Not exact matches
One would want to
pick out those high -
quality dividend
growth stocks that are priced less than they're actually worth for three massive reasons:
In short, you'd have the opportunity to 1) capture a double - digit annualized yield or 2)
pick up a high
quality dividend
growth stock at an even larger discount than what it's already trading for.
Guardian Capital is a global investor that believes
quality dividend
growth is a worthy proxy for corporate
growth, and a critical element in
picking stocks.
Earlier this week I was able to take advantage of the selloff and
pick up two high
quality dividend
growth stocks on the cheap: Phillip Morris International (PM) and Time Warner (TWX).
Furthermore, a good example of the
quality concept is
picking the investment with a 5 % yield over an 8 % yield because the 5 %
stock offers a 10 % annual dividend
growth rate.
The
Quality, Valuation,
Growth (QVG) model and valuation tools discussed in - depth will be invaluable for
picking stocks for the active portion of your portfolio.
But my main objection comes from a
stock picking perspective & is perhaps better served with an example: Let us presume you find two VERY SIMILAR & CHEAP high
quality /
growth stocks (regardless of market cap) in two different markets — one growing at 2 % real GDP, and the other at 7 % real GDP — which
stock would you buy?!
Stock -
picking: The temptation is perhaps to look for value
stocks in value markets — while that seems to make compelling sense, I actually think value markets offer far better opportunities to buy high
quality /
growth stocks for the long - term at a reasonable price (much like buying the best companies in a recessionary market).
Naturally, prudent
stock -
picking is implied here, and this Brexit aftermath is best treated as an ideal opportunity to upgrade to higher
quality /
growth companies at a better price.