11 Undervalued Dividend Growth Stocks for the Week of 02/21/2022

Welcome back to this weekly series reviewing the market and identifying undervalued dividend growth stocks to research.

This upcoming short trading week does not look like it will be a calm one. The pre-market major indexes are currently showing a steep decline to start of the week.

The biggest concern for the market right now seems to be the ongoing potential conflict between Russia and the Ukraine. The uncertainty surrounding the next steps in this escalation is causing additional selling pressure across all stocks. Additional concerns with high inflation and rising interest rates have continued to wreck havoc on the high growth-high valuation stocks especially, but a lot of other companies are being brought down with the ship.

For the week ending February 18th, the S&P 500 ended down another 1.58%, Dow was down 1.90%, and the NASDAQ down 1.76% for the week. The overall market still continues its downward trend for the year as well, down 8.76%, 6.22%, and 13.40%, respectively. Long term investors see this as continued opportunity but for newer investor this year has been a wake up call on the volatility that the market can bring at us.

With that said, here are some quality dividend growth stocks that are appearing undervalued based on all 5 of my valuation methods, including:

1. Discount to Analyst Price Target
2. 5% or more off the 52-week high
3. Discounted Cash Flow (DCF)
4. P/E Mean Reversion
5. Dividend Yield Theory (DYT)

For more information on how to calculate these valuation formulas, check out my How to Value a Dividend Stock post: https://dividendstockpile.com/how-to-value-a-dividend-growth-stock/

The following are new companies on the list this week:

• INTC
• LEG
• TXN

The others – FNF, HBI, IIPR, MDT, MMM, SBUX, SWK, and TROW continue from last week as remaining undervalued.

As I mention each week, valuation is only one part of the decision that investors need to evaluate. Other metrics, dividend safety, earnings growth, payout ratio and other ratios should be considered before investing.

Thanks for reading and happy investing!