Four Dividend Growth Stocks to Consider on Dips

I was able to identify a few dividend growth stocks that I find to be attractively valued today. That doesn’t mean that these companies will not decline further in share prices from here. It also doesn’t mean that those are recommendations for you to act upon. These are just a few companies that I believe are attractively valued today, and are likely to grow earnings and dividends over the next decade or so. If that thesis plays out, it is also likely that share prices will grow over time.

The companies include:

The J. M. Smucker Company (SJM) is a manufacturer and marketer of branded food and beverage products and pet food and pet snacks in North America. The Company's segments include U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Foodservice. The company is a dividend achiever, which has managed to increase dividends for 20 years in a row. Over the past decade, it has managed to boost dividends at a rate of 9.80%/year. Earnings per share grew from $3.03 in 2008 to $5.11 in 2017. The company is expected to earn $7.72/share in 2018. It is selling for close to 20 times earnings and yields 3%. It could be an interesting idea below $102 - $103/share. Check my analysis of J.M. Smucker for more information about the company.

Hormel Foods Corporation (HRL) is engaged in the production of a range of meat and food products. The Company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store (JOTS), Specialty Foods,, and International & Other. The company is a dividend king, which has managed to increase dividends for 51 years in a row. Over the past decade, it has managed to boost dividends at a rate of 15.30%/year. Earnings per share grew from $0.55 in 2007 to $1.68 in 2016. The company is expected to earn $1.56/share in 2017. It is selling for close to 20 times earnings and yields 2.10% It could be an interesting idea below $33 - $34/share. Check my analysis of Hormel Foods for more information about the company.

The Walt Disney Company (DIS) is an entertainment company. The Company operates in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. The company is a dividend challenger, which has managed to increase dividends for seven years in a row. Over the past decade, it has managed to boost dividends at a rate of 18.80%/year. Earnings per share grew from $2.34 in 2007 to $5.76 in 2016. The company is expected to earn $5.81/share in 2017. It is selling for less than 20 times earnings and yields 1.60%. It could be an interesting idea below $105 - $106/share. Check my analysis of Walt Disney for more information about the company.

Altria Group, Inc.(MO) manufactures and sells cigarettes, smokeless products, and wine in the United States. The company is a dividend champion, which has managed to increase dividends for 48 years in a row. Over the past decade, it has managed to boost dividends at a rate of 11.60%/year. Earnings per share grew from $1.49 in 2007 to $3.03 in 2016. The company is expected to earn $3.26/share in 2017. It is selling for less than 20 times forward earnings and yields 4.10%. It could be an interesting idea around $61 - $63/share, or below. Check my analysis of Altria for more information about the company.

Relevant Articles:

- How to become a successful dividend investor
- Dividend Kings List for 2017
- How to value dividend stocks
- Why do I use a P/E below 20 for valuation purposes?
- Rising Earnings – The Source of Future Dividend Growth