%. P/E ratio at 17.64 vs. the industry average at 123.6. PEG ratio at 1.58 vs. the industry average at 3.62. Price/Cash Flow ratio at 10.86 vs. the industry average at 14.65. The stock has gained 40.4% over the last year.

9. Medtronic, Inc. (NYSE:MDT): Medical Appliances & Equipment Industry. Market cap of $40.88B. Dividend yield at 2.36%. P/E ratio at 11.07 vs. the industry average at 20.89. PEG ratio at 1.49 vs. the industry average at 1.51. Price/Cash Flow ratio at 9.15 vs. the industry average at 13.59. The stock has lost 11.28% over the last year.

10. McCormick & Co. Inc. (NYSE:MKC): Processed & Packaged Goods Industry. Market cap of $6.50B. Dividend yield at 2.29%. P/E ratio at 12.34 vs. the industry average at 23.98. PEG ratio at 1.86 vs. the industry average at 2.23. Price/Cash Flow ratio at 10.24 vs. the industry average at 15.47. Relatively low correlation to the market (beta = 0.41), which may be appealing to risk averse investors. The stock has gained 30.89% over the last year.

11. Air Products & Chemicals Inc. (NYSE:APD): Chemicals Industry. Market cap of $18.70B. Dividend yield at 2.25%. P/E ratio at 17.69 vs. the industry average at 123.5. PEG ratio at 1.79 vs. the industry average at 3.62. Price/Cash Flow ratio at 9.62 vs. the industry average at 14.65. The stock has gained 19.68% over the last year.

12. AFLAC Inc. (NYSE:AFL): Accident & Health Insurance Industry. Market cap of $26.12B. Dividend yield at 2.16%. P/E ratio at 15.1 vs. the industry average at 21.52. PEG ratio at 0.84 vs. the industry average at 1.2. Price/Cash Flow ratio at 14.93 vs. the industry average at 18.52. The stock has gained 7.86% over the last year.

13. Exxon Mobil Corp. (NYSE:XOM): Major Integrated Oil & Gas Industry. Market cap of $407.32B. Dividend yield at 2.14%. P/E ratio at 11.1 vs. the industry average at 13.47. PEG ratio at 1.23 vs. the industry average at 2.37. Price/Cash Flow ratio at 7.56 vs. the industry average at 8.39. The stock has gained 26.11% over the last year.

14. RLI Corp. (NYSE:RLI): Property & Casualty Insurance Industry. Market cap of $1.17B. Dividend yield at 2.09%. P/E ratio at 7.3 vs. the industry average at 21.3. PEG ratio at 0.92 vs. the industry average at 1.2. Price/Cash Flow ratio at 7.22 vs. the industry average at 18.08. The stock is a short squeeze candidate, with a short float at 8.21% (equivalent to 12.57 days of average volume). The stock has gained 16.26% over the last year.

15. Nacco Industries Inc. (NYSE:NC): Farm & Construction Machinery Industry. Market cap of $844.20M. Dividend yield at 2.08%. P/E ratio at 5.48 vs. the industry average at 13.79. PEG ratio at 0.2 vs. the industry average at 1.55. Price/Cash Flow ratio at 4.03 vs. the industry average at 10.79. Note that this is a risky stock that is significantly more volatile than the overall market (beta = 2.37). It's been a rough couple of days for the stock, losing 7.72% over the last week.

16. Hormel Foods Corp. (NYSE:HRL): Meat Products Industry. Market cap of $7.39B. Dividend yield at 1.84%. P/E ratio at 12.61 vs. the industry average at 23.98. PEG ratio at 1.73 vs. the industry average at 2.23. Price/Cash Flow ratio at 10.28 vs. the industry average at 15.47. The stock is a short squeeze candidate, with a short float at 54.26% (equivalent to 7.98 days of average volume). The stock has gained 37.12% over the last year.

17. Archer Daniels Midland Company (NYSE:ADM): Farm Products Industry. Market cap of $23.0B. Dividend yield at 1.77%. P/E ratio at 7.91 vs. the industry average at 24.95. PEG ratio at 1.53 vs. the industry average at 2.24. Price/Cash Flow ratio at 6.09 vs. the industry average at 15.57. The stock has gained 28.43% over the last year.

18. Tennant Co. (NYSE:TNC): Diversified Machinery Industry. Market cap of $743.92M. Dividend yield at 1.74%. P/E ratio at 11.08 vs. the industry average at 13.84. PEG ratio at 1.08 vs. the industry average at 1.56. Price/Cash Flow ratio at 8.33 vs. the industry average at 10.82. The stock has gained 47.88% over the last year.

19. HB Fuller Co. (NYSE:FUL): Specialty Chemicals Industry. Market cap of $1.06B. Dividend yield at 1.31%. P/E ratio at 12.16 vs. the industry average at 123.6. PEG ratio at 2.72 vs. the industry average at 3.62. Price/Cash Flow ratio at 8.12 vs. the industry average at 14.65. The stock has lost 6.34% over the last year.

20. Helmerich & Payne Inc. (NYSE:HP): Oil & Gas Drilling & Exploration Industry. Market cap of $6.56B. Dividend yield at 0.39%. P/E ratio at 16.05 vs. the industry average at 18.16. PEG ratio at 1.82 vs. the industry average at 2.91. Price/Cash Flow ratio at 9.22 vs. the industry average at 12.23. The stock has gained 51.59% over the last year.

Source: The Top 20 Most Undervalued Dividend Champions