We’re in a tough market right now. Everything seems so unstable and even more overpriced. Everyone today looking for value buys for long-term dividend growth companies are running short on options. A lot of people I talk to have resorted to hoarding cash in hopes of a buying opportunity. While this is always a viable option, why not invest in low volatile, fairly priced, dividend growth companies? Because you can’t find them right? Well, I think you’d be surprised to know that three of the most well known dividend companies are hiding right under your nose.
1.) Anheuser-Busch (BUD) :
Anheuser-Busch is the largest brewing company in the United States. They brew your favorites such as, Budweiser, Busch, Bud Light, Shocktop and many more. They have a market share of roughly 46.5%. BUD is up 4.55% YTD and 154.66% over the past 5 years. I believe BUD is undervalued right now and could increase an easy 6-7% back to it’s 52 week high of $132.91. Oh, not to mention Anheuser-Bush currently pays a 3.74% dividend. I actually just bought some shares of BUD today.
2.) Kimberly-Clark (KMB) :
Kimberly-Clark manufactures essentials such as Kleenex brand tissues, Huggies brand diapers, Wypall wipes, Scott toilet tissue, the list goes on and on. These are called essentials for a reason, people don’t go without them. Whether you’re extremely wealth or extremely poor, you use toilet paper, tissues, diapers for babies, etc. KMB has increased their dividend for 43 years and they aren’t going anywhere. KMB has increased 15.28% YTD and 134.31% over the past 5 years. With a price to earnings ratio of 24.16 and a dividend yield of 2.83% I think it’s a great buy right now.
3.) Coca-Cola (KO) :
It’s almost like beating a dead horse with this one. Is there really ever a bad time to buy Coca-Cola? KO owns roughly 30% of the global market share of the beverage industry. Currently in a little dip, down about 5% from late July, with a P/E ratio of 24.98 and a dividend of 3.22% Coca-Cola is absolutely a buy at these levels.
Don’t miss out on the opportunity to get some high class names for a fair price. And don’t be discouraged by the current state of the market, though most stocks are indeed overpriced. There are plenty of diamonds in the rough, if you will. Keep your eyes open and don’t let the good ones slip through your fingers!
What stocks are you watching this week?