BUY NOW? Down Big-Time! 3 Stocks Worth Your Money!

BUY NOW? Down Big-Time! 3 Stocks Worth Your Money!

like the idea of buying stocks on near-term weakness looking for cheap deals in an expensive market want to know about stocks that are 25 or more off of their 52-week highs then you have to check out today’s video he is a best-selling author 30 year old jason fever has a plan this guy retired at only 33 years old i don’t know if i know too many people to accomplish something like that he’s really kind of a guru when it comes to passive income [Music] before i get into today’s content please give us a big thumbs up if you find value in our videos helps us to get the word out and grow the channel i’d really appreciate it the u.s stock market is at an all-time high right now it just continues to hit new high after new high i’ve been investing for more than a decade now and you know what i’ve learned don’t bet against the u.s stock market despite all of the concerns in the world on any given day u.s businesses are incredibly resilient and profitable and that means higher stock prices over the long run that’s especially true for high quality dividend growth stocks i’m talking about stocks that pay reliable rising dividends that’s because the underlying businesses are producing reliable rising profits the u.s stock market is a money machine and high quality dividend growth stocks tend to be some of the best components within that machine that said it’s also not a great idea to follow lemmings off a cliff and buy overvalued stocks right for a fall so what’s an investor to do well taking a look at stocks that are well off of their 52 week highs isn’t a bad start if they’ve already been beaten up for one reason or another that could provide you with some nice upside potential as the names recover today i want to tell you about three dividend growth stocks that are 25 or more off of their respective 52 week highs ready let’s dig in the first stock that’s well off of its 52 week high is cmc materials inc stock ticker cc mp cmc materials is a materials company with a market cap of over 3 billion dollars this is an interesting name that’s perhaps too big to be a small cap but also very small for a mid cap you don’t often see companies of this size paying out growing dividends but cmc materials bucks the trend they’ve increased their dividend for six consecutive years with a three year dividend growth rate of 29.6 and a yield of 1.5 the scale tilts more toward growth than yield with the stock but the dividend they pay is very safe they paid out about 40 million dollars in total dividends over the last nine months while free cash flow over that time period came in at over 148 million dollars the strong dividend growth has come from a lot of business growth revenue and earnings per share have both more than doubled over the last decade this stock is down almost 40 percent from its 52-week high this stock probably got way ahead of itself earlier this year but if you didn’t buy in at the highs buying in closer to the lows could be advantageous for you their last quarter showed 12.7 year-over-year revenue growth so it’s not like the business has fallen off a cliff most basic valuation metrics are significantly lower than their respective recent historical averages so this is a name to take a look at the second dividend growth stock i want to highlight is calavo growers inc stock ticker cvgw calavo is an international consumer goods and farm products company with a market cap of almost one billion dollars this company is primarily in the avocado distribution business the stock is firmly in the small cap zone which could be why it flies under the radar even though it is a rather small company it does pay an attractive dividend that’s been growing nicely this company has increased its dividend for nine consecutive years the stock yields 2.2 percent to go along with the five-year dividend growth rate of 7.5 percent these are pretty solid numbers the yield easily beats the market and the high single-digit dividend growth rate easily beats inflation the one thing that’s perhaps a bummer about the dividend is that it’s paid annually rather than quarterly gap earnings per share can fluctuate wildly but free cash flow does currently cover the dividend handily this last fiscal year walloped their results but i’ll note that revenue still doubled over the last 10 years and if we back things up one year the nine-year compound annual growth rate for earnings per share is nearly 14 good numbers the stock is down nearly 40 percent from its 52-week high right now talk about a fire sale this thing has been thrown out faster than a bad avocado its 52 week high is 85 and 40 cents shares are now trading hands for around 52 bucks most basic valuation metrics show a deep discount here in terms of valuation it’s five year average yield for example is one point four percent so the current yield is eighty basis points higher than that if you’re looking for a unique small cap stock that’s well off of its highs this is a name worth considering last but not least let’s talk about choice one financial services inc stock ticker cofs choice one is a community bank with a market cap of less than 200 million dollars this small bank doing business in western michigan naturally features more risk than a global megabank but you could make an argument that investors buying today are being compensated with a nice yield and low valuation plus the dividend continues to grow like clockwork this bank has increased its dividend for nine consecutive years the stock yields three point six percent which blows away the market and most other banks the five-year dividend growth rate of six point five percent certainly gets the job done when you’re getting a yield like that and the payout ratio of 35.8 percent gives someone no pause when it comes to dividend safety the bank’s revenue has tripled over the last decade while earnings per share has more than doubled over that time frame the growth here has not been lackluster this stock has been hammered this year down more than 25 from its 52-week high the 52-week high is 32 and 80 cents but the stock is now priced at less than 25 a share so we’re talking about a major correction in this name every basic valuation metric is screaming cheap for instance the price to book ratio is only 0.8 almost every bank i know of is above 1 right now this stock’s 5-year average price to book ratio is 1.2 if you’re willing to take the risk on a small community bank this is a compelling dividend growth stock offering an above average yield at a below average valuation thanks so much for watching i hope you enjoyed today’s video give us a like if you did and let us know in the comments what you think about these stocks please make sure to subscribe to the channel and ring that notification bell so you don’t miss out on new content also take a look at the description box below for some important links including the link to my personal stock portfolio this six figure portfolio which i call the fire fund generates enough passive dividend income for me to live off of it allowed me to retire in my early 30s i’ve made my portfolio entirely accessible over a patreon and i also post alerts there whenever i buy or sell stock i put my money where my mouth is and i’m often invested in the same high quality dividend growth stocks that i make videos on over the years i’ve heard from thousands of investors who have been profiting from many of the same exact stocks that i own so if you think this is something that you could benefit from as well check the link in description to see my portfolio and start getting my buy and sell alerts i’ll see you next time [Music] you
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BUY NOW? Down Big-Time! 3 Stocks Worth Your Money!

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