Markets have been on a tear last few months, breaking new all-time high records multiple times. The catalysts during the last few months have been a better than expected earnings season, good job reports, multiple rate cuts by the Feds, and finalization of the agreement on phase-1 of the trade deal with China. Further progress may now depend on the earnings season that's due to start mid January. However, earlier this week, the market took a little pause when it slumped for a couple of days due to geopolitical tensions with Iran, though the situation de-escalated rather quickly, or at least that's the impression for now. But we must remember that there always will be some wall of worry for the market to climb. As long as we do not have a real possibility of a near-term recession or some serious geopolitical shocks, markets should continue to chug along.
S&P 500 ETF (SPY) six-month chart, courtesy Yahoo Finance
Fortunately, as long-term dividend investors, we need not pay too much attention to the day-to-day movements of the market. We need to pay attention to the quality of companies that we buy and buy them when they are being offered relatively cheap. The markets may be expensive at a given point in time, but they're always are some stocks that are being traded cheap in relation to their intrinsic valuation, but at the same time remain fundamentally strong. And that's the focus of this series of articles.
Irrespective of the market's day-to-day gyrations, we remain on the constant lookout for companies that offer sustainable and growing dividends and maybe trading cheap on a relative basis to the broader market as well as to their respective 52-week highs. We believe in keeping a buy list handy and dry powder ready so that we can
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