3 High-Yielding, Discounted Dividend Growth Stocks

I’ve been working with Portfolio Insight to develop a Dividend Quality Grade for dividend stocks. 

We evaluate all dividend-paying stocks and assess the likelihood of a dividend increase in the next twelve months. We also identify stocks at risk of freezing or cutting their dividends. In backtests, our approach accurately predicted a failure to continue dividend increases in more than 98% of cases!

For this article, I used a pre-release version of Dividend Quality Grades to extract Dividend Champions and Dividend Contenders with A+ Dividend Quality Grades. These are Exceptional dividend growth stocks with solid fundamentals and dividend increase streaks of ten years or more. 

Additionally, I screened for stocks trading below my fair value estimates. These stocks offer good value and are suitable for immediate investment.

Finally, I screened for stocks with forward dividend yields of at least 4%. As a dividend growth investor within a few years of retirement, I’m interested in finding candidates with higher yields. Investing in higher-yielding stocks allows me to reinvest dividends and grow my portfolio of dividend growth stocks faster.