DivGro Pulse: November 2016

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Positions To Boost

Based on the information presented here, I’ll be looking for opportunities to add shares to a few of my DivGro positions or to look for suitable put options trades. By selling a put, I can set my entry price and collect an options premium while waiting for the stock to drop to my preferred price.

Please note that I’m not recommending these stocks. Readers should do their due diligence!

In the following descriptions, the yield is calculated on closing prices on 23 November 2016, payout is the EPS (earnings per share) payout ratio, and debt is the stock’s debt to equity ratio. I also include Morningstar’s moat rating and Standard and Poor’s credit rating. Value Line’s safety and financial strength ratings round things out.

– T. Rowe Price Group Inc (NASDAQ:TROW)

streak 30 years 5-year growth rate 14% yield 2.91% @ $74.28 payout 52% debt 0% moat wide credit rating N/A safety 2 financial strength A+

Dividend Champion T. Rowe Price Group Inc (NASDAQ:TROW) is trading at about fair value. I like the stock’s yield, dividend growth rate, and the fact that it has zero debt. S&P Capital IQ gives T. Rowe Price Group Inc (NASDAQ:TROW) a Quality Ranking of A-.

Follow Price T Rowe Group Inc (NASDAQ:TROW)

– QUALCOMM, Inc. (NASDAQ:QCOM
streak 14 years 5-year growth rate 20% yield 3.11% @ $68.13 payout 62% debt 38% moat narrow credit rating A+ safety financial strength A++
QUALCOMM, Inc. (NASDAQ:QCOM) is trading at a discount of 8% to my fair value estimate. I own 100 shares, but those shares are in one of my FolioInvesting accounts and not eligible for options trading. I’m thinking about executing a covered call trade.

Follow Qualcomm Inc (NASDAQ:QCOM)

– Cisco Systems, Inc. (NASDAQ:CSCO)
streak 6 years 3-year growth rate 32% yield 3.50% @ $29.69 payout 49% debt 45% moat narrow credit rating AA- safety 2 financial strength A++

Cisco Systems, Inc. (NASDAQ:CSCO) is trading at a 13% discount to fair value. I own 200 shares of Cisco Systems, Inc. (NASDAQ:CSCO). I’m considering doubling my position and writing calls against my position.

Follow Cisco Systems Inc. (NASDAQ:CSCO)

Thanks for reading and take care, everybody!

Note: FerdiS manages and writes about DivGro, his portfolio of dividend growth stocks created in January 2013. Please visit divgro.blogspot.com.

Additional Links:

(1) http://seekingalpha.com/news/3214453-cat-ceo-oberhelmans-early-departure-warning-analysts-say

(2) http://seekingalpha.com/article/4024899-10-dividend-growth-stocks-november-2016

(3) http://pennantparkinvestment.mwnewsroom.com/press-releases/pennantpark-investment-corporation-announces-financial-results-for-the-fourth-qu-nasdaq-pnnt-1286845

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